MEXICO: Arca Continental YTD profits, sales up despite Mexico weather
- Nine-month net profits up 18.3% to MXN4.7bn (US$364.1m)
- YTD net sales rise 7.9% to MXN45bn
- Operating profits up 13.3% to MXN9.6bn
- YTD volumes flat
Arca has performed strongly in its financial year-to-date
Extreme weather conditions in Mexico last month have failed to knock Arca Continental off track in its year-to-date results.
Latin American's second-largest Coca-Cola bottler saw net profits in the nine months to the end of September rise by 18.3% to MXN4.7bn (US$364.1m), it said yesterday (28 October). Net sales in the period increased by 7.9% to MXN45bn, while operating profits were up 13.3% to MXN9.6bn and volumes were flat.
In Q3, net profits jumped by 15.1% to MXN1.7bn, off the back of an 8.3% rise in sales to 15.9%. Operating profits in the three-month period increased by 11.7% to MXN3.5bn. The performance reflects a similarly strong first-half showing.
On its year-to-date performance, Francisco Garza Egloff, CEO of Arca, whose beverage territory includes Northern and Western Mexico, Ecuador and Northern Argentina, said: “We achieved these results despite a challenging environment that combined a weak consumption environment and extreme weather events in Mexico.”
He added: “Under the current conditions, our returnable and single-serve product mix has become a major competitive advantage differentiating us from other players and enabling us to more effectively manage the different economic scenarios that emerge.”
The Monterrey-headquartered group also acknowledged the Mexican Government's proposals to introduce a new tax on sugary drinks. But the company said: “Based on our strengths in the market such as our mix of single-serve and returnable packages, as well as a wide variety of no- or low-calorie products, Arca Continental is prepared to make the adjustments necessary to protect the profitability of its business.”
To read the company's full statement, click here
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