MEXICO: Market investment boosts Arca Continental FY profits
- Full-year net profits soar by 48.8% to MXN3.91bn (US$304.6m)
- Sales amount to MXN44.67bn, an increase of 65.1%
- EBITDA grows by 57.9% to reach MXN6.66bn
- Fourth quarter net profits almost double to MXN974m
Arca Continental's full-year net profits soared by 48.8%
Arca Continental has said it reaped the rewards of investment in the beverage market after recording an increase in full-year profits.
Net profits soared by 48.8% to MXN3.91bn (US$304.6m) in the 12 months to the end of December, the company reported today (22 February). EBITDA grew by 57.9% to reach MXN6.66bn.
Sales in the period amounted to MXN44.67bn, an increase of 65.1% on the prior-year period. The increase reflected an 8% rise in volumes as a result of an adjustment for inflation, change in mix and exchange rate parity for the firm's South American operations.
Due to the merger between Embotelladoras Arca and Grupo Continental that closed on 1 June, 2011, full-year results include 12 months of Embotelladoras Arca and seven months of Grupo Continental, while results for the fourth quarter include three months of Embotelladoras Arca and three months of Grupo Continental.
In the fourth quarter, net profits almost doubled, climbing by 92.5% to MXN974m. Operating profits grew by 41.5% to MXN1.6bn, while sales increased by 75.2% to MXN13.83bn.
On the firm's underlying performance, Arca Continental's CEO, Francisco Garza Egloff, said: "I am pleased to report that we achieved favourable year-end results with net sales above expectations and a significant increase in EBITDA, by overcoming the challenge of rising costs of key inputs in our industry.
"In 2012 we expect the peso/dollar exchange rate, as well as the price of sweeteners, to stabilise to more favourable levels. This, combined with the benefits we expect to obtain from synergies in Mexico and the investments made in South America, point to a year of solid growth and profitability for our company."
Click here to view the full earnings release.
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