Arca Continental found strong growth in its cola category for 2016

Arca Continental found strong growth in its cola category for 2016

Late last week, Arca Continental reported its full-year results, revealing a strong rise in sales and profits. Here, just-drinks takes a closer look at the Mexico-based company's performance in the 12-month period by region and sector.

  • North America

Net sales for the region climbed by 14% in 2016, up to MXN57.2bn (US$2.9bn). EBITDA in the same period was up by 12% to MXN13.1bn. In volumes, colas performed well, rising 7% to 696m cases, while flavours jumped by 15% to 140m cases. Sparkling total volumes increased by 9%, while bottled water was up 14%. Powerade continued its positive trend with 32% growth for the full year and increasing its leading market share. Meanwhile, energy drinks jumped 83% for the year with the launch of Monster in the market.

Arca Continental - North America FY Performance 2011-2016

Source: Company results

Arca Continental - North America FY Volumes 2011-2016

Source: Company results

  • South America

Net sales for South America increased 39% to MXN36.5bn in the full year as operating profits jumped 40% to MXN7bn. This was despite a 4% volumes decline in Q4 due to economic issues in Argentina and the addition of taxes on sodas in Ecuador. In 2016, volumes jumped 43%. For the year, cola volumes climbed 47% to 328.5m cases. Flavours rose by 8% to 105.3m cases. Sparkling total volumes increased by 35% to 433.8m cases, while water surged 73% to 79.5m cases.

  • Argentina

In Q4, volumes declined 6%, mainly due to poor performances from still beverages and water. In the full year, volumes were down 9%.

  • Ecuador

Volumes dropped 13% in Q4, mainly due to declines in sparkling and single-serve water of 19% and 17%, respectively. This was partially offset by a 41% increase in still beverages. For the year, volumes were down 9% compared to 2015.

  • Peru

Arca completed its first full-year of operations in Peru with sales volumes up 3%.

Arca Continental - South America FY Performance 2011-2016

Source: Company results

Arca Continental - South America FY Volumes 2011-2016

Source: Company results

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