MEXICO: Arca Continental H1 profits up despite weak volumes
- H1 profits increase by 20% to MXN2.97bn (US$237m)
- Sales up by 7.6% to MXN29.2bn
- Operating profits rise by 16.6% to MXN4.7bn
- Volumes climb slightly by 0.9%
Arca is finding growth in water
Arca Continental has overcome soft volumes to post strong profits and sales growth in its first-half.
Net profits rose by 20% to MXN2.97bn (US$237m) in the six months to the end of June, the Mexican company - Latin America's second-largest Coca-Cola bottler - said yesterday (23 July). Sales climbed by 7.6% to MXN29.2bn over the same period, while operating profits were up by 16.6% to MXN4.7bn.
Volumes stayed mainly flat, up by 0.9%, while sparkling beverages, which account for about three-quarters of Arca's overall volumes, dipped by 0.5%. Still beverages (+7.7%) performed better, and water posted a 13.4% increase, continuing a strong full-year performance announced in February.
Overall, the results mirrored Arca's Q1 results, where sales and profits rose despite weaker volumes.
Q2 saw profits up by 26% to MXN1.9bn and sales climb by 7% to MXN15.8bn. Operating profits jumped by 19% MXN2.9bn. Overall volumes rose by 1.1% in the second quarter, with still beverages up by 13.5%.
“The double-digit growth we continue to achieve in the still beverages category drives us to innovate further and work towards capturing volume and value growth, at the same time reinforcing our leadership position in sparkling beverages,” Arca CEO Francisco Garza-Egloff said.
Garza-Egloff added that Powerade has become the category leader within the traditional channel in Arca's territories.
In April, Arca announced plans to invest to consolidate its positions in markets including Mexico, Argentina and Ecuador.
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