MEXICO: Volumes slow for Arca Continental in Q1 but profits climb

By | 29 April 2013

  • Q1 net profits rise by 11.3% to MXN1.09bn (US$89.8m)
  • Net sales in three months to the end of March increase by 8.3% to MXN13.38bn
  • Operating profits also up by double figures, by 12.7% to MXN1.81bn
  • Total volumes inch up, by 0.8%
Arca Continental posted its Q1 results late last week

Arca Continental posted its Q1 results late last week

Arca Continental has reported slowing volume growth for its first quarter, although sales and profits both held up well in the period.

The company, which is Latin America's second-largest Coca-Cola bottler, said late last week that net profits for the first three months of 2013 came in 11.3% up on the corresponding period a year earlier, at MXN1.09bn (US$89.8m). Net sales rose by 8.3% to MXN13.38bn, although volume sales were flat, up by 0.8%.

Operating profits held up well, increasing by 12.7% to MXN1.81bn.

While sparkling volumes slipped by 0.1% in the three-month period, water and still beverages collectively were up by 1%, with jug water volumes dipping by 0.7%.

The quarterly volumes contrast with full-year numbers, released in February, when volumes leapt by 20% in 2012.

"The actions that had the most impact (in Q1) were the optimisation of our pricing structure, cost improvements and perfecting our execution at the point of sale," said company CEO Francisco Garza Egloff. "Combined, these steps enabled us increase our market share and strengthen our leading position in the various categories and territories in which we participate.”

Earlier this month, Arca announced plans to invest to consolidate its positions in markets including Mexico, Argentina and Ecuador.

To read the company's official statement, click here.

Expert analysis

Soft Drinks in Mexico

Soft Drinks in Mexico industry profile provides top-line qualitative and quantitative summary information including: market share, market size (value and volume 2007-11, and forecast to 2016). The profile also contains descriptions of the leading players including key financial metrics and analysis of competitive pressures within the market. Essential resource for top-line data and analysis covering the Mexico soft drinks market. Includes market size and segmentation data, textual and graphical analysis of market growth trends, leading companies and macroeconomic information.

Sectors: Company results, Soft drinks, Water

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