MONTERREY, Mexico--(BUSINESS WIRE)--Jul. 17, 2014-- Arca Continental, S.A.B. de C.V. (BMV: AC*) (“Arca Continental” or “AC”), the second-largest Coca-Cola bottler in Latin America and third-largest in the world, announced today its results for the second quarter of 2014 (“2Q14”).
Table 1: Financial Highlights
|Data in Millions of Mexican pesos|
|2Q14||2Q13||Variation %||Jan - Jun '14||Jan - Jun '13||Variation %|
Total Beverage Volume (MUC)
Total Beverage Volume includes jug water
EBITDA = Operating income + Depreciation + Amortization + Non Recurring Expenses
SECOND QUARTER 2014 HIGHLIGHTS
- Net sales reached Ps. 15,958 million, 0.8% higher when compared to 2Q13.
- EBITDA was Ps. 3,824 million with a record margin of 24%, up 120 basis points versus 2Q13.
- Net Income increased 3.1% to Ps. 1,935 million with a 12.1% margin, 20 basis points higher.
FIRST HALF 2014 HIGHLIGHTS
- Net sales reached Ps. 29,328 million, representing an increase of 0.4%.
- EBITDA was Ps. 6,478 million with a margin of 22.1%, up 130 basis points versus 1H13.
- Net Income increased 4.4% to Ps. 3,097 million with a 10.6% margin, 40 basis points higher.
COMMENTS FROM THE CEO
“The effort and passion to serve from all our team members, the constant market investment, as well as the targeted execution and actions that we have made in light of the new tax and low-consumption environment, have been key factors to continue strengthening our leadership position and deliver sound financial and operating results, despite the impact on our sales volumes in Mexico. Thanks to the ability to effectively manage our diverse product portfolio and maintain an efficient and competitive price architecture, EBITDA margin expanded 120 basis points, driven by cost and expense efficiencies strategies in Mexico and South America,” stated Francisco Garza Egloff, Chief Executive Officer of Arca Continental.
“These results reaffirm the competiveness that distinguishes our Company in all business areas and places us in a solid position to reach our long-term business objectives. Beginning in this quarter, the financial report reflect our participation in Tonicorp, in Ecuador, as part of our strategy of profitable and sustainable value creation”, he added.
- Latin Finance presented Arca Continental the award for “Best Managed Mexican Corporate”. To select the winner, the editors of this publication took into account qualitative and quantitative factors, including market opinions obtained via surveys.
- Arca Continental Argentina inaugurated a new Hot-Fill production line in its Salta plant. With an investment exceeding US$20 million, the Salta plant increases its capacity and operating flexibility. This investment is in addition to the US$40 million invested in 2013 as part of the strategic plan to reinforce the production operations in this country, which will continue over the next 2 years, in the various operations of the Company in Northern Argentina.
- On April 15, 2014, we completed our association with The Coca-Cola Company to acquire a majority stake in Holding Tonicorp, S.A.
CONFERENCE CALL INFORMATION
Arca Continental will host a conference call on Thursday, July 17, 2014 to discuss these results at 9:00 am Mexico/Monterrey time / 10:00 am New York time. A live webcast of this event is available at: www.arcacontal/inversionistas or connect via telephone by dialing:
From within the U.S. +1 800 311 9401
Toll-Free from within Mexico +001 800 368 1029
International Participants +1 334 323 7224
Access Code: 36151
About Arca Continental
Arca Continental produces, distributes and sells non-alcoholic beverages under The Coca-Cola Company brand, as well as snacks under the brands of Bokados in Mexico, Inalecsa in Ecuador and Wise in the U.S. with an outstanding history spanning more than 85 years, Arca Continental is the second-largest Coca-Cola bottler in Latin America and one of the largest in the world. Within its Coca-Cola franchise territory, the Company serves over 53 million consumers in Northern and Western Mexico, Ecuador and Northern Argentina. The Company's shares trade on the Mexican Stock Exchange under the ticker symbol "AC". For more information on Arca Continental, please visit www.arcacontal.com or download the AC Investor iPad app.
This material may contain forward-looking statements regarding Arca Continental and its subsidiaries based on management's expectations. This information as well as statements regarding future events and expectations is subject to risks and uncertainties, as well as factors that could cause the results, performance and achievements of the Company to differ at any time. Such factors include changes in the general economic, political, governmental and commercial conditions both domestically and globally, as well as variations in interest rates, inflation rates, exchange rate volatility, tax rates, the demand for and the price of carbonated beverages, water, and the price of sugar and other raw materials used in the production of sparkling beverages, weather conditions and various others. As a result of these risks and factors, actual results could be materially different from the estimates provided; therefore, Arca Continental does not accept responsibility for any variations or for the information provided by official sources.
Source: Arca Continental, S.A.B. de C.V.
Arca Continental, S.A.B. de C.V.
Ulises FernÃ¡ndez de Lara, 52 (81) 8151-1525
Juan Hawach SÃ¡nchez, 52 (81) 8151-1547
i-advize Corporate Communications
Melanie Carpenter, 212-406-3692
Guillermo Garza, 52 (81) 8151-1589