MONTERREY, Mexico--(BUSINESS WIRE)-- Arca Continental, S.A.B. de C.V. (BMV: AC*) (“Arca Continental” or “AC”), the second-largest Coca-Cola bottler in Latin America, announced today its results for the third quarter and first nine months ended September 30, 2017 (“3Q17” and “9M17”).
Table 1: Financial Highlights
|Data in millions of Mexican pesos|
|Total Beverage Volume (MUC)||560.2||450.2||24.4%|
|Total Beverage Volume includes jug water|
|EBITDA = Operating income + Depreciation + Amortization + Non Recurring Expenses|
- Net sales increased 46.7% when compared to 3Q16, reaching Ps. 35,830 million.
- EBITDA reached Ps. 6,811 million with a margin of 19%, representing an increase of 27.8% when compared to the same quarter of last year.
- Net Income rose 56.4% for a margin of 14.1% and a total of Ps. 5,049 million.
- Net sales increased 44.1% when compared to 3Q16, to Ps. 99,078 million.
- EBITDA totaled Ps. 19,200 million for a 19.4% margin, and a 28.6% increase when compared to 3Q16.
- Net Income grew 24.3% to Ps. 8,829 million at a margin of 9%.
COMMENTS FROM THE CHIEF EXECUTIVE OFFICER
“In a quarter characterized by the impact of significant natural disasters in some of our markets, where we reaffirmed the strong commitment of our company to our associates and the community, we achieved of 46.7% sales growth and 56.4% in net income, reflecting the integration of Coca-Cola Southwest Beverages, complemented with organic growth resulting from the right price-pack strategy, an innovative execution at the point of sale, and a team committed to satisfying the needs of our customers and consumers”, stated Francisco Garza Egloff, Chief Executive Officer of Arca Continental.
“During the third quarter, we also announced the acquisition of a new territory in Oklahoma, which incorporates the U.S. franchise we began serving last April; and we transferred Topo Chico mineral water brand rights in the U.S. to The Coca-Cola Company, which will open the door to new expansion opportunities for this product, which will continue to be of Mexican origin. Both transactions will allow us to continue delivering consistent results and create value to our shareholders”, he added.
- On August 28, 2017, the acquisition of Great Plains Coca-Cola Bottling Company was announced for a purchase price of USD $215 million. This new territory serves the state of Oklahoma, adding sales of approximately 40 million unit cases per year.
- On September 13, 2017, AC Bebidas issued Ps. 7,000 million in Mexican public bonds (Certificados Bursátiles) in two tranches, of which Ps. 1,000 million were issued for a tenor of 5 years accruing 28-dayTIIE plus 0.20 percentage points and Ps. 6,000 million were issued for a tenor of 10 years accruing interest at a fixed interest rate of 7.84%.
- On October 2, 2017, AC completed the transfer of Topo Chico mineral water brand rights in the U.S. to The Coca-Company for USD $220 million in order to expand and strengthen the national presence of these products in the U.S.
For a full version of this earnings release with financial statements, go to: http://www.arcacontal.com/investors.aspx
CONFERENCE CALL INFORMATION
Arca Continental will host a conference call on October 26, 2017 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.com or connect via telephone by dialing:
To participate, please dial:
+1-877-712-5080 (U.S. participants)
+1-334-245-3009 (International participants)
0-1-800-062-2650 (Mexico participants)
About Arca Continental
Arca Continental is a company dedicated to the production, distribution, and sale of non-alcoholic beverages which are brand names of The Coca-Cola Company as well as salty snacks under the brands of Bokados in Mexico, Inalecsa in Ecuador, and Wise in the United States. With an outstanding track record of more than 91 years, Arca Continental is the second largest Coca-Cola bottling company in Latin America and one of the most important in the world. Within its Coca-Cola franchise, the company serves a population of more than 118 million in the northern and western parts of Mexico as well as Ecuador, Peru, the northern region of Argentina and the Southwestern U.S. Arca Continental is listed on the Mexican Stock Market under the ticker symbol "AC". For further information about Arca Continental, please visit www.arcacontal.com
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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171026005791/en/
Ulises Fernández de Lara, 52 (81) 8151-1525
Felipe R. Barquin Goris, 52 (81) 8151-1674
i-advize Corporate Communications
Melanie Carpenter, 212-406-3692
Guillermo Garza, 52 (81) 8151-1589
Source: Arca Continental, S.A.B. de C.V.