Arca Continental Reports Revenue Growth of 2.3% With EBITDA Up 1.8% in 2Q20

Friday, 24. July 2020 14:15

MONTERREY, Mexico, July 24, 2020 (GLOBE NEWSWIRE) -- Arca Continental, S.A.B. de C.V. (BMV: AC*) (“Arca Continental” or “AC”), the second-largest Coca-Cola bottler in Latin America, announced its results for the second quarter and first half of 2020 (“2Q20” and “6M20”).

Table 1: Financial Highlights

DATA IN MILLIONS OF MEXICAN PESOS
 
 2Q202Q19Variation %
Total Beverage Volume (MUC)527.1580.5-9.2%
Net Sales42,94541,9822.3%
EBITDA8,2358,0911.8%
Net Income2,3352,818-17.1%
    
Total Beverage Volume includes jug water  
Net Sales not including Revenues outside the territory (OT) in USA
EBITDA = Operating income + Depreciation + Amortization + Non Recurring Expenses

 

2Q20 HIGHLIGHTS

  • Net Sales reached Ps. 42,945 million, up 2.3% when compared to 2Q19.
  • EBITDA totaled Ps. 8,235 million, a margin of 19.2%, representing an increase of 1.8%.
  • Net Income declined 17.1% to Ps. 2,335 million for a margin of 5.4%.

6M20 HIGHLIGHTS

  • Net Sales increased 3.7% to Ps. 81,837 million.
  • EBITDA totaled Ps. 14,872 million, 3.5% higher than 2Q19 for a margin of 18.2%.
  • Net Income grew 10.9% to Ps. 5,013 million for a margin of 6.1%.

COMMENTS FROM THE CHIEF EXECUTIVE OFFICER

“In one of the most challenging quarters in our company’s history, we carried out a comprehensive plan to deal with the health crisis, focused primarily on the safety of our team members and support for the community, as we adapted our service models to drive the competitiveness of our customers and the value chain. These actions, combined with strict control of expenses, enabled us to achieve 2.3% revenue growth and 1.8% in EBITDA at the consolidated level,” stated Arturo Gutierrez, Chief Executive Officer of Arca Continental.

“Supported by the commitment and professionalism of our team, we will continue improving digital processes and execution at the point of sale in line with current market dynamics, and at the same time, seek to capitalize on our scale to protect the profitability of our business, maintaining a firm commitment to protect our people and serve the communities in which we operate,” he added.

RECENT EVENTS

  • On July 22, 2020, Fitch Ratings announced the ratification of the investment grade rating for Arca Continental, AC Bebidas, and Arca Continental Lindley, at both the global and national levels. The agency confirmed its “A” long-term credit rating in its global scale for AC and ACBE, and the “AAA(mex)” rating in its national scale, with a stable outlook. For Arca Continental Lindley, the agency also ratified its global “A” rating, with a stable outlook.

  • On June 23, 2020, Arca Continental was selected to join the new sustainability index launched jointly by Standard & Poor´s Dow Jones Index and the Mexican Stock Exchange. This recommendation validates the Company’s conviction to make sustainability an integral part of every business process.

  • On April 2020, Arca Continental´s Annual Shareholders´ Meeting approved the payment of a cash dividend of Ps. 2.42 per share, in one single payment as of April 16, 2020, equivalent to a total of Ps. 4,270 million. This dividend represented an increase of 5.2% when compared to the dividend paid in 2019.

Note: The full earnings report and financials are available for download in MS Excel format at the following link: http://www.arcacontal.com/investors/financial-reports.aspx

CONFERENCE CALL INFORMATION

Arca Continental will host a conference call on July 24, 2020 to discuss these results at 10:00 am Mexico/Monterrey time / 11:00 am New York time. A live webcast of this event will be available at www.arcacontal.com or connect via telephone.

To participate, please dial:
+1-877-712-5080 (U.S. participants)
+1-334-245-3009 (International participants)
0-1-800-062-2650 (Mexico participants)
Passcode:  36151

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 and Deep River in the United States. With an outstanding track record of more than 94 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 123 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.

Investor Relations Corporate Communications
   
MonterreyNew York 
Ulises Fernández de LaraMelanie CarpenterFidel Salazar
ulises.fernandezdelara@arcacontal.com
i-advize Corporatefidel.salazar@arcacontal.com
Ph: 52 (81) 8151-1525CommunicationsPh: 52 (81) 8151-1400 Ext. 11513
 Ph: (212) 406-3692 
Felipe R. Barquín Gorisarcacontal@i-advize.com
 
felipe.barquin@arcacontal.com
  
Ph: 52 (81) 8151-1674

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