Arca Continental Reports Revenues Growth of 5.6% With EBITDA Up 7.7% in 3Q20

10/27/2020, 2:15 PM (Source: GlobeNewswire)

MONTERREY, Mexico, Oct. 27, 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 third quarter and first nine months of 2020 (“3Q20” and “9M20”).

Table 1: Financial Highlights

DATA IN MILLIONS OF MEXICAN PESOS
 
 3Q203Q19Variation %
Total Beverage Volume (MUC)554.7587.4-5.6%
Net Sales44,81142,4155.6%
EBITDA8,6428,0247.7%
Net Income2,7442,7330.4%
    
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

3Q20 HIGHLIGHTS

  • Net Sales were 5.6% higher than 3Q19, reaching Ps. 44,811 million.
  • EBITDA totaled Ps. 8,642 million for a margin of 19.3%, representing an increase of 7.7% when compared to 3Q19 and an expansion of 40 basis points.
  • Net Income rose 0.4%, representing a margin of 6.1% totaling Ps. 2,744 million.

9M20 HIGHLIGHTS

  • Net Sales increased 4.4% to Ps. 126,649 million.
  • EBITDA totaled Ps. 23,514 million, 5.0% higher than 3Q19 for a margin of 18.6%.
  • Net Income grew 7.0% to Ps. 7,757 million for a margin of 6.1%, up 10 basis points.

COMMENTS FROM THE CHIEF EXECUTIVE OFFICER

"Focused on developing actions to counteract the effects of the pandemic in our territories, during the quarter we promoted an affordable product portfolio with a flexible price/pack architecture, supported by an agile execution at the point of sale. This enabled to grow our revenue by 5.6% and EBITDA by 7.7%, with a strong performance of our operations in Mexico and the U.S.,” stated Arturo Gutierrez, Chief Executive Officer of Arca Continental.

“Furthermore, we maintain our full commitment to provide support for our associates and customers in the face of the current economic challenges, while at the same time, improving our commercial capabilities by deploying digital initiatives and operating discipline to deliver profitable results for our shareholders,” he added.

ESG

  • Arca Continental was ratified for the fifth consecutive year to the London Stock Exchange’s FTSE4Good Index, which lists the world’s publicly-traded companies with the strongest commitment to best environmental, social and corporate governance practices.
  • As part of the Mexican Coca-Cola industry, AC participated in the delivery of ventilators to FUNSALUD for the treatment of patients affected by Covid-19. This program was part of our social investing strategy to confront the pandemic, aimed at three major pillars: support for the healthcare system, assistance to vulnerable groups and protecting the value chain.
  • In Argentina, Coca-Cola Argentina, Arca Continental and other organizations advanced in the promotion of the circular economy model with the installation of two Eco Points to receive recyclable material from the Iguazu area. Furthermore, in the coming weeks, other actions will be taken to strengthen the work of the recycling co-op group “Cooperativa de Reciclaje Cataratas,” by providing options for residents to separate their recyclable waste as well as a plan to bring awareness, in general, to the public.

RECENT EVENTS

  • On September 30, 2020, Arca Continental paid an extraordinary cash dividend of Ps. 1.50 per share, in one single payment, equivalent to a total amount of Ps. 2,646 million. The payout ratio for 2020 reached 72%.

Note: The full reports and the information in the financial tables 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 October 27, 2020 to discuss these results at 10:00 am Mexico/Monterrey time / 12:00 pm 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 produces, distributes, and markets beverages under The Coca-Cola Company brand, as well as snacks under the Bokados brand in Mexico, Inalecsa in Ecuador, and Wise and Deep River in the United States. With an outstanding history spanning more than 94 years, Arca Continental is the second-largest Coca-Cola bottler in Latin America, and one of the largest in the world. Through its Coca-Cola franchise, the company serves more than 123 million people in the Northern and Western regions in Mexico, as well as in Ecuador, Peru, in the Northern region of Argentina, and in the Southwestern United States. Arca Continental is listed on the Mexican Stock Exchange under the ticker “AC”. For more information about Arca Continental, please visit www.arcacontal.com

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