Arca Continental Reports 26% Growth in Net Income with EBITDA Margin up 110BPS in 2Q13

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Arca Continental Reports 26% Growth in Net Income with EBITDA Margin up 110BPS in 2Q13

MONTERREY, Mexico--(BUSINESS WIRE)-- Arca Continental, S.A.B. de C.V. (BMV: AC*), the second-largest Coca-Cola bottler in Latin America and the third largest Coca-Cola bottler worldwide announced today its results for the second quarter ("2Q13").

      

Table 1: Financial Highlights

 
Data in millions of Mexican pesos
 
2Q132Q12Variation %Jan - Jun '13Jan - Jun '12Variation %
Total Beverage Volume (MUC)360.5356.71.1662.8656.70.9
Net Sales15,82514,7867.029,20027,1377.6
EBITDA3,5883,18912.56,0565,30214.2
Net Income1,8781,49026.02,9672,46920.2
               
Total Beverage Volume includes jug water
EBITDA = Operating income + Depreciation + Amortization + Non Recurring Expenses
 

SECOND QUARTER 2013 (2Q13) HIGHLIGHTS:

  • Net sales reached Ps. 15,825 million representing an increase of 7%.
  • EBITDA was Ps. 3,588 million with a margin of 22.7%, up 110 basis points.
  • Net income grew 26% to Ps. 1,878 million with a margin of 11.9%.

FIRST HALF 2013 HIGHLIGHTS (1H13)

  • Net sales reached Ps. 29,200 million, representing a 7.6% increase.
  • EBITDA was Ps. 6,056 million with an EBITDA margin of 20.7%, up 120 basis points.
  • Net income grew 20.2% to Ps. 2,967 million with a net margin of 10.2%, up 110 basis points.

COMMENTS FROM THE CHIEF EXECUTIVE OFFICER:

"The strong foundation Arca Continental has built over the years with pillars such as constant innovation of our product portfolio and outstanding customer and consumer service enable us to face the current challenges affecting the global consumer sector. Despite soft volume growth, during the second quarter of 2013, Arca Continental posted 26% net profit growth and an EBITDA margin of nearly 23%, driven by improved efficiency and the capturing of synergies," stated Francisco Garza-Egloff, Chief Executive Officer.

"The double-digit growth we continue to achieve in the still beverages category drives us to innovate further and work towards capturing volume and value growth, at the same time reinforcing our leadership position in sparkling beverages. I'm pleased to report that Powerade has become the category leader within the traditional channel in our territories, thus motivating us to improve results further in the second half of the year," he added.

For a full version of this earnings release with financial statements, please visit: http://www.arcacontal.com/investors/financial-information.aspx

2Q13 EARNINGS CONFERENCE CALL

Arca Continental will host a conference call on Tuesday, July 23, 2013 to discuss these results at 10:00 am Mexico/Monterrey time, 11:00 am New York time.

To participate, please dial:

+1 800 311 9401 (From within the U.S.)
+001 800 368 1029 (Toll free within Mexico)
+1 334 323 7224 (International participants)
Access code: 36151

There will also be a live webcast of this event available at: http://www.arcacontal.com/inversionistas

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, 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 soft drinks, 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.



Arca Continental
Investor Relations:
Monterrey
Ulises Fernández de Lara, 52 (81) 8151-1525
ulises.fernandezdelara@arcacontal.com
or
Juan Hawach Sánchez, 52 (81) 8151-1547
juan.hawach@arcacontal.com
or
New York
i-advize Corporate Communications
Melanie Carpenter, 212-406-3692
arcacontal@i-advize.com
or
Corporate Communications:
Guillermo Garza, 52 (81) 8151-1589
guillermo.garza@arcacontal.com

KEYWORDS:   United States  Mexico  North America  Central America  New York

INDUSTRY KEYWORDS:

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