Arca Continental Reports Revenue Growth of 22.5% with EBITDA up 20.3% in 2016

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 fourth quarter and full year of 2016 (“4Q16” and “2016”).

Table 1: Financial Highlights

Data in millions of Mexican pesos

4Q16

4Q15

Variation %

Total Beverage Volume (MUC)

438.4

430.1

1.9

Net Sales

24,894

22,441

10.9

EBITDA

5,163

4,742

8.9

Net Income

1,932

1,655

16.7

Total Beverage Volume includes jug water
EBITDA = Operating income + Depreciation + Amortization + Non Recurring Expenses

4Q16 HIGHLIGHTS

  • Net sales grew 11% when compared to 4Q15, reaching Ps. 24,894 million.
  • EBITDA was up 9% versus 4Q15 to Ps. 5,163 million, representing a margin of 20.7%.
  • Net income reached Ps. 1,932 million, up 16.7%, for a net margin of 7.8%.

12M16 HIGHLIGHTS

  • Net sales totaled Ps. 93,666 million for an increase of 22.5%.
  • EBITDA grew 20.3% to Ps. 20,092 million for a margin of 21.5%.
  • Net income registered 24.7% growth to reach Ps. 9,034 million, representing a net margin of 9.6%.

COMMENTS FROM THE CEO

“Our results for 2016 were outstanding, having achieved annual growth of 22.5% in sales and 20.3% in EBITDA. These figures highlight the financial and operating strengths of the Company to successfully face challenging conditions and deliver positive results in a consistent manner thanks to the professionalism of our people and our leadership in the market,” commented Francisco Garza Egloff, Chief Executive Officer of Arca Continental.

"Continuing on the path that we set towards profitable growth, it gives me great pleasure to report that we recently signed the definitive agreement with The Coca-Cola Company to be the exclusive bottler of the franchise in the U.S. Southwest, which is comprised of Texas and parts of Oklahoma, New Mexico and Arkansas. We expect to close this transaction in the second quarter of this year, which, together with the organic growth of our current businesses, will further improve Arca Continental’s competitiveness and geographic diversification, thereby consolidating our position as one of the most important Coca-Cola bottlers in the world,” he added.

CONFERENCE CALL INFORMATION

Arca Continental will host a conference call on February 24, 2017 to discuss these results at 8:30 am Mexico/Monterrey time / 9:30 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)
Passcode: 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 90 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 83 million consumers in Northern and Western Mexico, Ecuador, Peru 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.

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.

Contacts:

Investor Relations
Monterrey
Arca Continental
Ulises Fernández de Lara, 52 (81) 8151-1525
ulises.fernandezdelara@arcacontal.com
or
Felipe R. Barquin Goris, 52 (81) 8151-1674
felipe.barquin@arcacontal.com
or
New York
i-advize Corporate Communications
Melanie Carpenter, 212-406-3692
arcacontal@i-advize.com
or
Corporate Communications
Arca Continental
Guillermo Garza, 52 (81) 8151-1589
guillermo.garza@arcacontal.com

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.