ARCA CONTINENTAL REPORTS EBITDA GROWTH OF 5.8% WITH NET SALES UP 5.3% IN 1Q20
MONTERREY, Mexico, April 23, 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 first quarter of 2020 (“1Q20”).
Table 1: Financial Highlights1Q20 HIGHLIGHTS
Net Sales increased 5.3% when compared to 1Q19 to Ps. 38,893 million.EBITDA totaled Ps. 6,637 million, 5.8% higher than 1Q19 and for a margin of 17.1%.Net Income grew 57.4% to Ps. 2,678 million for a margin of 6.9%.COMMENTS FROM THE CHIEF EXECUTIVE OFFICER
“In the face of the historic public health crisis we are experiencing throughout the world, at Arca Continental we have focused, with the utmost priority, on carrying out strict safety and hygiene measures to provide a safe workplace for our collaborators. In parallel, we have also established community support programs for the healthcare system, for the most vulnerable groups and for our value chain, while at the same time ensuring the supply necessary for hydration, food and snacks in the various territories we serve,” stated Arturo Gutiérrez, Chief Executive Officer de Arca Continental.“Despite a complicated close to the first quarter of this year, basically due to mobility restrictions and temporary closures for our customers in the countries in which we operate, the solid start we had for the year translated into growth of 5.3% in revenues and 5.8% in EBITDA. To serve under this new market reality and mitigate as much as possible its impact on our performance, we have set in motion a comprehensive program aimed mainly at optimizing our operating expenses and investments, as well as rapidly adapting our models of operation in every stage of production, distribution and execution at the point of sale, accelerating the implementation of digital initiatives and direct-to-home sales, seeking to protect profitability and be better positioned to return to sustainable growth,” he added. Note: The full earnings report and all financial tables are available for download in MS Excel format at the following link: http://www.arcacontal.com/investors/financial-reports.aspxOn March 12, 2020, our plant “Las Fuentes” in Jalisco received the National Quality Award, granted by the Mexican Ministry of the Economy (Secretaría de Economía). This award recognizes best practices and a commitment to continuous improvement and quality excellence.On March 31, 2020, the ratings agency Standard & Poors ratified the credit rating of AC and AC Bebidas of “mxAAA” with a stable outlook, the highest rating in Mexico.In April, the rating agency Moody’s ratified AC’s credit rating and changed the outlook from stable to negative as a result of the rating downgrade of the Mexican Government. Additionally, Fitch also ratified the rating of AC and AC Bebidas of “A” with a stable outlook.CONFERENCE CALL INFORMATION
Arca Continental will host a conference call on April 23, 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: 36151About 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.
