During the third quarter of the year, Arca Continental (AC) achieved the highest consolidated EBITDA margin in the last eight years, according to the company. Market analysts like Ariel Méndez Velázquez from GFBX and Richard Horbach from Intercam Casa de Bolsa agree that AC's results in the quarter were favorable, thanks to price increases and favorable conditions in the different markets where it operates.
Méndez highlighted that, despite a contraction in volumes in all regions where AC is present, the company managed to compensate for this with positive factors in revenue, operating income, EBITDA, and net profit. He explained that in Mexico, the decrease in volumes was due to prolonged climatic conditions, while in the United States it was due to increased competition in the market.
In South America, the reasons for the volume decline were different, influenced by adverse economic conditions in Argentina, security issues in Ecuador, and a harsh winter that affected volumes in Peru. The positive effect of the exchange rate in the U.S. market was crucial in offsetting the drop in volumes, according to Méndez.
AC mentioned that without the effect of the exchange rate, their total sales would have only increased by 5.9%. Regarding volumes, the company reported a consolidated decrease of 4.6%, with specific drops in Mexico, the United States, and South America.
Arturo Gutiérrez, CEO of AC, pointed out that the implemented pricing strategy, combined with effective execution at the point of sale, contributed to the 10% increase in sales and a 10.2% rise in EBITDA during the third quarter of 2024. In this period, AC's net sales amounted to 62,613 million pesos, a 10% increase compared to the same period last year. Furthermore, EBITDA grew by 10.2%, reaching 12,684 million pesos.
In accumulated terms from January to September, AC's profits increased by 13.1% year-on-year, reaching 5,132 million pesos in the third quarter of the year. With a solid pricing strategy and strong financial performance, Arca Continental continues to demonstrate its strength in the beverage market.
