MONTERREY, MEXICO / ACCESSWIRE / July 16, 2021 / 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 second quarter and first half of 2021 ("2Q21" and "6M21").
Table 1: Financial Highlights
2Q21 HIGHLIGHTS
- Net Sales reached Ps. 45,808 million, up 6.7% when compared to 2Q20.
- EBITDA rose 14.1% to Ps. 9,399 million, for an EBITDA margin of 20.5%, up 130 basis points.
- Net Income reached Ps. 3,130 million, up 34.0% and representing a net margin of 6.8%.
6M21 HIGHLIGHTS
- Net Sales reached Ps. 86,282 million, representing an increase of 5.4%.
- EBITDA rose 14.9% to Ps. 17,081 million for margin of 19.8%, 160 basis points higher than in 6M20.
- Net Income grew 14.0% to Ps. 5,715 million, representing a net margin of 6.6%, up 50 basis points.
COMMENTS FROM THE CHIEF EXECUTIVE OFFICER
"Thanks to our efforts to support customers during the pandemic, we capitalized on the recovery of consumption in key segments, as mobility restrictions and lockdowns were partially lifted, delivering sound financial results in the second quarter of 2021, with sales and EBITDA growing 6.7% and 14.1%, respectively," said Arturo Gutiérrez, Chief Executive Officer of Arca Continental.
"Our operational flexibility and the commitment of our associates were key factors to further improve our performance, adapting our portfolio to the needs of our customers and consumers, combined with a dynamic digital transformation. In the second half of the year, we will continue to face significant challenges in the market, and we are confident that our price-pack architecture, product portfolio, and financial discipline will continue to drive value creation," he added.
ESG
- As part of World Recycling Day, Arca Continental together with the Coca-Cola Industry in Mexico announced a three-year plan to invest $11 billion pesos in infrastructure projects, aimed at the country's sustainable development. The main objective is to increase job opportunities in the recycling chain and supply of recoverable waste by 51%, directly impacting the economic growth and well-being of thousands of Mexican families.
- Under the framework of World Earth Day, Arca Continental participated in the new campaign #JuntosParaAlgoMejor ("Together for Something Better") with the goal of fostering the use of returnable products as an option for the circular economy in order to reach the objectives set forth by "World Without Waste".
- Our beverage operation in the U.S. recently announced its commitment to double the amount of recycled content across the entire plastic packaging portfolio and significantly reduce the use of virgin plastic. By the end of 2021, recycled PET will account for 50% of every new plastic bottle that we produce.
- In Ecuador, the program "Mi Tienda, Mi Futuro" (My Store, My Future) was launched, which is focused on providing virtual workshops so store owners develop commercial and skills that will support growth for their businesses and enhance relations with consumers. In the first phase, over 1,000 customers in Guayaquil were trained using modern digital tools. In addition, thanks to live streaming tools, more than 17,000 entrepreneurs were reached throughout the country.
- In Peru, together with The Coca-Cola Company, the second version of the program #BodegaSinResiduos (Store Without Waste) was launched, seeking to convert stores and minimarkets in Lima into spaces where neighbors can recycle PET plastics. Collection containers were installed in stores eligible for this program.
- Also, for the 8th consecutive year the socially responsible company distinction was obtained in Peru and achieved the highest score among companies that participated from the sector.
- In Argentina, recycling stations were installed in schools in Iguazu. A virtual environmental workshop was conducted for more than 2,500 children, aimed at promoting the importance of separating recyclable material at homes and at school.
RECENT EVENTS
- Arca Continental was ratified to the Sustanability Index of Standard & Poor's Dow Jones Index and the Bolsa Mexicana de Valores. The goal of this index is to give greater exposure to Mexican companies that promote best practices in environmental, social and corporate governance matters.
- On May 11, 2021, AC Bebidas successfully completed the issuance of Ps. 4,650 million in local green bonds ("Certificados Bursátiles"). The bonds are one of the first issued in pesos by a beverage company in Mexico. AC Bebidas placed two tranches, Ps. 3,000 million for 7 years accruing an annual fixed rate of 6.75% and Ps. 1,650 million for 4 years accruing a variable rate of TIIE plus 7 basis points. The transaction drew a high level of interest from a diverse investor base and was oversubscribed by nearly 4.3 times. Both bonds received "mxAAA" by S&P and "AAA (mex)" by Fitch Ratings.
- On April 15, 2021, Arca Continental's Annual Shareholders' Meeting approved the payment of a cash dividend for Ps. 2.94 per share in one single payment beginning April 27, 2021, equivalent to a total amount of Ps. 5,187 million, representing a payout ratio of 50%, in line with its historical average.
For the complete earnings release and financials with information in the tables available for download in MS Excel format, please visit the following link: http://www.arcacontal.com/investors/financial-reports.aspx.
CONFERENCE CALL INFORMATION
Arca Continental will host a conference call on July 16, 2021 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: 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 95 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.
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.
SOURCE: Arca Continental
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