Arca Continental, S. A. B. de C. V. Reports Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2017; Provides Tax Rate Guidance for the Full Year 2017
October 26, 2017 at 02:03 pm EDT
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Arca Continental, S. A. B. de C. V. reported consolidated earnings results for the third quarter and nine months ended September 30, 2017. For the quarter, the company reported net sales of MXN 35,830 million against MXN 24,427 million a year ago. Operating income before other income was MXN 8,506 million against MXN 5,142 million a year ago. Operating income was MXN 8,795 million against MXN 5,281 million a year ago. Earnings before taxes were MXN 8,024 million against MXN 4,645 million a year ago. Net profit was MXN 5,049 million against MXN 3,229 million a year ago. EBITDA was MXN 6,811 million against MXN 5,331 million a year ago. The company announced that the operating income increased 66.5% in the third quarter, a margin of 24.5%, mainly due to the non-recurring income for the sale of Topo Chico brand in the U.S. to the Coca-Cola Company for $220 million.
For the nine months, the company reported net sales of MXN 99,078 million against MXN 68,772 million a year ago. Operating income before other income was MXN 17,007 million against MXN 12,149 million a year ago. Operating income was MXN 17,543 million against MXN 12,461 million a year ago. Earnings before taxes were MXN 14,802 million against MXN 10,694 million a year ago. Net profit was MXN 8,829 million against MXN 7,102 million a year ago. EBITDA was MXN 19,200 million against MXN 14,929 million a year ago. Operating cash flow after working capital was MXN 13,629 million against MXN 13,449 million a year ago. Capital expenditures and investments (net) was MXN 15,017 million against MXN 6,911 million a year ago. Capex reached MXN 8,976 million in the first nine months of 2017, mainly allocated towards continued improvements of the distribution network, as well as the investment in CCSWB to obtain improvements within the production plants and execution at the point of sale, necessary to reach the targeted synergies. As of September 30, 2017, the company had a cash position of MXN 18.4 billion and debt of MXN 53.2 billion
The company provides tax rate guidance for the full year 2017. The company expects effective tax rate level will be around 30% at the end of the year.
Arca Continental SAB de CV is a Mexico-based company primarily engaged in the beverages sector. The Company's activities are divided into two business segments: Beverages and Other. The Beverages division produces, distributes and sells non-alcoholic beverages under The Coca-Cola Company (TCCC) license in Mexico, Argentina, Ecuador and Peru, as well as dairy beverages of the Santa Clara brand name in Mexico and Toni brand name in Ecuador. Its TCCC beverages portfolio includes cola and flavored drinks, vitamin, low-calorie and energetic drinks, juices, as well as purified and flavored water, among others. The Companyâs brand names range comprises Ciel, del Valle, Powerade, burn, FUZE Tea and vitaminwater, among others. The Other division focuses on the sale of beverages through vending machines in Mexico, as well as manufacture and distribution of snacks and candies under the brand names Bokados in Mexico, Inalecsa in Ecuador and Wise in the United States.
Arca Continental, S. A. B. de C. V. Reports Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2017; Provides Tax Rate Guidance for the Full Year 2017
ARCA CONTINENTAL, S.A.B. DE C.V. 
