Arca Continental, (AC), the second largest Coca-Cola bottler in Latin America, weathered the volatility of the high prices of its raw materials in the first quarter of the year, which will continue to be its main obstacle in the coming years. quarters, but for now it has allowed it to exceed expectations with double-digit increases in sales and operating cash flow (EBITDA).
Its sales grew 13.8% between January and March in the year-on-year comparison and exceeded the expectations of analysts in the consensus drawn up by Infosel by 2.9%. EBITDA was 11% higher than the same period of the previous year and was 3% higher than initially forecast.
“The deployment of a solid execution at the point of sale, efficient price-packaging initiatives and the operating discipline that distinguishes us, allowed us to capitalize on a favorable consumer environment and economic recovery, with volume growth in all the markets we serve,” Arturo Gutiérrez, CEO of AC, was quoted as saying in a statement.
By region, Mexico had rises of 10.4% in its sales and 3.2% in its EBITDA, with a 3.5% increase in sales volume; while in the United States the advances were 15 and 15.8% in sales and EBITDA, respectively.
For South America, sales were 18.3% higher than the same period in 2021 and EBITDA was 22.1% higher than that recorded in the same period.
Net profit increased 19.7% from January to March, 7.5% more than analysts estimated.
AC also reported a 15.4% increase in its cost of sales in the period, due to the increase in the prices of raw materials, mainly PET.
Analysts agreed that AC could continue to see its profitability affected by higher costs, in the midst of a complicated outlook for various companies due to high inflation levels.
For Casa de Bolsa Monex, the focus will be on raw materials, in a year that considers an environment of higher inflation, as well as a greater “normalization” of activities after the peak of infections at the beginning of 2022.