Arca Continental (AC) Q1 2025 earnings summary

Executive summary

• Navigated a challenging macro environment with geopolitical tensions, tariffs, inflation, and unfavorable weather, impacting consumer behavior and volumes, yet achieved 12.4% revenue growth and 10.2% EBITDA increase, driven by strong U.S. and Argentina performance despite a 3.1% volume decline.

• Net income rose 10.2% to MXN 4.1 billion, with a margin of 7.3%.

• Demonstrated resilience through pricing, cost control, and hedging to protect profitability amid input cost inflation and currency volatility.

Financial highlights

• Consolidated revenue increased 12.4% year-over-year to MXN 57 billion; EBITDA rose 10.2% to MXN 10.6 billion (margin 18.7%).

• Gross profit increased 11.9% to MXN 26.4 billion, gross margin 46.3%.

• Net income grew 10.2% to MXN 4.1 billion, with a margin of 7.3%.

• Cash and equivalents at MXN 38.6 billion; total debt at MXN 55.6 billion; net debt-to-EBITDA ratio of 0.34x.

• Operating cash flow reached MXN 6.98 billion; CapEx was MXN 3.56 billion (6.2% of sales), focused on coolers and efficiency projects.

Outlook and guidance

• Confident in regaining momentum and delivering on full-year targets, maintaining high single-digit top-line growth guidance despite Q1 headwinds.

• Expect sequential improvement in volumes and margins, especially in Mexico and Argentina, as external conditions stabilize.

• Forecasts volume growth for Ecuador and Peru in the remainder of the year, supported by economic stabilization and internal initiatives.

• Continued investment in digital platforms and returnable packaging to drive affordability and efficiency.