Arca Continental (AC) Q1 2025 earnings summary

Executive summary

• Achieved 12.4% year-over-year revenue growth and 10.2% EBITDA increase, driven by strong U.S. and Argentina performance, despite a 3.1% decline in consolidated volume.

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

• Demonstrated resilience through pricing, cost control, and hedging, offsetting volatile macro conditions.

• Continued investment in digital platforms, sustainability, and operational efficiency.

Financial highlights

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

• Net income grew 10.2% to MXN 4.1 billion (margin 7.3%).

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

• SG&A expenses increased 13.9% to MXN 18.6 billion; SG&A to sales ratio up 40 bps to 32.6%.

• Cash and equivalents at MXN 36.5–38.6 billion; total debt MXN 55.6 billion; net debt/EBITDA at 0.3–0.34x.

Outlook and guidance

• Confident in regaining momentum and achieving full-year targets as external conditions stabilize.

• Guidance for high single-digit top-line growth maintained, expecting sequential improvement in volumes and margins.

• Focus on regaining volume, strengthening operational capabilities, and reinforcing leadership in core markets.

• Argentina expected to see continued volume and margin expansion; Mexico and Ecuador forecasted to recover as year progresses.

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