Arca Continental (AC) Q2 2025 earnings summary

Executive summary

• Strategic initiatives and solid execution enabled strong financial performance and value share recovery despite softer consumer sentiment and macroeconomic uncertainty in key markets.

• Revenues grew 8% year-over-year in 2Q25, with EBITDA up 8.1% and net income rising 1.2% despite a slight contraction in total beverage volume.

• Resilience demonstrated through margin protection, investments in growth platforms, manufacturing, and supply chain enhancements.

• All regions contributed to EBITDA growth, with the U.S. and South America showing particularly strong profitability improvements.

• Sustainability milestones achieved, including top 10 industry ranking, FTSE4Good Index inclusion, and significant improvements in plastics collection and recycling.

Financial highlights

• Consolidated volume declined 2.7% in Q2 and 2.9% year to date; revenue increased 8% in Q2 and 10.1% year to date, driven by pricing and FX.

• 2Q25 net sales reached Ps. 63,427 million, up 8% year-over-year; 6M25 net sales were Ps. 120,466 million, up 10.1%.

• 2Q25 EBITDA was Ps. 13,155 million (margin 20.7%), up 8.1%; 6M25 EBITDA was Ps. 23,802 million (margin 19.8%), up 9%.

• Net income for Q2 increased 1.2% to MXN 5.5 billion; year-to-date net income up 4.9% to MXN 9.6 billion.

• Extraordinary dividend of 3.5 pesos per share and ordinary dividend of 4.12 pesos per share paid, totaling a 66% payout ratio and 3.8% yield.

Outlook and guidance

• Full-year guidance reaffirmed, expecting high single-digit consolidated revenue growth and margin protection.

• Management plans to strengthen presence across sales channels, enhance production and distribution, and focus on higher value-added products in the second half of 2025.

• Anticipates a more favorable macroeconomic environment and gradual improvement in consumer sentiment in H2 2025.

• Margin recovery in Mexico expected as volumes improve in Q3; pricing to remain in line with inflation.

• Continued collaboration with customers and innovation in product offerings are expected to support growth.