Arca Continental (AC) Q3 2024 earnings summary

Executive summary

• Delivered solid financial and operational results in Q3, with top-line growth, margin expansion, and increased market share despite volume declines due to tough comps and adverse weather.

• EBITDA grew 10.2% and revenues increased 10% in Q3, with net income up 13.1% and margins at multi-year highs.

• Nine-month 2024 results show net sales up 5.1%, EBITDA up 6.6%, and net income up 10.3% year-over-year.

• Growth driven by effective pricing, execution, affordable product offerings, digital transformation, and sustainability initiatives.

• On track to achieve full-year results in line with outlook, supported by strategic priorities and disciplined execution.

Financial highlights

• Consolidated revenues rose 10% year-over-year to MXN 62.6 billion in Q3; 5.1% growth for the first nine months.

• Consolidated EBITDA increased 10.2% to MXN 12.7 billion, with the highest Q3 EBITDA margin in eight years.

• Net income for Q3 reached MXN 5.1 billion, up 13.1%; nine-month net income rose 10.3% to MXN 14.3 billion.

• Gross margin expanded by 60 basis points in Q3 and 80 basis points year-to-date.

• Operating income grew 10.2% in Q3 to MXN 10.3 billion.

Outlook and guidance

• Confident in delivering full-year results consistent with guidance, expecting low single-digit volume growth in Mexico for 2024.

• Strategic priorities remain unchanged: focus on commercial strategies, CapEx deployment, sustainability, and digital transformation.

• Focus remains on market leadership, digital channel acceleration, and sustainable value creation.

• Management expects to close the year with continued operational strength and digital transformation.