Arca Continental (AC) Q3 2025 earnings summary

Executive summary

• Achieved record third-quarter EBITDA and margin expansion despite challenging macroeconomic, weather, and consumer dynamics across territories.

• U.S. operations marked 30 consecutive quarters of EBITDA growth, reinforcing regional leadership.

• Strong execution in pricing, portfolio mix, cost control, and innovation supported results.

Financial highlights

• Q3 consolidated revenues: MXN 62.9 billion, up 0.5% year-over-year; 9M revenues: MXN 183.4 billion, up 6.6%.

• Q3 consolidated EBITDA: MXN 12.8 billion, up 1.2%, margin 20.4%, the highest since the 2017 U.S. acquisition.

• Q3 net income: MXN 5.3 billion, up 3.5%; net profit margin 8.4%.

• Gross margin for Q3: 46.9%; operating margin 16.3%.

• Net debt/EBITDA ratio: 0.6x as of September; cash balance at MXN 32.3 billion.

Outlook and guidance

• Expect continued market volatility and focus on strengthening presence and sustainable innovation.

• Confident in sustaining current U.S. margins into 2026, supported by efficiency projects and hedging.

• In Mexico, anticipate volume and margin pressure from new excise tax in 2026, with mitigation through pricing, affordability, and promotional strategies.

• CapEx in Mexico expected at 5%-6% of sales in 2025, with some projects postponed depending on volume trends.