Arca Continental (AC) Q4 2024 earnings summary

Executive summary

• Achieved strong revenue and earnings growth in Q4 and full year 2024, with margin expansion and market share gains across all regions.

• Net sales for 2024 increased 10.9% year-over-year to MXN 237 billion, with EBITDA up 14.9% and net income rising 11.8%.

• Achieved highest EBITDA margin in U.S. operations since acquisition, and record sales volumes in Mexico and Peru for the fourth quarter.

• Investments in production, distribution, and digital capabilities, including the Tuali B2B platform, drove operational improvements and reduced shortages.

• Recognized for sustainability by inclusion in the Dow Jones Sustainability World Index and S&P Global Sustainability Yearbook.

Financial highlights

• Q4 consolidated revenues rose 29.9% to MXN 64.9 billion; full year up 10.9% to MXN 237 billion.

• Q4 EBITDA grew 41.7% to MXN 14.2 billion (margin 21.8%); full year EBITDA up 14.9% to MXN 48.7 billion (margin 20.5%).

• Gross profit increased 30.5% in Q4 and 12.8% for the year; gross margin expanded to 47.1% for 2024 (+80 bps YoY).

• Net debt-to-EBITDA at 0.39x; operating cash flow for the year at MXN 38.3 billion; cash balance at year-end: MXN 29.5 billion.

• CapEx for 2024: MXN 16.3 billion, representing 6.9% of revenues.

Outlook and guidance

• 2025 revenue expected to grow high single digits year-over-year in currency-neutral terms, with price adjustments at least in line with inflation.

• CapEx to remain at 6%-7% of sales, focused on capacity expansion and digital initiatives.

• Medium-term targets: 6%-8% CAGR in revenue, 8%-10% CAGR in EBITDA for 2025-2029.

• EBITDA margin goal to remain at or above 20% consolidated, with U.S. margins targeted at 17%.