Arca sales rise, earning hit by FX - Just Food
Join Our Newsletter - Get important industry news and analysis sent to your inbox – sign up to our e-Newsletter here
X

Arca sales rise, earning hit by FX

19 Jul 2016

Arca Continental reported a 9.2% drop in net profits during the second quarter compared with the same period a year earlier.

Arca sales rise, earning hit by FX

Arca Continental reported a 9.2% drop in net profits during the second quarter compared with the same period a year earlier.

The company, the second largest Coca-Cola bottler in Latin America and third largest in the world, posted a net profit of MNX2bn (US$109.6m) in the April-June period, down from MXN2.2bn in the same quarter in 2015, the company said in a statement.
 
Revenue rose 27.9%  to MXN23.07bn in the second quarter, and was boosted by strong sales in Mexico.

However, despite high sales volumes, profits were hit in the second quarter due to the strength of the US dollar and higher sales costs, up by nearly 32%, largely due to an increase in the cost of raw materials.

“Thanks to our company’s operating discipline, continuous improvement in customer service, sustained level of investment at the point of sale and steadfast commitment to satisfy consumers with a portfolio every day more versatile, Arca Continental continued to deliver positive results,” said Arca’s CEO Francisco Garza Egloff.