Arca Continental reports Q3 sales growth amid net income decline

Arca Continental reported third-quarter net sales of 66,613 million pesos, marking a 5.9% increase. However, net income decreased by 4.8% to 5,054 million pesos. The company noted that comprehensive financing costs more than doubled, contributing to the drop in net income. While US business grew 6.5% in dollar terms, its sales shrank 0.8% when converted into pesos.

The results show that while sales volume increased 4.6%, the rise in selling and administrative expenses (9.0%) outpaced sales growth. The decline in net income was primarily attributed to increased financing costs and currency losses, despite EBITDA rising 6.2%.

Arca Continental is a Mexican beverage manufacturer that functions as a franchise bottler and affiliated operator for Coca-Cola products.