AC confirms positive operational and financial outlook

AC confirms positive operational and financial outlook

 

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AC confirms positive operational and financial outlook

Llenadora _coca -Cola

Mexico City, November 8, 2018. –  Executives of Arca Continental, one of the largest Coca-Cola bottlers in the world, highlighted yesterday in a meeting with analysts in this city, the company’s market leadership, as well as its competitive advantages and solid financial position.

 “We have the strength and agility to continue driving the positive performance of Arca Continental, on the back of successful execution that counts on prepared and above all committed people, in addition to an ample product portfolio and service excellence to its customers and consumers”, affirmed Francisco Garza Egloff, CEO of Arca Continental.

“We serve very attractive markets, with a balanced geographic diversification, which implies, on the one hand, serving countries with high volumes, stable operations, and a great tradition of consuming our products, such as Mexico and the United States, especially the states of Texas and Oklahoma, and on the other hand, serving countries with high growth potential for our business, such as Ecuador and Peru”, he explained.

The CEO remarked that additionally, for the Mexican market, the preliminary agreement achieved regarding the trade agreement with the United States and Canada (USMCA) ensures continuity of trilateral trade and the development of the Mexican economy, which in turn will favorably impact the territories the company serves, where robust consumption continues, and we foresee additional improvement from the boost the Northern border will attain as has been mentioned among the priorities of the incoming government.

Arturo Gutiérrez, Deputy CEO, stated that the operation in the United States continue to improve their commercial execution, gaining market share with special focus on improving production efficiency to capitalize on revenue and cost synergies, as well as optimizing the organization’s structure, which will lead to important savings which will bolster the synergy program by US$90 million per year in this business.

Operations in Peru, they explained, represent a tremendous growth opportunity in the medium term, with much room to grow in sparkling and still categories, coupled with solid economic prospects and stability in this country.

“We continue capturing synergies and optimizing costs stemming from the recent investments”, added Gutiérrez.

Other pillars of the company highlighted during the meeting with analysts were strong financial structure with a low risk leverage ratio of 1.4x Net debt to EBITDA, 44% of revenues denominated in USD, 97% of debt without FX risk as it is denominated in the local currency of each country, as well as 72% of the debt at favorable and competitive fixed interest rates, achieving the highest credit rating for a corporate in Mexico.

They indicated, this all allows continued investment in the supply chain and particularly in the market, to always provide the highest level of service and attention to clients and excellent execution at the point of sale, reaffirming Arca Continental’s commercial leadership.

Management added that each day they further reinforce the company’s culture of innovation, which they exemplified with the technological advancement project for at least 5,000 customers projected for the end of 2018, which will enable these Traditional Channel points of sale to accept credit card payments and offer other services, increasing their capacity and their sales.

To summarize, they assured that Arca Continental has a solid financial base which provides stability for the coming year, and they maintain a positive performance outlook in the markets in which they operate, strengthened by a corporate culture geared towards continued innovation and the commitment to keep serving customers and consumers with excellent service and an ample product portfolio, in a profitable and sustainable manner, as it has done throughout its long history.

About Arca Continental
Arca Continental is a company dedicated to the production, distribution, and sale of non-alcoholic beverages which are brand names of The Coca-Cola Company as well as salty snacks under the brands of Bokados in Mexico, Inalecsa in Ecuador, and Wise and Deep River in the United States. With an outstanding track record of more than 92 years, Arca Continental is the second largest Coca-Cola bottling company in Latin America and one of the most important in the world. Within its Coca-Cola franchise, the company serves a population of more than 119 million in the northern and western parts of Mexico as well as Ecuador, Peru, the northern region of Argentina and the Southwestern U.S. Arca Continental is listed on the Mexican Stock Market under the ticker symbol "AC". For further information about Arca Continental, please visit www.arcacontal.com

 

 

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