Mexican bottler Arca reports 24% rise in Q4 net profit
Mexican bottler Arca Continental (AC.MX) reported a 24.2% increase in its fourth-quarter net profit year-over-year, the company said in a statement on Thursday, pointing to price increases and cost hedging that offset higher raw material costs.
Arca, which sells water and soft drinks in the United States and parts of Latin America, posted a net quarterly profit of 3.96 billion Mexican pesos ($202.78 million).
Arca meanwhile reported that its revenues rose 7.1% to total 52.64 billion pesos ($2.70 billion) due in large part to price increases, as quarterly volumes were nearly flat.
The cost of sales was up 8.1% from the year-ago quarter, Arca said, due to higher costs for raw materials such as PET plastic used in containers and aluminum.
Earnings before interest, tax, depreciation and amortization (EBITDA), or core earnings, rose 9.4% to reach 9.98 billion pesos.
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