28 April 2006
• Total sales volume grew 11% in 1Q06 vs. 1Q05
• Operating income increased by 41% to Ps. 633 million in 1Q06
• Operating margin rose from 15.0% in 1Q05 to 18.8% in 1Q06
First Quarter 2006 (1Q06) Highlights:
• In 1Q06, total sales volume* increased 11.1% to 97.9 million unit cases (“MUC”), compared to 88.1 MUC in 1Q05.
• Net sales were Ps. 3,361 million in 1Q06, an increase of 12.2% when compared to 1Q05.
• Operating income rose 40.5% from Ps. 451 million to Ps. 633 million, representing an operating margin of 18.8%.
• EBITDA** (excluding non-recurring expenses) reached Ps. 807 million, 30.6% higher than in 1Q05, representing an EBITDA margin of 24%.
• Net income up 20% to Ps. 406 million.
*Total sales volume includes soft drinks and single serve water. It does not include jug water.
**Excludes non-recurring expenses
***Operating Profit + Depreciation + Goodwill Amortization
Monterrey, Mexico, April 28, 2006 – Embotelladoras Arca, S.A. de C.V. (“Arca” or “the Company”) (BMV: ARCA), the second-largest Coca-Cola bottler in Mexico and Latin America, announced today its unaudited results for the first quarter ended March 31, 2006. All figures are expressed in constant Mexican pesos as of March 31, 2006.
Comments from the Chief Executive Officer
Mr. Francisco Garza Egloff, Arca’s Chief Executive Officer, stated, “The strong growth in volume as well as operating income demonstrates the solidness of our strategy of focusing on satisfying the needs of consumers by offering leading products and brands, a segmented execution at the point of sale and operations that grow more efficient each day.” He added, “These favorable results motivate us to continue seeking profitable growth opportunities by differentiating our products through innovation in packaging, flavors, formats and excellent service.”