:. Food Industry News

Categories: Corporate Results

Mexico's Arca 4Q Net MXN440.8 Million vs MXN529.4 Million (DJ)

Source: Dow Jones Newswires
22/02/2007

Mexico City, Feb. 22 - Mexican soft-drink bottler Embotelladoras Arca said Thursday its net profit fell to 440.8 million pesos ($40 million) in the fourth quarter from MXN529.4 million in the year-ago period.

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Arca said sales rose 9.2% to MXN4.01 billion, amid a 4.9% rise in volumes.

Operating profit gained 2.6% to MXN527.1 million, while earnings before interest, taxes, depreciation and amortization, or EBITDA, rose 2.9% to MXN704.3 million.

For the full year, net profit increased 9.6% to MXN2.23 billion. Sales rose 9.4% to MXN16.67 billion, with a 7.5% gain in volume.

Arca, Mexico's second-largest soft-drink bottler, said in the release that it expects sales volumes to rise 3% in 2007, with a 5% average price increase. The company plans to invest about $120 million this year, $70 million of which will go toward maintenance and to replace assets. The rest will be invested in vending machines and boosting capacity of bottled products, among other projects.

Arca also plans to continue selling non-strategic assets such as land, and to monetize financial assets, it said.

The company produces and sells Coca-Cola brands, as well as its own and third-party brands.

Arca shares were up 1.2% in early trade at MXN41.50.



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