This article first appeared on GuruFocus .
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Total Consolidated Volume:Increased by 2.9%.
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Still Beverage Category Growth:Increased by 3.5%.
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Consolidated Revenue:Slight increase of 0.2% to MXN57.1 billion.
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EBITDA Margin:18.6%.
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Net Sales in Mexico:Increased by 7.4%.
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EBITDA in Mexico:Grew by 7.1% with a margin of 20.8%.
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South America Revenue Decline:Decreased by 7.2% due to unfavorable FX translation.
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EBITDA in South America:Decreased by 11.4% with a margin of 19%.
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Peru Volume Growth:Increased by 8.2%.
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Ecuador Volume Growth:Increased by 5.3%.
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United States Net Revenue:Rose by 8.3%.
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United States EBITDA Growth:Increased by 9.9% with a margin of 16.4%.
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Net Income:Decreased by 8.5% to MXN3.8 billion with a margin of 6.6%.
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Cash and Equivalents:Totaled MXN36 billion.
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Total Debt:Stood at MXN65 billion.
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Net Debt-to-EBITDA Ratio:0.6x.
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Dividend:MXN4.28 per share, representing a 37% payout ratio.
Release Date: April 23, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Total consolidated volume increased by 2.9%, driven by strong performance in the United States, Peru, and Ecuador.
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Coca-Cola Zero showed significant growth, with a 28.5% increase, supported by expanded coverage and targeted pricing.
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The US operations delivered record profitability with net revenues rising by 8.3% and EBITDA growing by 9.9%.
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Peru achieved its strongest first-quarter performance since 2015, with volume growth of 8.2%.
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The company maintained a strong balance sheet with a net debt-to-EBITDA ratio of 0.6x, providing resilience in a volatile environment.
Negative Points
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Revenues in South America declined by 7.2%, primarily due to unfavorable FX translation.
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EBITDA in South America decreased by 11.4% with a margin of 19%, affected by currency headwinds.
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Argentina experienced a volume decline of 8.5%, cycling strong growth from the previous year.
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Net income decreased by 8.5% to MXN3.8 billion, reflecting a 70 basis point contraction.
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The company faces ongoing challenges from geopolitical tensions, input cost volatility, and persistent inflation.
Q & A Highlights
Q: Can you provide insights on consumer dynamics in Mexico, particularly in light of the recent excise tax increase? A: Arturo Gutierrez Hernandez, CEO, explained that the year started with a more demanding environment in Mexico due to moderate economic growth and tax-related price pressures. Despite these challenges, Arca Continental delivered a solid first quarter by deploying traditional strategies and incorporating new digital capabilities. The focus on affordability and operational discipline, particularly in categories like Coke Zero, which grew 28%, was emphasized.
Q: What drove the volume increase in Mexico despite the excise tax, and how did digital tools impact this? A: CEO Arturo Gutierrez Hernandez noted that performance was slightly better than anticipated, aided by favorable year-over-year comparisons and slightly higher temperatures. Digital tools have strengthened capabilities compared to previous years, helping mitigate elasticity effects. COO Jean Tissot Ruiz added that digital execution now covers 68.7% of volume, enhancing pricing strategies and operational readiness.
Q: Can you explain the solid pricing seen in the US and expectations for the rest of the year? A: CEO Arturo Gutierrez Hernandez highlighted strong execution at the point-of-sale and effective revenue management as key drivers. The US operation achieved a 5% true rate increase through price strategy and optimized promotional activity. The focus remains on aligning price increases with inflation to counteract cost pressures.
Q: Given the high single-digit FX neutral growth in Q1, why not raise the guidance for the year? A: CFO Emilio Jesus Marcos Charur stated that it's too early to change the guidance, despite the strong start. The company remains on track to meet its goals, but prefers to maintain a cautious outlook due to potential headwinds and pressures expected later in the year.
Q: How are logistics improvements impacting results, and what should we expect moving forward? A: CEO Arturo Gutierrez Hernandez mentioned significant improvements in demand forecasting and fill rates, particularly in Mexico. Investments in infrastructure and digital tools have enhanced logistics capabilities, which are expected to be crucial during high-demand seasons. COO Jean Tissot Ruiz added that AI tools are being deployed to optimize inventory management and warehouse performance.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
