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• Total Consolidated Volume Growth (Q4): 3.5%

• Total Consolidated Revenue Growth (Q4): 29.9%

• Total Consolidated Revenue Growth (Full Year): 10.9%

• Consolidated EBITDA Growth (Q4): 41.7%

• Consolidated EBITDA Margin (Q4): 21.8%

• Consolidated EBITDA Growth (Full Year): 14.9%

• Consolidated EBITDA Margin (Full Year): 20.5%

• Mexico Net Sales Growth (Q4): 15.4%

• Mexico Net Sales Growth (Full Year): 9.6%

• Mexico EBITDA Growth (Q4): 21.8%

• Mexico EBITDA Margin (Q4): 23%

• South America Revenue Growth (Q4): 99%

• South America Revenue Growth (Full Year): 15.4%

• South America EBITDA Growth (Q4): 95.1%

• South America EBITDA Margin (Q4): 18.9%

• US Net Sales Growth (Q4): 8.3%

• US Revenue Growth (Full Year): 6.7%

• US EBITDA Growth (Q4): 25.6%

• US EBITDA Margin (Q4): 19.2%

• Operating Cash Flow (Full Year): MXN38.3 billion

• CapEx Investment (Full Year): MXN16.3 billion

• Net Debt to EBITDA Ratio: 0.4 times

• Warning! GuruFocus has detected 7 Warning Signs with R.

Release Date: February 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Arca Continental SAB de CV (EMBVF) achieved a record-high consolidated EBITDA margin of 21.8% in Q4 2024, marking the highest in eight years.

• The company reported a 29.9% increase in total consolidated revenues for Q4 2024, with all regional operations delivering positive organic revenue growth.

• Digital initiatives have been successful, with 67% of traditional trade volume in Latin America now ordered through their B2B application, Twali.

• The Coca-Cola brand achieved its seventh consecutive year of growth, with Coca-Cola No Sugar experiencing double-digit volume growth in 2024.

• Arca Continental SAB de CV (EMBVF) was included in the Dow Jones Sustainability World Index for the first time, highlighting its commitment to sustainability.

Negative Points

• Total volume in South America declined by 5.5% for the full year, with Argentina experiencing a significant decline in Q4 2024.

• Despite strong financial performance, financial expenses more than doubled in Q4 2024 due to exchange rate fluctuations and hyperinflationary accounting in Argentina.

• The economic slowdown in Ecuador, driven by disruptions in oil production and climate-related events, continues to affect overall consumption.

• Volume for the full year in the United States experienced a slight decline of 0.4%, despite robust revenue growth.

• The company faces ongoing challenges in managing the complexity of its operations, particularly in expanding its multi-category strategy in Argentina.

Q & A Highlights

Q: Can you elaborate on the commercial initiatives in the US that drove margin improvements, and discuss the digitalization efforts in Mexico? A: (Arturo Gutierrez Hernandez, CEO) In the US, our margin improvements were due to a combination of pricing strategies, operational discipline, and effective management of raw materials and hedging. In Mexico, digital transformation is crucial, with our B2B platform, Twali, being widely adopted. This platform enhances our market leadership by providing AI-powered predictive ordering and loyalty programs, which are essential for maintaining our competitive edge.