Mexico's Arca Continental 2Q Pro Forma Net Up 9% To MXN2.15 Billion

Mexican soft drink bottler Arca Continental SAB (AC.MX, EMBVF) said Wednesday its net profit rose 9% to 2.15 billion pesos ($185 million) for the second quarter on a pro forma basis that incorporates results for its newly merged operations as if they had been combined in 2010.

Arca and Continental merged during the second quarter to create the second-biggest bottler of Coca-Cola Co. (KO) products in Latin America.

The bottler said that its consolidated net sales grew 14% on a pro forma basis to MXN12.90 billion during the April-June period, driven by increased volume sales and a higher price per unit case.

Unit case sales increased 11%, aided by an expansion in cola and water sales in Mexico.

The company said its cost of goods sold increased 13% on a pro forma basis as a result of higher PET plastic and sugar prices, particularly in Argentina.

Consolidated operating profit increased 20% on the year to MXN2.37 billion, for an operating margin of 18.4% on a pro forma basis, up 100 basis points.

Earnings before interest, taxes, depreciation and amortization, or Ebitda, rose 18% to MXN2.86 billion for a margin of 22.1%.

Arca Continental shares were down 0.5% to MXN61.70 in modest trade early Wednesday.

-By Amy Guthrie, Dow Jones Newswires; (5255) 5980-5177, [e-mail]