Financials Arca Continental, S.A.B. de C.V.

Equities

AC *

MX01AC100006

Non-Alcoholic Beverages

End-of-day quote Mexican S.E. Other stock markets 23:00:00 25/04/2024 BST			5-day change	1st Jan Change
168.1 ^MXN	+1.41%		-0.43%	-9.31%

04-25	Transcript : Arca Continental, S.A.B. de C.V., Q1 2024 Earnings Call, Apr 25, 2024
04-25	Arca Continental, S.A.B. de C.V. Reports Earnings Results for the First Quarter Ended March 31, 2024	CI

Valuation

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	175,994	168,118	229,580	272,846	314,288	285,014	-	-
Enterprise Value (EV) ¹	208,387	191,359	248,537	292,002	337,398	304,203	304,681	296,351
P/E ratio	18.5 x	16.4 x	18.8 x	17.7 x	18.3 x	15.4 x	13.7 x	13.1 x
Yield	2.3%	2.61%	4.24%	-	-	4.28%	4.68%	5.47%
Capitalization / Revenue	1.08 x	0.99 x	1.25 x	1.31 x	1.47 x	1.23 x	1.16 x	1.1 x
EV / Revenue	1.28 x	1.13 x	1.36 x	1.41 x	1.58 x	1.32 x	1.23 x	1.14 x
EV / EBITDA	6.85 x	5.95 x	7.02 x	7.37 x	7.96 x	6.62 x	6.15 x	5.7 x
EV / FCF	13 x	8.72 x	10.4 x	14.5 x	18.8 x	15.6 x	14.3 x	13.1 x
FCF Yield	7.72%	11.5%	9.61%	6.88%	5.31%	6.41%	7%	7.63%
Price to Book	1.56 x	1.44 x	1.91 x	2.32 x	2.98 x	2.57 x	2.38 x	2.19 x
Nbr of stocks (in thousands)	1,760,294	1,757,085	1,758,966	1,724,254	1,695,097	1,695,097	-	-
Reference price ²	99.98	95.68	130.5	158.2	185.4	168.1	168.1	168.1
Announcement Date	14/02/20	16/02/21	15/02/22	09/02/23	08/02/24	-	-	-

¹MXN in Million²MXN

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net sales ¹	162,728	169,314	183,366	207,785	213,632	231,062	246,727	258,846
EBITDA ¹	30,403	32,147	35,406	39,622	42,382	45,919	49,508	51,980
EBIT ¹	20,200	21,472	25,361	30,587	34,557	36,774	39,300	41,150
Operating Margin	12.41%	12.68%	13.83%	14.72%	16.18%	15.92%	15.93%	15.9%
Earnings before Tax (EBT) ¹	16,608	18,001	22,072	27,494	31,004	34,380	37,372	39,175
Net income ¹	9,548	10,276	12,282	15,503	17,504	21,758	21,604	22,208
Net margin	5.87%	6.07%	6.7%	7.46%	8.19%	9.42%	8.76%	8.58%
EPS ²	5.410	5.830	6.960	8.920	10.14	10.94	12.25	12.81
Free Cash Flow ¹	16,090	21,938	23,893	20,089	17,900	19,490	21,335	22,598
FCF margin	9.89%	12.96%	13.03%	9.67%	8.38%	8.43%	8.65%	8.73%
FCF Conversion (EBITDA)	52.92%	68.24%	67.48%	50.7%	42.23%	42.44%	43.09%	43.47%
FCF Conversion (Net income)	168.52%	213.48%	194.54%	129.58%	102.26%	89.58%	98.76%	101.76%
Dividend per Share ²	2.300	2.500	5.540	-	-	7.190	7.862	9.199
Announcement Date	14/02/20	16/02/21	15/02/22	09/02/23	08/02/24	-	-	-

¹MXN in Million²MXN

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: December	2021 Q3	2021 Q4	2022 Q1	2022 Q2	2022 Q3	2022 Q4	2023 Q1	2023 Q2	2023 Q3	2023 Q4	2024 Q1	2024 Q2	2024 Q3	2024 Q4	2025 Q1
Net sales ¹	47,946	49,138	45,065	53,363	55,723	52,635	50,684	56,051	56,911	49,986	50,743	57,548	59,765	55,971	-
EBITDA ¹	9,198	9,127	8,527	10,436	10,675	9,983	9,550	11,314	11,509	10,008	9,663	11,835	12,110	11,226	-
EBIT ¹	6,808	6,309	6,362	8,314	8,458	7,759	7,386	9,207	9,419	8,695	7,531	9,500	9,816	8,991	-
Operating Margin	14.2%	12.84%	14.12%	15.58%	15.18%	14.74%	14.57%	16.43%	16.55%	17.39%	14.84%	16.51%	16.42%	16.06%	-
Earnings before Tax (EBT) ¹	6,189	5,568	5,442	7,438	7,584	7,031	6,526	8,277	8,341	7,861	6,541	9,177	9,302	8,588	-
Net income ¹	3,381	3,187	3,094	4,222	4,230	3,956	3,731	4,693	4,537	4,544	3,761	5,141	5,215	4,816	-
Net margin	7.05%	6.49%	6.87%	7.91%	7.59%	7.52%	7.36%	8.37%	7.97%	9.09%	7.41%	8.93%	8.73%	8.6%	-
EPS ²	1.920	1.806	1.812	2.132	2.430	2.268	2.168	2.632	2.637	2.703	2.154	2.790	3.030	2.680	2.435
Dividend per Share ²	1.500	1.100	-	-	-	-	-	-	-	-	-	5.063	-	3.073	-
Announcement Date	28/10/21	15/02/22	29/04/22	22/07/22	26/10/22	09/02/23	26/04/23	21/07/23	26/10/23	08/02/24	25/04/24	-	-	-	-

¹MXN in Million²MXN

Estimates

Balance Sheet Analysis

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net Debt ¹	32,393	23,241	18,957	19,156	23,110	19,189	19,667	11,337
Net Cash position ¹	-	-	-	-	-	-	-	-
Leverage (Debt/EBITDA)	1.065 x	0.723 x	0.5354 x	0.4835 x	0.5453 x	0.4179 x	0.3972 x	0.2181 x
Free Cash Flow ¹	16,090	21,938	23,893	20,089	17,900	19,490	21,335	22,598
ROE (net income / shareholders' equity)	8.53%	8.95%	10.4%	13%	15.7%	17%	17.3%	17.1%
ROA (Net income/ Total Assets)	4.03%	4.24%	4.87%	6.03%	7.07%	7.54%	7.67%	7.75%
Assets ¹	237,164	242,189	252,006	257,162	247,620	288,599	281,539	286,573
Book Value Per Share ²	64.00	66.50	68.20	68.30	62.20	65.40	70.80	76.60
Cash Flow per Share ²	15.70	16.30	17.60	17.10	17.70	19.10	21.30	22.80
Capex ¹	11,568	6,723	7,176	9,755	12,622	16,050	15,288	15,066
Capex / Sales	7.11%	3.97%	3.91%	4.69%	5.91%	6.95%	6.2%	5.82%
Announcement Date	14/02/20	16/02/21	15/02/22	09/02/23	08/02/24	-	-	-

¹MXN in Million²MXN

Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Ratings for Arca Continental, S.A.B. de C.V.

Trading Rating

Investor Rating

ESG Refinitiv

B-

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

OUTPERFORM

Number of Analysts

Last Close Price

168.1 MXN

Average target price

199.7 MXN

Spread / Average Target

+18.76%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

Sector Other Non-Alcoholic Beverages

	1st Jan change	Capi.
ARCA CONTINENTAL, S.A.B. DE C.V.	-9.31%	16.6B
THE COCA-COLA COMPANY	+4.77%	266B
VARUN BEVERAGES LIMITED	+18.01%	22.74B
CELSIUS HOLDINGS, INC.	+34.19%	17.05B
COCA-COLA HELLENIC	+11.50%	11.7B
SWIRE PACIFIC LIMITED	-1.51%	10.8B
SUNTORY BEVERAGE & FOOD LIMITED	+8.37%	9.89B
COCA-COLA CONSOLIDATED, INC.	-11.41%	7.71B
COCA-COLA IÇECEK ANONIM SIRKETI	+32.64%	5.46B
NATIONAL BEVERAGE CORP.	-12.39%	4.07B

Other Non-Alcoholic Beverages