Arca Continental SAB de CV

2Q26 consolidated revenue was MXN 63.5 billion, flat year over year; first-half revenue was MXN 120.6 billion, also in line with last year. Gross profit increased 2.1% to MXN 30.3 billion, with gross margin expanding 90 basis points to 47.8%; first-half gross profit rose 1.7% to MXN 57.1 billion and gross margin expanded 80 basis points to 47.4%. Consolidated EBITDA declined 0.2% to MXN 13.1 billion, with EBITDA margin at 20.7%; first-half EBITDA also declined 0.2% to MXN 23.8 billion with a 19.7% margin. Net income fell 9.4% to MXN 4.9 billion in the quarter and 9% to MXN 8.7 billion year-to-date. On a currency-neutral basis, revenue rose 5% in the quarter and 6.8% year-to-date, gross profit rose 6.2% and 7.5%, and EBITDA rose 3.8% and 5.4%. Cash and equivalents were MXN 28.5 billion, total debt was MXN 61.9 billion, and net debt-to-EBITDA was 0.7x. Management reaffirmed full-year 2026 guidance, including mid-single-digit sales growth on a currency-neutral basis, CapEx guidance, and an EBITDA margin outlook of around 20%.

The CEO framed the quarter as proof of the resilience of Arca Continental’s model, emphasizing disciplined pricing, hedging, cost control and operating efficiencies in a difficult environment. He said Mexico’s performance was better than expected despite weather, tax and elasticity pressure, and noted that June improved on World Cup-related activation and execution. He also pointed to Peru and Ecuador as examples of how prior investment, affordability tools and digital capabilities are now translating into stronger growth.

The CFO said consolidated revenues were flat at MXN 63.5 billion, gross profit rose to MXN 30.3 billion with gross margin at 47.8%, and EBITDA held at MXN 13.1 billion with a 20.7% margin despite macro and FX headwinds. He highlighted higher depreciation and World Cup-related commercial spending as drivers of OpEx pressure, but said the OpEx-to-sales ratio should normalize in the second half and end the year around 32%. He also cited MXN 630 million in expected 2026 savings, MXN 28.5 billion of cash, MXN 61.9 billion of debt, net debt-to-EBITDA of 0.7x, and an extraordinary dividend of MXN 2.50 per share plus the ordinary dividend of MXN 4.28 per share.

Analysts focused on Mexico’s volume slowdown, pricing and excise-tax pass-through, U.S. volume softness, World Cup effects, and the pace of growth in Peru. Management said Mexico’s weakness was largely tied to weather, the new tax and mix shifts rather than a structural problem, and that the excise tax was fully passed through with an average price increase around 8%. In the U.S., they said the company is still growing transactions about 2% year-to-date and maintaining record-high EBITDA margins, while Peru’s dual Coca-Cola/Inca Kola strategy and cooler investment are supporting growth above expectations.