MEXICO CITY, July 17 (Reuters) - Mexican bottler Arca

Continental expects beverage volumes to pick back up,

executives said on Thursday, after they slipped in the second

quarter.

Volumes are expected to improve in the third quarter, CEO

Arturo Gutierrez told analysts. "What we expect is for the

rest-of-the-year volume to stabilize in our main markets,

meaning Mexico and the U.S.," he added.

The company's Mexico City-traded shares were up 1.7% by late

morning.

The decline in Arca's volumes in the second quarter was

offset by higher prices and expense management, executives said.

The bottler, which sells Coca-Cola products and snacks

throughout the Americas, posted an 8.1% rise in second-quarter

core earnings.

Earnings before interest, taxes, depreciation and

amortization (EBITDA) totaled 13.16 billion pesos ($701.02

million), slightly below analysts' forecasts of 13.42 billion

pesos.

Net profit ticked up 1.2% to 5.47 billion pesos in the

quarter, with revenue 8% higher at 63.43 billion pesos.

Itau BBA analysts said that although Arca's results came in

slightly below estimates, it was likely due to one-off effects

on volume in Mexico. "Looking at profitability trends, we are

actually encouraged about the future."

Gutierrez said the company would meet its full-year

guidance, through a "much better second half of the year in

general."

Arca said in February that it expects 2025 sales to grow in

the high single digits, with EBITDA margins hovering around 17%.

($1 = 18.7654 Mexican pesos at end-June)