MEXICO CITY, April 25 (Reuters) - Mexican bottler Arca

Continental on Thursday posted a first-quarter core

profit that ticked up 1.2%, above forecasts but dragged down by

the appreciation of the Mexican peso.

Arca, which sells bottled water, soft drinks and snacks

across the Americas, reported earnings before interest, taxes,

depreciation and amortization (EBITDA) of 9.66 billion pesos

($584.54 million), compared with 9.06 billion pesos forecast by

analysts polled by LSEG.

This brought its net profit up just 0.8% to 3.76 billion

pesos from revenues that inched up 0.1% to 50.74 billion pesos

compared with the year-ago period. Analysts had forecast 3.75

billion pesos and 50.08 billion pesos, respectively.

Arca, Latin America's No. 2 Coca-Cola bottler after

Coca-Cola FEMSA, said revenues were steady as

volumes largely remained unchanged from the year-ago quarter and

the Mexican peso gained on the greenback.

The peso appreciated around 8% against the U.S. dollar

year-on-year in the first quarter, after sweeping gains last

year diluted the earnings of companies earning income abroad.

On a currency-neutral basis, sales increased 8.5%.

Arca added that the cost of sales inched down 1.8% compared

with the first quarter of 2023 on lower raw materials prices and

favorable foreign-exchange hedging.

The company, which sells packaged snacks such as nuts and

popcorn as well as bottled drinks from brands such as Fanta,

said last month it would invest just over $1 billion this year,

largely in Mexico and the rest split between the United States

and South America.

On Thursday, Arca said it would carry out an expansion of

its Texas plant for $168 million, adding two production lines

and doubling its warehouse space.

($1 = 16.5310 Mexican pesos at end-March)