Oct 24 (Reuters) - Mexican bottler Arca Continental

on Thursday posted a rise in third-quarter core profit,

citing an effective pricing strategy and momentum in the United

States, despite challenges in South America.

Arca, which sells bottled water, soft drinks and snacks

across the Americas, reported earnings before interest, taxes,

depreciation and amortization (EBITDA) of 12.68 billion pesos

($644.12 million), up 10.2% from the year-ago quarter and

compared to a forecast of 12.49 billion pesos by analysts polled

by LSEG.

"Arca Continental reported a solid set of third-quarter

results, slightly ahead of our and consensus estimates, while

continuing to underscore the favorable operating momentum for

the company, particularly in the U.S.," Banco Santander analysts

said in a note.

In the U.S., the company's EBITDA jumped 24% year-over-year,

while the core profit in South America grew only 1%.

"In South America, the region was challenged once again by the

volatile macroeconomic environment and weakening consumer

demand," company CEO Arturo Gutierrez said in an earnings call.

In Mexico, the company's biggest market, net sales rose,

driven by selective price increases. Arca expects volumes to

grow by low single digits in 2024 compared with the previous

year, Gutierrez said.

Speaking about sugar prices in Mexico, one of the key raw

materials in soft drinks, Arca's CFO, Emilio Marcos, said there

is a stabilizing trend in the fourth quarter with prices going

lower than the previous quarter.

The company's net profit increased 13% year-over-year to

5.13 billion pesos, while net sales were up 10% at 62.61 billion

pesos. However, both were slightly below the forecast of 5.57

billion pesos and 61.51 billion pesos, respectively.

"We cannot assure the future political environment in Mexico

and the United States, over which we have no control, will not

have a material adverse effect on our business, results of

operations, financial condition or prospects," the Mexican

company said in a statement.

However, according to Gutierrez, the bottling company is

currently on track to achieve full-year results in line with its

projected outlook.

($1 = 19.6921 Mexican pesos at end-Sept)