On December 5th, Arcor’s Board of Directors held a meeting attended by its key executives such as: Alfredo Gustavo Pagani; Mario Enrique Pagani; Victor Daniel Martin; Alejandro Fabian Fernandez; Nicolás Enrique Martin; Fernán Osvaldo Martínez and Alejandro Asrín.
The meeting was organized to closely analyze the future debt policy of the world’s largest confectionery manufacturer in 2026.
In fact, the meeting focused mainly on financial issues and the company’s capitalization strategy through new issuances of Negotiable Obligations (ON).
In this sense, the Board of Directors of the Córdoba company owned by the Pagani family has approved and formalized the issuance of new debt securities within the framework of the company’s global ON program, communicating this to the market through a relevant fact issued by the National Securities Commission (CNV).
Currently based in the city of Arroyito, Cordoba, the company, together with its subsidiaries, forms a multinational group that produces in Argentina, Brazil, Chile, Mexico, Peru and Angola a wide range of mass consumption foods (candy, chocolate, biscuits, groceries, etc.) and industrial foods (virgin and recycled paper, corrugated cardboard, flexible film printing, corn syrup, industrial ingredients and sweeteners of vegetable origin, etc.) and markets them in numerous countries around the world.
In addition, one was carried out Process of increasing its stake in Mastellonein partnership with the French dairy giant Danone, which has so far failed.
The intention of both companies is to retain the majority stake of the owner of the La Serenísima brand, which is still owned by the heirs of Pascual Mastellone and the Dallpoint fund owned by Carlos Agote, who also holds the position of CEO of the company and rejects the offer of the Arcor-Danone duo.
Financing investments and recomposing liabilities
Beyond this currently unfinished battle, Arcor executives assure in the document analyzed at the last board meeting that the objective of ON’s next placements is to raise funds in the capital markets.
The money is allocated Financing the company’s expansion and investment planas outlined in recent documents.
The funds will also be used to refinance debt and for working capital, although no further details regarding these financial and business strategies of the company are known at this time.
In any case, the meeting analyzed the prospectus and terms of the placement of a new class of ON, including the interest rate, term and related guarantees, and authorized the executives to proceed with the final implementation of the placement.
One of the first points analyzed by Arcor executives was the consideration of the placement of On Class 2 for $100 million under the Frequent Issuer system in which the company operates, which was announced on October 1 last year, denominated in dollars, at a fixed interest rate of 5.90% per annum nominal and maturing on October 6, 2026.
In this regard, it was clarified that the net proceeds from the placement, after deducting $15.3 million corresponding to the in-kind integration through the delivery of ON Class 21, amounted to $84.6 million and are part of the current global plan for up to $600 million approved by Regulation No. DI-2025-118 dated July 2 last year.
According to the report analyzed at the meeting, the net funds raised from this placement were used for various purposes such as debt refinancing and business plans.
New editions
In fact, it was clarified that these funds were used to pay off the remaining principal and interest of the Class 21 ONs of $62.9 million, plus interest of $1 million accrued between May 23 and November 22.
Meanwhile, it was reported that the remaining amount of funds requested is $21.7 million.
Another point under discussion is related to the issuance of new ONs within the framework of the frequent issuer regime. Given the current situation in the capital markets, both local and international, it is advisable to consider this type of debt securities.
For this reason, Arcor’s Board of Directors approved the introduction of new Class 3 ONs with an amount to be placed of up to US$40,000 million, expandable up to US$80,000 million or the equivalent in other currencies or units of value.
In this sense, it was decided that the Securities may be issued at par value or at a discount or premium to their par value; which represent a direct and unconditional payment obligation; They have a term of 12 months from their issuance and bear interest at a fixed and/or variable rate of interest on their outstanding capital, with payments made quarterly and quarterly in arrears.
Constant emissions
Currently, Arcor operates under a CNV-approved Global ON Issuance Program with a maximum amount that has expanded over time to $1.2 billion.
The plan is not limited to a single placement, but to ongoing series that the company launches on a regular basis to optimize its capital structure and maintain liquidity and which are generally well received by investors given the company’s solid track record and creditworthiness.
In most cases, resource allocation is two-fold, with an emphasis on financial strength and operational efficiency.
A portion is used to prepay or refinance existing financial debt, generally bank debt or previous series of ONs with less favorable terms or impending maturities, allowing Arcor to extend maturities and potentially reduce financial costs.
The use of the funds is also intended to cover short-term operational needs, such as the purchase of raw materials, payment to suppliers and inventory management to ensure the continuity and expansion of production processes.
Arcor’s recent offerings have been divided into multiple classes to serve both retail and institutional investors, offering alternatives in pesos and dollars.
The ONs issuance plan is part of a fiscal policy aimed at maintaining a balance between foreign and local currency debt, with a significant percentage of total debt consisting of these tradable liabilities.
That is, as a continuous financial strategy that leverages the capital market to maintain a healthy debt structure, refinance liabilities and secure the necessary working capital to maintain its leadership position in the region.
Worrying results
Given the results of the latest balance sheet presented by Arcor to the CNV, the need for funds appears compelling, since the balance sheet for the first nine months of 2025 showed results that were not encouraging for the manufacturer of traditional confectionery and chocolate brands such as Bon or Bon.
During this period, the company reported net profits of $97,772 million, which is in stark contrast to the net profits of the same period last year, which reached $378,245 million.
That is, Arcor recorded a decline in profitability of $ 280,473 million from one balance sheet to another and a turnover of $ 3,509 million, also lower than the $ 3,884 million in the same period of 2024.
The report ensures that sales in Argentina accounted for 67.8% of the group’s consolidated sales, while sales generated abroad accounted for 32.2%.
With regard to the general performance of companies, achieving an operating result that indicates stagnation in their companies is of particular importance, since this index measures the profitability of the company’s main activity, that is, the difference between the income generated and the operating costs and expenses, without taking into account financial or tax elements.
In the current period, this figure was $237,574 million, representing 6.8% of sales, while in the same period last year it was $234,194 million, representing 6% of sales.
In any case, for the Arcor board, this is a number that “reflects the solidity of the company’s vertical integration model, efficient cost management and strict control of structural costs.”
Because of the devaluation
Regarding its mass consumer businesses in Argentina, The report observes a significant recovery in sales volumes of certain categories of sweets, chocolate and biscuits, while the food segment witnessed a decline.
What should be highlighted, however, is the increase in sales in the agricultural and packaging sectors, which made it possible to achieve total volumes that were higher than in the same period last year.
The company also points out that, as a result of the slowdown in inflation and the evolution of the exchange rate of the peso against the dollar, there was a real devaluation in 2025, which caused the financial results to show a loss of $ 98,698 million, while in the same period last year this result showed a profit of $ 421,751 million.
But despite this situation, Arcor maintained its level of investment and, among other things, invested $3,812 million in machinery and equipment; furniture, tools, vehicles and other equipment for $10,093 million; land and buildings for $995 million; Works in construction and equipment in transportation for $135,459 million, totaling $150,359 million.
To analyze its future plans taking into account the current negative scenario, Arcor’s board believes that the company’s actions “continue to be in line with the vision of being a leading food and confectionery company in Latin America.”
In addition, they assure that they will continue to deepen the digital vision to improve the business and develop capabilities in technology and digital talent, and that they will maintain the strategy of the last few years and focus on their main business areas such as packaging, agribusiness and consumer goods.
Additionally, The company will maintain its policy of prioritizing liquiditymaintain efficient working capital management and a solid financing structure.
The aim is to ensure compliance with its commitments, maintain the growth of current operations and carry out new investment projects aimed at a sustainable expansion of its activities.
Insist on Mastellone
Meanwhile, executives remain hopeful Keep the entire capital of Mastellone Hnos. together with Danone of France, they announced on April 28th.
On that day, both companies announced that they would exercise the option to buy and sell shares in the owner of La Serenísima between Arcor, Bagley Argentina SA and Bagley Latinoamérica SA and the dairy’s majority shareholders.
To make the deal official, a notice was sent to exercise the option to purchase 51% of Mastellone’s share package, which was rejected by the dairy’s founders and the Dallpoint Investment Fund.
Both have indicated in writing that they do not agree with the terms contained in the communication and at present the parties continue to apply the resolution mechanisms provided for in the contractual framework.
However, both Arcor, Bagley Argentina SA and Bagley Latinoamérica SA are of the opinion that the reported exercise price “is strictly in accordance with the provisions of the above-mentioned contract”.
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