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Arca Continental Announces 7.3% Growth in EBITDA with 6.6% Higher Net Income in 1Q14

Arca Continental, S.A.B. de C.V. (BMV: AC*) (“Arca Continental” or “AC”), the second-largest Coca-Cola bottler in Latin America and third-largest in the world, announced today its results for the first quarter of 2014 (“1Q14”).

Table 1: Financial Highlights

Data in millions of Mexican pesos
1Q141Q13Variation %
Total Beverage Volume (MUC)293.4302.3-2.9
Net Sales13,37013,3750.0
EBITDA2,6542,4747.3
Net Income1,1621,0906.6
Total Beverage Volume includes jug water
EBITDA = Operating income + Depreciation + Amortization + Non Recurring Expenses

FIRST QUARTER 2014 HIGHLIGHTS

  • Net sales reached Ps. 13,370 million.
  • EBITDA was Ps. 2,654 million with a margin of 19.9%, up 140 basis points versus 1Q13.
  • Net Income increased 6.6% to Ps. 1,162 million with an 8.7% margin which represents an expansion of 60 basis points.

COMMENTS FROM THE CEO

“The strength of our portfolio, continual investment, and proven execution capabilities at the point of sale, as well as the constant efficiency in our operations, allowed us to mitigate the negative impact on volume caused by the challenging business climate and additional taxes in Mexico, our core market. These actions led to increase our market leadership together with 6.6% increase in Net Income and a 7.3% improvement in EBITDA when compared to the same period of last year, which further strengthens our business model and long-term vision,” stated Francisco Garza Egloff, Chief Executive Officer of Arca Continental.

“In addition, as part of our strategy to generate new vehicles for creating value and to further diversify our geographic presence, we’re very pleased to mention our recent acquisition of a majority stake in Tonicorp, Ecuador’s leading value-added dairy company, in which we have the honor to participate as equal partners with The Coca-Cola Company in this joint venture,” he added.

RECENT EVENTS

  • On April 15, 2014, Arca Continental and The Coca-Cola Company announced their acquisition of a majority stake in Holding Tonicorp, Ecuador’s leading value-added dairy products company and one of the leading consumer groups in the country. Tonicorp is made up of the companies Industrias Lácteas Toni S.A., Heladosa S.A., Plásticos Ecuatorianos S.A. Dipor S.A, Cosedone and Fabacorpsa.
  • For the 11th consecutive year, the Mexican Philanthropy Center presented Arca Continental the Socially Responsible Company award.

For a full version of this earnings release with financial statements and access to the live webcast of the earnings call, go to: http://www.arcacontal.com/investors.aspx

CONFERENCE CALL INFORMATION

Arca Continental will host a conference call on Wednesday, April 30, 2014 to discuss these results at 10:00 am Mexico/Monterrey time / 11:00 am New York time. A live webcast of this event is available at: www.arcacontal/inversionistas or connect via telephone by dialing:

From within the U.S. +1 800 311 9401
Toll-Free from within Mexico +001 800 368 1029
International Participants +1 334 323 7224

Access Code: 36151

About Arca Continental

Arca Continental produces, distributes and sells non-alcoholic beverages under The Coca-Cola Company brand, as well as snacks under the brands of Bokados in Mexico, Inalecsa in Ecuador and Wise in the U.S. with an outstanding history spanning more than 85 years, Arca Continental is the second-largest Coca-Cola bottler in Latin America and one of the largest in the world. Within its Coca-Cola franchise territory, the Company serves over 53 million consumers in Northern and Western Mexico, Ecuador and Northern Argentina. The Company’s shares trade on the Mexican Stock Exchange under the ticker symbol "AC". For more information on Arca Continental, please visit www.arcacontal.com or download the AC Investor iPad app.

This material may contain forward-looking statements regarding Arca Continental and its subsidiaries based on management’s expectations. This information as well as statements regarding future events and expectations is subject to risks and uncertainties, as well as factors that could cause the results, performance and achievements of the Company to differ at any time. Such factors include changes in the general economic, political, governmental and commercial conditions both domestically and globally, as well as variations in interest rates, inflation rates, exchange rate volatility, tax rates, the demand for and the price of carbonated beverages, water, and the price of sugar and other raw materials used in the production of sparkling beverages, weather conditions and various others. As a result of these risks and factors, actual results could be materially different from the estimates provided; therefore, Arca Continental does not accept responsibility for any variations or for the information provided by official sources.

Contacts:

Arca Continental, S.A.B. de C.V.
Investor Relations:
Monterrey
Ulises Fernández de Lara, 52 (81) 8151-1525
ulises.fernandezdelara@arcacontal.com
or
Juan Hawach Sánchez, 52 (81) 8151-1547
juan.hawach@arcacontal.com
or
New York
i-advize Corporate Communications
Melanie Carpenter, 212-406-3692
arcacontal@i-advize.com
or
Corporate Communications:
Guillermo Garza, 52 (81) 8151-1589
guillermo.garza@arcacontal.com

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