Arca Continental Reports EBITDA Growth of 5.3% with Net Income up 23.3% or 140 BPS in 4Q14

Arca Continental, S.A.B. de C.V. (BMV:AC*) (“Arca Continental” or “AC”), the second-largest Coca-Cola bottler in Latin America and the third largest in the world, announced its results for the fourth quarter (“4Q14”) and full year (“FY14”) of 2014.

(Data in millions of Mexican pesos)

4Q144Q13Variation %FY2014FY2013Variation %

Total Beverage Volume (MUC) 334.4 332.1 0.7 1,328.6 1,348.80 -1.5
Net Sales 16,200 15,308 5.8 61,957 60,359 2.6
EBITDA 3,427 3,255 5.3 13,644 12,845 6.2
Net Income 1,583 1,284 23.3 6,510 5,973 9.0
Total Beverage Volume includes jug water
EBITDA = Operating Income + Depreciation + Amortization + Non-Recurring Expenses

Table 1: Financial Highlights

FOURTH QUARTER 2014 (4Q14) HIGHLIGHTS

  • Net sales reached Ps. 16,200 million, 5.8% higher than 4Q13.
  • EBITDA was Ps. 3,427 million with a 21.2% margin, 5.3% above the same quarter of last year.
  • Net income grew 23.3% to Ps. 1,583 million with a 9.8% margin, up 140 basis points.

FULL YEAR 2014 HIGHLIGHTS (FY14)

  • Net sales reached Ps. 61,957 million representing a 2.6% increase.
  • EBITDA was Ps. 13,644 million for a 22% margin, up 70 basis points.
  • Net income increased 9% to Ps. 6,510 million at a margin of 10.5%, up 60 basis points.

COMMENTS FROM THE CEO

“2014 will be remembered as a year in which we capitalized on our execution and management capabilities to face the changes in the Mexican beverage industry. We are committed to offering beverage options for all consumption occasions to our clients and consumers, serving different socioeconomic levels and ensuring their total satisfaction. Despite an economy with weak consumption levels, the strategies we implemented enabled us to deliver solid financial results for 2014, with net sales up 2.6%, and a 70-basis points EBITDA margin expansion. The experience and dedication of every member of the Arca Continental team made these results possible”, stated Francisco Garza Egloff, Chief Executive Officer of Arca Continental.

“2015 will surely bring new challenges that we will know how to face appropriately. Economic weakness, depreciation of currencies and increasing prices of some of our key raw materials will demand our discipline and excellence in execution throughout our operations,” he added.

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 February 18, 2015 to discuss these results at 9:00 am Mexico/Monterrey time / 10:00 am New York time. A live webcast of this event is available at: www.arcacontal.com 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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