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Arca Continental Reports Revenue Growth of 28% with EBITDA up 23.6% in 2Q16

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 second quarter and first half of 2016 (“2Q16” and “6M16”).

Table 1: Financial Highlights

Data in millions of Mexican pesos
2Q16 2Q15 Variation %
Total Beverage Volume (MUC) 443.5 352.1 26.0%
Net Sales 23,071 18,045 27.9%
EBITDA 5,317 4,302 23.6%
Net Income 2,001 2,203 -9.2%
Total Beverage Volume includes jug water
EBITDA = Operating income + Depreciation + Amortization + Non Recurring Expenses

2Q16 HIGHLIGHTS

  • Net sales reached Ps. 23,071 million, 27.9% higher when compared to 2Q15.
  • EBITDA increased 23.6% to Ps. 5,317 million when compared to 2Q15, representing a margin of 23%.
  • Net income was Ps. 2,001 million, for a net margin of 8.7%.

6M16 HIGHLIGHTS

  • Net sales grew 33.1% to Ps. 44,345 million.
  • EBITDA reached Ps. 9,598 million, or 32.1% above 6M15, for a margin of 21.6%
  • Net income rose 10.5% to Ps. 3,872 million, representing a net margin of 8.7%.

COMMENTS FROM THE CEO

“Thanks to our company’s operating discipline, continuous improvement in customer service, sustained level of investment at the point of sale and steadfast commitment to satisfy consumers with a portfolio every day more versatile, Arca Continental continued to deliver positive results.

In 2Q16 we reported a 28% increase in revenues and 23.6% growth in EBITDA compared to 2Q15, in the face of various events at the international level during the period”, stated Francisco Garza Egloff, Chief Executive Officer of Arca Continental.

“Furthermore, consistent with our permanent search for opportunities that create value in a profitable and sustainable manner, this past May we announced the signing of a letter of intent with The Coca-Cola Company to operate in the U.S. the territories of Texas, parts of Oklahoma, New Mexico and Arkansas, which will further strengthen our company’s growth story”, he added.

For a full version of this earnings release with financial statements, go to: http://www.arcacontal.com/investors.aspx

CONFERENCE CALL INFORMATION

Arca Continental will host a conference call on July 18, 2016 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.com or connect via telephone by dialing:

To participate, please dial:

+1-877-712-5080 (U.S. participants)

+1-334-245-3009 (International participants)

Passcode: 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 90 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 85 million consumers in Northern and Western Mexico, Ecuador, Peru 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

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:

Investor Relations
Monterrey
Arca Continental
Ulises Fernández de Lara, 52 (81) 8151-1525
ulises.fernandezdelara@arcacontal.com
or
Felipe R. Barquin Goris, 52 (81) 8151-1674
felipe.barquin@arcacontal.com
or
New York
i-advize Corporate Communications
Melanie Carpenter, 212-406-3692
arcacontal@i-advize.com
or
Corporate Communications
Arca Continental
Guillermo Garza, 52 (81) 8151-1589
guillermo.garza@arcacontinental.com

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