Arca Continental Reports Revenue Growth of 18% with EBITDA up 13.4% in 3Q16

Arca Continental, S.A.B. de C.V. (BMV: AC*) (“Arca Continental” or “AC”), the second-largest Coca-Cola bottler in Latin America, announced today its results for the third quarter and first nine months of 2016 (“3Q16” and “9M16”).

Table 1: Financial Highlights

3Q16 HIGHLIGHTS

• Net sales reached Ps. 24,427 million, 18% higher when compared to 3Q15.
• EBITDA increased 13.4% to Ps. 5,331 million when compared to 3Q15, representing a margin of 21.8%.
• Net income grew by 54.7%, reaching Ps. 3,229 million, for a net margin of 13.2%.

9M16 HIGHLIGHTS

• Net sales reached Ps. 68,772 million, 27.3% higher when compared to 9M15.
• EBITDA reached Ps. 14,929 million, or 24.8% above 9M15, for a margin of 21.7%
• Net income rose 27% to Ps. 7,102 million, representing a net margin of 10.3%.

COMMENTS FROM THE CEO

“By implementing Arca Continental’s best practices throughout our operations with great discipline, and just 12 months after launching the integration of Corporacion Lindley, we have been able to overcome the challenges faced and deliver outstanding results. We reported revenue growth of 18% with EBITDA up 13.4% this quarter thanks to the efforts of all our collaborators who work with dedication and passion to serve our customers and consumers more and in a better way every day,” commented Francisco Garza Egloff, Chief Executive Officer of Arca Continental

"The achievements reached to date further strengthen our competitive pillars, which, in addition to our innovations efforts throughout the market will allow us to continue consistently creating value in 2017,” he added.

RECENT EVENTS

• On July 22, 2016, Arca Continental (AC) agreed to transfer the rights of the Topo Chico brand in Mexico to The Coca-Cola Company (TCCC). This will allow the expansion of volume in all the territories operated by Arca Continental.
• On September 30, 2016, Arca Continental announced that during due diligence and transition planning, in regards to the letter of intent previously signed by Arca Continental with The Coca-Cola Company along with Coca-Cola Bottling Company UNITED, the companies concluded that it is in the best interests of all parties involved, for Arca Continental to focus on the Southwest transition, while UNITED will turn its full attention and resources to its previously announced Atlanta market transition. Therefore, UNITED will no longer participate in the Southwest joint venture.
• Arca Continental has reached a comprehensive agreement with The Coca-Cola Company regarding concentrate prices on sparkling beverages in Mexico, as well as other aspects of their business relationship.

The term of this new framework is for 10 years beginning July 1, 2017 with the option of extending it for an additional 10 years.

Concentrate prices will gradually increase in the first three years; any adjustments beyond this point will be assessed considering overall performance.

Other commitments include various initiatives to keep on capturing value in this flagship market.

The new agreement will continue expanding a mutually-beneficial business relationship that strengthens and gives long-term security, which will enable us to focus on the profitable growth of the Coca-Cola system. At the same time, we will perfect our performance in the market and the productivity of both companies, further solidifying an extraordinary and excellent relationship with our partner of over 90 years.

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 October 19, 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.

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