Arca Continental Reports Revenue Growth of 14% with EBITDA up 5.7% in 2018

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 fourth quarter and full year of 2018 (“4Q18” and “2018”).

Table 1: Financial Highlights

4Q18 HIGHLIGHTS

• Total revenues grew 3.2% when compared to 4Q17, to Ps. 40,148 million.
• EBITDA reached Ps. 6,811 million, representing a margin of 17.0%.
• Net Income was Ps. 2,331 million, down 45.3%, for a net margin of 5.8%.

2018 HIGHLIGHTS

• Total revenues rose 14% versus 2017, to Ps. 158,953 million.
• EBITDA grew 5.7% to Ps. 27,467 million, for a margin of 17.3%.
• Net Income reached Ps. 8,703 million for a net margin of 5.5% and a decline of 33.5%.

COMMENTS FROM THE CHIEF EXECUTIVE OFFICER

“In 2018 our revenues reached more than Ps. 158 million for a growth of 14%, mainly from the combination of the right pricing strategy and positive volume trends in Mexico and the U.S. In South America, Peru continues its rapid recovery and Argentina demonstrates the capacity of our associates to face challenging macroeconomic climates. It’s worth noting that even in a volatile environment for several of our raw materials, the Company’s EBITDA reached Ps. 27 million, up 5.7% vs. 2017,” stated Arturo Gutierrez, Arca Continental’s Chief Executive Officer.

“In line with our value creation plan, during 2019 we will focus our efforts to keep innovating and strengthening the various commercial initiatives, while we continue strengthening our operations in the U.S. We will also work on boosting the competiveness of the rest of our territories and businesses, supported by our solid cultural principles,” he added.

RECENT EVENTS

• On January 22, 2019 we announced the succession of our Chairman of the Board, in which Manuel L. Barragan Morales decided to retire from the Board and named Jorge Humberto Santos Reyna as the new Chairman, effective at the conclusion of the Annual Shareholders’ Meeting on April 4, 2019.
• In 2019, AC will remain part of the FTSE4Good Emerging Index, which it was incorporated to in 2017 and includes the publicly-traded companies that demonstrate a strong commitment to having the best environmental, social responsibility and corporate governance practices among emerging economies.
• The Mexican Stock Exchange announced that AC will continue to be part of the Sustainability and Social Responsibility Index upon having the best international practices in the areas of social and environmental responsibility and corporate governance.
• AC´s guidance for consolidated volume growth in 2019 is approximately 2%, on a comparable basis.
• In July 2018, Argentina was registered as an economy with hyperinflation upon accumulating over 100% inflation in the last 3 years. Due to this factor, as of this quarter, our consolidated results will reflect the change in reporting methodology for Argentina.

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

CONFERENCE CALL INFORMATION

Arca Continental will host a conference call on February 19, 2019 to discuss these results at 09:00 am Mexico/Monterrey time / 10:00 am New York time. A live webcast of this event will be available at www.arcacontal.com or connect via telephone.

To participate, please dial:
+1-877-712-5080 (U.S. participants)
+1-334-245-3009 (International participants)
0-1-800-062-2650 (Mexico participants)
Passcode: 36151

About Arca Continental

Arca Continental is a company dedicated to the production, distribution, and sale of non-alcoholic beverages which are brand names of The Coca-Cola Company as well as salty snacks under the brands of Bokados in Mexico, Inalecsa in Ecuador, and Wise and Deep River in the United States. With an outstanding track record of more than 93 years, Arca Continental is the second largest Coca-Cola bottling company in Latin America and one of the most important in the world. Within its Coca-Cola franchise, the company serves a population of more than 119 million in the northern and western parts of Mexico as well as Ecuador, Peru, the northern region of Argentina and the Southwestern U.S. Arca Continental is listed on the Mexican Stock Market under the ticker symbol "AC". For further information about 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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