Arca Continental Reports EBITDA Growth of 6.1% with Net Income up 28.2% in 1Q19

Arca Continental, S.A.B. de C.V. (BMV: AC*) (“Arca Continental” or “AC”), the second-largest Coca-Cola bottler in Latin America, announced its results for the first quarter of 2019 (“1Q19”).

1Q19 HIGHLIGHTS

• Net sales reached Ps. 36,921 million, 2.2% higher than in 1Q18.
• EBITDA was Ps. 6,272 million, 6.1% higher than 1Q18 and representing a margin of 17%.
• Net Income rose 28.2% to Ps. 1,701 million, for a margin of 4.6%

COMMENTS FROM THE CHIEF EXECUTIVE OFFICER

“With a strong focus on strengthening our operating efficiency, execution at the point of sale, as well as a precise price pack architecture in the various markets in which we operate, in the first quarter of 2019, we reported EBITDA growth of 6.1% with a margin expansion of 60 basis points. Our dedicated team of associates has demonstrated their ability to overcome challenges and serve with excellence the needs of our customers and consumers”, stated Arturo Gutierrez, Chief Executive Officer of Arca Continental.

“In line with this and despite high prices of several raw materials, our subsidiary in the U.S. posted positive results once again, thanks to an effective business plan and the realization of synergies, which has enabled us to improve our profitability and continue delivering favorable results for our shareholders”

Note: The information in AC’s financial tables is available for download in MS Excel format at the following link: http://www.arcacontal.com/investors/financial-reports.aspx

RECENT EVENTS

• On April 4, 2019, Arca Continental’s Annual Shareholders’ Meeting approved the payment of a cash dividend in the amount of Ps. 2.30 per share, in a single payment on April 16, 2019, equivalent to a total of Ps. 4,058 million. This dividend represents a 5% increase when compared to last year.
• On April 4, 2019, AC announced its CAPEX for 2019 of Ps. 13,000 million, approximately 35% of which will be allocated to operations in Mexico, 39% to the U.S. and 26% for the South American region.

CONFERENCE CALL INFORMATION

Arca Continental will host a conference call on April 26, 2019 to discuss these results at 10:00 am Mexico/Monterrey time / 11:00 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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