Arca Continental Report Revenue Growth of 49.7% with EBITDA up 18.2% in 1Q18

MONTERREY, Mexico--()--Arca Continental, S.A.B. de C.V. (BMV:AC*) (“Arca Continental” or “AC”), the second-largest Coca-Cola bottler in America, announced today its results for the first quarter of 2018 (“1Q18”).

“For this year, we seek to reinforce the commitment without borders that distinguishes us, strengthen our commercial execution and point-of-sale service capabilities with information technology, while continuing to advance in our search for, and realization of, efficiencies and new value-creating opportunities that will drive the profitable growth of our company”

Table 1: Financial Highlights

Data in millions of Mexican pesos

     

1Q18

1Q17

Variation %

Total Beverage Volume (MUC)

521.1

417.4

24.8%

Total Revenue

37,121

24,802

49.7%

EBITDA

5,913

5,002

18.2%

Net Income

1,327

1,729

-23.3%
 

Total Beverage Volume includes jug water

EBITDA = Operating income + Depreciation + Amortization + Non Recurring Expenses

Total Revenues = Net Sales + Revenues outside the territory (OT) in USA

 

1Q18 HIGHLIGHTS

• Net sales reached Ps. 37,121 million, 49.7% higher than in 1Q17.

• EBITDA was Ps. 5,913 million, representing a margin of 16%, 18.2% higher than 1Q17.

• Net Income decreased 23.2% to Ps. 1,327 million for a margin of 3.6%.

COMMENTS FROM THE CHIEF EXECUTIVE OFFICER

“After a historic year of expansion and transformation in 2017, we begin 2018 with solid revenue growth of 45.7%, and 18.2% higher EBITDA, thanks in part to the first full year of operating franchises in the U.S., as well as the ability of our associates in all the countries we serve to adapt to the economic changes and anticipate consumer trends,” stated Francisco Garza Egloff, Chief Executive Officer of Arca Continental.

“For this year, we seek to reinforce the commitment without borders that distinguishes us, strengthen our commercial execution and point-of-sale service capabilities with information technology, while continuing to advance in our search for, and realization of, efficiencies and new value-creating opportunities that will drive the profitable growth of our company," he added.

Recent Events:

  • On March 1, 2018, Arca Continental received USD $200 million remaining from the private placement that CCSWB conducted on December 28, 2017.
  • On March 26, 2018, S&P affirmed its credit rating of “mxAAA” on a national scale for Arca Continental and AC Bebidas. The outlook remained stable.
  • On April 12, 2018, Moody´s affirmed its credit rating of “A2” on a global scale and changed the outlook from negative to stable for Arca Continental.
  • On April 26, 2018, the Annual Shareholders´ Meeting of Arca Continental declared a cash dividend of Ps. 2.20 per share to be paid in one installment beginning May 9, 2018, equivalent to a total of Ps. 3,881 million, representing an increase of 10% over the dividend paid in 2017.

For a complete version of the earnings release, please visit www.arcacontal.com.

CONFERENCE CALL INFORMATION

Arca Continental will host a conference call on April 27, 2018 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)
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 in the United States. With an outstanding track record of more than 91 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 118 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.

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@arcacontal.com

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