Arca Continental Reports Revenue Growth of 66.6% with EBITDA up 39% in 2Q17

MONTERREY, Mexico--(BUSINESS WIRE)--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 2017 (“2Q17” and “6M17”).

Table 1: Financial Highlights

Data in millions of Mexican pesos
	2Q17	2Q16	Variation %
Total Beverage Volume (MUC)	556.5	443.5	25.5%
Net Sales	38,445	23,071	66.6%
EBITDA	7,387	5,317	38.9%
Net Income	2,051	2,001	2.5%
Total Beverage Volume includes jug water
EBITDA = Operating income + Depreciation + Amortization + Non Recurring Expenses

2Q17 HIGHLIGHTS

• Net sales increased 66.6% when compared to 2Q16 to reach Ps. 38,445 million.
• EBITDA was Ps. 7,387 million, for a margin of 19.2%, which was 38.9% higher than 2Q16.
• Net income rose 2.5% to Ps. 2,051 million, for a net margin of 5.3%.

6M17 HIGHLIGHTS

• Net sales grew 42.6% to Ps. 63,247 million.
• EBITDA reached Ps. 12,389 million, or 29.1% above 6M16, for a margin of 19.6%
• Net income declined by 2.4% to Ps. 3,780 million, representing a net margin of 6%.

COMMENTS FROM THE CEO

“The combination of the first three months of operation in the United States and the solid results from Mexico and South America drove 66.6% growth in our sales for the second quarter of 2017, supported by effective price-pack strategies, innovative commercial execution and a committed team of professionals, clearly aimed at exceeding the expectations of our clients and consumers”, stated Francisco Garza Egloff, Chief Executive Officer of Arca Continental.

“Under a volatile environment in some of the markets in which we operate, we were able to increase our EBITDA by 39%, accumulating 25 consecutive quarters of growth in this indicator. Furthermore, we continue advancing on our synergy plan and exchange of best practices at Coca-Cola Southwest Beverages, with the goal of capitalizing on the experience and capabilities of both teams to strengthen our leadership and advance along the value creation route that characterizes us,” 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 19, 2017 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:

[phone] (U.S. participants)
[phone] (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

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.