Financial News

Arca Continental Reports Net Sales Growth of 23.4% with EBITDA up 22.4% in 2015

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 2015 (“4Q15” and “12M15”).

Table 1: Financial Highlights

Data in millions of Mexican pesos

4Q15

4Q14

Variation %

Jan - Dec '15

Jan - Dec '14

Variation %

Total Beverage Volume (MUC)

430.1

334.4

28.6

1,477.7

1,328.6

11.2

Net Sales

22,441

16,200

38.5

76,454

61,957

23.4

EBITDA

4,742

3,427

38.4

16,707

13,644

22.4

Net Income

1,655

1,578

4.9

7,246

6,505

11.4

Total Beverage Volume includes jug water

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

FOURTH QUARTER 2015 (4Q15) HIGHLIGHTS

  • Net sales reached Ps. 22,441 million, 38.5% higher than 4Q14.
  • EBITDA came in at Ps. 4,742 million for a margin of 21.1%, up 38.4% when compared to 4Q14.
  • Net income rose 4.9% to Ps. 1,655 million for a margin of 7.4%.

FULL YEAR 2015 (12M15) HIGHLIGHTS

  • Net sales grew 23.4% to Ps. 76,454 million.
  • EBITDA reached Ps. 16,707 million for a margin of 21.9%, 22.4% higher when compared to 2014.
  • Net income increased 11.4% to Ps. 7,246 million for a margin of 9.5%.

COMMENTS FROM THE CEO

“During a year marked by global economic volatility, we were able to favorably satisfy the needs of our customers and consumers, through outstanding execution and a broad and attractive product portfolio, to reach significant growth in sales of 23.4% and EBITDA of 22.4%. We had another consecutive year of achievements thanks to the commitment and dedication of all those that form part of Arca Continental, by incorporating new alliances and innovation into all our business processes,” stated Francisco Garza Egloff, Chief Executive Officer of Arca Continental.

“In 2016 we will focus on strengthening our commitment to integrate, evolve and maintain the momentum of profitable growth of our Company, while further increasing our competitiveness in all business areas,” he added.

RECENT EVENTS

  • On October 30, 2015, Fitch Ratings assigned AC a global “A” investment grade rating with “stable” outlook. The ratings agency highlighted the long-term sustainability and strengthening of its participation in the markets it serves.
  • On December 11, 2015, Standard & Poor's Ratings Services raised to investment grade its rating of CL, subsidiary of AC, from BB+ to BBB.
  • On January 4, 2016, AC completed its acquisition of 6.6% common shares with voting rights issued by Corporación Lindley S.A., which were previously owned by the Arrendondo Lindley family; with this, AC reached an ownership stake of more than 60% of CL’s capital stock. In addition, on January 29, AC acquired 1.79% of the non-voting investment shares issued by CL, at a price of US$ 0.89 per share.
  • For the 5th consecutive year, the Bolsa Mexicana de Valores announced that AC will continue to be part of its Sustainability and Social Responsibility Index (ISRS) after demonstrating that AC incorporates the best international practices in the areas of Social and Environmental Responsibility and Corporate Governance.
  • AC announces that its consolidated volume growth expectation for 2016 will be around 3%, excluding jug water and including 12 months of volume from Peru.

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 February 19, 2016 to discuss these results at 10:00 a.m. Mexico/Monterrey time / 11:00 a.m. 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 89 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 83 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.

Contacts:

Investor Relations in Monterrey:
Arca Continental
Ulises Fernandez de Lara, 52-81-8151-1525
ulises.fernandezdelara@arcacontal.com
or
Felipe Barquin, 52-81-8151-1674
felipe.barquin@arcacontal.com
or
Investor Relations in New York:
i-advize Corporate Communications
Melanie Carpenter, 212-406-3692
mcarpenter@i-advize.com
or
Corporate Communications in Monterrey:
Arca Continental
Guillermo Garza, 52-81-8151-1589
Guillermo.garza@arcacontinental.com

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