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Arca Continental Reports Revenue Growth of 7.0% with Net Income up 30.6% in 2Q18

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 second quarter and first half of 2018 (“2Q18” and “6M18”).

Table 1: Financial Highlights

Data in millions of Mexican pesos

2Q18 2Q17

Variation %

Jan - Jun '18

Jan - Jun '17

Variation %

Total Beverage Volume (MUC)

581

556.5

4.4

1,102.1

973.9

13.2

Total Revenue

41,126

38,445

7.0

78,247

63,247

23.7

EBITDA

7,540

7,387

2.1

13,453

12,389

8.6

Net Income

2,678

2,051

30.6

4,005

3,780

6.0

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

2Q18 HIGHLIGHTS

  • Net sales increased 7.0% when compared to 2Q17 to reach Ps. 41,126 million.
  • EBITDA was Ps. 7,540 million, for a margin of 18.3%, which was 2.1% higher than 2Q17.
  • Net Income rose 30.6% to Ps. 2,678 million, representing a net margin of 6.5%.

6M18 HIGHLIGHTS

  • Net sales increased 23.7% when compared to 2Q17 to reach Ps. 78,247 million.
  • EBITDA was Ps. 13,453 million, for a margin of 17.2%, which was 8.6% higher than 6M17.
  • Net Income rose 6.0% to Ps. 4,005 million, representing a net margin of 5.1%.

COMMENTS FROM THE CHIEF EXECUTIVE OFFICER

“In the second quarter of the year we achieved growth in revenue and net income of 7% and 31%, respectively, thanks to a focus on innovative execution at the point of sale and in our product portfolio to better serve the needs of our customers and consumers, combined with the rollout of price-pack initiatives in most of our operations, which will generate the most impact in the second half of the year", stated Francisco Garza Egloff, Chief Executive Officer of Arca Continental.

“Within a climate of economic and political volatility in the majority of the markets we serve, in 2018, we reiterate our firm commitment to advance in the consolidation of our operations, maintain the competitiveness and quality of our customer service that has distinguished our company throughout its history, with the goal to be in a favorable position to continue delivering profitable and sustainable results for our shareholders”, he added.

CONFERENCE CALL INFORMATION

Arca Continental will host a conference call on July 20, 2018 to discuss these results at 11:00 am Mexico/Monterrey time / 12:00 pm 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 92 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

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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