ARCA CONTINENTAL REPORTS REVENUE GROWTH OF 8.6% WITH EBITDA UP 5.8% IN 3Q18

MONTERREY, MEXICO / ACCESSWIRE / October 25, 2018 / Arca Continental, S.A.B. de C.V. AC (''Arca Continental'' or ''AC''), the second-largest Coca-Cola bottler in America, announced today its results for the third quarter and first nine months of 2018 (''3Q18'' and ''9M18'').

Table 1: Financial Highlights

Data in millions of Mexican pesos

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

3Q18 HIGHLIGHTS

• Total revenues increased 8.6% when compared to 3Q17 to reach Ps. 40,557 million.
• EBITDA was Ps. 7,203 million, for a margin of 17.8%, which was 5.8% higher than 3Q17.
• Net Income declined 53.1% to Ps. 2,366 million, representing a net margin of 5.8%.

9M18 HIGHLIGHTS

• Total revenues increased 18.1% when compared to 2017 to reach Ps. 118,804 million.
• EBITDA was Ps. 20,656 million, for a margin of 17.4%, which was 7.6% higher than 9M17.
• Net Income decreased 27.8% to Ps. 6,372 million, representing a net margin of 5.4%.

COMMENTS FROM THE CHIEF EXECUTIVE OFFICER

''In a quarter challenged by rising prices in several of our main raw materials, various strategies we implemented to capitalize on our extensive price-pack platform and develop new commercial capabilities to strengthen execution at the point of sale, which enabled us to achieve revenue growth of 8.6% with EBITDA up 5.8%, in consolidated terms. This puts us at a competitive advantage under the recent approval of a North American Trade Agreement that will benefit our operations in Mexico and the U.S.", stated Francisco Garza Egloff, Chief Executive Officer of Arca Continental.

With a well-seasoned team that is committed to serving customers and consumers with excellence, Arca Continental reaffirms its competitive position and market leadership, supported by an extensive product portfolio and geographic diversification, as well as scale and technology.

RECENT EVENTS

• On September 26, 2018, Arca Continental announced that through its subsidiary, AC Bebidas, it acquired for US$506,813,895 in cash 223,774,704 common shares of Corporación Lindley, S.A., representing 38.52% of common shares. AC Bebidas has, to date, a stake equivalent to 99.78% of the voting shares of Corporación Lindley.

For a full version of the earnings with financial statements, please visit www.arcacontal.com

CONFERENCE CALL INFORMATION
Arca Continental will host a conference call on October 25, 2018 to discuss these results at 12:00 pm Mexico/Monterrey time / 1:00 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.

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.

SOURCE: Arca Continental, S.A.B. de C.V.