Arca Continental Reports Net Sales Increase of 3.6% with EBITDA Margin up 70 BPS to 22.8% in 3Q14

MONTERREY, Mexico--()--Arca Continental, S.A.B. de C.V. (BMV: AC*) (“Arca Continental” or “AC”), the second-largest Coca-Cola bottler in Latin America and the third largest in the world, announced its results for the third quarter of 2014 (“3Q14”).

Table 1: Financial Highlights

                           
Data in millions of Mexican pesos
                   

3Q14

3Q13

Variation %

Jan - Sep '14

Jan - Sep '13

Variation %

Total Beverage Volume (MUC)

352.2

354.0

-0.5

994.2

1,016.8

-2.2

Net Sales

16,429

15,851

3.6

45,757

45,051

1.6

EBITDA

3,738

3,506

6.6

10,217

9,590

6.5

Net Income

   

1,830

   

1,721

   

6.3

 

4,927

 

4,688

 

5.1

Total Beverage Volume includes jug water

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

THIRD QUARTER 2014 HIGHLIGHTS

  • Net sales reached Ps. 16,429 million, 3.6% higher than 3Q13.
  • EBITDA was Ps. 3,738 million with a 22.8% margin, 70 basis points above the same quarter of last year.
  • Net income grew 6.3% to Ps. 1,830 million with a 11.1% margin, up 20 basis points.

FIRST NINE MONTHS 2014 HIGHLIGHTS (9M)

  • Net sales reached Ps. 45,757 million representing a 1.6% increase.
  • EBITDA was Ps. 10,217 million for a 22.3% margin, up 100 basis points.
  • Net income increased 5.1% to Ps. 4,927 million at a margin of 10.8%, up 40 basis points.

COMMENTS FROM THE CEO

“Our proven capability of execution at the point of sale, the continuous search for efficiency in our operations and the absolute commitment of our team to confront a challenging consumer environment, have been key factors in maintaining a sustained growth trend in the competitiveness and profitability of the Company during the third quarter of 2014, in which we reported a 3.6% increase in sales and a 70 basis-point expansion in our EBITDA margin,” stated Francisco Garza Egloff, Chief Executive Officer of Arca Continental.

“Within this framework, I’m very pleased to convey that the success of our “Share a Coke” campaign, as well as the launch of Coca-Cola Life in Mexico, are positively driving the category and strengthening our commitment to satisfy the different needs of our consumers with a broad and accessible product portfolio, in addition to the constant support to our clients via innovative service models,” he added.

RECENT EVENTS

  • MSCI, a leading provider of investor information, added Arca Continental to its 2014 Sustainability Index, which includes the top rated companies in the areas of environmental and social responsibility as well as Corporate Governance.

For a full version of this earnings release with financial statements and access to the live webcast of the earnings call, go to: http://www.arcacontal.com/investors.aspx

CONFERENCE CALL INFORMATION

Arca Continental will host a conference call on Friday, October 24, 2014 to discuss these results at 10:00 am Mexico/Monterrey time / 11:00 am New York time. To access the call, please dial:

From within the U.S.       +1 800 311 9401
 
Toll-Free from within Mexico +001 800 368 1029
 
International Participants +1 334 323 7224
 

Access Code:

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 85 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 53 million consumers in Northern and Western Mexico, Ecuador 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 or download the AC Investor iPad app.

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

Arca Continental, S.A.B. de C.V.
Investor Relations:
Monterrey
Ulises Fernández de Lara, 52 (81) 8151-1525
ulises.fernandezdelara@arcacontal.com
or
Juan Hawach Sánchez, 52 (81) 8151-1547
juan.hawach@arcacontal.com
or
New York
i-advize Corporate Communications
Melanie Carpenter, 212-406-3692
arcacontal@i-advize.com
or
Corporate Communications:
Guillermo Garza, 52 (81) 8151-1589
guillermo.garza@arcacontal.com

Contacts

Arca Continental, S.A.B. de C.V.
Investor Relations:
Monterrey
Ulises Fernández de Lara, 52 (81) 8151-1525
ulises.fernandezdelara@arcacontal.com
or
Juan Hawach Sánchez, 52 (81) 8151-1547
juan.hawach@arcacontal.com
or
New York
i-advize Corporate Communications
Melanie Carpenter, 212-406-3692
arcacontal@i-advize.com
or
Corporate Communications:
Guillermo Garza, 52 (81) 8151-1589
guillermo.garza@arcacontal.com