MONTERREY, MEXICO / ACCESSWIRE / April 29, 2022 / Arca Continental, S.A.B. de C.V. (BMV: AC*) ("Arca Continental" or "AC") , the second-largest Coca-Cola bottler in Latin America, announced its results for the first quarter of 2022 ("1Q22").

Table 1: Financial Highlights

1Q22 HIGHLIGHTS

• Net Sales increased 13.8% when compared to 1Q21, to Ps. 46,065 million.
• EBITDA reached Ps. 8,527 million for an increase of 11.0% and a margin of 18.5%.
• Net Income rose 19.7% to Ps. 3,094 million, for a margin of 6.7%.

COMMENTS FROM THE CHIEF EXECUTIVE OFFICER

"The deployment of our solid execution at the point of sale, efficient price-pack initiatives, and the operating discipline that sets us apart, enabled us to capitalize on the favorable consumer climate and economic reactivation, with volume growth in all the markets we serve, as well as increases in revenues and EBITDA of 13.8% and 11%, respectively. These results partially offset the effects of high volatility in the price of our key inputs", explained Arturo Gutiérrez, Chief Executive Officer of Arca Continental.

As we look ahead in 2022, we will remain focused on maintaining the growth momentum in sales through the use of innovative and sustainable commercial strategies that meet the needs of our customers and consumers, in order to continue delivering solid financial and operating results that exceed the expectations of our shareholders", he added.

ESG

• In Mexico, Arca Continental, in an alliance with Fundación Coca-Cola and World Wildlife Fund, signed an agreement to develop sustainable aquifers using nature-based solutions that will help increase the availability of water in the state of Chihuahua.
• We reinforced our commitment to reduce the use of resin in plastic packaging, becoming the first bottler in North America to lightweight our 12-ounce PET presentation from 22 to 14 grams, by using state-of-the art technology that incorporates an ultra-thin protective layer of glass in the insides of these bottles.
• In Ecuador, we closed the program "Agua por el Futuro" (or "Water for the Future") in the Carmen de Jadán de Ecuador community, where we carried out activities to protect 14 water sources and restore 49 hectares.
• Through the initiative "Programa DAR", we trained over 2,000 people in inclusive recycling best practices, setting up four new collection centers in the cities of Quito and Guayaquil and carrying out three programs to recover waste. As of result of this project, we were able to recover more than 2,000 tons of waste, 45% of which was PET.
• During 1Q22, we launched the campaign "El Amor Multiplica" (or "Love Multiplies"), a project in which we develop initiatives under four categories: fostering female talent, community wellness, protection of water and a culture of recycling. Through this initiative, we have supported more than 400 thousand women and entrepreneurs with training programs, thus generating over 100 thousand new jobs.
• In Argentina, we donated 20,000 liters of water to firefighter and volunteers that worked to put out the forest fire that covered nearly 10% of the total area of the Corrientes.

RECENT EVENTS

• On March 31, 2022, ratings agency Standard & Poor's ratified the credit ratings of AC and AC Bebidas at "mxAAA" with stable outlook, the highest rating in Mexico.
• On April 1, 2022, Arca Continental announced that in 2022 it planned to invest more than Ps. 12,000 million, allocated towards strengthening and innovating production, distribution, and execution capabilities, as well as digitalization and sustainability projects. Of the total investment amount, approximately 50% will go to initiatives aimed at strengthening operations in Mexico, and the other 50% to various projects in the U.S. and South America.
• On April 1, 2022, Arca Continental's Annual Shareholders' Meeting approved a cash dividend of Ps. 3.18 per share, in a single payment beginning April 19, 2022, equivalent to a total of Ps. 5,610 million, representing a payout ratio of 46%.
• At the Annual Shareholders' Meeting held on April 1, 2022, the cancellation of 19,976,442 shares, representing 1.1% of total shares outstanding was approved. These shares were acquired through the company's share repurchase fund.

The full earnings reports and financial tables available for download in MS Excel format can be accessed at the following link: http://www.arcacontal.com/investors/financial-reports.aspx

CONFERENCE CALL INFORMATION

Arca Continental will host a conference call to discuss these results on April 29, 2022 at 9:00 am Mexico/Monterrey time, 10:00 am New York time. A live webcast of this event will be available at www.arcacontal.com or via telephone using the following numbers:

To participate, please dial:
+1-800-225-9448 (U.S. participants)
+1-203-518-9765 (International participants)
Passcode: 36151

About Arca Continental

Arca Continental produces, distributes, and markets beverages under The Coca-Cola Company brand, as well as snacks under the Bokados brand in Mexico, Inalecsa in Ecuador, and Wise and Deep River in the United States. With an outstanding history spanning more than 96 years, Arca Continental is the second-largest Coca-Cola bottler in Latin America, and one of the largest in the world. Through its Coca-Cola franchise, the company serves more than 125 million people in the Northern and Western regions in Mexico, as well as in Ecuador, Peru, in the Northern region of Argentina, and in the Southwestern United States. Arca Continental is listed on the Mexican Stock Exchange under the ticker "AC". For more 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.