MONTERREY, MEXICO / ACCESSWIRE / July 22, 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 second quarter and first half of 2022 ("2Q22" and "6M22").

2Q22 HIGHLIGHTS

• Net Sales reached Ps. 53,363 million, 16.5% higher than 2Q21.
• EBITDA was Ps. 10,436 million for a margin of 19.6%, up 11% versus 2Q21.
• Net Income totaled Ps. 4,222 million, up 34.9% for a margin of 7.9%.

6M22 HIGHLIGHTS

• Net Sales reached Ps. 99,428 million, representing an increase of 15.2% versus 6M21.
• EBITDA totaled Ps. 18,963 million for a margin of 19.1%, 11% higher than 6M21.
• Net Income increased 28% to Ps. 7,316 million for a margin of 7.4%.

COMMENTS FROM THE CHIEF EXECUTIVE OFFICER

"By continuously improving the implementation of our commercial model, and with a clear focus on digital initiatives to enhance customer service at the point of sale, we grew net sales by 16.5% and net profit 34.9% in the quarter, reflecting the operating and financial discipline that we are known for, and the firm commitment of our associates in the face of a challenging environment," said Arturo Gutiérrez, CEO of Arca Continental.

"In the second half of 2022, we will keep deploying innovative strategies in the marketplace to meet the needs of customers and consumers, as well as actions to support our communities, against the backdrop of high inflation and disruptions in the supply chain", he added.

ESG

• In June, Arca Continental was ratified for the 7^th consecutive year in the FTSE4Good Index of the London Stock Exchange. In addition, it was ratified in the Sustainability Index of both Standard & Poor´s Dow Jones and the Mexican Bolsa; both indices aim to give greater exposure to companies with the best practices in the areas of environmental, social and corporate governance.
• In Mexico, Arca Continental together with Petstar and Coca-Cola México invested a combined Ps. 175 million to strengthen the infrastructure of collection and recycling, aiming to increase the current average collection and recycling from 6 of every 10 containers placed in the market to 10 of 10 by 2030.
• Arca Continental and the Fundación Coca-Cola via the project Escuelas de Lluvia ("Rain Schools"), have installed 23 rain catchment systems in schools across the states of Jalisco, Sinaloa and Nuevo León, reaching a savings of more than 5 million liters of water in one year.
• In Ecuador, we signed an agreement with the Ministry of the Environment, Water and Ecological Transition to recycle as part of the circular economy, with the goal of bringing visibility and recognition to the task of those that recycle; noting their participation in the value chain, as well as fostering their formalization and eliminating the discrimination and informality that they currently live under.
• In Peru, for the ninth consecutive year we received the Socially Responsible Company Award, in recognition of our sustainability management.

RECENT EVENTS

• On July 18th, 2022, Fitch Ratings ratified the rating of Arca Continental, AC Bebidas and Arca Continental Lindley, at both the global and national levels. The agency confirmed its "A" long-term credit rating in its global scale for AC and ACBE, and the "AAA (mex)" rating in its national scale, with a stable outlook. For Arca Continental Lindley, the agency also ratified its global "A" rating, with a stable outlook.
• On July 13th, 2022, Moody's adjusted Mexico's sovereign rating and as a result Arca Continental's global scale rating from A2 to A3 with a change in the outlook to stable. AC maintains a rating two levels above the sovereign rating due to its geographic diversification, proportion of dollar-based revenues, among other fundamentals.
• On June 13th, we issued Ps. 4,350 million in Certificados Bursátiles, or Local Notes. The issuance consisted of two tranches, one for Ps. 1,150 million for 7 years at a fixed rate of 9.32%, and the other for Ps. 3,200 million for 4 years at a variable rate equivalent to TIIE plus 4 basis points. Both issuances received credit ratings above Mexico's rating, "mxAAA" by S&P and "AAA(mex)" by Fitch Ratings.

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 July 22, 2022 at 10:00 am Mexico/Monterrey time, 11:00 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.