ALFA reports 1Q19 EBTIDA of US $519 million

MONTERREY, Mexico, April 23, 2019 /PRNewswire/ -- ALFA, S.A.B. de C.V. (BMV: ALFAA) (ALFA), a leading holding company that manages a portfolio of diversified subsidiaries with global operations announced today its unaudited results for the first quarter of 2019 ("1Q19"). All figures have been prepared in accordance with International Financial Reporting Standards ("IFRS").

1Q19 Highlights

Message from ALFA's President

"ALFA's consolidated first quarter operating and financial results were on track with our full-year guidance, which anticipated lower EBITDA year-over-year in most of our businesses following record results in 2018.

Better-than-expected 1Q19 performance at Nemak and Axtel offset the impact from a lower-than-expected oil price environment at Alpek and Newpek. Sigma posted results in-line with expectations, but the Company is closely monitoring the recent rise in pork prices associated with the swine fever mainly in China. Sigma is working diligently on several fronts to mitigate the potential impact of higher pork prices on its operations.

Regarding our Balance Sheet, the increase in consolidated Net Debt at quarter's end is primarily due to the initial adoption effect of a new accounting standard for long term leases (IFRS16) effective January 1, 2019. However, we anticipate a significant reduction in Net Debt by year-end supported by strong cash flow generation along with non-core asset sales currently underway at several subsidiaries.

On February 28th, ALFA held its Annual Ordinary and Extraordinary Shareholders' Meeting. A cash dividend of US $202 million, plus the cancellation of 145 million shares valued at US $165 million based on our share price on that date, were among the direct benefits to ALFA's Shareholders. For 2019, Shareholders approved a maximum share buyback amount of $5,800 million Pesos (US $300 million approx.).

Another highlight of the Shareholders' Meeting was the appointment of ALFA's eleventh independent Board Member, increasing the percentage of Independent Directors to 85%. I look forward to working closely with ALFA's Board to build upon our Company's strengths."

Álvaro Fernández

SELECTED FINANCIAL INFORMATION (US $ Millions)

1Q19 EARNINGS CALL INFORMATION

About ALFA

ALFA is a holding company that manages a portfolio of diversified subsidiaries with global operations: Alpek, one of the world's largest producers of polyester (PTA, PET and fibers), and the leader in the Mexican market for polypropylene, expandable polystyrene (EPS) and caprolactam. Sigma, a leading multinational food company, focused on the production, marketing and distribution of quality foods through recognized brands in Mexico, Europe, United States and Latin America. Nemak, a leading provider of innovative lightweighting solutions for the global automotive industry, specializing in the development and manufacturing of aluminum components for powertrain, structural components and for electric vehicles. Axtel, a provider of Information Technology and Communication services for the enterprise and government segments in Mexico. Newpek, an oil and gas exploration and production company with operations in Mexico and the United States. In 2018, ALFA reported revenues of Ps. 366,432 million (US $19.1 billion), and EBITDA of Ps. 55,178 million (US $2.9 billion). ALFA's shares are quoted on the Mexican Stock Exchange and on Latibex, the market for Latin American shares of the Madrid Stock Exchange.

Disclaimer

This release may contain forward-looking information based on numerous variables and assumptions that are inherently uncertain. They involve judgments with respect to, among other things, future economic, competitive and financial market conditions and future business decisions, all of which are difficult or impossible to predict accurately. Accordingly, results could vary from those set forth in this release. The report presents unaudited financial information. Figures are presented in Mexican Pesos or US Dollars, as indicated. Where applicable, Peso amounts were translated into US Dollars using the average exchange rate of the months during which the operations were recorded. Financial ratios are calculated in US Dollars. Due to the rounding up of figures, small differences may occur when calculating percent changes from one period to the other.

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SOURCE ALFA, S.A.B. de C.V.