ALFA reports 3Q21 EBITDA of US $486 million; record US $1.5 billion EBITDA in the first nine months of the year

MONTERREY, Mexico, Oct. 20, 2021 /PRNewswire/ -- ALFA, S.A.B. de C.V. (BMV: ALFAA) ("ALFA"), a company that has developed a diversified portfolio of leading businesses with global operations, announced today its unaudited results for the third quarter of 2021 ("3Q21"). All figures have been prepared in accordance with International Financial Reporting Standards ("IFRS").

3Q21 HIGHLIGHTS

Message from ALFA's President

"We hope you and your families have all remained healthy and safe. It has been encouraging to see the decline in COVID-19 cases around the world, following the resurgence during the third quarter related to the Delta variant.

Our businesses continue to demonstrate an ability to successfully operate in a highly dynamic and fluid macro environment. ALFA delivered double-digit top line and EBITDA growth amid supply chain shortages and inflationary pressures affecting the global economy. Quarterly revenue advanced 30% and EBITDA was up 11% versus 3Q20, driven by a strong performance from Alpek. Moreover, ALFA's accumulated EBITDA through September reached a record US $1.517 billion, putting us on track to exceed our full-year guidance of US $1.767 billion.

Alpek once again delivered better-than-expected EBITDA, boosted by sustained margin strength. Year- to-date results at Sigma and Axtel are in line with their respective EBITDA estimations. Effective revenue management and a rapid Foodservice channel recovery offset raw material cost pressures and other supply chain headwinds faced by Sigma. Axtel benefitted from a stronger-than-expected Mexican Peso as the Government segment continued to weigh on its Service business unit.

For the remainder of the year, Alpek expects to continue capitalizing on a favorable margin environment, raising its 2021 EBITDA guidance by US $170 million to a record US $1.050 billion. Sigma and Axtel maintained previously announced EBITDA guidance figures. At the ALFA level, the latest estimations result in a new 2021 EBITDA Guidance of US $1.937 billion - the second highest figure in our history.

In addition to our solid operating performance, we continue to advance on the three key components of our Unlocking Value Strategy: reducing leverage, focusing on the core businesses and enhancing business independence.

In closing, I would like to extend my sincerest thanks to our team members around the world for their collective efforts to reach our financial, operational and strategic goals. We are on track to close 2021 on a strong footing to continue with our orderly transformation process."

Keep well/Stay safe,

Álvaro Fernández

SELECTED FINANCIAL INFORMATION (US $ MILLIONS)

Contact
Hernán F. Lozano
V.P. of Investor Relations ALFA, S.A.B. de C.V.
T. +52 (81) 8748-2521
[email protected]

Carolina Alvear
Corporate Communication Director ALFA, S.A.B. de C.V.
T. +52 (81) 8748-2521
[email protected]

About ALFA

ALFA manages a diversified portfolio of leading businesses with global operations: 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. 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. Axtel, a provider of Information Technology and Communication services for the enterprise and government segments in Mexico. In 2020, ALFA reported revenues of Ps. 263,867 million (US $12.3 billion), and EBITDA of Ps. 32,597 million (US $1.5 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. For more information, please visit www.alfa.com.mx

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. These uncertainties include, but are not limited to, risks related to the impact of the COVID-19 global pandemic, such as the scope and duration of the outbreak, government actions and restrictive measures implemented in response, availability of workers and contractors due to illness and stay at home orders, supply chain disruptions and other impacts to the business, or on the Company's ability to execute business continuity plans, as a result thereof. 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.

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