Alfa SAB de CV : reports 3Q15 EBITDA up 8% year-on-year

Monterrey, N.L., Mexico. October 20, 2015.- ALFA, S.A.B. de C.V. (ALFA) reported today 3Q15 unaudited financial results. Revenues amounted to U.S. $4,107 million, down 12% year-on-year. EBITDA was U.S. $589 million, up 8% vis-à-vis 3Q14.

Commenting on the Company's results Mr. Alvaro Fernandez, ALFA's President, said: 'Our 3Q15 EBITDA increased 8% year-over-year due to a combination of positive factors including better margins at Alpek, higher volumes, lower expenses and ongoing efficiencies at Nemak, better sales volume and lower raw material costs at Sigma and non-recurring gains at Campofrio, which more than offset lower profits at Alestra and Newpek, as well as non-cash losses at Alpek reflecting an inventory devaluation charge. We are pleased that we were able to deliver improved EBITDA even as our top line was impacted by macro factors such as unfavorable exchange rates and a significant decrease in oil prices.'

ALFA's companies invested U.S. $325 million in capital expenditures and acquisitions during 3Q15, flat with the prior year. Net debt at the quarter end of U.S. $4,859 million was lower when compared to U.S. $5,163 million in 3Q14. Lower debt reflects both strong cash generation in the period, and the proceeds from the early 3Q15 Nemak initial public offering. At the end of the quarter, financial ratios were: Debt, net of cash, to EBITDA: 2.1 times; Interest Coverage: 7.2 times. Those ratios compare favorably to 2.6 times and 5.8 times in 3Q14.

The strong U.S. Dollar generated exchange losses that impacted 3Q15 Majority Net Income of ALFA. However, they were more than offset with solid operating results. As a consequence, ALFA posted Majority Net Income of U.S. $155 million, down 15% sequentially, but significantly ahead of the U.S. $55 million reported in 3Q14, when the U.S. Dollar also gained vis-à-vis the Mexican Peso.