Alfa de CV : Reports 1Q18 EBITDA of US $629 million, a growth of 19% year-over-year

Monterrey, N.L., Mexico, April 18, 2018.- ALFA, S.A.B. de C.V. (ALFA), a leading Mexican industrial company, reported today its 1Q18 unaudited financial results. Total revenues were US $4,576 million, up 14% year-on-year due to higher sales achieved across all business units. EBITDA was US $629 million, up 19% vis-à-vis 1Q17.

Commenting on the Company's results Mr. Alvaro Fernandez, ALFA's President, said: 'This was a good quarter for ALFA as all our businesses showed improvement during 1Q18. Importantly, we are seeing better performance across many regions and less volatility from commodities. Additionally, many of our portfolio companies had a significant event in the quarter as they executed on the long-term strategic plan. By company; Sigma's results were driven by a strong performance in Mexico; Alpek saw higher volumes and better margins in polyester, while Nemak benefited from solid volumes in the Americas and less negative metal lag. Axtel also continued to improve and completed the sale of the final tranche of transmission towers. Lastly, Newpek advanced its strategy to concentrate in Mexico with a selected acreage sale in the Eagle Ford Shale'.

Consolidated capital expenditures and acquisitions amounted to US $185 million during 1Q18. Net Debt at the quarter end of US $6,741 million was 6% higher when compared to the US $6,359 million in 1Q17. At the end of the quarter, financial ratios were: Net Debt to EBITDA: 3.2 times; Interest Coverage: 4.8 times.

Majority Net Income was US $189 million in 1Q18, 23% higher than the US $154 million reported in 1Q17. This improvement is mainly explained by higher operating income that offset lower exchange gains than those recorded in 1Q17.