ALFA holds Annual General Shareholders' Meeting

Rhea-AI Summary

ALFA S.A.B. de C.V. announced strong financial results during its Annual General Shareholders' meeting on March 7, 2022. For 2021, the company reported record revenues of US $15,181 million and EBITDA of US $2,022 million, reflecting a robust market response. A 32% increase in capital expenditures to US $527 million was highlighted, along with the lowest leverage level since 2018 at 2.3x Net Debt to EBITDA. Shareholders approved a cash dividend of 4 cents per share and a buyback program worth US $280 million.

Positive

• Record revenues of US $15,181 million and EBITDA of US $2,022 million for 2021.
• 32% increase in capital expenditures to US $527 million.
• Lowest leverage level since 2018 at 2.3 times Net Debt to EBITDA.
• Approved cash dividend of 4 cents per share, totaling approximately US $196 million.
• Authorization for up to US $280 million in share buybacks.

Negative

• None.

SAN PEDRO GARZA GARCIA, Mexico, March 7, 2022 /PRNewswire/ -- ALFA S.A.B. de C.V. (BMV: ALFAA) ("ALFA") held its Annual General Shareholders' meeting today. Armando Garza Sada, Chairman of the Board, and Álvaro Fernández Garza, President of ALFA presented a report on the Company's 2021 results in which they highlighted better than expected financial results, driven by the businesses' ability to adapt quickly to market dynamics and capitalize on attractive opportunities in their respective industries.

Highlights for the year include:

• Record Revenues (US $15,181 M) and EBITDA (US $2,022 M), adjusted for discontinued operations
• 32% increase in Capital Expenditures amounting to US $527 million
• Solid financial position supported by lowest leverage level since 2018 (2.3 times Net Debt to EBITDA)
• ALFA's rating improvement in the S&P Global Corporate Sustainability Assessment
• ALFA Fundación promoted the development of more than 1,900 students in the 2020-2021 school cycle

The 2021 financial report as well as the appointment of the Board of Directors and its Committees were approved.

The shareholders also approved the payment of a cash dividend of 4 cents (US$) per share, equivalent to approximately US $196 million. The dividend is payable as of March 16, 2022.

Additionally, a maximum amount of Ps $5,800 million (approximately US $280 million) was approved for share buybacks. ALFA believes that its current share price does not adequately reflect the potential of its transformation process and the positive outlook of its businesses. The Company will implement the share buyback program in the best interest of its shareholders.

The Company published its 2021 Annual Report, which includes the Letter to Shareholders, on its website: http://www.alfa.com.mx/RI/reports.htm

 

Contact
Hernán F. Lozano
V.P. of Investor Relations
 ALFA, S.A.B. de C.V.
T. +52 (81) 8748-2521
iralfa@alfa.com.mx

Carolina Alvear
Corporate Communication Director
 ALFA, S.A.B. de C.V.
T. +52 (81) 8748-2521
comunicacion@alfa.com.mx

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 leading producers of polyester (PTA, PET, rPeT and fibers), and the leader in the Mexican market for polypropylene and expandable polystyrene (EPS). Axtel, a provider of Information Technology and Communication services for the enterprise and government segments in Mexico. In 2021, ALFA reported revenues of Ps. 308,060 million (US $15.2 billion), and EBITDA of Ps. 41,050 million (US $2.0 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.

View original content:https://www.prnewswire.com/news-releases/alfa-holds-annual-general-shareholders-meeting-301497032.html

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

FAQ

What were ALFA's financial highlights for 2021?

ALFA reported record revenues of US $15,181 million and EBITDA of US $2,022 million for 2021.

When is the cash dividend for ALFA shareholders payable?

The cash dividend of 4 cents per share is payable on March 16, 2022.

What is the amount allocated for ALFA's share buyback program?

ALFA has authorized a maximum of US $280 million for its share buyback program.

What is ALFA's leverage level as of 2021?

As of 2021, ALFA's leverage level is 2.3 times Net Debt to EBITDA.

What capital expenditure increase did ALFA achieve in 2021?

ALFA achieved a 32% increase in capital expenditures, amounting to US $527 million.