Grupo Famsa de CV : meets its Guidance and strengthen its financial position during 2018

GRUPO FAMSA MEETS ITS GUIDANCE AND STRENGTHEN ITS FINANCIAL POSITION DURING 2018

Monterrey, N.L., Mexico, February 25, 2019. - Grupo Famsa, S.A.B. de C.V. (BMV: GFAMSA), a leading Mexican commercial conglomerate in the retail, consumer credit and savings sectors, announced today its earnings results for the fourth quarter and full-year 2018, highlighting the accomplishment of its Guidance and the obtention of Ps.694 million from its asset monetization plan.

Regarding our Consolidated Results for the full-year 2018, the commercial operations in Mexico stood out recording a general growth in all categories of durable goods and origination of personal loans, thus contributing to support the advancement of both Consolidated Net Sales (Ps.19,959 million, +13.7% YoY) and Consolidated EBITDA (Ps.1,915 million, +5.0% YoY ), despite the strategic disbursements made as of 4Q18, to finally meet Grupo Famsa's 2018 Guidance estimates.

In relation to our USA operations, 2018 EBITDA significantly improved vs. 2017, ending the year at positive zone (+Ps.14 million) reflecting a compact but efficient structure, an effective presence in digital media and a commercial offering of better margins.

Similarly, following the enhancement on Banco Famsa's investment products portfolio, Bank Deposits amounted to Ps.30,689 million (+22.8% YoY) as of December 31, 2018, representing 77.8% of Company's total funding. At the same time, the vibrant dynamism in the origination of personal loans propelled a 25.8% YoY expansion in the consolidated portfolio of consumer credits in Mexico.

For the full-year 2018, the Company received Ps.694 million from the sale of 8 properties, and expected additional Ps.800 million, for the sale of another 9 properties, towards year 2019, in line with its asset monetization plan. These proceeds were partially used over the year for the amortization of maturities, thus helping to reduce the financial leverage of the Company.

At the light of these positive results and developments, Mr. Humberto Garza Valdez, CEO of Grupo Famsa, stated: "The performance achieved during year 2018, followed the timely implementation of initiatives focused on the strengthening of our operation and financials, as it is reflected on the solid grounds of Famsa Mexico, the strengthening of Banco Famsa and further stability of Famsa USA. In this regard, we will continue improving our structure, commercial channels and financial position, setting the following Guidance for 2019: i) consolidated Net Sales, from Ps.21,917 to Ps.22,166 million; and, ii) consolidated EBITDA, from Ps.2,100 million to Ps.2,200 million.".

About Grupo Famsa

Established in 1970 in Monterrey, Nuevo Leon, Grupo Famsa has consolidated its position as a publicly-traded company with a solid presence in the retail sector, focusing its efforts on satisfying families' diverse consumption, financing and savings needs. Its target market is in the Mexican low-middle income households and the Hispanic population of the states where it operates in the USA. Retail sales of Grupo Famsa in Mexico comprise furniture, electronics, appliances, mobile phones, computers, motorcycles, clothing and other durable goods, which are mainly sold within the stores network of Grupo Famsa. In Texas and Illinois, in the USA, Grupo Famsa's offering comprises furniture, electronics, appliances, computers and other durable goods through the operation of its subsidiary Famsa, Inc.

Contact:

Investor Relations Paloma E. Arellano [e-mail] Phone: [phone] ext. 1419