Mexico · Delayed Price · Currency is MXN Grupo Herdez Earnings Call Transcripts
Fiscal Year 2026
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Net sales rose 17.5% to MXN 5.2 billion, with strong margin expansion and debt reduction. Strategic moves included the McCormick stake sale, a new joint venture for ice cream, and enhanced sustainability reporting. High single-digit sales growth is expected for the year.
Fiscal Year 2025
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Record sales and net income growth in 2025, with margin expansion and strong MegaMex performance. 2026 guidance targets 7%-9% sales growth, stable margins, and significant capital deployment from the McCormick divestiture.
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Portfolio reconfiguration and Retail deconsolidation led to a 1% sales increase and over 23% net income growth, with Domestic segment strength offsetting Export weakness. Management expects gradual recovery and is confident in meeting full-year guidance.
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Net sales grew 4.4% in Q2 and 7% year-to-date, led by preserves and exports, despite a weak consumer environment and inventory reductions by major clients. Profitability was pressured by higher raw material costs, but net income rose 23.6% in Q2, with strong MegaMex contributions. Guidance remains positive for the second half, with sales and income growth expected.
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Strong Q1 results driven by volume and revenue growth in core categories, margin expansion, and robust performance at Megamex. Nutrisa spinoff approved as a debt-free transaction, with all VAT liabilities remaining at Nutrisa. Guidance for high single-digit top-line growth reiterated.
Fiscal Year 2024
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Q4 and FY2024 saw modest sales growth, record free cash flow, and margin improvements despite economic headwinds and supply chain challenges. 2025 guidance anticipates 6–8% sales growth, double-digit net income growth, and increased CapEx, with risks from tariffs and soft consumer demand.
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Export segment delivered 24.1% sales growth and margin expansion, offsetting weather-related disruptions and weak MegaMex results. Gross margin reached 40.5%, with free cash flow at MXN 603 million. 2025 outlook is cautious due to labor reforms and inflation.
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Sales grew 6.2% sequentially, led by ice cream and mayonnaise, with gross margin at 40.4%. EBITDA rose nearly 20% year-over-year, while guidance calls for mid-single-digit sales growth and margin expansion in Impulse and Exports.