In This Article:
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Net Sales (Q4 2024): MXN9.9 billion, up 0.9%.
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Net Sales (Full Year 2024): MXN37.4 billion, up 3.3%.
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Gross Margin: 40%, up 1.1 percentage points.
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Operating Income: MXN5.3 billion, up 5.1%.
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Operating Margin: 14.1%.
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Net Income: MXN3.3 billion, in line with the previous year.
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Cash on Hand (Year-End): MXN3.3 billion, up MXN1.3 billion.
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Interest-Bearing Liabilities: MXN9.5 billion.
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Dividends: MXN487 million.
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Share Buybacks: Almost MXN400 million.
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Water Consumption Reduction: 2.06 per ton, 1.9% below target.
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Impulse Segment Growth (2025 Estimate): Over 20%.
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CapEx (2025 Estimate): MXN1.5 billion to MXN1.8 billion.
Release Date: February 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Grupo Herdez SAB de CV (GUZOF) achieved a record net sales of MXN37.4 billion for the full year, marking a 3.3% increase compared to the previous year.
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The Exports segment showed strong performance with a 19.8% growth in the fourth quarter.
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The company reported a gross margin increase to 40%, up by 1.1 percentage points, attributed to higher volumes and lower soybean oil costs.
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Grupo Herdez SAB de CV (GUZOF) demonstrated resilience through tactical initiatives, cost management, and efficient working capital, resulting in unprecedented free cash flow.
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The Impulse segment is expected to grow over 20% in 2025, driven by product innovation and expansion in Nutrisa's commercial category.
Negative Points
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The fourth quarter faced challenges due to high comparison bases, economic uncertainties, and a soft consumption environment.
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Preserves segment was impacted by avian flu, leading to salted egg yolk shortages and limited orders in December.
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Potential tariffs on Mexican imports could materially impact the US business, affecting pricing and demand for products like avocados and guacamole.
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Operating margins are expected to experience slight pressures due to input costs, depreciation of the Mexican peso, and expenses related to ERP implementation.
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The consumer landscape in Mexico remains soft, with high personal debt and reduced disposable income affecting market conditions.
Q & A Highlights
Q: Can you provide an update on MegaMex, specifically regarding Wholly and Don Miguel, and their long-term outlook? A: Gerardo Canavati Miguel, Chief Financial and Technology Officer, explained that MegaMex is showing positive trends with stabilized market dynamics and increased marketing investments. Wholly is dealing with volatile avocado prices, but efforts are underway to mitigate costs by increasing production in Colombia and optimizing supply chains. Don Miguel has turned around with strong demand and improved plant efficiency, offsetting avocado cost pressures.