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Grupo Herdez first quarter 2020 earnings release

/ Investors / By

Mexico City, Mexico, April 23, 2020 – Grupo Herdez, S.A.B. DE C.V. (“Grupo Herdez” or the “Company”) (MSE: HERDEZ) today announced results for the first quarter 2020, ended March 31, 2020.

“In the context of the current global and local health crisis, we have taken safety measures along the entire value chain to protect the health of our associates, to guarantee the availability of our products, and to support our commercial partners and suppliers. I want to thank everyone who is part of Grupo Herdez, including our allies in our value chain for their commitment and hard work ensuring that our products are available to all Mexicans,”

Said Héctor Hernández-Pons Torres, Chairman and Chief Executive Officer of Grupo Herdez.

CONSOLIDATED HIGHLIGHTS FOR THE QUARTER

  • Net sales increased 10.4% to MXN 5.7 billion, driven by the Preserves segment.
  • EBIT and EBITDA margins increased 2.7 and 2.4 percentage points, to 14.9% and 18.3%, respectively, explained by extraordinary income from the sale of three tuna vessels.
  • Consolidated net income grew 28.8% over last year, to MXN 666 million.
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Grupo Herdez 2019

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2020

  • 2020: We launched the first edition of Semillero Nutrisa. Together with Nutrisa and the Victoria147 business academy for women, we invited women entrepreneurs to participate in a training program to improve the management of their businesses and have the potential to become part of our supply chain.

We established our first technological alliance with Google, which will allow us to accelerate the digital transformation of Grupo Herdez through the use of Google Cloud Platform tools such as BigQuery ML, Looker, among others.

Through the Herdez® brand and Aires de Campo® we joined the “Sowing a New Normality” initiative, promoted by the civil society organizations Ríos Tarango and Ectágono, which aims to increase the vegetation cover of the environmentally valuable area Barranca de Tarango.

  • 2021: We developed the Group’s second proprietary e-commerce platform, with the Nutrisa® online store.

We updated the apps through which we manage the loyalty programs of our retail brands, Cielito Querido Café® and Nutrisa®, improving our customers’ in-store experience.

During the year, 15 formulas had their nutritional profile strengthened by reducing some critical added nutrients (sugars, sodium and saturated fats).

  • 2022: We expanded our capabilities into new categories through the acquisition of Interdeli and Deli, Dips & Snacks. Integrating brands such as Libanius, Flaveur, Liguria and Señor Cactus into our portfolio.

We Issued the first sustainability bond through which we
committed to a 25% reduction in our water consumption.

Together with our partner McCormick & Company, Inc. we
brought the most iconic Mexican cuisine to the tables of the United Kingdom
through meal kits, sauces and condiments under the Herdez® brand.  In less than a year, we obtained a 5.5% shelf
share in the Tesco supermarket chain.

We consolidated the integration of Chilim Balam® into retail brands, a leading brand in the snack segment