Grupo Herdez first quarter 2021 earnings release

Mexico City, Mexico, April 22, 2021 – Grupo Herdez, S.A.B. DE C.V. (“Grupo Herdez” or the “Company”) (MSE: HERDEZ) today announced results for the first quarter 2021, ended March 31, 2021.

“We are proud of the organic growth achieved in the quarter. On the other hand, we are optimistic about the quarter-over-quarter performance of our Frozen segment, despite the challenging circumstances we are still facing,”

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

HIGHLIGHTS FOR THE QUARTER

▪ Net sales increased by 1.7%, and on a comparable basis 7.7% with respect to the same quarter of the previous year, driven mainly by price increases in the Preserves segment.
▪ EBIT before other income and expenses fell 4.2% to MXN 638 million, while the margin stood at 10.9%, 0.7 percentage points below that recorded in 2020, which is mainly explained by lower sales in the Frozen segment.
▪ Net income totaled MXN 542 million, 18.7% lower than the previous year due to the extraordinary income from the sale of three tuna vessels recorded in 2020.

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