Grupo Herdez fourth quarter & full year 2020 earnings release

Mexico City, Mexico, February 25, 2021 – Grupo Herdez, S.A.B. DE C.V. (“Grupo Herdez” or the “Company”) (MSE: HERDEZ) today announced results for the fourth quarter and full-year ended December 31, 2020.

“Our 2020 results not only reflect an exceptional portfolio of brands and products, but also an extraordinary team, strong community of suppliers, partners and clients that underpin our leadership in the food and beverages industry,”

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

CONSOLIDATED HIGHLIGHTS FOR THE YEAR

  • Net sales increased by 7.2% to MXN 24 billion, mainly driven by higher volume due to increased consumption at home, because of the pandemic.
  • EBIT and EBITDA margins increased 0.2 and 0.5 percentage points to 13.5% and 17.5%, respectively.
  • Net income totaled MXN 2.4 billion, 6.5% higher than in 2019, with a margin of 9.9% in line with the previous year.

RELEVANT RESULTS OF OUR SUSTAINABILITY STRATEGY

In 2020, Grupo Herdez created the “Semillero Nutrisa” initiative in order to develop the talent of female entrepreneurs in Mexico. Through an alliance with Victoria147, a business academy for women, 12 women received professional training for the development of their businesses, and the opportunity to join the Company’s supplier network.

Likewise, together with Sanfer and La Costeña, Grupo Herdez took part in the “Unidos por México” initiative, assembling more than 35,000 baskets containing food, hygiene, cleaning products, and medicines that benefited more than 175,000 Mexicans in vulnerable situations.

With the #siguedandolata initiative, from September to November, 52 collection machines were installed in 14 states of Mexico and 12 self-service chains, collecting a total of 5.3 tons of tinplate, exceeding the established goal by 7%. With this initiative, eight clean energy generation systems were installed (wind turbines) to be placed in vulnerable communities in the south of the country.