Grupo Herdez reports first quarter 2011 results

Mexico City, Mexico, April 28, 2011- Grupo Herdez, S.A.B de C.V. (“Grupo Herdez” or “the Company”) (BMV: HERDEZ, OTC: GUZBY), today announced its results for the first quarter enden March 31,2011.

“The slow pace of the consumption recovery in Mexico, combined with the expected impact of higher raw material costs, put pressure on our results this quarter. We expect to counter that trend as targeted pricing iniciatives cycle through and we consolidate our client-focused commercial strategy”

Said H├ęctro Hern├índez-Pons Torres, Chair man and Chief Exacutive Officer.

Highlights from th quarter:

  • Net sales were unchanged compared to 2010 as double-digit growth in the US was offset by a 4.9% decline on the domestic front.
  • Operating margin was 16.4% a 2.8pp decline reflecting gross margin contraction in Mexico and the US.
  • Net majority margin of 7.3% mirrored operating margin performance.

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 R├şos Tarango and Ect├ígono, 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 Caf├ę┬« 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 Se├▒or 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