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 Héctro Hernández-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.