Mexico City, Mexico, February 24, 2011 – Grupo Herdez, S.A.B de C.V (“Grupo Herdez” or “the Company”) (BMV: HERDEZ, OTC: GUZBY), today announced its results for the fourth quarter and year-end 2010.
“We are glad to have reached our targets for the full year and attained record sales and profitability levels in 201. Top-line performance benefited from improved volume performance throghout the year in Mexico and continued growt in our international operations, including the consolidation of Don Miguel in the United States. At the operating level, results were mainly driven by favorable unput costs and exchange rate.
For 2011 however, we are already experiencing a very challeging commodity environment, so we expect profitability to return to normalizes levels,”Said Héctor Hernández-Pons Torres, Chairman and Chief Executive Officer of Grupo Herdez.
Highlights from the quarter:
- Sales rose 15.8% reflecting improved volumes in Mexico and a significante increase in the U.S.
- Operating income rose 23.9%, while the margin expanded 1.3 pp to 19.4%.
- Net majority income fell 31.9% as a result of one-time gains recorded in 2009 adn a foreign exchange loss.