Grupo Herdez reports fourth quarter and full year 2013 results

Mexico City, Mexico, February 20, 2014 – 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 full year ended December 31, 2013.

The information contained in this document is prepared on a pro-forma basis, in accordance with International Financial Reporting Standards (IFRS) applicable until December 31, 2012. This is the final quarter in which pro-forma figures will be provided. Beginning in the first quarter of 2014, all information provided will be comparable and in compliance with IFRS applicable since January 1, 2013.

“This was a challenging year in terms of weaker than expected consumption and the impact of certain non-recurring items. Nonetheless, relative to the market, we benefited from the incorporation of Grupo Nutrisa, successfully launched new products as part of our ongoing innovation efforts, and continued to optimize the manufacturing platform for productivity. We anticipate consumption will remain weak in the beginning of 2014, with long-term benefit to the Mexican economy derived from government spending and the much needed structural reforms, as well as an ongoing recovery in the United States,”

said Héctor Hernández-Pons Torres, Chairman and Chief Executive Officer.

Highlights from the quarter:

  • Consolidated net sales rose 9.8% primarily due to the incorporation of Nutrisa.
  • Operating and EBITDA margins, excluding non-recurring items, of 12.7% and 15.6% respectively, mainly reflecting low absorption of fixed costs and expenses derived from weak top line performance.
  • Net margin excluding extraordinary expenses contracted 2.4 pp to 5.3%, on operating performance and higher interest expenses.


  • 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