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.