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Grupo Herdez reports fourth quarter and full year 2017 results

/ Investors / By

Mexico City, Mexico, February 22, 2018 – Grupo Herdez, S.A.B. de C.V. (“Grupo Herdez” or the “Company”) (MSE: HERDEZ) today announced results for the fourth quarter and full year ending December 31, 2017.

“In 2017, our focus on results allowed us to break new records in sales and profits. Despite
the initial volatility of the exchange rate, the increase in inflation and different natural
phenomena that impacted the country during the year, the resilience of our business model
enabled us to achieve outstanding results,”

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


Highlights for the year:

  • Consolidated net sales increased 10.4 percent to a record MXN 20,065 million.
  • Consolidated EBIT and EBITDA margins were 13.9 and 16.4 percent, respectively, both with a 90 basis points expansion.
  • Majority net income reached a record MXN 1,046 million, 45.8 percent higher than in 2016, with a margin of 5.2 percent, aided by a lower deferred tax liability in the U.S.
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Grupo Herdez 2019

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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 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