Grupo Herdez reports second quarter 2015 results

Mexico City, Mexico, July 23, 2015 – Grupo Herdez, S.A.B. de C.V. (“Grupo Herdez” or the “Company”) (MSE: HERDEZ, OTC: GUZBY) today announced results for the second quarter ended June 30, 2015.


“Growth in the quarter reflected continued momentum in Mexico core and the contribution of Helados Nestlé. Despite a cautious outlook on the rising US dollar, we expect to deliver our full year guidance,”

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

Highlights from the quarter:

  • Consolidated net sales rose 18.9% primarily driven by the integration of Helados Nestlé.
  • EBIT and EBITDA grew 34.6% and 35.7% respectively due to solid results in Mexico core and the incorporation of Helados Nestlé.
  • Consolidated net income increased 22.5% to Ps. 405 million.

Net Sales
Net sales in the second quarter rose 18.9% from the year ago period to Ps. 3,946 million, primarily reflecting the integration of a full quarter of Helados Nestlé.

Net sales in Mexico core grew 7.7% driven by volume gains and tactic pricing actions implemented in April. Export sales increased 11.3%, where the strengthening of the US dollar was not enough to offset continuous inventory adjustments at MegaMex. In the Frozen division, sales grew 127.5% due to the integration of Helados Nestlé, as the pace of sales decline at Nutrisa slowed to a single digit.

On a cumulative basis, consolidated net sales rose 16.7% to Ps. 7,665 million, resulting primarily from the incorporation of Helados Nestlé as of March 2015 and solid volume performance in Mexico core.

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