Grupo Herdez reports second quarter 2016 results


Mexico City, Mexico, July 21, 2016 – 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, 2016.

“Despite the challenges experienced in the period, we are on track to deliver our annual guidance as ongoing execution of our commercial and operational strategies drive solid sales growth and will continue to mitigate cost pressures,”

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

Highlights from the quarter:

  • Consolidated net sales rose 12.3% primarily driven by strong performance in Mexico core and the high season at Helados NestlĂ©.
  • EBIT and EBITDA margins were 12.2% and 14.9%, respectively, reflecting the expected sequential recovery from the first quarter.
  • CAPEX in the quarter totaled Ps. 93 million, mainly allocated to the expansion of the frozen segment.

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 RĂ­os 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