Grupo Herdez SAB de CV
OTC:GUZOF
Grupo Herdez SAB de CV
Grupo Herdez SAB de CV manufactures, sells, and distributes canned, bottled and packaged processed food, and beverage products. The company is headquartered in Mexico City, Mexico, D.F.. The firm's activities are divided into two business segments: Food and Frozen. The Food division focuses on the manufacture and distribution of canned and packed food products in Mexico and the United States. Its offer includes burritos, canned vegetables, guacamole, home-style salsa, honey, jam, ketchup, mayonnaise, mole, mustard, organic food, pasta, spices, tea, tomato puree and tuna, among others. The company sells products through a number of brand names, such as Aires de Campo, Barilla, Bufalo, Chi-Chi's, Del Fuerte, Don Miguel, Dona Maria, Embasa, Herdez, La Victoria, McCormick, Wholly Guacamole and Yemina. In addition, it has distribution agreements in Mexico for GoGoSqueez, Kikkoman, Ocean Spray, Reynolds and Truvia products. The Frozen division is responsible for the manufacture and distribution of frozen yogurts and ice creams under the Nutrisa and Helados Nestle brand names.
Grupo Herdez SAB de CV manufactures, sells, and distributes canned, bottled and packaged processed food, and beverage products. The company is headquartered in Mexico City, Mexico, D.F.. The firm's activities are divided into two business segments: Food and Frozen. The Food division focuses on the manufacture and distribution of canned and packed food products in Mexico and the United States. Its offer includes burritos, canned vegetables, guacamole, home-style salsa, honey, jam, ketchup, mayonnaise, mole, mustard, organic food, pasta, spices, tea, tomato puree and tuna, among others. The company sells products through a number of brand names, such as Aires de Campo, Barilla, Bufalo, Chi-Chi's, Del Fuerte, Don Miguel, Dona Maria, Embasa, Herdez, La Victoria, McCormick, Wholly Guacamole and Yemina. In addition, it has distribution agreements in Mexico for GoGoSqueez, Kikkoman, Ocean Spray, Reynolds and Truvia products. The Frozen division is responsible for the manufacture and distribution of frozen yogurts and ice creams under the Nutrisa and Helados Nestle brand names.
Strategic Changes: Grupo Herdez completed the split of Grupo Nutrisa and reduced its stake in McCormick de Mexico, refocusing on its core business.
Segment Reporting: Results now exclude the retail business and use a new segmentation model, making year-over-year comparisons distorted but allowing clearer visibility into domestic and export performance.
Sales Performance: Net sales would have grown 1% in the quarter, with 4.2% growth in the domestic segment offsetting a 25.9% drop in exports.
Profitability: Gross margin expanded by over 1 percentage point to almost 40%, and majority net income surged more than 23% to MXN 426 million.
Guidance On Track: Company expects to meet 2025 guidance for net sales, operating income, and EBITDA (excluding Grupo Nutrisa), with MegaMex performing better than expected.
Cash & Leverage: Ended the quarter with MXN 2.3 billion in cash and a net debt/EBITDA ratio of 1.2x after a dividend payment and inventory buildup.
