Mexico City, Mexico, July 27, 2017 – Grupo Herdez, S.A.B. de C.V. (“Grupo Herdez” or the “Company”) (MSE: HERDEZ, OTC: GUZBY) today announced results for the second quarter ending June 30, 2017.
We stay vigilant on current market dynamics and consumer trends. As you can see from our results this quarter the restructuring of Nutrisa and the innovative campaigns we are launching, leveraging our unique know-how and recognition of our brands will enable us to reach the guiadance of the year”said Héctor Hernández-Pons Torres, Chairman and Chief Executive Officer.
Net sales in the second quarter increased by 10.0 percent compared to the same quarter last year to MXN 4,876 million. Net sales in the Preserves division grew 9.9 percent mainly due to pricing actions taken in the last twelve months to offset cost of goods sold increases.
The Frozen division reached MXN 880 millon in sales, 10.9 percent higher than the second quarter of 2016, boosted by same store sales growth of 11 percent in Nutrisa and the solid performance of the Helados Nestlé portfolio. Exports grew 10.0 percent due to volume
growth across regions with the canned vegetables, homestyle salsa and peppers categories outperforming.
Highlights from the quarter:
- Net sales increased by 10.0 percent to MXN 4,876 million due to higher prices and volume growth.
- EBIT and EBITDA margins expanded 1.9 and 2.0 percentage points to 14.1 and 16.9 percent, respectively.
- Consolidated net income reached MXN 432 million, 15.9 percent higher than in 2016.