Grupo Herdez tax resolutions

Mexico City, Mexico, February 27, 2020 – Grupo Herdez, S.A.B. de C.V. (“Grupo Herdez” or the “Company”) (BMV: HERDEZ) announces that it’s currently challenging through an appeal, the resolutions issued by the tax authorities through which they denied the refund claims of favorable balances of the value added tax (VAT), derived from using the 0% VAT rate upon the sales of yogurt ice-cream and popsicles. Up to this date, the appeals are pending resolution of the controversy (denial of refund claims), of which the result does not imply an assessment upon tax obligations, contingencies or omitted taxes. The amount to recover is MXN 278 million at 2019-year end.

In addition, the Company is currently being audited by the tax authorities regarding the VAT for the fiscal years 2014 to 2016. Up to this date, the tax authorities have not issued any assessment.