Grupo Herdez (HERDEZ) Corporate Presentation summary

About Grupo Herdez

• Over 100 years of experience with a diversified portfolio across three segments: Preserves, Impulse, and Exports, featuring more than 25 leading brands in Mexico and the US.

• Key brands include Herdez, Doña Maria, Barilla, McCormick, Nutrisa, Helados Nestlé, and MegaMex Foods.

• Operates through joint ventures and wholly owned subsidiaries, consolidating major divisions and registering MegaMex as an equity investment.

• Legacy of innovation and expansion, including early IPO, international partnerships, and acquisitions in organic and frozen foods.

• Board led by the Hernández-Pons family, supported by experienced independent directors with backgrounds in finance, industry, and technology.

Strategic focus and sustainability

• Sustainability strategy aligns with UN Global Compact and SDGs, investing 2.4% of net income in social programs and 2.5% in environmental initiatives.

• 83% of waste recycled, 40% of energy from clean sources, and all plants certified as Safe and Healthy Workplaces.

• Issued MXN 3.0 billion in sustainability-linked bonds and received strong ESG ratings (MSCI A, S&P CSA 43/100, CDP C for climate and water).

• Focus on digital transformation, innovation, and sound financial structure to meet stakeholder expectations and drive growth.

Market position and sales performance

• Net sales have tripled over the past decade, with a 10.7% five-year CAGR; 99% of Mexican households purchase its products, averaging 19 purchases per year.

• Holds #1 or #2 market share in categories representing 86% of sales in Mexico; strong presence in mayonnaise, mole, salsa, and guacamole in both Mexico and the US.

• Preserves segment: 10.6% five-year CAGR in net sales, with stable EBIT and EBITDA margins around 19-20%.

• Impulse segment: 9.5% five-year CAGR in net sales, but declining EBIT and EBITDA margins due to challenges in traditional channels.

• MegaMex: 0.9% five-year CAGR in net sales, with a focus on guacamole, mole, and sauces; innovation and foodservice expansion are key growth drivers.