Grupo Herdez (HERDEZ) Q1 2025 earnings summary

Executive summary

• Achieved strong first quarter results, with resilience and strategic agility in a dynamic market.

• Consolidated net sales rose 9.3% year-over-year to MXN 9.7 billion, driven by strong performance in wholesale, price club channels, and volume growth in core categories.

• Net income increased 20.1% to MXN 1 billion, with robust results in Preserves, Exports, and MegaMex.

• MegaMex posted a 25.2% increase in net sales and a 65.8% rise in net income, supported by improvements in Don Miguel and guacamole.

• Innovative promotions, product launches, and licensing agreements enhanced brand visibility and sales.

Financial highlights

• Gross profit grew 13.0% to MXN 3.95 billion, with gross margin expanding 1.3pp to 40.7%.

• EBIT grew 17% to MXN 1.5 billion, with operating margin at 15%.

• EBITDA increased 13.0% to MXN 1.76 billion, margin up 0.6pp to 18.2%.

• Free cash flow reached MXN 557 million, representing up to 5.7% of net sales.

• Net income margin reached 10.4%.

Outlook and guidance

• Guidance reiterated for high single-digit consolidated top-line growth for the year.

• EBIT and EBITDA margins expected to remain stable versus 2024.

• Management expects continued growth, leveraging adaptability and strategic focus.