Grupo Herdez (HERDEZ) Q3 2025 earnings summary

Executive summary

• Completed the split of Grupo Nutrisa and divested part of McCormick de México, refocusing on core business and value creation.

• Grupo Nutrisa was separated as of September 1, 2025, impacting segment reporting and pro forma analysis for comparability.

• Deconsolidated Retail business results from September 2025, with pro forma figures provided for comparability.

• Adopted new segmentation: Domestic and Export FX, with Helados Nestlé now included in Domestic sales.

• Achieved strong net sales and profitability despite a challenging consumer environment, with increased market share in key categories and optimism for future performance.

Financial highlights

• Consolidated net sales for Q3 2025 were $9.3 billion, down 0.7% year-over-year; excluding Grupo Nutrisa, net sales grew 0.9%.

• Gross margin improved to 41.0% in Q3, up 0.5 percentage points year-over-year, driven by favorable product mix and lower input costs.

• Operating income for Q3 was $1.3 billion, up 2.6% year-over-year, with a margin of 14.1%.

• Majority net income surged over 20.6% to $924 million, aided by improved associate performance and margin expansion.

• EBITDA for Q3 was $1.5 billion, down 4.2% year-over-year; EBITDA margin was 16.5%.

Outlook and guidance

• Management expects the third quarter to mark the bottom of the consumption environment, with gradual recovery anticipated.

• Confident in meeting full-year guidance for net sales, operating income, and EBITDA, excluding Grupo Nutrisa.

• CapEx expected to reach between MXN 1,500 billion and MXN 2 billion for the year.

• Rollout of a new program in April next year will require significant working capital.

• Management remains optimistic about future performance, citing resilience in core categories and ongoing strategic initiatives.