Grupo Herdez (HERDEZ) Q4 2024 earnings summary

Executive summary

• Net sales rose 0.9% in Q4 2024 to MXN 9.9 billion and 3.3% for the year to a record MXN 37.4 billion, reflecting resilience amid high comps, economic uncertainty, and stable domestic consumption.

• Full-year net income was MXN 3.35 billion, up 0.7% year-over-year, with a net margin of 8.9%.

• Gross margin improved to 40%, up 1.1 percentage points, due to higher volumes and lower raw material costs.

• Free cash flow reached a record MXN 3.7 billion, up MXN 472 million, supporting dividend payments and share repurchases.

• Achieved growth and market share gains in key categories, with a strong market position.

Financial highlights

• Q4 2024 net sales: MXN 9.9 billion (+0.9% YoY); full-year: MXN 37.4 billion (+3.3%).

• Q4 2024 net income: MXN 956 million (-4.1% YoY); full-year: MXN 3.35 billion (+0.7%).

• Q4 2024 EBITDA: MXN 1.77 billion (-9.8% YoY); full-year: MXN 6.53 billion (+5.1%).

• Gross margin: 40% (up 1.1 p.p. YoY); operating margin: 14.1%.

• Cash on hand at year-end: MXN 3.3 billion, up MXN 1.3 billion; net debt/EBITDA: 1.1x.

Outlook and guidance

• 2025 guidance projects top-line growth of 6–8%, driven by volume increases and tactical price hikes.

• EBIT and EBITDA margins expected to face slight pressure from import costs, peso depreciation, and ERP implementation expenses.

• Double-digit net income growth anticipated, supported by Impulse segment recovery, lower financing costs, and MegaMex rebound.

• Management to consolidate key projects, reinforce market position, and prioritize digital transformation, packaging, and new production lines.

• Potential extraordinary dividend distribution in 2025 if shareholders approve.