Grupo Herdez (HERDEZ) Q4 2025 earnings summary

Executive summary

• Achieved record net sales of MXN 37 billion in 2025, up 5% year-over-year, and consolidated net income of MXN 4.1 billion, up 16.9%.

• Completed separation of Grupo Nutrisa and sold 25% stake in McCormick de México, strengthening capital structure.

• Navigated a slower consumption environment and executed a smooth executive leadership transition.

• Results presented on a proforma basis to reflect ongoing operations post-divestitures.

• Project NEO ERP implementation on track for April 2026, with inventory strategies to ensure supply continuity.

Financial highlights

• Full-year gross margin improved by 90 basis points to 39.3%, offsetting SG&A pressures from Project NEO.

• Consolidated net sales for 2025 reached $38.6 billion, up 3.1% year-over-year; proforma sales grew 5.3% to $37.0 billion.

• Net income for the year was $4.0 billion, up 20.8%, with net margin improving to 10.5%.

• MegaMex delivered 45% annual net income growth despite volume pressures.

• Surpassed water consumption reduction targets tied to 2022 bond KPIs.

Outlook and guidance

• 2026 sales growth expected in the 7%-9% range, split evenly between volume and price increases.

• Pro forma EBITDA margin expected to remain stable compared to 2025.

• McCormick de México will be deconsolidated, with results recorded as equity in associates.

• Operating flow to normalize by Q3 2026; ERP-related SG&A to decelerate and efficiencies to materialize in 2027.

• 2026 results will include significant one-off accounting items from the McCormick stake sale.