Sigma Foods (SIGMAF) Q4 2024 earnings summary

Executive summary

• Completed transformation into a single-business structure focused on Sigma, after spinning off Alpek, Axtel, and Nemak, with Alpek now reported as discontinued operations.

• Sigma achieved record annual volume, revenue, and EBITDA, surpassing revised guidance, with four consecutive years of sales growth and the highest EBITDA margin in nine years.

• Net leverage ratio improved to 2.5x, supported by capital increase, debt reduction, and strong cash flow.

• Investment-grade ratings affirmed and upgraded by Fitch to BBB, reflecting improved credit profile.

• Paid record dividends totaling US$228 million in 2024.

Financial highlights

• 2024 consolidated revenue grew 3% year-over-year to US$8.93 billion, driven by Sigma's performance.

• 2024 reported EBITDA was US$976 million (+14% YoY), with comparable EBITDA at US$1.021 billion (+15% YoY); Sigma's EBITDA surpassed $1 billion for the first time.

• Net debt declined by US$2.448 billion in 2024, ending at US$2.47 billion.

• Sigma's net debt/EBITDA ratio reached a 16-year low of 1.7x.

• Record dividends of US$228 million distributed, supported by strong cash flow.

Outlook and guidance

• 2025 guidance: revenues of $9.7 billion and EBITDA of $1.1 billion on a currency-neutral basis; CapEx expected to increase 43% year-over-year, prioritizing capacity expansion in Mexico and the U.S.

• Margin in Mexico expected around 15% for 2025, with volume growth across all regions.

• Alpek spin-off expected to complete in 2025, with ALFA shareholders receiving one share of Controladora Alpek per ALFA share.

• Sigma continues to focus on brand expansion, operational efficiency, and marketing innovation, with a new global CMO and design studio partnership.

• Alpek expects stable demand and margins in 2025, with continued cost discipline and efficiency initiatives.