Herdez reported its financial results for the second quarter of 2022. The data pointed to an increase in sales due to the increase in prices that the company has made in the last 12 months and due to a greater export volume of mayonnaise and homemade sauces.
The food production and distribution company reported to the Mexican Stock Exchange (BMV) an increase in sales of 27.4% compared to the same period last year and an advance of 7.8% compared to the previous quarter, up to 7,667 million pesos, a historical amount since the company has registration.
In the report, the firm highlighted that the increase in consolidated net sales was benefited, for the most part, by the price increases made in the last twelve months and, to a lesser extent, by increases in volume.
Revenues obtained by the Canned Food segment in the quarter totaled 5,857 million, 25.4% more than in the same quarter of 2021. Mayonnaise, pasta and puree were the three largest categories in the portfolio. On the other hand, in Helados Nestlé, it was reported that the traditional channel continues its recovery trend, while the self-service and convenience channels showed solid performance.
In the operating flow (EBITDA, for its acronym in English), an increase of 36.5% was reported, reaching an amount of 1,047 million pesos. However, compared to a previous quarter, it fell 2.7% and was the lowest level from July to September 2021.
Despite the strong performance of the companies in the quarter, Herdez’s financial report highlights that operating margins and EBITDA experienced contractions of 8.1 and 8.6 percentage points, respectively, to 0.7% and 3.0%, as a result of higher avocado prices, used to make the guacamole sauce, and a higher cost in freight.
Consolidated net income amounted to 395 million pesos, in line with the previous period, while in the accumulated figure for the year it decreased 7.9% to 859 million pesos. This was the result of the weak performance of MegaMex , as well as a higher tax rate derived from the differential in the tax rates of Mexico and the United States.
During the period, Herdez made an investment of 156 million pesos to increase capacity in the lines of vegetables, tomato puree, bottled sauces and the short pasta line.
