The net profit of the food and beverage company, herdez grouprebounded 71.8% at the interannual rate during the first quarter of 2023, while sales rose 21.4%, thanks to the increase in the prices of its products in the last twelve months.
herdez had a consolidated net profit of 797 million pesos in the period from January to March 2023, compared to the 464 million pesos reported in the same period of the previous year, according to its quarterly report to the Mexican Stock Exchange. (BMV).
Sales amounted to 8,632 million pesos in the first quarter of this year, when in the same period of 2022 they were for 7,108 million pesos.
The company explained in its report that the increase in sales was due to the increase in prices in the last twelve months, while the rise in profits was attributed to an “improvement” in the profitability of MegMex, the company that it owns. United States with Hormel Foods.
Analysts from Signum Research, an investment advisory firm, highlighted that the increase in sales in some of Herdez’s segments was also due to the recovery in people traffic in physical stores, after the Covid-19 pandemic.
The growth in sales of the Preserves segment (mayonnaise, pasta, tomato puree, tuna, etc.) stood out, which was 23.6% at the interannual rate. This segment represents the majority of Herdez’s sales.
The Impulse segment (Nestlé ice cream) grew its sales by 22.6%, while the Exports segment suffered a 2.4 percent drop.
“Because the products are for basic consumption, the increase in costs has been transferred to the final consumer without a strong impact on sales volumes,” said the Signum Research analysts.
The company’s Ebitda rose 22.3% to 1,316 million pesos, for an Ebitda margin of 15.2 percent.
“We expect that during 2023 the company will continue to maintain this upward trend in its margins, seeing a greater recovery towards the second half of the year,” said the Signum Research analysts.
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