Sigma Foods, S.a.b. De C.v. · BMV:SIGMAF/A
Sigma Foods, S.a.b. De C.v — ALFA, S.A.B. de C.V. — Q3 2024 Earnings Presentation
26 slides from Sigma Foods, S.a.b. De C.v's earnings presentation, October 2024
Slide 1: 3Q24 Earnings Presentation
3Q24 Earnings Presentation October 2024
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking information based on numerous variables, expectations and assumptions that are inherently uncertain. They involve judgments with respect to, among other things, future economic, competitive and financial market conditions and future business deci
Slide 3: Important note on changes to ALFA's Consolidated Financial Statements (Alpek)
Important note on changes to ALFA’s Consolidated Financial Statements Controladora Alpek ALFA’s shareholders approved to spin-off ALFA’s share ownership of Alpek into a new, listed entity called “Controladora Alpek” on October 24, 2024. In accordance with International Financial Reporting Standards
Slide 4: Important note on changes to ALFA's Consolidated Financial Statements (Axtel)
Important note on changes to ALFA’s Consolidated Financial Statements Controladora Axtel ALFA’s shareholders approved to spin-off ALFA’s share ownership of Axtel into a new, listed entity called “Controladora Axtel” on July 12, 2022. The shares of “Controladora Axtel” were distributed to ALFA shareh
Slide 5: 3Q24 Highlights - ALFA
3Q24 Highlights - ALFA Alfa|Sigma - ALFA’s conglomerate composition being effectively simplified into a single, wholly-owned food business unit (SIGMA) - Advanced capital increase of Ps $7,952 million (approx. US $400 million), proceeds expected on November 4, 2024 - Received consents from bondholde
Slide 6: ALFA effectively simplified conglomerate structure down to a single food business unit
ALFA effectively simplified conglomerate structure down to a single, wholly-owned, food business unit Corporate simplification milestones Recent developments supporting final (2020 – 2023) spin-off spin-off (Dec 2020) Capital Increase; US $400 million debt reduction Corporate expense reduction (-80%
Slide 7: Transformation provides investors full autonomy across four independent business units
Transformation provides investors full autonomy to participate across four independent business units 1 2 3 4 Branded Foods Petrochemicals Information and Automotive Communications Lightweighting Technology Solutions ALFA ALFA Shareholders Shareholders Controladora Controladora Alpek Axtel 100% 82%
Slide 8: ALFA will transfer its ownership stake in Alpek to ALFA Shareholders through Controladora Alpek
ALFA will transfer its ownership stake in Alpek to ALFA Shareholders through Controladora Alpek Alpek Shareholder Structure Controladora Alpek will be constituted by ALFA as the (Post spin-off) spun-off company, listed in the Bolsa Mexicana de Valores ALFA will transfer all its Alpek shares and cert
Slide 9: ALFA expects to complete the Alpek spin-off in 2025
ALFA expects to complete the Alpek spin-off in 2025 Oct 9 Oct 24 TBD TBD ~2025 Notice of Share Distribution to ALFA Shareholders Distribution of ALFA calls Extraordinary ALFA held Extraordinary 1st Day of Trading of Controladora Alpek Shareholders' Meeting Shareholders' Meeting (Following Controlado
Slide 10: Consolidated Revenues with Alpek as Discontinued Operations
Consolidated Revenues with Alpek as Discontinued Operations ALFA & Subs* Revenues Revenues 3Q24 vs 3Q23 Revenues 3Q24 vs 2Q24 (US $ Million) (US $ Million) (US $ Million) 2,243 2,277 2,253 , 2,195 2,204 , , , 3Q23 4Q23 1Q24 2Q24 3Q24 igma Others igma Others *Alpek reported as discontinued operations
Slide 11: Consolidated EBITDA with Alpek as Discontinued Operations
Consolidated EBITDA with Alpek as Discontinued Operations ALFA & Subs* EBITDA 3Q24 vs 3Q23: 13% EBITDA 3Q24 vs 3Q23 EBITDA 3Q24 vs 2Q24 3Q24 vs 2Q24: 2% (US $ Million) (US $ Million) (US $ Million) EBITDA Margin 270 275 254 244 222 12.2% 11.5% 11.9% 10.9% 10.1% 3Q23 4Q23 1Q24 2Q24 3Q24 igma Others i
Slide 12: Consolidated Net Debt with Alpek as Discontinued Operations
Consolidated Net Debt with Alpek as Discontinued Operations ALFA & Subs* ALFA Net Debt Net Leverage Ratio Cash (US $ Million) (Net Debt/EBITDA) (US $ Million) 5,094 1,529 4,866 4,919 4,977 3.5 3.5 1,188 1,203 3.4 3.3 1,167 2.9 2,988 761 3Q23 4Q23 1Q24 2Q24 3Q24 3Q23 4Q23 1Q24 2Q24 3Q24 3Q23 4Q23 1Q2
Slide 13: ALFA's Net Debt decreased US $175 million in 3Q24
ALFA’s Net Debt decreased US $175 million in 3Q24 ALFA Consolidated Change in Net Debt1 (US $ Million) 2024 EBITDA 799 Net Working Capital (NWC) (207) , Capital Expenditures & Acq. (Capex) (128) Net Financial Expenses (228) Taxes (248) , , Dividends 59 Other Sources (Uses) 144 Discontinued Operation
Slide 14: Foreign ownership was 50.7% of total ALFA shares at the close of 3Q24
Foreign ownership was 50.7% of total ALFA shares at the close of 3Q24 ALFA Foreign Ownership (Millions of shares) 4,819* Total ALFA Shares 3Q24 Maximum Nafinsa Trust Threshold (75%) 2,490 2,470 2,486 2,470 2,443 51.7% 51.3% 51.6% 51.3% 50.7% 3Q23 4Q23 1Q24 2Q24 3Q24 *Does not include 739 million new
Slide 15: Key highlights by region - Sigma
Key highlights by region - Sigma Mexico Europe Record Volume for the third consecutive quarter, Comparable 3Q24 Volume and Revenue supported by growth across all categories and increased 2%, adjusting for the divestiture of channels operations in Italy during 3Q23 All-time high third quarter E
Slide 16: Fourteenth consecutive quarter of year-on-year Revenue growth
Fourteenth consecutive quarter of year-on-year Revenue growth, supported by record quarterly Volume Revenues Revenues 3Q24 vs 3Q23 Revenues 3Q24 vs 2Q24 (US $ Million) (US $ Million) (US $ Million) 2,246 , , , , 2,209 2,170 2,222 2,161 3Q23 4Q23 1Q24 2Q24 3Q24 exico urope Latam exico urope Latam 16
Slide 17: All-time high quarterly consolidated EBITDA of US $281 million
All-time high quarterly consolidated EBITDA of US $281 million, supported by growth in all regions EBITDA EBITDA 3Q24 vs 3Q23 EBITDA 3Q24 vs 2Q24 (US $ Million) (US $ Million) (US $ Million) 279 281 264 255 229 3Q23 4Q23 1Q24 2Q24 3Q24 exico urope Latam exico urope Latam 17
Slide 18: Higher year-on-year and quarter-over-quarter Consolidated EBITDA Margin for 3Q24
Higher year-on-year and quarter-over-quarter Consolidated EBITDA Margin for 3Q24 EBITDA Margin (%) EBITDA Margin By Region (%) 17.9 17.1 16.3 15.5 14.7 13.0 13.3 12.2 12.4 12.7 12.4 11.5 11.6 10.1 10.6 10.5 10.5 9.6 9.5 9.3 8.5 8.9 8.7 8.1 3.3 3.8 2.1 2.5 1.6 2022 2023 1Q24 2Q24 3Q24 3Q24 3Q22 4Q22
Slide 19: Sustained improvement of Net Debt to EBITDA Ratio
Sustained improvement of Net Debt to EBITDA Ratio; 1.7x represents lowest level in 16 years Net Debt Net Leverage Ratio Cash (US $ Million) (Net Debt/EBITDA) (US $ Million) 2,084 2,019 2,045 2,025 1,823 1,134 2.5 2.3 2.2 2.0 1.7 724 626 601 552 3Q23 4Q23 1Q24 2Q24 3Q24 3Q23 4Q23 1Q24 2Q24 3Q24 3Q23
Slide 20: Lower Net Debt supported by EBITDA growth
Lower Net Debt supported by EBITDA growth; taxes include the 2023 end-of-period payment Change in Net Debt 3Q24 vs 2Q24 (US $ Million) , Net Debt decreased by US $196 , million when compared to 2Q24 “Others” include a positive foreign exchange conversion effect resulting primarily from the depreciat
Slide 21: Pork ham price in U.S. and Europe
Pork ham price in U.S. and Europe Pork Ham Price in U.S. Pork Ham Price in Europe US $/lb 2021 €/kg 2021 2022 2022 2023 2023 2024 2024 1.4 4.0 1.2 3.5 1.0 3.0 0.8 2.5 2.0 0.6 1.5 0.4 1.0 0.2 0.5 0.0 0.0 J F M A M J J A S O N D Feb. Apr. Jun. Aug. Oct. Dic. Feb. Apr. Jun. Aug. Oct. Dic. Source: USA –
Slide 22: Poultry raw materials in U.S.
Poultry raw materials in U.S. Chicken (MSC) Turkey (MST) US $/lb 2021 US $/lb 2021 2022 1 2022 0.8 2023 0.8 2023 0.6 2024 0.6 2024 0.4 0.4 0.2 0.2 0.0 0 J Feb. F M A Apr. M J Jun. J A Aug.S O Oct. N D Dic. J Feb. F M A Apr. M J Jun.J A S Aug. O N Oct. D Dic. Turkey Breast 2021 Turkey Thigh 2021 US $
Slide 23: 3Q24 Recent developments - Sigma
3Q24 Recent developments - Sigma Growth Business Unit • Solid year-on-year quarterly Revenue growth in various initiatives Revenue Growth YoY • Snacking- : 150%+ • • Plant-based – B2C e-commerce - : 200% + : 100% 150% + • Tastech: • 5th edition: record number of applications from startups in more th
Slide 24: Alpek recorded a significant improvement in 3Q24 results
Alpek recorded a significant improvement in 3Q24 results VOLUME 1.22M TONS +3% YoY | +1% QoQ Stable regional demand for both of its segments Slight reference margins expansion driven by higher ocean container freight costs COMPARABLE EBITDA Comp EBITDA exceeded $218M expectations for 3Q24 +37% YoY |
Slide 25: Alpek's 3Q24 EBITDA supported by improvement in reference margins
Alpek’s 3Q24 EBITDA supported by improvement in reference margins Asian Margins Px/MEG to PET (US $/Ton) China Paraxylene (North America vs Asia) North America (US$/Ton) Asia 400 338 343 332 Chinese 285 288 297 297 1,505 1,462 272 reference 1,389 margins up 1,345 1,352 1,341 1,293 13% QoQ 1,235 1,23
Slide 26: Contact
Contact Hernán F. Lozano V.P. of Investor Relations T. +52 (81) 8748-2521 iralfa@alfa.com.mx