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. — Q1 2024 Earnings Presentation
20 slides from Sigma Foods, S.a.b. De C.v's earnings presentation, April 2024
Slide 1: 1Q24 Earnings Presentation
1Q24 Earnings Presentation April 2024
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking information based on numerous variables 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 decisions, all of
Slide 3: Important note on changes to ALFA's Consolidated Financial Statements
Important note on changes to ALFA’s Consolidated Financial Statements 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 shareholders and began tr
Slide 4: 1Q24 Highlights
1Q24 Highlights Annual Shareholders’ Meeting held on March 6th - Álvaro Fernández appointed Chairman of the Board, in addition to his position as CEO - Alejandra Palacios appointed independent member of the Board, beginning on May 15, 2024 - Paid US $48 million cash dividend 1Q24 represents a better
Slide 5: Revenue growth driven by Sigma year-on-year, and by Alpek quarter-on-quarter
Revenue growth driven by Sigma year-on-year, and by Alpek quarter-on-quarter ALFA & Subs* Revenues Revenues 1Q24 vs 1Q23 Revenues 1Q24 vs 4Q23 (US $ Million) (US $ Million) (US $ Million) 4,221 4,198 4,106 4,085 3,885 1Q23 2Q23 3Q23 4Q23 1Q24 *Axtel reported as discontinued operations from 1Q23 to 2
Slide 6: Higher Reported and Comparable EBITDA in 1Q24
Higher Reported and Comparable EBITDA in 1Q24 ALFA & Subs* EBITDA Extraordinary items Comparable EBITDA (US $ Million) (US $ Million) (US $ Million) 1Q24 vs 1Q23: 13% 1Q24 vs 1Q23: 4% EBITDA Margin 1Q24 vs 4Q23: 51% EBITDA Margin 1Q24 vs 4Q23: 4% 425 1Q23 2Q23 3Q23 4Q23 1Q24 376 373 360 425 396 407
Slide 7: Net Debt/EBITDA of 3.5x at the close of 1Q24; higher cash balance
Net Debt/EBITDA of 3.5x at the close of 1Q24; higher cash balance following Sigma’s successful placement of local notes ALFA & Subs* ALFA Net Debt Net Leverage Ratio Cash (US $ Million) (Net Debt/EBITDA) (US $ Million) 3.5 3.5 3.4 1,529 5,049 4,994 5,094 3.3 4,866 4,919 2.7 1,163 1,167 1,188 1,055 1
Slide 8: Outstanding Sigma EBITDA growth is supportive for final phase of transformation
Outstanding Sigma EBITDA growth is supportive for final phase of transformation; debt reduction is key Sigma quarterly LTM EBITDA Consolidated Net Debt excluding Alpek1 (US $ Million) (US $ Million) 965 893 3,287 3,191 3,190 831 3,115 2,967 727 682 Sigma ALFA2 LTM LTM LTM 2023 LTM 1Q23 2Q23 3Q23 4Q2
Slide 9: ALFA's Net Debt increased US $175 million mainly driven by Net Working Capital
ALFA’s Net Debt increased US $175 million mainly driven by investment in Net Working Capital at Alpek and Sigma ALFA Consolidated Change in Net Debt Change in Net Debt 4Q23 vs 1Q24 (US $ Million) (US $ Million) +4% 1Q24 EBITDA 425 Net Working Capital (NWC) (276) +3% +5% Capital Expenditures & Acq. (
Slide 10: Foreign ownership was 51.6% of total ALFA shares at the close of 1Q24
Foreign ownership was 51.6% of total ALFA shares at the close of 1Q24 ALFA Foreign Ownership (Millions of shares) 4,819 Total ALFA Shares 1Q24 Maximum Nafinsa Trust Threshold (75%) 2,499 2,472 2,490 2,470 2,486 51.9% 51.3% 51.7% 51.3% 51.6% 1Q23 2Q23 3Q23 4Q23 1Q24 10
Slide 11: 1Q24 Highlights: Sigma Consolidated Results
1Q24 Highlights Sigma Consolidated Results - Twelfth consecutive quarter of year-on-year sales growth - Record first quarter volume of 449 ktons, up 5% versus 1Q23 - All-time high quarterly EBITDA of US $264 million, up 38% year-on-year - Sustained improvement in Net Debt to EBITDA ratio (2.2x); low
Slide 12: Twelfth consecutive quarter of year-on-year Revenue growth
Twelfth consecutive quarter of year-on-year Revenue growth supported by record first quarter Volume Revenues Revenues 1Q24 vs 1Q23 Revenues 1Q24 vs 4Q23 (US $ Million) (US $ Million) (US $ Million) 2,209 2,161 2,170 2,143 1,991 1Q23 2Q23 3Q23 4Q23 1Q24 12
Slide 13: 1Q24 EBITDA up 38%, led by Europe, the U.S., and Mexico
1Q24 EBITDA up 38%, led by Europe, the U.S., and Mexico EBITDA EBITDA 1Q24 vs 1Q23 EBITDA 1Q24 vs 4Q23 (US $ Million) (US $ Million) (US $ Million) 255 264 229 217 192 1Q23 2Q23 3Q23 4Q23 1Q24 13
Slide 14: Higher year-on-year and quarter-over-quarter Consolidated EBITDA Margin for 1Q24
Higher year-on-year and quarter-over-quarter Consolidated EBITDA Margin for 1Q24 EBITDA Margin (%) EBITDA Margin By Region (%) 16.3 15.7 15.5 14.6 14.7 12.4 13.8 11.6 12.2 10.8 10.5 10.5 11.5 10.1 10.6 9.2 9.4 9.6 8.9 8.7 9.2 10.0 8.1 8.5 6.5 5.6 2.1 2.5 1.6 2020 2021 2022 2023 1Q24 1Q22 2Q22 3Q22 4
Slide 15: Sustained improvement of Net Debt to EBITDA Ratio; 2.2x at the close of 1Q24
Sustained improvement of Net Debt to EBITDA Ratio; 2.2x at the close of 1Q24 represents lowest level in 10 years Net Debt Net Leverage Ratio Cash (US $ Million) (Net Debt/EBITDA) (US $ Million) 2,084 2,012 2,045 2,025 2.8 1,840 2.7 1,134 2.5 2.3 2.2 628 610 626 552 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23
Slide 16: The year-to-date increase in Net Debt mainly reflects investment in Net Working Capital
The year-to-date increase in Net Debt mainly reflects investment in Net Working Capital Change in Net Debt 1Q24 vs 4Q23 (US $ Million) Net Debt increased by US $59 million when compared to 4Q23 ~67% of 1Q24 Capex was maintenance- related For 1Q24, currency forward contracts totaled US $74 million wi
Slide 17: 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 1Q24 1Q24 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 Feb. Apr. Jun. Aug. Oct. Dic. Feb. Apr. Jun. Aug. Oct. Dic. 17
Slide 18: 1Q24 Recent developments
1Q24 Recent developments 2024 Euro bond refinancing • Sigma paid its Euro Senior Notes due 2024 (February 2024) • The total outstanding principal amount of €600 million was paid at maturity with funds from four bilateral, long-term bank loans Mexican local Bond program • Successful placement of Ps $
Slide 19: Alpek's 1Q24 EBITDA on track to reach full-year Guidance
Alpek’s 1Q24 EBITDA on track to reach full-year Guidance supported by volume growth Paraxylene (North America vs Asia) 1Q24 Highlights (US$/Ton) North America Asia • Álvaro Fernández appointed Chairman of the Board 1,837 • 1Q24 volume up 4% year-on-year and 9% higher quarter-on- 1,505 1,462 quarter,
Slide 20: Contact
Contact Hernán F. Lozano V.P. of Investor Relations T. +52 (81) 8748-2521 iralfa@alfa.com.mx