Sigma Foods, S.a.b. De C.v. · BMV:SIGMAF/A
Sigma Foods, S.a.b. De C.v — Sigma Alimentos — Q4 2023 Earnings Presentation
70 slides from Sigma Foods, S.a.b. De C.v's earnings presentation, November 2025
Slide 1: Corporate Presentation 4Q23
Corporate Presentation 4Q23
Slide 2: Content
Content 01 Sigma at Glance 02 Into the Future 03 Financial Performance 04 ESG Public Information
Slide 3: Sigma as Part of ALFA
Sigma as Part of ALFA Petrochemicals #1 in the production of PTA, PET and EPS in the Americas 52% of Alfa Revenues ¹ 64% of Alfa EBITDA ¹ Food Products 13 Portfolio brands sell more than US $100 Million a year, each (1) 2023 in USD; ALFA and Subsidiaries
Slide 4: Investment Highlights
Investment Highlights Contenido • Diverse portfolio of leading brands across categories and consumer segments • Supply chain and distribution network as a competitive advantage • R&D platform to drive innovation and generate consumer knowledge • History of sustained growth throughout the years • Exp
Slide 5: Multinational Presence, Local Favorites
Multinational Presence, Local Favorites 17 100+ 680K+ 1.8M US $8.5B 23y Countries Brands Points of Sale Tons of Food / Year Net Sales Average Mgmt. 2023 Team Experience Bringing communities everywhere, favorite foods to love.
Slide 6: Revenues and EBITDA 2023 by region and category
U.S. 18% Europe 28% Mexico 47% Cooked & Fresh Meats 55% Dairy 25% LatAm 7% Revenues 2023 US $8.5B EBITDA 2023 US $893M *Revenues 2023 distribution by region and Category Dry Meats 14% Other 6%
Slide 7: Leading Brands Across Markets, Categories and Consumer Segments
Leading Brands Across Markets, Categories and Consumer Segments 100+ Brands 13 Brands with Net Sales over US $100M. * Yoplait is licensed by third party
Slide 8: Leading Brands Across Categories and Consumer Segments
Leading Brands Across Categories and Consumer Segments Our broad portfolio helps us capture demand and top line growth across different market segments Cheese, Creams Packaged Meats Fresh Meat Yogurt Others & Spreads Premium High * Middle Value Low-cost 12% of our revenues come from licensed brands*
Slide 9: Multiple Channels to Reach Consumers
Multiple Channels to Reach Consumers Modern Traditional Foodservice E-commerce
Slide 10: A Unique Story of Transformation: Growth + Profitability
A Unique Story of Transformation: Growth + Profitability Net sales breakdown Net Sales Countries Facilities Employees By geography By category (US$ B) Europe Mexico Cooked Meats Dairy U.S. Latam Dry Meats Other National Leadership 25% 2000 $0.8 4 8 12,500+ 98% 74% International Expansion 5% 9% 15% 3
Slide 11: Extensive Supply Chain and Distribution Network as a Competitive Advantage
Extensive Supply Chain and Distribution Network as a Competitive Advantage Manufacturing 64 Facilities 179 Distribution Centers 680K+ Points of Sale 24 20 8 12 119 13 16 31 México 370K+ Europa 53k+ EE.UU. 164K+ LATAM 95K+ 6,000+ 990+ 100+ 880+
Slide 12: Consumer Centric Innovation Supported by R&D Platform
Consumer Centric Innovation Supported by R&D Platform Innovation – Design Thinking 1,950+ New Product Launches in the last 3 years 10% of Revenue comes from innovations Research & Development 2 Technological Centers (Mexico & Spain) 280+ Specialists 35+ Patents & IP Consumer Research 186,000+ Contac
Slide 13: Diverse Workforce
Diverse Workforce 63% 16% 8% 13% 60+ 46,000+ Nationalities Employees 59% 41%
Slide 14: M&A Track Record
M&A Track Record 2019 2023 • 31 successful M&A transactions since 1997. 2016 • Experienced, dedicated team with strong track record. 2017 2014 • Significant value creation through synergies and post- merger integration process. 2012 2015 • Financial discipline and accelerated 2013 2009 deleveraging
Slide 15: Experienced Management Team
Experienced Management Team Proven top management with an average of 23 years of experience across business areas CEO Rodrigo Fernández Sigma CEO MBA Wharton 24 Business Units Eugenio Caballero Ricardo Doehner Jesús Lobo Sergio Ramos Gerardo Carcoba CEO Mexico CEO Europe CEO USA CEO Latin America CE
Slide 16: Advisory Board
Advisory Board Member Type Member Background María Teresa Arnal Entrepreneur; 25+ years of experience in tech (Google, Twitter & Microsoft) María Eugenia Casar Former Assistant Executive Director - The World Food Program, UN Juan Enriquez Chairman and CEO - Biotechonomy, LLC Ángel Losada Executive P
Slide 17: Content
Content 01 Sigma at Glance 02 Into the Future 03 Financial Performance 04 ESG Public Information
Slide 18: Into the Future
Into the Future Mid-to-high single-digit EBITDA target organic growth, boosted by M&A opportunities Going forward, we are focusing on 3 pillars: Growing the core New sources of revenue Consumer Insights, Execution High Potential Opportunities Global and Optimization New Categories and Business Model
Slide 19: Grow the Core
Grow the Core Through the years we have developed a successful core business that we continue to strengthen through: • Deep consumer knowledge, innovation, and brand equity to exceed changing consumers’ needs. • Execution with excellence and efficiency to deliver a winning value proposition. • Margi
Slide 20: New Sources of Revenue: High Potential Opportunities
24 New Sources of Revenue: High Potential Opportunities Cross-fertilization to attend high-value-opportunities identified in each region: • Chorizos, Spreads, etc. • Lunch Meats, Sausages, Foodservice, etc. • Traditional Channel, Foodservice, etc. • Ready Meals, Dry Sausages, Fresh Meat, etc. Public
Slide 21: New Sources of Revenue: Growth Business Unit
New Sources of Revenue: Growth Business Unit What is Growth BU? Independent BU focused on building new categories and business models. Autonomous to ensure flexibility, and with access to Sigma´s capabilities. • Cross-functional global team + local champions • Rapid iteration; low-cost experiments •
Slide 22: Growth BU Boosting New Categories and Business Models
Growth BU Boosting New Categories and Business Models Innovative Solutions: Validated Mature New Core/Existing Businesses / Business Lab Innovation Requirements: Bottle Necks Opportunities Exposure Agile and Interactive Optimizable and Repeatable Fast and Flexible Scalable Entrepreneurial Capacities
Slide 23: Growth BU | Initiatives
Growth BU | Initiatives Global Categories New Business Models 3 2 4 1 2 3 Stages: 1 Ideation 2 Pilot 3 Launching 4 Escalation
Slide 24: 1,300+ Applications
1,300+ Applications in 53 countries 1st Edition 2nd Edition 3rd Edition 4th Edition (2019) (2021) (2022) (2023) 120+ Applications 360+ Applications 400+ Applications 400+ Applications 15+ Countries 30+ Countries 35+ Countries 35+ Countries 7 Pilots 11 Pilots 12 Pilots 15 Pilots Verticals 2023 Smart
Slide 25: Our Strategy
Our Strategy Strengthening the Organization Through Enablers Innovation Anticipating consumer’s wants The way we and needs Entrepreneurship Impeccable Management think Focus on the essential, foster early Generate, pilot & scale new discussions and solve for root causes business models Agile Essenti
Slide 26: Content
Content 01 Sigma at Glance 02 Into the Future 03 Financial Performance 04 ESG Public Information
Slide 27: 4Q23 Highlights
4Q23 Highlights US $ Millions All-time high annual consolidated Volume, Revenues and EBITDA Revenue EBITDA Eleventh consecutive quarter of year-on-year Revenue growth supported by record fourth quarter Volume Sigma +10% +37% 4Q23 EBITDA up 37% year-on-year, driven by Mexico and Europe 2,161 22
Slide 28: Quarterly Volume
Quarterly Volume Volume Volume 4Q23 vs 4Q22 Volume 4Q23 vs 3Q23 (K Tons) (K Tons) (K Tons) +8% -9% +1% +3% -1% -2% -11% +4% 445 448 456 443 424 439 432 427 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 39
Slide 29: Quarterly Revenues
Quarterly Revenues Revenues Revenues 4Q23 vs 4Q22 Revenues 4Q23 vs 3Q23 (US $ Million) (US $ Million) (US $ Million) 2,1432,209 2,161 +15% +3% +10% +5% -2% -1% -7% +4% 1,9641,991 1,8701,879 1,711 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 40
Slide 30: Quarterly EBITDA
Quarterly EBITDA EBITDA EBITDA 4Q23 vs 4Q22 EBITDA 4Q23 vs 3Q23 (US $ Million) (US $ Million) (US $ Million) 255 -18% +100% -16% +11% 229 +49% +89% -2% +3% 217 192 172 167 161 151 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 41
Slide 31: Quarterly EBITDA Margins
Quarterly EBTIDA Margins EBITDA Margins (%) EBITDA Margins (%) 17.4 16.2 14.5 13.6 13.6 13.0 13.2 12.7 12.4 11.2 11.0 10.5 12.0 9.5 11.2 9.9 11.5 7.8 10.1 10.6 9.6 9.3 8.8 8.5 9.1 9.4 9.2 8.7 8.2 8.5 8.0 8.1 4.5 2.3 2.2 2.0 2.5 1.6 0.2* 1.6 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q22 2Q22 3Q22 4Q22
Slide 32: Margin Expansion in Europe
Margin Expansion in Europe • Sale of 2 manufacturing facilities in France • Disinvestment of operations in Italy Topline Footprint Actions Optimization • New geographies • Snacking High Potential • Plant-based Efficiencies Initiatives 16% annual average Price increase in Euros • Administrative funct
Slide 33: Change in Net Debt
Change in Net Debt Change in Net Debt 4Q23 vs 3Q23 (US $ Million) 3Q23 EBITDA NWC CAPEX Net Financial Expenses Taxes Dividends Other 4Q23 Sources 44
Slide 34: Change in Net Debt
Change in Net Debt Change in Net Debt 4Q23 vs 4Q22 (US $ Million) * 4Q22 EBITDA NWC CAPEX Net Financial Taxes Dividends Other 4Q23 Expenses Sources 45 * Sigma made the decision to voluntarily abandon the optional tax regime; payment of the income tax was made during 2Q23.
Slide 35: Capital Expenditures (Capex)
Capital Expenditures (Capex) Capex México Mexico Europa Europe 67% 63% 68% 75% 69% 76% 82% 86% 78% 87% 68% 33% 37% 32% 25% 31% 18% 14% 22% 24% 13% 75% 72% 72% 78% 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 EE.UU. U.S. Latam Latam 32% 22% 25% 28% 28% 43% 54% 89% 78% 85% 85% 67% 83% 83% 100% 20
Slide 36: Financial Results
Financial Results US $ Million Volume Revenue EBITDA (K Tons) (US $ Million) (US $ Million) 8,505 893 1,773 1,720 1,754 1,701 7,425 160 741 1,678 1,756 1,705 1,740 6,817 663 676 684 703 684 652 1,668 6,463 6,336 6,347 639 716 1,445 5,901 6,054 5,698 525 1,304 5,359 470 1,142 1,105 3,820 395 897 3,44
Slide 37: Cost and Expense Structure LTM
Cost and Expense Structure LTM Costs of Goods Sold (COGS) Selling, General and Administrative Expenses (SG&A) (US $ Million) (US $ Million) 8% 7% 2% Meat and Dairy Raw Materials 5% Dry Ingredients 8% Direct Labor 21% Selling Trade Products Administrative 8% 57% Packaging General Energy (Fuel, electr
Slide 38: Leverage Ratios
Leverage Ratios Net Debt Net Debt / EBITDA** Gross Debt / EBITDA** 1,936 1,859 1,994 2,025 3.8x 3.8x 3.8x 1,756 1,691 1,782 3.6x 3.6x 3.4x 2.9x 2.7x 2.8x 2.7x 3.0x 2.6x 2.3x 2.3x 2017 2018 2019 2020 2021 2022 4Q23 2017 2018 2019 2020 2021 2022 4Q23 2017 2018 2019 2020 2021 2022 4Q23
Slide 39: Debt Profile
Debt Profile Average life: 3.1 years Average rate: 6.49 % (including CCS) Proforma Debt Maturity Schedule Debt Mix Cash Mix (US $Million) (Including CCS) 9% 480 18% 27% 625 296 ** 52% 30% 520 * 500 64% 443 207 1 1 1 Efectivo 2023 2024 2025 2026 2027 2028 MXN USD EUR OTHER *US $520 million MXN-USD Cr
Slide 40: Outstanding Bonds
Outstanding Bonds 120 110 100 90 80 2026 70 60 2028 50 40 Aug/22 Aug/23 Aug/21 Mar/22 Mar/23 Jul/22 Oct/22 Jul/23 Apr/21 Jul/21 Oct/21 Apr/22 Jun/22 Apr/23 Oct/23 Jun/23 Jun/21 Dec/21 Dec/22 Dec/23 Sep/21 Jan/22 Feb/22 Sep/22 Jan/23 Feb/23 Sep/23 Nov/21 Nov/22 Nov/23 May/23 May/21 May/22 Amount Bond
Slide 41: Dividends
Dividends Paid Dividends (US $ Million) 155 150 151 152 Amount Quarter 120 (US $ Million) 1Q23 0 75 2Q23 75 3Q23 0 4Q23 0 17 18 19 20 21 22 23 In 2020 no dividends were paid. The graph shows the approved amounts for each year.
Slide 42: Income Statement
Income Statement (Thousands of pesos) (Thousands of U.S. Dollars) IV Quarter 23 IV Quarter 22 IV Quarter 23 IV Quarter 22 Revenue 37,985,318 38,674,499 2,161,301 1,964,030 Cost of sales (26,671,724) (28,936,099) (1,517,854) (1,469,311) Gross profit 11,313,594 9,738,400 643,447 494,719 Selling expens
Slide 43: Balance Sheet
Balance Sheet (Thousands of pesos) (Thousands of U.S. Dollars) LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Dec '23 Dec '22 Dec '23 (1) Dec '22 (2) Current debt 11,687,843 0 691,854 0 ASSETS Accrued interest payable 561,395 590,469 33,231 30,497 CURRENT ASSETS: Financial Leases 488,962
Slide 44: Cash Flow
(Thousands of pesos) (Thousands of U.S. Dollars) IV Quarter 23 IV Quarter 22 IV Quarter 23 IV Quarter 22 Cash Flow CASH FLOW FROM OPERATING ACTIVITIES Profit before income tax 746,375 346,677 41,451 17,683 Depreciation and amortization 1,314,022 1,009,775 75,119 51,281 Impairment of fixed assets and
Slide 45: Meat Raw Materials – Pork and Poultry
- 2020 Meat Raw Materials – Pork and Poultry - 2021 - 2022 - 2023 U.S. Europe USD / Lb Eur / kg Pork Ham Chicken MSC Turkey Breast Pork Ham 3.50 8 1.2 1 0.6 3.00 6 0.8 0.4 4 2.50 0.6 0.4 0.2 2.00 2 0.2 0 0 0 1.50 J F M A M J J A S O N D J F M A M J J A S O N D Pork Trimmings - 42% Turkey MST Turkey
Slide 46: Meat Raw Materials – Dairy
Meat Raw Materials – Dairy U.S. USD / Lb Milk Class III Block Cheedar 28 2.8 23 2.3 18 1.8 13 1.3 8 0.8 J F M A M J J A S O N D J F M A M J J A S O N D NFDM 2 - 2020 1.5 - 2021 1 - 2022 0.5 - 2023 J F M A M J J A S O N D Sources: U.S. - USDA; See Appendix A for additional information regarding U.S.
Slide 47: European Energy Utility Price Reference
European Energy Utility Price Reference Dutch TTF 400 €/MWh 350 300 Dutch TTF (Title Transfer Facility), is a virtual trading point for natural gas 250 in Netherlands and is the primary gas pricing hub for the European 200 market 150 100 50 0 J F M A M J J A S O N D 2020 2021 2022 2023 Sources: IC
Slide 48: Exchange Rates
Exchange Rates U.S. Dollar – MXN Peso U.S. Dollar - Euro 25 1.25 23 1.2 1.15 21 1.1 19 1.05 17 1 15 0.95 J F M A M J2 M2 J J3J A2A S O N D E F M A M J2 M2 J J A2 J3 A S O N D 2021 2020 2022 2023 2021 2020 2022 2023
Slide 49: Content
Content 01 Sigma at Glance 02 Into the Future 03 Financial Performance 04 ESG Public Information
Slide 50: Sigma's ESG journey
Sigma’s ESG journey 1st materiality Updated the analysis and GRI materiality Report analysis Aligned to the 2025 SBTi Targets Sustainability Approved Commitments <2015 2016 2018 2019 2020 2021 2022 2025 Company-wide Established the • Sustainability report Sustainability Strategy, Sustainability revi
Slide 51: Our Sustainable Vision
68 1 Environment Our Sustainable Vision • Our ESG trajectory starts since 2015 with our first GRI Water Management Climate Action Clean Energy Sustainable Packaging report and materiality analysis • Sustainability became a fundamental part of our 2 Wellbeing business strategy • Our Sustainability ef
Slide 52: Environment
Environment We reduce our environmental impact by using natural resources more efficiently 16% reduction on CO2 eq emissions related to our manufacturing facilities and transportation fleet, per ton of food produced (compared to 2015) 7,880+ virgin plastic tons avoided in our packaging since 2019 1.
Slide 53: Greenhouse Gas Reduction Objectives
Greenhouse Gas Reduction Objectives Scope 1 Scope 2 Scope 3 20% 20% 9.8% SBTi is a corporate climate action NGO that works in association with CDP, the United Nations Global Compact, the World Resources Institute, Worldwide Fund For Nature and the We Mean Business Coalition commitments In 2023, Sigm
Slide 54: Wellbeing
Wellbeing 1,900+ leaders participated in the program Lideres Conscientes 43% reduction We stablish conditions that motivate and in the accident rate set against the base year of 2018 facilitate to our collaborators the adoption of habits that increase their quality of life We launches the Diversity,
Slide 55: Health and Nutrition
Health and Nutrition We promote healthy lifestyles through We invested US $38.8M our innovative and high quality product in research and development offering 1.8 times more sales from the health and wellness portfolio set against 2019 80+ products with improved nutritional profiles throughout 2022 2
Slide 56: Shared Value
We create economic and social value Shared Value throughout our practices and we share them to incite the development and strengthen our supply chain 175+ million food portions donated since 2015 Suppliers that represent 51% of the acquisition of beef raw materials are evaluated in ESG criteria 130+
Slide 57: Our Governance
Our Governance Boards and Committees Risk Management Internal Audit & Controls Policies Published : • Responsible Sourcing • Global Code of Conduct General Risk Management Board of Directors • ESG • Risk assessment with probability and • Nutrition • Audit Committee impact by region • Quality and Foo
Slide 58: ESG Scores
ESG Scores Supplier Engagement: A-F Water: A-F Climate: A-F Risk: Low-High Score: 100-0 2023 Pending Results B B Pending Results 42 2022 A- B B Medium 35 2021 B- B B High 25 2020 D C C High N/A Industry Average C C C High 22 Best Scores per organism – CDP: A / Sustainalytics: Low / S&P: 100 CDP: Car
Slide 59: Appendix A: Key Raw Material Price References
Appendix A: Key Raw Material Price References This appendix provides a detailed explanation on how to obtain key raw material price references from public sources. This is not intended as an exhaustive list of the company´s raw materials nor is it a direct representation of the company´s actual cost
Slide 60: USA – USDA PM Ham, 23-27# Trmd Sel Ham
USA – USDA PM Ham, 23-27# Trmd Sel Ham https://mymarketnews.ams.usda.gov/filerepo/reports 1 5 Pop − up Type in 6 2 Ctrl + F, type in 23 − 27 3 7 4
Slide 61: USA – USDA Pork Trimmings - 72% Trim Combo, FOB Plant
USA – USDA Pork Trimmings - 72% Trim Combo, FOB Plant https://mymarketnews.ams.usda.gov/filerepo/reports 1 5 Pop − up Type in 6 2 Ctrl + F, type in 𝑇𝑟𝑖𝑚 𝐶𝑜𝑚𝑏𝑜 3 7 4
Slide 62: USA – USDA Pork Trimmings - 42% Trim Combo, FOB Plant
USA – USDA Pork Trimmings - 42% Trim Combo, FOB Plant https://mymarketnews.ams.usda.gov/filerepo/reports 1 5 Pop − up Type in 6 2 Ctrl + F, type in 𝑇𝑟𝑖𝑚 𝐶𝑜𝑚𝑏𝑜 3 7 4
Slide 63: USA – USDA Beef Trimmings, National, FOB Plant, Fresh 50%
USA – USDA Beef Trimmings, National, FOB Plant, Fresh 50% 5 2 6 3 7 1 4 1 10 11
Slide 64: USA – USDA Chicken - MSC, 15-20% Fat, Fresh
USA – USDA Chicken - MSC, 15-20% Fat, Fresh https://mymarketnews.ams.usda.gov/filerepo/reports 1 5 Pop − up Type in Type in 6 2 Ctrl + F, type in MSC, 15 3 7 4
Slide 65: USA – USDA Turkey - MST, Some skin, under 20% fat, Fresh
USA – USDA Turkey - MST, Some skin, under 20% fat, Fresh https://mymarketnews.ams.usda.gov/filerepo/reports 1 5 Pop − up Typeinin Type 6 2 Ctrl + F, type in 15 − 20 3 7 4
Slide 66: USA – USDA Turkey - Breast, Young Tom, Boneless & Skinless, Fresh
USA – USDA Turkey - Breast, Young Tom, Boneless & Skinless, Fresh https://mymarketnews.ams.usda.gov/filerepo/reports 1 5 Pop − up Typeinin Type 6 2 Ctrl + F, type in 𝐵𝑜𝑛𝑒𝑙𝑒𝑠𝑠 3 7 4
Slide 67: USA – USDA Turkey - Thigh Meat, Boneless & Skinless, Fresh
USA – USDA Turkey - Thigh Meat, Boneless & Skinless, Fresh https://mymarketnews.ams.usda.gov/filerepo/reports 1 5 Pop − up Typeinin Type 6 2 Ctrl + F, type in 𝐵𝑜𝑛𝑒𝑙𝑒𝑠𝑠 3 7 4
Slide 68: USA – USDA Dairy - CME, Milk Class III
USA – USDA Dairy - CME, Milk Class III https://mpr.datamart.ams.usda.gov/ 1 Pop − up 7 2 3 4 8 6 5
Slide 69: USA – USDA Dairy - Block Cheddar Cheese 40lb
USA – USDA Dairy - Block Cheddar Cheese 40lb https://mpr.datamart.ams.usda.gov/ 1 Pop − up 7 2 3 8 4 6 5
Slide 70: www.sigma-alimentos.com
Public Information www.sigma-alimentos.com Contact: investorrelations@sigma-alimentos.com