Sigma Foods, S.a.b. De C.v. · BMV:SIGMAF/A
Sigma Foods, S.a.b. De C.v — Q3 2023 Earnings Presentation
57 slides from Sigma Foods, S.a.b. De C.v's earnings presentation, Oct 24, 2023
Slide 1: Earnings Report Third Quarter 2023
EARNINGS REPORT ALFA, S.A.B. de C.V. (BMV: ALFAA) Investor Relations iralfa@alfa.com.mx Third Quarter 2023 (3Q23) www.alfa.com.mx + (52) 81-8748-2521 . Monterrey, N.L., Mexico, October 23, 2023. ALFA, S.A.B. de C.V. (BMV: ALFAA) (“ALFA”), a company that has developed leading businesses with global o
Slide 2: Important note on changes to ALFA's Consolidated Financial Statements
Earnings Report Third Quarter 2023 (3Q23) 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 dis
Slide 3: 3Q23 Highlights
Earnings Report Third Quarter 2023 (3Q23) ALFA reports 3Q23 EBITDA of US $373 million 3Q23 HIGHLIGHTS Initiated succession plans for its Chairman of the Board position Outstanding quarterly EBITDA growth at Sigma partially offsets a ALFA significant decline at Alpek Consolidated Net Debt of US
Slide 4: Selected Financial Information
Earnings Report Third Quarter 2023 (3Q23) SELECTED FINANCIAL INFORMATION (US $ MILLION) (%) 3Q23 vs. 3Q23 2Q23 3Q22 2Q23 3Q22 2023 2022 Ch. % ALFA & Subs ALFA Revenues 4,198 4,221 4,856 (1) (14) 12,504 13,633 (8) Alpek 1,956 2,050 2,951 (5) (34) 6,068 8,098 (25) Sigma 2,209 2,143 1,879 3 18 6,343 5,
Slide 5: Contents
Earnings Report Third Quarter 2023 (3Q23) Contents Message from ALFA’s President Consolidated Financial Results ALFA (BMV: ALFAA) Results by Business Sigma – Food Products Alpek (BMV: ALPEKA) – Petrochemicals Axtel (BMV: AXTELCPO) – IT & Telecom Tables Financial Statements Appendix – Alpek 3Q23 Resu
Slide 6: Message from ALFA's President
Earnings Report Third Quarter 2023 (3Q23) Message from ALFA’s President “During the third quarter, ALFA advanced with succession plans for its Chairman of the Board and Senior Counsel positions, ensuring the orderly transition of duties and the ongoing simplification of the corporate structure. In a
Slide 7: Message from ALFA's President (continued)
Earnings Report Third Quarter 2023 (3Q23) ALFA also announced this quarter the start of a succession process in the Legal, Audit, and Institutional Relations Department, currently headed by Carlos Jiménez Barrera. Following a distinguished 45-year career at ALFA, Carlos will leave his current senior
Slide 8: ALFA Consolidated Income Statement
Earnings Report Third Quarter 2023 (3Q23) ALFA (BMV: ALFAA) Consolidated Financial Results INCOME STATEMENT (US $ MILLION) (%) 3Q23 vs. 3Q23 2Q23 3Q22 2Q23 3Q22 2023 2022 Ch. % Total Revenues 4,198 4,221 4,856 (1) (14) 12,504 13,633 (8) Gross Profit 848 808 811 5 5 2,412 2,795 (14) Operating expense
Slide 9: Operating Income and Financing Expense
Earnings Report Third Quarter 2023 (3Q23) Operating Income was US $103 million, down 70% versus US $339 million in 3Q22, as a result of the decrease in EBITDA explained above along with asset impairments from Sigma and Alpek totaling US $145 million during the third quarter. Sigma recognized a US $1
Slide 10: Change in Net Debt
Earnings Report Third Quarter 2023 (3Q23) CHANGE IN NET DEBT (US $ MILLION) (%) 3Q23 vs. 3Q23 2Q23 3Q22 2Q23 3Q22 2023 2022 Ch.% EBITDA 373 360 454 4 (18) 1,109 1,736 (36) Net Working Capital 112 302 (100) (63) 212 283 (672) 142 Capital Expenditures & (96) (196) (149) (51) (36) (378) (972) (61) Acqu
Slide 11: Recent Developments – ALFA
Earnings Report Third Quarter 2023 (3Q23) RECENT DEVELOPMENTS – ALFA ALFA announced the start of the succession process of its Chairman of the Board of Directors, Armando Garza Sada (“Armando”) The Board of Directors approved, on September 26, 2023, the succession plan proposed by the Corporate
Slide 12: Unlocking Value – Corporate Simplification
Earnings Report Third Quarter 2023 (3Q23) Transformation to unlock ALFA’s fair value potential by efficiently simplifying its corporate structure Orderly transition towards independent business units (vs. conglomerate) Transfer autonomy to ALFA shareholders (e.g., Axtel and Nemak spin-offs)
Slide 13: Credit Ratings and Quiet Period
Earnings Report Third Quarter 2023 (3Q23) S&P Global Ratings – revised August 31, 2023 Revised ALFA’s outlook to Stable from Positive Affirmed “BBB-” long-term issuer credit rating; affirmed the “BB+” senior unsecured foreign currency rating Credit Ratings Fitch Ratings – unchanged since March 1
Slide 14: Sigma – Food Products 3Q23 Highlights
Earnings Report Third Quarter 2023 (3Q23) Results by Business Sigma – FOOD PRODUCTS 53% of ALFA’s Revenues in 3Q23 3Q23 HIGHLIGHTS Record quarterly consolidated Volume and Revenues. Tenth consecutive quarter of year-on-year Revenue growth Sigma Record quarterly EBITDA, up 68% year-on-year, boost
Slide 15: Sigma Selected Financial Information
Earnings Report Third Quarter 2023 (3Q23) SELECTED FINANCIAL INFORMATION (US $ MILLION) (%) 3Q23 vs. 3Q23 2Q23 3Q22 2Q23 3Q22 2023 2022 Ch. % Volume (ktons) 456 448 439 2 4 1,331 1,308 2 Mexico 242 235 221 3 10 702 657 7 Europe 97 97 108 (1) (11) 290 321 (10) United States 91 90 84 1 8 262 254 3 Lat
Slide 16: Message from Sigma's President
Earnings Report Third Quarter 2023 (3Q23) Message from Sigma’s President “3Q23 was another exceptional quarter for Sigma, as we achieved record quarterly Revenues and EBITDA of US $2.2 billion and US $255 million, respectively. These figures resulted from year- over-year growth across all regions. I
Slide 17: Sigma Income Statement
Earnings Report Third Quarter 2023 (3Q23) INCOME STATEMENT (US $ MILLION) (%) 3Q23 vs 3Q23 2Q23 3Q22 2Q23 3Q22 2023 2022 Ch. % Total Revenues 2,209 2,143 1,879 3 18 6,343 5,461 16 Gross Profit 680 643 464 6 47 1,878 1,410 33 Operating expenses and (601) (480) (362) 25 66 (1,498) (1,081) 39 others Op
Slide 18: Sigma Revenue and EBITDA
Earnings Report Third Quarter 2023 (3Q23) Accumulated revenues during the nine months ended September 30, 2023 were US $6.3 billion, 16% higher year-on-year. In local currency, accumulated Revenues rose by 9% versus the same period in 2022. 3Q23 Revenue (US $ MILLION) YTD Revenue (US $ MILLION) EBIT
Slide 19: Sigma Operating Income and Financing Expense
Earnings Report Third Quarter 2023 (3Q23) Operating Income was US $79 million in 3Q23, down 22% when compared to US $101 million in 3Q22, as the double-digit increase in EBITDA was more than offset by a US $120 million asset impairment related to the divestment of all operations in Italy (see Recent
Slide 20: Sigma Debt Maturity and Currency Mix
Earnings Report Third Quarter 2023 (3Q23) Debt Maturity (US $ MILLION) Debt Currency Mix* 480 26% 552 44% 635 520 500 30% 199 75 1 1 1 1 MXN USD EUR Cash 2023 2024 2025 2026 2027 2028 *CCS is included *US $520 million MXN-USD Cross Currency Swap (CCS) agreements for 2026. Does not include US $186 mi
Slide 21: Macroeconomic Environment and Exchange Rate
Earnings Report Third Quarter 2023 (3Q23) In the United States, the average consumer confidence level reported by The Conference Board was 108.6, up 6 points year-on-year and 3 points higher versus 2Q23. The inflation rate was 3.7% at the close of the quarter. Adjusted Food & Beverage Retail Sales r
Slide 22: Results by Region – Sigma
Earnings Report Third Quarter 2023 (3Q23) Regarding poultry in the U.S., average turkey breast prices were down 61% when compared to 3Q22 and 13% lower on a sequential basis, resulting from higher production and soft demand caused by exceptionally high prices throughout 2022. Turkey thigh prices dec
Slide 23: Sigma Europe and United States Results
Earnings Report Third Quarter 2023 (3Q23) In local currency, European EBITDA was up 41% year-on-year, reflecting the benefit from the Italy divestment and improving results on the Fresh Meats business. Accumulated Revenues in euros during the nine months ended September 30, 2023 were 8% higher and E
Slide 24: Recent Developments – Sigma
Earnings Report Third Quarter 2023 (3Q23) RECENT DEVELOPMENTS – SIGMA Divested all operations in Italy during 3Q23 Recognized an asset impairment of US $120 million Transaction in line with comprehensive plan to improve results by focusing Italy in core European markets Divestiture Benefits
Slide 25: Alpek – Petrochemicals Selected Financial Information
Earnings Report Third Quarter 2023 (3Q23) Alpek (BMV: ALPEKA) – PETROCHEMICALS 47% of ALFA's revenues in 3Q23 SELECTED FINANCIAL INFORMATION (US $ MILLION) (%) 3Q23 vs 3Q23 2Q23 3Q22 2Q23 3Q22 2023 2022 Ch. % Volume (ktons) 1,177 1,197 1,359 (2) (13) 3,535 3,835 (8) Polyester 955 984 1,114 (3) (14)
Slide 26: Alpek EBITDA and Results
Earnings Report Third Quarter 2023 (3Q23) EBITDA was US $126 million in 3Q23, down 59% versus 3Q22 and 15% lower quarter-on-quarter. EBITDA includes a net negative impact of US -$34 million from extraordinary items including shutdown costs for the filament facility and hyperinflation in Argentina. F
Slide 27: Recent Developments – Alpek
Earnings Report Third Quarter 2023 (3Q23) RECENT DEVELOPMENTS - ALPEK Corpus Christi Polymers (“CCP”) decided to temporarily pause construction Paused of its integrated PTA-PET plant in Corpus Christi, Texas construction Construction and labor costs have risen and surpassed original estimates of
Slide 28: Axtel – IT & Telecom
Earnings Report Third Quarter 2023 (3Q23) Axtel (BMV: AXTELCPO) – IT & TELECOM In accordance with International Financial Reporting Standards (IFRS), ALFA’s Consolidated Results must account for Axtel as Discontinued Operations due to the spin-off of this business. Additional details related to the
Slide 29: 3Q23 Earnings Call Information
Earnings Report Third Quarter 2023 (3Q23) 3Q23 EARNINGS CALL INFORMATION Date: Tuesday, October 24, 2023 Time: 2:00 p.m. EDT (NY) / 12:00 p.m. CST (CDMX) Registration: https://us02web.zoom.us/webinar/register/WN_hYTMJSNBQQOALoO9l3LHVg Replay: https://www.alfa.com.mx/en/events/ iralfa@alfa.com.mx 29
Slide 30: About ALFA and Disclaimer
Earnings Report Third Quarter 2023 (3Q23) About ALFA ALFA is comprised mainly of two businesses with global operations: Sigma, a leading multinational food company, focuses on the production, marketing, and distribution of quality foods through recognized brands in Mexico, Europe, the United States,
Slide 31: Tables: Volume, Prices, Revenues, Operating Income
Earnings Report Third Quarter 2023 (3Q23) Tables ALFA Table 1 | VOLUME AND PRICE CHANGES (%) 3Q23 vs. 2023 vs. 2Q23 3Q22 2022 Total Volume (0.4) (7.7) (4.6) Domestic Volume 1.2 (6.0) (8.5) Foreign Volume (1.4) (8.8) (1.9) Avg. Ps. $ Prices (3.9) (21.0) (15.5) Avg. US $ Prices (0.1) (6.3) (3.9) Table
Slide 32: Extraordinary Items and Comparable EBITDA
Earnings Report Third Quarter 2023 (3Q23) Table 4 | EXTRAORDINARY ITEMS (US $ MILLION) Company Extraordinary item 3Q23 2Q23 3Q22 2023 2022 Alpek Inventory gain (loss) 0 (32) (70) (33) 74 Carry forward gain (loss) (1) (8) (46) (9) 93 Others (33) (13) (2) (65) (22) Total Alpek (34) (53) (118) (107) 14
Slide 33: Net Income and Statement of Financial Position
Earnings Report Third Quarter 2023 (3Q23) Table 7 | NET INCOME (US $ MILLION) (%) 3Q23 % 3Q23 2Q23 3Q22 2Q23 3Q22 2023 2022 Ch.% Consolidated Net Income (Loss) (46) 21 182 (325) (125) (9) 801 (101) Minority Interest 2 16 41 (85) (94) 50 207 (76) Majority Net Income (Loss) (49) 4 141 - (134) (58) 594
Slide 34: Discontinued Operations – Axtel
Earnings Report Third Quarter 2023 (3Q23) Table 9 | STATEMENT OF FINANCIAL POSITION DISCONTINUED OPERATIONS – AXTEL (US $ MILLION) 3Q23 2Q23 3Q22 Current assets 0 0 239 Non-Current assets 0 0 828 Total assets 0 0 1,067 Current liabilities 0 0 171 Non-Current liabilities 0 0 679 Total liabilities 0 0
Slide 35: Sigma Tables: Volume, Prices, Local Currency
Earnings Report Third Quarter 2023 (3Q23) Sigma Table 12 | SIGMA - VOLUME AND PRICE CHANGES (%) 3Q23 vs. 2023 vs. 2Q23 3Q22 2022 Total Volume 1.7 3.8 1.8 Avg. Ps. $ Prices (2.4) (4.5) 0.2 Avg. US $ Prices 1.3 13.3 14.2 Table 13 | SIGMA – REVENUES AND EBITDA IN LOCAL CURRENCY (%) 3Q23 vs. 3Q23 2Q23 3
Slide 36: Sigma Financing and Financial Position
Earnings Report Third Quarter 2023 (3Q23) Table 15 | SIGMA - COMPREHENSIVE FINANCING INCOME / EXPENSE (US $ MILLION) (%) 3Q23 vs. 3Q23 2Q23 3Q22 2Q23 3Q22 2023 2022 Ch.% Financial Expenses (52) (45) (32) 13 61 (131) (96) 37 Financial Income 7 5 4 31 59 17 10 73 Net Financial Expenses (45) (41) (28)
Slide 37: ALFA Balance Sheet
Earnings Report Third Quarter 2023 (3Q23) Financial Statements ALFA, S.A.B. de C.V. and Subsidiaries BALANCE SHEET Information in millions of Nominal Mexican Pesos (%) Sep 23 vs. ASSETS Sep 23 Jun 23 Sep 22 Jun 23 Sep 22 CURRENT ASSETS: Cash and cash equivalents 20,217 19,516 25,109 4 (19) Trade acc
Slide 38: ALFA Income Statement
Earnings Report Third Quarter 2023 (3Q23) ALFA, S.A.B. de C.V. and Subsidiaries INCOME STATEMENT Information in millions of Nominal Mexican Pesos 3Q23 vs. (%) 3Q23 2Q23 3Q22 2Q23 3Q22 Net sales 71,606 74,788 98,289 (4) (27) Domestic 28,880 29,073 37,501 (1) (23) Export 42,726 45,715 60,788 (7) (30)
Slide 39: Sigma Alimentos Balance Sheet
Earnings Report Third Quarter 2023 (3Q23) Sigma Alimentos, S.A. de C.V. and Subsidiaries BALANCE SHEET Information in millions of Nominal Mexican Pesos (%) Sep 23 vs. ASSETS Sep 23 Jun 23 Sep 22 Jun 23 Sep 22 CURRENT ASSETS: Cash and cash equivalents 9,724 10,396 14,188 (6) (31) Restricted cash 7 7
Slide 40: Sigma Alimentos Income Statement
Earnings Report Third Quarter 2023 (3Q23) Sigma Alimentos, S.A. de C.V. and Subsidiaries INCOME STATEMENT Information in millions of Nominal Mexican Pesos 3Q23 vs. (%) 3Q23 2Q23 3Q22 2Q23 3Q22 Revenue 37,676 37,959 38,025 (1) (1) Cost of sales (26,072) (26,568) (28,643) (2) (9) Gross profit 11,604 1
Slide 41: Appendix – Alpek 3Q23 Results Report
Earnings Report Third Quarter 2023 (3Q23) Appendix – Alpek 3Q23 Results Report iralfa@alfa.com.mx 41 www.alfa.com.mx + (52) 81-8748-2521
Slide 42: Third Quarter 2023 Results
THIRD QUARTER 2023 RESULTS
Slide 43: Alpek Quarterly Highlights
THIRD QUARTER 2023 RESULTS Alpek Posts Comparable EBITDA of U.S. $160M (Reported EBITDA of U.S. $126M) Monterrey, Mexico – October 23, 2023 – Alpek, S.A.B. de C.V. announced today its third quarter 2023 (3Q23) results. QUARTERLY HIGHLIGHTS • Volume decreased to 1,177 ktons (-2% QoQ), due partially t
Slide 44: Message from Our CEO
THIRD QUARTER 2023 RESULTS MESSAGE FROM OUR CEO “I would like to highlight that Alpek once again was able to significantly improve Free Cash Flow generation primarily from optimizations in Net Working Capital. During the third quarter, the macroeconomic environment elements that have been present th
Slide 45: Filament Facility Shutdown
THIRD QUARTER 2023 RESULTS Filament Facility Shutdown In August, the Company announced the shutdown of its textile and industrial fiber production facility (“filament”) located in Monterrey, Mexico. The site, which was built in 1962, had an installed capacity of 100,000 tons of polymer and filament,
Slide 46: Financial Results: EBITDA and Income Statement
THIRD QUARTER 2023 RESULTS FINANCIAL RESULTS EBITDA (U.S.$ million) QoQ YoY Ch. 3Q23 2Q23 3Q22 YTD23 YTD22 (%) (%) (%) Reported EBITDA 126 148 306 (15) (59) 461 1,270 (64) Inventory Adjustment - 32 70 (101) (100) 33 (74) 145 Carry-forward effect 1 8 46 (88) (98) 9 (93) 110 Others 33 13 2 161 1,789 6
Slide 47: Cash Flow, Net Debt and Leverage
THIRD QUARTER 2023 RESULTS CASH FLOW (U.S.$ million) QoQ YoY Ch. 3Q23 2Q23 3Q22 YTD23 YTD22 (%) (%) (%) EBITDA 126 148 306 (15) (59) 461 1,270 (64) Net Working Capital & Others 214 284 (111) (25) 293 432 (542) 180 CAPEX (38) (75) (93) 49 59 (165) (811) 80 Financial Expenses (46) (45) (39) (3) (19) (
Slide 48: Results by Business Segment: Polyester
THIRD QUARTER 2023 RESULTS RESULTS BY BUSINESS SEGMENT: POLYESTER (Purified Terephthalic Acid (PTA), Polyethylene Terephthalate (PET), rPET – 76% of Alpek’s Net Sales) QUARTERLY HIGHLIGHTS • Volume of 955 ktons (-3% QoQ), mainly due to Asian imports in the Americas • Polyester Comparable EBITDA of U
Slide 49: Results by Business Segment: Plastics & Chemicals
THIRD QUARTER 2023 RESULTS RESULTS BY BUSINESS SEGMENT: PLASTICS & CHEMICALS (P&C) (Polypropylene (PP), Expandable Polystyrene (EPS), Other products – 19% of Alpek’s Net Sales) QUARTERLY HIGHLIGHTS • Volume of 222 ktons (+4% QoQ), due mainly from an improvement in Polypropylene demand from seasonali
Slide 50: About Alpek, Forward-Looking Statements, Contact
THIRD QUARTER 2023 RESULTS ABOUT ALPEK Alpek is a leading petrochemical company operating two business segments: “Polyester” (PTA, PET, and rPET), and “Plastics & Chemicals” (polypropylene, expandable styrenics, and other specialty and industrial chemicals). Alpek is a leading producer of PTA, PET R
Slide 51: Appendix A – Additional Financial Information
THIRD QUARTER 2023 RESULTS APPENDIX A – ADDITIONAL FINANCIAL INFORMATION QoQ YoY Ch. TABLE 1 | PRICE CHANGES (%) (%) (%) (%) Polyester Avg. Ps. Prices (4) (28) (21) Avg. U.S. $ Prices - (14) (10) Plastics & Chemicals Avg. Ps. Prices (16) (43) (35) Avg. U.S. $ Prices (13) (32) (26) Total Avg. Ps. Pri
Slide 52: Comparable EBITDA and Financial Cost Tables
THIRD QUARTER 2023 RESULTS Ch. TABLE 4 | COMPARABLE EBITDA 3Q23 2Q23 3Q22 QoQ (%) YoY (%) YTD23 YTD22 (%) Reported EBITDA Ps. Million 2,143 2,642 6,217 (19) (66) 8,290 25,751 (68) U.S. $ Million 126 148 306 (15) (59) 461 1,270 (64) Adjustments* Ps. Million 580 921 2,367 (37) (76) 1,871 (2,958) 163 U
Slide 53: Statement of Financial Position and Ratios
THIRD QUARTER 2023 RESULTS TABLE 6 | STATEMENT OF FINANCIAL POSITION & FINANCIAL 3Q23 2Q23 3Q22 QoQ (%) YoY (%) RATIOS (U.S.$ million) Assets Cash and cash equivalents 503 417 479 21 5 Trade accounts receivable 794 833 1,348 (5) (41) Inventories 1,373 1,564 1,861 (12) (26) Other current assets 345 3
Slide 54: Polyester Tables
THIRD QUARTER 2023 RESULTS POLYESTER QoQ YoY Ch. TABLE 7 | REVENUES 3Q23 2Q23 3Q22 YTD23 YTD22 (%) (%) (%) Total Revenues Ps. Million 25,295 27,156 40,938 (7) (38) 80,309 108,590 (26) U.S. $ Million 1,483 1,532 2,022 (3) (27) 4,504 5,361 (16) Domestic Revenues Ps. Million 5,356 5,633 7,885 (5) (32)
Slide 55: Plastics & Chemicals Tables
THIRD QUARTER 2023 RESULTS PLASTICS & CHEMICALS QoQ YoY Ch. TABLE 10 | REVENUES 3Q23 2Q23 3Q22 YTD23 YTD22 (%) (%) (%) Total Revenues Ps. Million 6,343 7,253 12,280 (13) (48) 21,687 38,093 (43) U.S. $ Million 372 409 607 (9) (39) 1,214 1,880 (35) Domestic Revenues Ps. Million 3,170 3,503 5,686 (10)
Slide 56: Appendix B – Financial Statements
THIRD QUARTER 2023 RESULTS APPENDIX B – FINANCIAL STATEMENTS ALPEK, S.A.B. DE C.V. and Subsidiaries CONSOLIDATED STATEMENT OF FINANCIAL POSITION QoQ YoY Sep-23 Jun-23 Sep-22 (%) (%) (Millions of Mexican pesos) ASSETS CURRENT ASSETS: Cash and cash equivalents 8,859 7,111 9,001 25 (2) Restricted cash
Slide 57: Alpek Consolidated Statement of Income
THIRD QUARTER 2023 RESULTS ALPEK, S.A.B. DE C.V. and Subsidiaries CONSOLIDATED STATEMENT OF INCOME QoQ YoY Ch. 3Q23 2Q23 3Q22 YTD23 YTD22 (%) (%) (%) (millions of Mexican pesos) Revenues 33,368 36,330 59,750 (8) (44) 108,272 164,024 (34) Domestic 10,308 10,807 20,045 (5) (49) 33,172 59,773 (45) Expo