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. — Q2 2024 Earnings Presentation
23 slides from Sigma Foods, S.a.b. De C.v's earnings presentation, July 2024
Slide 1: 2Q24 Earnings Presentation
2Q24 Earnings Presentation July 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: 2Q24 Highlights - ALFA
2Q24 Highlights - ALFA Better-than-expected performance in 2Q24 and 1H24 driven mainly by Sigma - Sigma: raised 2024 EBITDA Guidance to historic milestone of US $1.0 billion - Alpek: YTD Comparable EBITDA of US $312 million, on track to reach full-year guidance - ALFA: raised EBITDA Guidance to inco
Slide 5: Revenue growth driven by Sigma year-on-year, and quarter-on-quarter
Revenue growth driven by Sigma year-on-year, and quarter-on-quarter ALFA & Subs* Revenues Revenues 2Q24 vs 2Q23 Revenues 2Q24 vs 1Q24 (US $ Million) (US $ Million) (US $ Million) 4,221 4,198 4,106 4,197 3,885 2Q23 3Q23 4Q23 1Q24 2Q24 *Axtel reported as discontinued operations in 2Q23 No figures pres
Slide 6: Higher Reported and Comparable EBITDA in 2Q24
Higher Reported and Comparable EBITDA in 2Q24 ALFA & Subs* EBITDA Extraordinary items Comparable EBITDA (US $ Million) (US $ Million) (US $ Million) 2Q24 vs 2Q23: 23% 2Q24 vs 1Q24: 5% 2Q24 vs 2Q23: 2% EBITDA Margin EBITDA Margin 2Q24 vs 1Q24: 5% 445 425 2Q23 3Q23 4Q23 1Q24 2Q24 360 373 425 433 407 3
Slide 7: Net Debt/EBITDA of 3.3x at the close of 2Q24
Net Debt/EBITDA of 3.3x at the close of 2Q24 ALFA & Subs* ALFA Net Debt Net Leverage Ratio Cash (US $ Million) (Net Debt/EBITDA) (US $ Million) 3.5 3.5 3.4 3.3 1,529 4,994 5,094 4,977 3.3 4,866 4,919 1,163 1,167 1,188 1,203 2Q23 3Q23 4Q23 1Q24 2Q24 2Q23 3Q23 4Q23 1Q24 2Q24 2Q23 3Q23 4Q23 1Q24 2Q24 *
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 EBITDA Consolidated Net Debt excluding Alpek1 (US $ Million) (US $ Billion) 3.287 3.251 3.115 3.191 3.190 1,000 893 Indicative target ALFA2 US $2.5 B 652 Sigma 2022 2023 2024G 2Q23 3Q23 4Q23
Slide 9: ALFA raises 2024 Guidance to reflect upward revision from Sigma
ALFA raises 2024 Guidance to reflect upward revision from Sigma (US $ Millions) New Previous Ch. % (US $ Millions) New Previous Ch. % ALFA 16,775 16,575 1 ALFA 1,590 1,510 5 Revenues Sigma 8,850 8,650 2 EBITDA Sigma 1,000 920 9 Alpek 7,800 7,800 - Alpek 600 600 -
Slide 10: ALFA's Net Debt decreased US $117 million in 2Q24
ALFA’s Net Debt decreased US $117 million in 2Q24 ALFA Consolidated Change in Net Debt Change in Net Debt 1Q24 vs 2Q24 (US $ Million) (US $ Million) -2% 2Q24 EBITDA 445 Net Working Capital (NWC) 30 -3% -5% Capital Expenditures & Acq. (Capex) (67) Net Financial Expenses (123) Taxes (152) Dividends (2
Slide 11: Foreign ownership was 51.3% of total ALFA shares at the close of 2Q24
Foreign ownership was 51.3% of total ALFA shares at the close of 2Q24 ALFA Foreign Ownership (Millions of shares) 4,819 Total ALFA Shares 2Q24 Maximum Nafinsa Trust Threshold (75%) 2,472 2,490 2,470 2,486 2,470 51.3% 51.7% 51.3% 51.6% 51.3% 2Q23 3Q23 4Q23 1Q24 2Q24 11
Slide 12: 2Q24 Highlights - Sigma
2Q24 Highlights - Sigma Outstanding consolidated results in 2Q24 - Record quarterly Volume - Year-on-year Revenue growth for the thirteenth consecutive quarter - All-time high quarterly EBITDA of US $279 million supported by solid growth in all regions - 2024 EBITDA guidance revised up 9% to histori
Slide 13: Thirteenth consecutive quarter of year-on-year Revenue growth
Thirteenth consecutive quarter of year-on-year Revenue growth supported by record quarterly Volume Revenues Revenues 2Q24 vs 2Q23 Revenues 2Q24 vs 1Q24 (US $ Million) (US $ Million) (US $ Million) 2,209 2,246 2,143 2,161 2,170 2Q23 3Q23 4Q23 1Q24 2Q24 13
Slide 14: All-time high quarterly consolidated EBITDA of US $279 million
All-time high quarterly consolidated EBITDA of US $279 million, supported by solid growth in all regions EBITDA EBITDA 2Q24 vs 2Q23 EBITDA 2Q24 vs 1Q24 (US $ Million) (US $ Million) (US $ Million) 279 264 255 229 217 2Q23 3Q23 4Q23 1Q24 2Q24 14
Slide 15: Higher year-on-year and quarter-over-quarter Consolidated EBITDA Margin
Higher year-on-year and quarter-over-quarter Consolidated EBITDA Margin for 2Q24 EBITDA Margin (%) EBITDA Margin By Region (%) 17.1 16.3 15.5 14.7 13.0 12.4 12.4 11.6 12.2 10.5 10.5 11.5 10.1 10.6 9.5 9.6 8.9 8.7 9.2 8.1 8.5 3.3 2.1 2.5 1.6 2022 2023 1Q24 2Q24 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24
Slide 16: Sustained improvement of Net Debt to EBITDA Ratio
Sustained improvement of Net Debt to EBITDA Ratio; 2.0x represents lowest level in nearly 11 years Net Debt Net Leverage Ratio Cash (US $ Million) (Net Debt/EBITDA) (US $ Million) 2,084 2,019 2,012 2,045 2,025 2.8 1,134 2.5 2.3 2.2 2.0 724 610 626 552 2Q23 3Q23 4Q23 1Q24 2Q24 2Q23 3Q23 4Q23 1Q24 2Q2
Slide 17: 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 2Q24 vs 1Q24 (US $ Million) Net Debt decreased by US $65 million when compared to 1Q24 “Others” include a positive foreign exchange conversion effect resulting primarily from the depreciation o
Slide 18: 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 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. Source: USA – USDA PM Ham, 23-27# Trmd Se
Slide 19: Poultry raw materials in U.S.
Poultry raw materials in U.S. Chicken (MSC) Turkey (MST) US $/lb 2021 US $/lb 2021 0.7 2022 0.9 2022 0.8 0.6 2023 2023 0.7 0.5 0.6 2024 2024 0.4 0.5 0.3 0.4 0.3 0.2 0.2 0.1 0.1 0.0 0 J F Feb. M A Apr. M JJun. J AAug. S O Oct. N Dic.D J Feb. F M AApr.M J Jun. J A Aug. S O Oct. N D Dic. Turkey Breast
Slide 20: Sigma 2024 Guidance revised up
Sigma 2024 Guidance revised up Sigma Revenues Sigma EBITDA (US $ Million) (US $ Million) 8,650 8,850 1,000 920 Previous New Previous New Revised exchange rate for 2H24 to $18.5 MXN/USD vs. previous $18.7 MXN/USD 2024 Capex Guidance remains unchanged at US $250 million
Slide 21: 2Q24 Recent developments - Sigma
2Q24 Recent developments - Sigma Sigma Europe CEO Succession • Appointed Juan Ignacio Amat as CEO of Sigma Europe (June 1st) • 20+ years in large consumer goods companies across Europe • Successfully implemented transformational plans in various roles Mexican Local Bond Issuance (May 2024) • Success
Slide 22: Alpek's 2Q24 EBITDA supported by resilient volume
Alpek’s 2Q24 EBITDA supported by resilient volume 2Q24 Highlights Paraxylene (North America vs Asia) North America (US$/Ton) Asia • Polyester segment volume was up 2% y-o-y driven by resilient 1,837 regional demand 1,505 1,462 1,389 1,345 1,352 • Accumulated Comparable EBITDA of US $312 million is o
Slide 23: Contact
Contact Hernán F. Lozano V.P. of Investor Relations T. +52 (81) 8748-2521 iralfa@alfa.com.mx