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. — Q4 2024 Earnings Presentation
28 slides from Sigma Foods, S.a.b. De C.v's earnings presentation, February 2025
Slide 1: 4Q24 Earnings Presentation
4Q24 Earnings Presentation February 2025
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 Standard
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 shar
Slide 5: 4Q24 Highlights - ALFA
4Q24 Highlights - ALFA Alfa|SIGMA - Finalizing ALFA’s transformation into single, wholly-owned food business unit, in which ALFA is Sigma - Focus on distributing Controladora Alpek shares to ALFA Shareholders. Process moving forward actively - Consolidated Net Leverage ratio of 2.5x, supported by su
Slide 6: ALFA simplified conglomerate structure down to a single, wholly-owned 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 $392 million) Corporate expense reduction Received consents f
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, 2024 Oct 24, 2024 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 (Followin
Slide 10: 2024 Consolidated Revenue growth driven by Sigma's operations in the Americas
2024 Consolidated Revenue growth driven by Sigma’s operations in the Americas ALFA & Subs* Revenues* Revenues* 2024 vs 2023 (US $ Million) (US $ Million) 3% 8,930 299 8,930 8,635 -4 8,635 2023 2024 2023 Sigma Others 2024 *Alpek reported as discontinued operations 10
Slide 11: Quarterly Consolidated Revenues with Alpek as Discontinued Operations
Quarterly Consolidated Revenues with Alpek as Discontinued Operations ALFA & Subs* Revenues Revenues 4Q24 vs 4Q23 Revenues 4Q24 vs 3Q24 (US $ Million) (US $ Million) (US $ Million) 2,277 2,253 2,195 2,204 2,197 2,253 0 2,195 5 2,197 2,197 -3 -56 4Q23 1Q24 2Q24 3Q24 4Q24 4Q23 Sigma Others 4Q24 3Q24 S
Slide 12: 2024 Consolidated Reported EBITDA and Comparable EBITDA
2024 Consolidated Reported EBITDA and Comparable EBITDA ALFA & Subs* Reported EBITDA Extraordinary Items Comparable EBITDA (US $ Million) (US $ Million) (US $ Million) 2024 vs 2023: 14% 2024 vs 2023 : 15% 153 976 133 1,021 -33 -1 856 889 2023 2024 SIGMA (12) 8 OTHERS (20) (53) TOTAL (32) (45) 2023 S
Slide 13: Quarterly Consolidated Reported EBITDA and Comparable EBITDA
Quarterly Consolidated Reported EBITDA and Comparable EBITDA ALFA & Subs* Reported EBITDA Extraordinary Items Comparable EBITDA (US $ Million) (US $ Million) (US $ Million) 2024 vs 2023: -20% 4Q24 vs 4Q23 : -8% 221 228 211 -7 4Q23 4Q24 -15 -3 177 SIGMA - 8 -38 OTHERS (7) (43) TOTAL (7) (34) 4Q23 Sig
Slide 14: Quarterly Consolidated Reported EBITDA and Comparable EBITDA
Quarterly Consolidated Reported EBITDA and Comparable EBITDA ALFA & Subs* EBITDA Comparable EBITDA (US $ Million) 4Q24 vs 4Q23: -20% (US $ Million) 4Q24 vs 4Q23: -8% 4Q24 vs 3Q24: -36% 4Q24 vs 3Q24: -24% EBITDA Margin EBITDA Margin 270 275 274 279 254 257 221 228 211 11.9% 12.2% 177 12.0% 12.4% 11.5
Slide 15: Quarterly Consolidated Net Debt, Leverage, and Cash
Quarterly Consolidated Net Debt, Leverage, and Cash ALFA & Subs* ALFA Net Debt Net Leverage Ratio Cash (US $ Million) (Net Debt/EBITDA) (US $ Million) 5,094 1,529 4,919 4,977 3.5 3.5 1,188 1,203 3.3 2.9 2,988 2.5 2,471 761 624 4Q23 1Q24 2Q24 3Q24 4Q24 4Q23 1Q24 2Q24 3Q24 4Q24 4Q23 1Q24 2Q24 3Q24 4Q2
Slide 16: Consolidated Net Debt decreased US $2.448 billion in 2024
Consolidated Net Debt decreased US $2.448 billion in 2024 ALFA: Change in Net Debt 4Q23 vs 4Q24 (US $ Million) 4,919 75 -1,814 306 Disc Op. Disc Op. Cash Flow -392 305 -59 2,471 Net Debt Capital 249 -224 (Alpek) Contribution 82 Taxes Dividends Net Others -976 Net CAPEX Financial EBITDA Working Expen
Slide 17: Key highlights by region - Sigma
Key highlights by region - Sigma Mexico Europe Fourth consecutive year of Volume, Revenue 2024 EBITDA of US $95 million more than and EBITDA growth doubled versus 2023 Record annual Volume, Revenue and EBITDA, Sustained recovery with six consecutive driven by a solid performance across all q
Slide 18: Fourth consecutive year of Revenue growth, driven by Volume expansion
Fourth consecutive year of Revenue growth, driven by the third consecutive year of Volume expansion Revenues Revenues 2024 vs 2023 (US $ Million) (US $ Million) 8,505 8,804 +4% 218 123 30 8,804 8,505 -72 8,505 2023 8,804 2024 2023 Mexico Europe U.S. Latam 2024 18
Slide 19: Slight decrease in Revenues as Volume growth was offset by currency effects
Slight decrease in Revenues as Volume growth was offset by currency conversion effects Revenues Revenues 4Q24 vs 4Q23 Revenues 4Q24 vs 3Q24 (US $ Million) (US $ Million) (US $ Million) 2,246 2,222 2,222 2,161 2,170 2,166 2,161 12 12 2,166 11 2,166 -11 -19 -8 -40 -8 4Q23 1Q24 2Q24 3Q24 4Q24 4Q23 Mexi
Slide 20: Record 2024 EBITDA of US $1.05 billion, surpassing guidance
Record 2024 EBITDA of US $1.05 billion, surpassing the upwardly revised guidance EBITDA EBITDA 2024 vs 2023 (US $ Million) (US $ Million) 1,046 38 9 1,046 +17% 56 50 893 893 2023 2024 2023 Mexico Europe U.S. Latam 2024 20
Slide 21: EBITDA was down 3% year-on-year
EBITDA was down 3% year-on-year. Mexico impacted by currency conversion effect and higher end-of-year expenses EBITDA EBITDA 4Q24 vs 4Q23 EBITDA 4Q24 vs 3Q24 (US $ Million) (US $ Million) (US $ Million) 279 281 281 264 229 229 17 222 6 2 222 13 2 222 -64 -14 -28 4Q23 1Q24 2Q24 3Q24 4Q24 4Q23 Mexico
Slide 22: 11.9% represents the highest EBITDA Margin in 9 years
11.9% represents the highest EBITDA Margin in 9 years. Improvement across all regions EBITDA Margin (%) EBITDA Margin By Region (%) 15.7 15.5 15.9 14.6 11.9 12.4 13.0 10.8 10.9 10.5 13.8 11.6 10.8 10.5 8.8 9.7 10.0 9.2 8.9 8.7 6.5 4.2 5.6 2.1 1.6 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Mex
Slide 23: 1.7x represents the lowest Net Debt/EBITDA Ratio in 16 years
1.7x represents the lowest Net Debt/EBITDA Ratio in 16 yrs Net Debt Net Leverage Ratio1 Cash (US $ Million) (Net Debt/EBITDA) (US $ Million) 2,025 2,084 2,019 1,823 1,821 1,134 2.3 2.2 2.0 1.7 1.7 724 626 601 558 4Q23 1Q24 2Q24 3Q24 4Q24 4Q23 1Q24 2Q24 3Q24 4Q24 4Q23 1Q24 2Q24 3Q24 4Q24 1. Does not
Slide 24: Net Debt decreased driven by strong EBITDA growth; record dividends paid
Net Debt decreased driven by strong EBITDA growth and positive currency conversion effect. Paid record dividends Change in Net Debt 4Q24 vs 4Q23 (US $ Million) 2,025 228 1,821 296 -159 211 245 21 -1,046 4Q23 EBITDA Net Working CAPEX & Net Financial Taxes Dividends Others 4Q24 Capital Acquisitions Ex
Slide 25: 4Q24 Recent developments - Sigma
4Q24 Recent developments - Sigma Brand Portfolio • 2 additional brands with annual sales of US $100+ M in 4Q24 • The total number of $100-million brands increased to 16, up from 11 in 2023 Global Chief Marketing Officer • New Global Chief Marketing Officer role to drive Sigma’s consumer-centric mark
Slide 26: 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 1.4 2024 2024 1.2 3.5 1.0 3.0 0.8 2.5 0.6 2.0 0.4 0.2 1.5 0.0 Feb. Apr. Jun. Aug. Oct. Dic. Feb. Apr. Jun. Aug. Oct. Dic. Source: USA – USDA PM Ham, 23-27# Trmd Sel Ham USA –
Slide 27: Poultry raw materials in U.S.
Poultry raw materials in U.S. Chicken (MSC) Turkey (MST) US $/lb 2021 US $/lb 2021 2022 2022 0.8 1 2023 2023 0.6 0.8 2024 0.6 2024 0.4 0.4 0.2 0.2 0.0 0 Feb. Apr. Jun. Aug. Oct. Dic. Feb. Apr. Jun. Aug. Oct. Dic. Turkey Breast 2021 Turkey Thigh 2021 US $/lb 2022 US $/lb 2022 8 2023 2023 3 2024 2024
Slide 28: Contact
Contact Hernán F. Lozano V.P. of Investor Relations T. +52 (81) 8748-2521 iralfa@alfa.com.mx