Sigma Foods, S.a.b. De C.v. · BMV:SIGMAF/A
Sigma Foods, S.a.b. De C.v — Q1 2024 Earnings Presentation
54 slides from Sigma Foods, S.a.b. De C.v's earnings presentation, Apr 24, 2024
Slide 1: Earnings Report First Quarter 2024 (1Q24)
EARNINGS REPORT First Quarter 2024 (1Q24) Monterrey, N.L., Mexico, April 23, 2024. ALFA, S.A.B. de C.V. (BMV: ALFAA) (“ALFA”), a company that has developed leading businesses with global operations, announced today its unaudited results for the first quarter of 2024 ("1Q24"). All figures have been p
Slide 2: Important note on changes to ALFA's Consolidated Financial Statements
Earnings Report First Quarter 2024 (1Q24) 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: ALFA reports 1Q24 EBITDA of US $425 million
Earnings Report First Quarter 2024 (1Q24) ALFA reports 1Q24 EBITDA of US $425 million 1Q24 HIGHLIGHTS Álvaro Fernández Garza appointed Chairman of the Board of Directors, in addition to his position as CEO of ALFA Alejandra Palacios Prieto appointed Independent Member of the Board of Directors,
Slide 4: Selected Financial Information
Earnings Report First Quarter 2024 (1Q24) SELECTED FINANCIAL INFORMATION (US $ MILLION) (%) 1Q24 vs. 1Q24 4Q23 1Q23 4Q23 1Q23 ALFA & Subs ALFA Revenues 4,106 3,885 4,085 6 1 Alpek 1,903 1,691 2,062 13 (8) Sigma 2,170 2,161 1,991 - 9 1 ALFA EBITDA 425 282 376 51 13 Alpek 168 53 187 217 (10) Sigma 264
Slide 5: Contents
Earnings Report First Quarter 2024 (1Q24) Contents Message from ALFA’s Chairman & CEO 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 1Q24
Slide 6: Message from ALFA's Chairman & CEO
Earnings Report First Quarter 2024 (1Q24) Message from ALFA’s Chairman & CEO “With enthusiasm, I assumed the additional role as Chairman of the Board during the first quarter. I greatly appreciate our Shareholders’ support for entrusting me with this important responsibility. We stand at a special t
Slide 7: Message from ALFA's Chairman & CEO (continued)
Earnings Report First Quarter 2024 (1Q24) ALFA is advancing on the selective monetization of non-core assets to reach the desired financial conditions, with various formal sale processes currently underway. Additionally, ALFA Shareholders approved a lower dividend payout at the Annual Shareholders’
Slide 8: ALFA Consolidated Financial Results
Earnings Report First Quarter 2024 (1Q24) ALFA (BMV: ALFAA) Consolidated Financial Results INCOME STATEMENT (US $ MILLION) (%) 1Q24 vs. 1Q24 4Q23 1Q23 4Q23 1Q23 Total Revenues 4,106 3,885 4,085 6 1 Gross Profit 882 721 757 22 17 Operating expenses and others (593) (1,130) (548) 48 (8) Operating inco
Slide 9: Operating Income, Financing Expense and Net Income
Earnings Report First Quarter 2024 (1Q24) Operating Income was US $289 million in 1Q24, up 39% year-on-year driven by growth in Sigma as explained above. Alpek also posted higher Operating Income versus 1Q23, which included an asset impairment of US $52 million associated with the shutdown of PET op
Slide 10: Net Working Capital, Capex, Dividends and Recent Developments
Earnings Report First Quarter 2024 (1Q24) Net Working Capital investment totaled US $276 million during 1Q24 driven primarily by the rise in petrochemical feedstock prices and volume growth at Alpek. Seasonal investments at Sigma also contributed to the higher quarterly figure. Capital Expenditures
Slide 11: Published Annual Reports, NAFINSA Trust, Credit Ratings
Earnings Report First Quarter 2024 (1Q24) ALFA and Alpek each released an Integrated 2023 Annual Report Published Both Annual Reports can be found on the respective Company websites or 2023 Annual the following links: Reports – ALFA Report – Alpek Report Based on figures provided by Nacional F
Slide 12: Results by Business: Sigma – Food Products
Earnings Report First Quarter 2024 (1Q24) Results by Business Sigma – FOOD PRODUCTS 53% of ALFA’s Revenues in 1Q24 1Q24 HIGHLIGHTS All-time high quarterly consolidated EBITDA (US $264 million) Twelfth consecutive quarter of year-on-year Revenue growth supported by record first quarter Volume Sig
Slide 13: Sigma Selected Financial Information
Earnings Report First Quarter 2024 (1Q24) SELECTED FINANCIAL INFORMATION (US $ MILLION) (%) 1Q24 vs. 1Q24 4Q23 1Q23 4Q23 1Q23 Volume (ktons) 449 443 427 1 5 Mexico 243 240 225 1 8 Europe 91 95 95 (4) (4) United States 88 81 81 9 8 Latam 26 27 25 (3) 3 Revenues 2,170 2,161 1,991 - 9 Mexico 1,078 1,03
Slide 14: Message from Sigma's President
Earnings Report First Quarter 2024 (1Q24) Message from Sigma’s President “As we conclude the first quarter of 2024, I am excited to report a strong start to the new year. We achieved an all-time high consolidated quarterly EBITDA, which was driven by outstanding results across all regions as well as
Slide 15: Sigma Income Statement
Earnings Report First Quarter 2024 (1Q24) INCOME STATEMENT (US $ MILLION) (%) 1Q24 vs 1Q24 4Q23 1Q23 4Q23 1Q23 Total Revenues 2,170 2,161 1,991 - 9 Gross Profit 706 643 555 10 27 Operating expenses and others (502) (473) (417) 6 21 Operating income (loss) 203 170 138 19 47 Financial cost, net (74) (
Slide 16: Sigma Change in Net Debt
Earnings Report First Quarter 2024 (1Q24) CHANGE IN NET DEBT (US $ MILLION) (%) 1Q24 vs 1Q24 4Q23 1Q23 4Q23 1Q23 EBITDA 264 229 192 15 38 Net Working Capital (95) 66 (57) (244) 66 Capital Expenditures & Acquisitions (38) (74) (34) (48) 13 Net Financial Expenses (44) (37) (28) 18 53 Taxes (54) (94) (
Slide 17: Industry Comments – Sigma
Earnings Report First Quarter 2024 (1Q24) INDUSTRY COMMENTS - SIGMA Consumer Confidence and Retail Sales During 1Q24, average consumer confidence in Mexico (as per INEGI 1) was 47.2 points, up 2.7 points year-on-year. By the end of March 2024, the inflation rate had decreased to 4.4%, a 2.4 percenta
Slide 18: Raw Materials
Earnings Report First Quarter 2024 (1Q24) Raw Materials U.S. pork ham prices during 1Q24 increased 3% year-on-year amid strong demand and elevated exports. Sequentially, prices fell 7% mainly due to seasonality. Moreover, average trimming prices decreased 18% when compared to 1Q23 and were 5% lower
Slide 19: Sigma United States and Latam Results
Earnings Report First Quarter 2024 (1Q24) United States Quarterly Revenues were 15% higher versus 1Q23, mainly driven by Mainstream Brands, the Hispanic Brands segment and the Los Altos Foods acquisition. Revenue management initiatives also contributed to this positive result. Adjusting for the effe
Slide 20: Recent Developments – Sigma
Earnings Report First Quarter 2024 (1Q24) RECENT DEVELOPMENTS – SIGMA S&P Rating Affirmed “BBB-“ global and “mxAA+” national scale issuer credit ratings, following Sigma’s positive result in S&P’s new Management & Governance Credit Ratings assessment. Outlooks remain stable (February 2024) Fitch R
Slide 21: Alpek – Petrochemicals Selected Financial Information
Earnings Report First Quarter 2024 (1Q24) Alpek (BMV: ALPEKA) – PETROCHEMICALS 47% of ALFA's revenues in 1Q24 SELECTED FINANCIAL INFORMATION (US $ MILLION) (%) 1Q24 vs 1Q24 4Q23 1Q23 4Q23 1Q23 Volume (ktons) 1,202 1,100 1,161 9 4 Polyester 990 907 939 9 6 Plastics & Chemicals 212 193 222 10 (5) Reve
Slide 22: Alpek EBITDA, Capex and Net Debt
Earnings Report First Quarter 2024 (1Q24) EBITDA was US $168 million in 1Q24, down 10% year-on-year and 217% higher versus 4Q23. 1Q24 EBITDA includes a net benefit of US $14 million from extraordinary items, comprised of non-cash inventory adjustments and carry-forward effects that were partially of
Slide 23: Recent Developments – Alpek
Earnings Report First Quarter 2024 (1Q24) RECENT DEVELOPMENTS - ALPEK Designated Álvaro Fernández Garza as Chairman of the Board; Armando Annual Garza Sada remains as a member of the Board Shareholders’ Approved maximum amount of Ps $2.0 billion for share buybacks; same amount vs 2023 Meetings
Slide 24: Axtel – IT & Telecom
Earnings Report First Quarter 2024 (1Q24) 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 25: 1Q24 Earnings Call Information
Earnings Report First Quarter 2024 (1Q24) 1Q24 EARNINGS CALL INFORMATION Date: Wednesday, April 24, 2024 Time: 1:00 p.m. EDT (NY) / 11:00 a.m. CST (CDMX) Registration: https://us02web.zoom.us/webinar/register/WN_htlSXobxQSmHHBgeFqxxYA Replay: https://www.alfa.com.mx/en/events/ iralfa@alfa.com.mx 25
Slide 26: About ALFA and Disclaimer
Earnings Report First Quarter 2024 (1Q24) 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 27: Tables: Volume, Revenues, Operating Income and EBITDA
Earnings Report First Quarter 2024 (1Q24) Tables ALFA Table 1 | VOLUME AND PRICE CHANGES (%) 1Q24 vs. 4Q23 1Q23 Total Volume 6.3 4.1 Domestic Volume 4.6 3.5 Foreign Volume 7.4 4.5 Avg. Ps. $ Prices (4.1) (12.3) Avg. US $ Prices (0.6 (3.5) Table 2 | REVENUES (%) 1Q24 vs. 1Q24 4Q23 1Q23 4Q23 1Q23 Tota
Slide 28: Extraordinary Items, Comparable EBITDA, Financing Expense
Earnings Report First Quarter 2024 (1Q24) Table 4 | EXTRAORDINARY ITEMS (US $ MILLION) Company Extraordinary item 1Q24 4Q24 1Q23 Alpek Inventory gain (loss) 12 (15) (1) Carry forward gain (loss) 6 (16) 0 Others (3) (82) (19) Total Alpek 14 (114) (20) ALFA Total effect on EBITDA 14 (114) (20) Table 5
Slide 29: Net Income and Statement of Financial Position
Earnings Report First Quarter 2024 (1Q24) Table 7 | NET INCOME (US $ MILLION) (%) 1Q24 % 1Q24 4Q23 1Q23 4Q23 1Q23 Consolidated Net Income (Loss) 73 (760) 17 110 332 Minority Interest 13 (108) 31 112 (59) Majority Net Income (Loss) 60 (652) (14) 109 520 Per Share (US dollars) 0.01 (0.14) (0.00) (109)
Slide 30: Discontinued Operations – Axtel Tables
Earnings Report First Quarter 2024 (1Q24) Table 9 | STATEMENT OF FINANCIAL POSITION DISCONTINUED OPERATIONS – AXTEL (US $ MILLION) 1Q24 4Q23 1Q23 Current assets 0 0 221 Non-Current assets 0 0 1,013 Total assets 0 0 1,234 Current liabilities 0 0 192 Non-Current liabilities 0 0 657 Total liabilities 0
Slide 31: Sigma Tables
Earnings Report First Quarter 2024 (1Q24) Sigma Table 12 | SIGMA - VOLUME AND PRICE CHANGES (%) 1Q24 vs. 4Q23 1Q23 Total Volume 1.4 5.1 Avg. Ps. $ Prices (4.2) (5.7) Avg. US $ Prices (0.9) 3.7 Table 13 | SIGMA – REVENUES AND EBITDA IN LOCAL CURRENCY (%) 1Q24 vs. 1Q24 4Q23 1Q23 4Q23 1Q23 Revenues Mex
Slide 32: Sigma Financing Expense and Financial Position
Earnings Report First Quarter 2024 (1Q24) Table 15 | SIGMA - COMPREHENSIVE FINANCING INCOME / EXPENSE (US $ MILLION) (%) 1Q24 vs. (%) 1Q24 vs. 1Q24 4Q23 1Q23 4Q23 1Q23 Financial Expenses (51) (46) (34) 11 48 Financial Income 8 8 5 4 55 Net Financial Expenses (42) (37) (29) 12 47 Exchange Rate Gains
Slide 33: ALFA Balance Sheet
Earnings Report First Quarter 2024 (1Q24) Financial Statements ALFA, S.A.B. de C.V. and Subsidiaries BALANCE SHEET Information in millions of Nominal Mexican Pesos (%) Mar 24 vs. ASSETS Mar 24 Dec 23 Mar 23 Dec 23 Mar 23 CURRENT ASSETS: Cash and cash equivalents 25,108 19,745 18,749 27 34 Trade acco
Slide 34: ALFA Income Statement
Earnings Report First Quarter 2024 (1Q24) ALFA, S.A.B. de C.V. and Subsidiaries INCOME STATEMENT Information in millions of Nominal Mexican Pesos 1Q24 vs. (%) 1Q24 4Q23 1Q23 4Q23 1Q24 Net sales 69,776 68,440 76,374 2 (9) Domestic 29,104 28,526 30,231 2 (4) Export 40,672 39,913 46,143 2 (12) Cost of
Slide 35: Sigma Alimentos Balance Sheet
Earnings Report First Quarter 2024 (1Q24) Sigma Alimentos, S.A. de C.V. and Subsidiaries BALANCE SHEET Information in millions of Nominal Mexican Pesos (%) Mar 24 vs. ASSETS Mar 24 Dec 23 Mar 23 Dec 23 Mar 23 CURRENT ASSETS: Cash and cash equivalents 18,908 10,563 11,361 79 66 Restricted cash 22 7 7
Slide 36: Sigma Alimentos Income Statement
Earnings Report First Quarter 2024 (1Q24) Sigma Alimentos, S.A. de C.V. and Subsidiaries INCOME STATEMENT Information in millions of Nominal Mexican Pesos 1Q24 vs. (%) 1Q24 4Q23 1Q23 4Q23 1Q23 Revenue 36,887 37,985 37,217 (3) (1) Cost of sales (24,893) (26,672) (26,852) (7) (7) Gross profit 11,994 1
Slide 37: Appendix – Alpek 1Q24 Results Report
Earnings Report First Quarter 2024 (1Q24) Appendix – Alpek 1Q24 Results Report iralfa@alfa.com.mx 37 www.alfa.com.mx + (52) 81-8748-2521
Slide 38: Alpek First Quarter 2024 Results
FIRST QUARTER 2024 RESULTS April 23, 2024 Webcast Details Investor Relations Contact Wednesday April 24th at Bárbara Amaya 9:30 am MX | 11:30 am ET bamaya@alpek.com Zoom Webcast Registration Alejandra Bustamante abustamante@alpek.com T. +52(81)8748-1146 ir@alpek.com www.alpek.com
Slide 39: Quarterly Highlights and Key Metrics
Monterrey, Mexico – April 23, 2024 – Alpek, S.A.B. de C.V. (BMV: ALPEKA) announces its First Quarter 2024 Results. QUARTERLY HIGHLIGHTS (U.S.$ million, unless otherwise noted) • Volume reached 1.2M tons (+9% QoQ and +4% YoY) driven notably by demand recovery, particularly for the Polyester business
Slide 40: Message from Our CEO
MESSAGE FROM OUR CEO “Results for the first quarter of the year were in line with our Guidance. We have begun to see some demand recovery, which has led to stronger volumes across our product portfolio, specifically in the polyester business. Raw material prices increased, as did the disconnection b
Slide 41: Structural Cost Reduction Progress
Structural Cost Reduction Progress The Company is on track with its structural cost reduction strategy, achieving a strong progress of 80%. Currently, Alpek has realized approximately $60 million cost reduction savings on an annualized basis from footprint optimization, as well as more competitive e
Slide 42: Financial Results: EBITDA
FINANCIAL RESULTS EBITDA (U.S.$ million, unless otherwise noted) 1Q24 4Q23 1Q23 QoQ% YoY% Reported EBITDA 168 53 187 217 (10) Inventory Adj. & Carry Fwd Effects (18) 31 1 (156) (1,819) Others 3 82 19 (96) (82) Comparable EBITDA 154 167 207 (8) (26) Comparable EBITDA was $154 million (-26% YoY and -8
Slide 43: Income Statement
INCOME STATEMENT (U.S.$ million, unless otherwise noted) 1Q24 4Q23 1Q23 QoQ% YoY% Total Revenues 1,903 1,691 2,062 13 (8) Gross Profit 166 68 193 144 (14) Operating expenses and others (72) (646) (117) 89 39 Operating Income (loss) 95 (578) 76 116 25 Financial cost, net (46) (51) (20) 10 (129) Share
Slide 44: Cash Flow, Net Debt & Leverage
CASH FLOW (U.S.$ million, unless otherwise noted) 1Q24 4Q23 1Q23 QoQ% YoY% EBITDA 168 53 187 217 (10) Net Working Capital & Others (160) 163 (66) (198) (142) CAPEX (34) (112) (52) 70 35 Financial Expenses (36) (46) (42) 22 13 Income Tax (32) (57) (57) 44 43 Dividends - (15) (185) 100 100 Payment to
Slide 45: Polyester Results
POLYESTER RESULTS (PTA, PET Resin, PET Sheet, & rPET: 73% of Alpek’s Net Sales) U.S.$ million and comparable to 1Q23, unless otherwise noted 1Q24 4Q23 1Q23 QoQ% YoY% Volume (ktons) 990 907 939 9 6 Production (ktons) 1,212 1,150 1,172 5 3 Revenues 1,395 1,235 1,490 13 (6) Reported EBITDA 109 21 91 42
Slide 46: Plastics & Chemicals Results
PLASTICS & CHEMICALS (P&C) RESULTS (PP, EPS, & Other products: 21% of Alpek’s Net Sales) U.S.$ million and comparable to 1Q23, unless otherwise noted 1Q24 4Q23 1Q23 QoQ% YoY% Volume (ktons) 212 193 222 10 (5) Production (ktons) 210 189 209 11 - Revenues 398 342 433 17 (8) Reported EBITDA 57 31 99 85
Slide 47: About Alpek, Note on Forward Looking Statements
ABOUT ALPEK Alpek is a leading petrochemical company operating two business segments: “Polyester” (Purified Terephthalic Acid (PTA), Polyethylene Terephthalate (PET), & recycled PET (rPET)), and “Plastics & Chemicals” (polypropylene, expandable styrenics, and other specialty and industrial chemicals
Slide 48: Appendix A – Additional Financial Information
APPENDIX A – ADDITIONAL FINANCIAL INFORMATION TABLE 1 | PRICE CHANGES (%) QoQ YoY Polyester Avg. Ps. Prices (1) (19) Avg. U.S. $ Prices 4 (11) Plastics & Chemicals Avg. Ps. Prices 2 (12) Avg. U.S. $ Prices 6 (3) Total Avg. Ps. Prices (1) (19) Avg. U.S. $ Prices 3 (11) TABLE 2 | REVENUES 1Q24 4Q23 1Q
Slide 49: Comparable EBITDA and Financial Cost, Net
TABLE 4 | COMPARABLE EBITDA 1Q24 4Q23 1Q23 QoQ% YoY% Reported EBITDA Ps. Million 2,856 970 3,505 194 (19) U.S. $ Million 168 53 187 217 (10) Adjustments* Ps. Million (243) 1,961 370 (112) (166) U.S. $ Million (14) 114 20 (113) (171) Comparable EBITDA Ps. Million 2,613 2,931 3,875 (11) (33) U.S. $ Mi
Slide 50: Statement of Financial Position & Financial Ratios
TABLE 6 | STATEMENT OF FINANCIAL POSITION & 1Q24 4Q23 1Q23 QoQ% YoY% FINANCIAL RATIOS (U.S.$ million) Assets Cash and cash equivalents 312 438 293 (29) 7 Trade accounts receivable 819 740 855 11 (4) Inventories 1,431 1,381 1,722 4 (17) Other current assets 340 343 335 (1) 2 Total current assets 2,90
Slide 51: Polyester Tables
POLYESTER TABLE 7 | REVENUES 1Q24 4Q23 1Q23 QoQ% YoY% Total Revenues Ps. Million 23,710 21,845 27,858 9 (15) U.S. $ Million 1,395 1,235 1,490 13 (6) Domestic Revenues Ps. Million 4,868 4,720 5,498 3 (11) U.S. $ Million 287 268 294 7 (3) Foreign Revenues Ps. Million 18,842 17,125 22,360 10 (16) U.S.
Slide 52: Plastics & Chemicals Tables
PLASTICS & CHEMICALS TABLE 10 | REVENUES 1Q24 4Q23 1Q23 QoQ% YoY% Total Revenues Ps. Million 6,773 6,022 8,090 12 (16) U.S. $ Million 398 342 433 17 (8) Domestic Revenues Ps. Million 3,551 3,040 4,227 17 (16) U.S. $ Million 209 173 226 21 (8) Foreign Revenues Ps. Million 3,222 2,981 3,863 8 (17) U.S
Slide 53: Appendix B – Financial Statements
APPENDIX B – FINANCIAL STATEMENTS ALPEK, S.A.B. DE C.V. and Subsidiaries CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Millions of Mexican pesos) Mar-24 Dec-23 Mar-23 QoQ% YoY% ASSETS CURRENT ASSETS: Cash and cash equivalents 5,190 7,391 5,286 (30) (2) Restricted cash 8 8 10 (10) (23) Trade accounts
Slide 54: Alpek Consolidated Statement of Income
ALPEK, S.A.B. DE C.V. and Subsidiaries CONSOLIDATED STATEMENT OF INCOME 1Q24 4Q23 1Q23 QoQ% YoY% (millions of Mexican pesos) Revenues 32,349 29,887 38,574 8 (16) Domestic 10,249 9,731 12,057 5 (15) Export 22,100 20,156 26,517 10 (17) Cost of sales (29,521) (28,654) (34,974) (3) 16 Gross profit 2,828