Grupo Herdez, S.A.B. de C.V. (GUZOF) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good afternoon, everyone. My name is Leonor and I will be your conference operator. Welcome to Grupo ERDE's second quarter 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. Please ensure that your full name is displayed correctly on Zoom. If not, please take a moment to edit your display name. Please note that this call is being recorded. Information discussed may include forward-looking statements subject to risks and uncertainties. Please refer to the forward-looking statements disclaimer in our press release. I'll now turn the call over to Gerardo Canavati, Chief Financial and Information Officer. Thank you, Leonor. Good morning, everyone. And thank you for joining us today to discuss Grupo ERDE's second quarter and first half 2025 results. In a tougher consumer environment, coupled with difficult comps, we managed to grow market share in two thirds of our portfolio. Traditionally, the start of a new federal government in Mexico is slow. together with geopolitical uncertainties, keeps investments in the sidelines and the general business and consumption environment weak. Particularly during the second quarter, we saw major clients reduce inventory significantly, and despite being a one-off, sales performance was weaker than expected, having a significant impact on our working capital. We do not put much attention on quarterly results based on external short-term adjustments, difficult comps, and seasonality. Lately, our quarterly results have been volatile. We rather focus on the long-term trend that looks stable. Thank you. I will now turn the call over to Andrea for a detailed review of our financial and operational performance. Andrea. Thank you, Gerardo. In the second quarter of 2025, Grupo Verde's net sales inc...