Grupo Herdez, S.A.B. de C.V. (GUZOF) Q4 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, everyone, and welcome to Grupo ERDES' fourth quarter and full year 2024 earnings conference call. 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. If you require operator assistance, press star then zero. I'll now turn the call over to Gerardo Canavati, Chief Financial and Information Officer. Thank you, Drew. Good morning. The fourth quarter was challenged by high comps, economic uncertainties, and a soft consumption environment. Despite all that, we demonstrated resilience through tactical initiatives, cost management, efficient working capital, in our robust export activity. We managed to achieve growth and gain market share in key categories, maintaining our strong market position and delivering an unprecedented free cash flow. With that, I'll now turn the call over to Andrea to discuss the highlights of the quarter and year. Andrea? Thank you, Fernando. In the fourth quarter of 2024, net sales reached 9.9 billion pesos, up 0.9%. Growth was driven by the export segment. Preserves faced a high comparison base and the impact of avian flu on salted egg yolk shortages that forced us to limit orders in December. Impulse grew 2.8% due to ongoing increases in retail, and exports achieved a strong 19.8% growth. For the full year, net sales were a record of 37.4 billion pesos, up 3.3% versus last year. Growth margin was 40%, up 1.1 percentage point, due to higher volumes and lower soybean oil costs. Operating income grew 5.1% to 5.3 billion pesos, reaching 14.1% of operating margins. Net income was in line with the previous year at 3.3 billion pesos. The recovery in the retail business has been driven la...