Grupo Herdez SAB de CV (OTCPK:GUZOF)

Q2 2025 Grupo Herdez SAB de CV Earnings Call Transcript

Jul 24, 2025 / 04:30 PM GMT

Release Date Price: $2.94 (+8.09%)

Transcript

Key Points

Positve

Grupo Herdez SAB de CV (GUZOF) achieved a 4.4% year-over-year increase in net sales for Q2 2025, reaching 9.7 billion pesos.
The preserve segment was a key growth driver, with a 4.7% increase in the quarter and 7.5% for the first half of the year.
The export segment grew by 12% for the quarter, driven by volume and expansion efforts, including a new distribution partner in Canada.
Consolidated net income increased by 23.6% to 269 million pesos in the quarter, driven by reduced financing costs and increased contributions from Mega Mex.
The company expects a more positive second half of the year, with anticipated growth in preserves and impulse segments.

Negative

Major clients reduced inventory significantly, impacting sales performance and working capital.
The impulse segment faced challenges, with a 0.6% decline in sales due to heavy rainfall affecting Lados Nestle performance.
Consolidated gross margin contracted by 0.8 percentage points due to higher raw material costs.
Free cash flow turned negative this quarter, attributed to lower sales and inventory buildup.
The gross margin at Mega Mex decreased by 70 basis points due to continued pressure from avocado prices.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

HERDEZ.MX - Grupo Herdez SAB de CV
Q2 2025 Grupo Herdez SAB de CV Earnings Call
Jul 24, 2025 / 04:30PM GMT

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Presentation
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Unidentified_1 [1]
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Good afternoon everyone. My name is Leonard, and I will be your conference operator. Welcome to Puerde'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 and uncertainties. Please refer to the forward-looking statements disclaimer in our press release.

I'll now turn the call over to Gerardo Cannavati, Chief Financial and Information Officer.

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