Alfa SAB de CV (STU:G4L)
€ 0.58 +0.010 (+1.75%) Market Cap: 3.68 Bil Enterprise Value: 6.39 Bil PE Ratio: 0 PB Ratio: 10.35 GF Score: 53/100
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Q1 2025 Alfa SAB de CV Earnings Call Transcript

Apr 24, 2025 / 05:00 PM GMT
Release Date Price: €0.525 (+3.96%)

Key Points

Positve
  • Alfa SAB de CV (ALFFF) successfully completed its corporate transformation, evolving into a focused food company with leading brands across 17 countries.
  • The company's credit ratings improved, with both Alfa and Sigma now rated 3B, up from 3B minus, reflecting a simplified business model and lower leverage.
  • Alfa SAB de CV (ALFFF) achieved a 5% year-over-year revenue growth in local currencies, driven by resilient volume and solid currency-neutral performance.
  • Mexico operations showed strong performance with a 12% revenue increase in local currency, driven by revenue management and volume growth in packaged meats and cheese categories.
  • The company declared a cash dividend of $83 million and reconfigured its board of directors to align with post-transformation business needs, strengthening governance with deeper consumer sector expertise.
Negative
  • First quarter revenues and EBITDA were down 5% and 17% respectively, compared to record high results in 2024, due to a weaker foreign exchange rate.
  • The European operations were negatively impacted by the temporary closure of the Torrent plant due to flooding, affecting production and margins.
  • Raw material cost pressures, particularly in poultry due to avian flu, have not yet been fully offset by price actions, impacting margins.
  • In the United States, first quarter volume was 3% lower year-over-year due to temporary softness in mainstream brands linked to deferred promotional cycles.
  • Latin America experienced a 16% decline in EBITDA in local currency, primarily due to higher raw material costs, despite record first quarter volume and revenue.


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

ALFAA.MX - Alfa SAB de CV
Q1 2025 Alfa SAB de CV Earnings Call
Apr 24, 2025 / 05:00PM GMT

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Presentation
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Unidentified_1 [1]
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Good afternoon and welcome to Alpha's first quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. There will be a question and answer session at the end of the presentation with instructions given at that time. You may also submit questions at any time during the call using the Q&A button on the webcast, which will be answered during the Q&A session. As a reminder, today's conference is being recorded. Now, I would like to turn the call over to Mr. Hernan Lozano, Vice President of investor relations. Mr. Lozano, you may begin.

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Unidentified_2 [2]
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