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Consolidated Net Sales Growth: 1% for the quarter.

Domestic Sales Growth: 4.2% driven by core categories like mayo, tomato puree, and ketchup.

Export Segment Contraction: 25.9% decline, particularly in the US and among Hispanic consumers.

Gross Margin: Expanded by more than 1 percentage point, reaching almost 40%.

Operating Profit Margin: Stable at 15.3%, with the Domestic segment at 16.1%.

EBITDA: Modest growth of close to 1%, reaching MXN1.5 billion.

Majority Net Income Growth: Surged more than 23%, reaching MXN426 million.

Cash Position: Ended the quarter with MXN2.3 billion.

Net Debt-to-EBITDA Ratio: 1.2 times.

CapEx Guidance: Expected to complete near MXN1.502 billion.

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Release Date: October 23, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Grupo Herdez SAB de CV (GUZOF) successfully completed the split of Grupo Nutrisa, allowing the retail division to focus on its core business.

The company reported a mid-single-digit growth rate in the top line, demonstrating resilience despite a challenging consumption environment.

Gross margin expanded by more than 1 percentage point, reaching almost 40%, due to effective cost management and a favorable sales mix.

Majority net income surged more than 23% for the quarter, highlighting operational streamlining and core business efficiency.

The financial position remains strong with a net debt-to-EBITDA ratio of 1.2 times, supported by stable cash flow and strategic transformations.

The consumption environment in Mexico faced persistent pressure, characterized by a flattish consumer environment.

The Export segment experienced a significant contraction of 25.9%, particularly facing challenges in the US and among Hispanic consumers.

The decline in available cash was due to a strategic buildup of inventories and an extraordinary dividend paid in May.

The results of the retail business were deconsolidated, leading to distorted growth rates for the third quarter and year-to-date comparisons.

The company anticipates the need for significant working capital in the coming quarters due to the rollout of a new program.

Q: Can you elaborate on the impact of the Grupo Nutrisa split on your financial performance? A: Gerardo Gerardo, Chief Financial & Information Officer, explained that the split of Grupo Nutrisa was a strategic move to allow the retail division to reach its full potential while enabling Grupo Herdez to focus on its core business. This restructuring, along with the divestment of a portion of their stake in McCormick de Mexico, has positively reconfigured their portfolio for future opportunities.

Q: How did the challenging consumption environment in Mexico affect your sales? A: Andrea Casillas, Director of Finance & Sustainability, noted that despite a flattish consumer environment influenced by structural factors like declining remittances and extraordinary weather conditions, Grupo Herdez showed resilience. They achieved a mid-single-digit growth rate in the top line and increased market share in key categories, with domestic sales growing by 4.2%.

Q: What were the main drivers behind the growth in your domestic segment? A: Andrea Casillas highlighted that the domestic segment's growth was supported by core categories such as mayonnaise, tomato puree, and ketchup. This growth was crucial in offsetting the 25.9% contraction in the export segment, which faced challenges, particularly in the US and among Hispanic consumers.

Q: Can you discuss the impact of structural changes on your profitability? A: Andrea Casillas stated that the structural changes from divestitures positively affected profitability. The gross margin expanded by over 1 percentage point, reaching nearly 40%, due to effective cost management and a favorable sales mix within the domestic segment. Operating profit grew slightly above 1%, with a stable margin of 15.3%.

Q: What is your outlook for the remainder of the year? A: Gerardo Gerardo expressed optimism, expecting a gradual recovery in the consumption environment despite the overall economic softness. They anticipate ending the year on a higher note, aided by easy comparisons. The company is confident in meeting its guidance for net sales, operating income, and EBITDA, with better-than-expected performance from MegaMex.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.