The earnings call highlighted strong performance and growth in the Export segment and stability in gross margins, despite significant challenges from weather disruptions and issues in the MegaMex segment. The strategic focus on operational efficiency and expansion, particularly in the U.S. market, provides a positive outlook, although domestic market challenges remain.
Company Guidance
During the Grupo Herdez Third Quarter 2024 Earnings Conference Call, the guidance provided highlighted several key metrics and challenges. The Export segment saw a robust 24.1% increase in dollar sales, driven by strong performance in mayonnaise and new product introductions like the 2-pound salsa jug in the U.S. Conversely, the Input segment faced MXN 40 million in lost sales due to weather disruptions, although retail showed a 7% growth. The gross margin stood at 40.5%, with operational efficiency aiding the Export segment's best margin since Q4 2020. However, MegaMex struggled with lower income from affiliates due to avocado price challenges and competition. Looking forward, the company aims for sales growth in the low 20s for Inputs and Export, with EBIT and EBITDA remaining flat. Investment plans include a MXN 603 million free cash flow allocation for growth projects, despite challenges like geopolitical uncertainties and labor reforms impacting operational costs. The company plans to update its 2025 guidance in January.
Strong Export Segment Performance
The Export segment saw a 24.1% increase in dollar sales, driven by strong performance in mayonnaise and the introduction of a 2-pound salsa jug in the U.S. market.
Gross Margin Stability
Gross margin remained healthy at 40.5%, supported by a favorable sales mix and operational efficiency.
Retail Resilience in Input Segment
Despite weather disruptions, the retail business within the Input segment grew close to 7%, aided by flavor innovations.
Strong Free Cash Flow
The company reported strong free cash flow of MXN 603 million, allowing for continued investment in growth and sustainability.
Grupo Herdez SAB de CV (GUZOF) Earnings, Revenues Date & History
The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
GUZOF Earnings-Related Price Changes
Report Date
Price 1 Day Before
Price 1 Day After
Percentage Change
Apr 17, 2025
$2.47
$2.47
0.00%
Feb 20, 2025
$2.66
$2.61
-1.88%
Oct 23, 2024
$2.65
$2.66
+0.38%
Jul 25, 2024
$2.68
$2.68
0.00%
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Grupo Herdez SAB de CV (GUZOF) report earnings?
Grupo Herdez SAB de CV (GUZOF) is schdueled to report earning on Apr 17, 2025, TBA Not Confirmed.
What is Grupo Herdez SAB de CV (GUZOF) earnings time?
Grupo Herdez SAB de CV (GUZOF) earnings time is at Apr 17, 2025, TBA Not Confirmed.
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