EarningsQ3 2024 Earnings Report

Grupo Herdez SAB de CV (HERDEZ) Q3 2024 Earnings Report

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Previous Report: Q2 2024

Next Report: Q4 2024

MX:HERDEZ Q3 2024 EPS Results

Actual EPS$0.69

Consensus EPS$0.74

Beat/MissMissed by -$0.05

One Year Ago EPS$0.77

MX:HERDEZ Q3 2024 Revenue Results

Actual Revenue$9.34B

Expected Revenue$9.49B

Beat/MissMissed by -$142.22M

YoY Revenue Growth+3.61%

Earnings Announcement Details

QuarterQ3 2024

Date10/23/2024

TimeTBA

Conference CallWednesday, October 23, 2024

MX:HERDEZ Upcoming Earnings

Grupo Herdez SAB de CV's next earnings date is estimated for February 25, 2027, based on past reporting schedules.

Q3 2024 Earnings Call Audio

MX:HERDEZ Q3 2024 Earnings Call

0:00 / 0:00

Q3 2024 Earnings Slide Deck

No slide deck is available for this earnings event.

Q3 2024 Earnings Call Summary

Q3 2024

Earnings Call Date:Oct 23, 2024|

% Change Since:

Earnings Call Sentiment|Neutral

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.

MX:HERDEZ Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change
Feb 25, 2027	2026 (Q4)	- / -	1.172	―
Oct 21, 2026	2026 (Q3)	1.40 / 1.49	1.103	35.18% (+0.39)
Jul 16, 2026	2026 (Q2)	1.04 / 0.16	0.923	-82.23% (-0.76)
Apr 22, 2026	2026 (Q1)	1.16 / 1.40	1.009	38.85% (+0.39)
Feb 18, 2026	2025 (Q4)	1.12 / 1.17	0.805	45.59% (+0.37)
Oct 22, 2025	2025 (Q3)	1.10 / 1.10	0.691	59.62% (+0.41)
Jul 17, 2025	2025 (Q2)	1.02 / 0.92	0.827	11.61% (+0.10)
Apr 23, 2025	2025 (Q1)	0.96 / 1.01	0.858	17.60% (+0.15)
Feb 20, 2025	2024 (Q4)	0.78 / 0.81	0.85	-5.29% (-0.04)
Oct 23, 2024	2024 (Q3)	0.74 / 0.69	0.774	-10.72% (-0.08)

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