Grupo Herdez Reports Consolidated Earnings Results for the Third Quarter of 2017; Provides Earnings Guidance for the Fourth Quarter and Full Year of 2017; Provides Capital Expenditure Guidance for the 2018
October 27, 2017 at 12:00 pm EDT
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Grupo Herdez reported consolidated earnings results for the third quarter of 2017. For the quarter, consolidated net sales increased 6% to MXN 4,816 million compared to the same quarter last year. Consolidated net sales outperformed in the modern channel despite the disruption mentioned previously. While the traditional channel was the most affected by fleet shortages due to the operational disturbance caused by floodings and the earthquakes. EBIT totaled MXN 618 million. EBITDA totaled MXN 757 million. Consolidated net income and majority net income totaled MXN 379 million and MXN 172 million, respectively. Free cash flow in the quarter was MXN 188 million, affected by MXN 500 cash requirements, as a result of arrears on VAT receivables.
Heading into the end of the year, the company expects a low double-digit growth rate in top line for the fourth quarter. EBITDA margin will be in line with last year's quarter.
The company is keeping guidance for 2017. Top line growth in the high single-digit range and EBITDA growth in the mid-teens.
Regarding CapEx, for 2018, the company foresees a reduction of approximately 30%.
Grupo Herdez SAB de CV is a Mexico-based company engaged in the food processing sector. The Company's activities are divided into two business segments: Food and Frozen. The Food division focuses on the manufacture and distribution of canned and packed food products in Mexico and the United States. Its offer includes burritos, canned vegetables, guacamole, home-style salsa, honey, jam, ketchup, mayonnaise, mole, mustard, organic food, pasta, spices, tea, tomato puree and tuna, among others. It sells products through a number of brand names, such as Aires de Campo, Barilla, Bufalo, Chi-Chi's, Del Fuerte, Don Miguel, Dona Maria, Embasa, Herdez, La Victoria, McCormick, Wholly Guacamole and Yemina. In addition, it has distribution agreements in Mexico for GoGoSqueez, Kikkoman, Ocean Spray, Reynolds and Truvia products. The Frozen division is responsible for the manufacture and distribution of frozen yogurts and ice creams under the Nutrisa and Helados Nestle brand names.
Grupo Herdez Reports Consolidated Earnings Results for the Third Quarter of 2017; Provides Earnings Guidance for the Fourth Quarter and Full Year of 2017; Provides Capital Expenditure Guidance for the 2018
GRUPO HERDEZ, S.A.B. DE C.V. 
