Grupo Herdez, S.A.B. de C.V. Reports Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2017; Provides Consolidated Earnings Guidance for the Year 2018
February 21, 2018
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Grupo Herdez, S.A.B. de C.V. reported consolidated earnings results for the fourth quarter and year ended December 31, 2017. For the quarter, the company's net sales were MXN 5,565 million against MXN 4,879 million a year ago. EBIT was MXN 814 million against MXN 690 million a year ago. Net income was MXN 823 million against MXN 434 million a year ago. EBITDA was MXN 938 million against MXN 799 million a year ago.
For the year, the company's net sales were MXN 20,065 million against MXN 18,180 million a year ago. EBIT was MXN 2,790 million against MXN 2,363 million a year ago. Net income was MXN 2,166 million against MXN 1,593 million a year ago. EBITDA was MXN 3,295 million against MXN 2,816 million a year ago.
In 2018, the company expects consolidated net sales growth to be in the range of 7% to 9% with similar growth across all segments and selective pricing actions to be implemented throughout the year, since they have already catch up within most of the portfolio in the last year. In terms of profitability, the company expects operating and net margins at the consolidated level to be stable when compared to 2017, with the Frozen division having still the opportunity to continue improving. Capital expenditures budget of around MXN 600 million.
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, S.A.B. de C.V. Reports Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2017; Provides Consolidated Earnings Guidance for the Year 2018
GRUPO HERDEZ, S.A.B. DE C.V. 
