#Mexico #EBITDA #San Pedro Garza García #ALFA #BMV

Significant 1Q25 Earnings for ALFA, S.A.B. de C.V.

ALFA, S.A.B. de C.V., a prominent player in the global food industry, reported its unaudited results for the first quarter of 2025 (1Q25) revealing a remarkable EBITDA of US $220 million. This lays a solid foundation for the company's anticipated full-year guidance of US $1 billion, showcasing its strategic growth and market resilience.

Key Highlights of 1Q25 Earnings

Corporate Transformation Completed

In a major milestone, Alfa|SIGMA finalized its transformation ahead of schedule, cementing its new corporate identity. The firm successfully integrated Controladora Alpek shares into the structure, enhancing its operational focus and aligning with the ever-evolving market landscape. Standard & Poor's (SP) upgraded the company's credit rating to 'BBB' following improvements in leverage and business simplification due to the Alpek spin-off.

Financial Overview

The financial highlights for 1Q25 include:

• - First Quarter Revenue: Achieved a total of US $2,091 million.
• - Volume Metrics: Recorded a total volume of 446 kTons, with specific regions reflecting distinct performance trends; Mexico demonstrated slight growth while Europe faced a minor decline due to operational disruptions.
• - Segment Breakdown: EBITDA illustrated resilience with solid figures across various regions, particularly in the U.S. and Latin America, highlighting the company's strategic market positioning.

Regional Performance Insights

1. Mexico:
- Volume: Reached 245 kTons.
- Revenue: Totaled US $1,008 million, indicating robust local demand despite challenges.

2. Europe:
- Volume dropped 3%, impacted by flooding at the Torrente plant, yet operational adjustments helped mitigate this.
- EBITDA: Reflects a significant drop of 42%, but pro-forma figures remained stable.

3. United States:
- Achieved significant increases in both volume and revenue, underscoring the company’s strong market share in the region.

4. Latam:
- Set a record with the highest volume and revenue, reinforcing ALFA's expanding presence in this emerging market.

Shareholder Engagement and Future Directions

The company’s annual shareholders meeting revealed an approved cash dividend of US $83 million along with strategic board reconfigurations aimed at aligning with consumer-centric operations post-transformation. The constructive feedback from financial market participants regarding valuation is promising, suggesting that ALFA’s recognition in the consumer sector will continue to burgeon.

Rebranding and Future Outlook

As part of its transformation, ALFA is preparing to rebrand itself, considering a name change that aligns more closely with its new identity. This initiative aims to resonate with its mission of providing quality food products for enhanced consumer experiences. They expect to finalize this rebranding strategy by the end of the fiscal year.

Final Thoughts by ALFA's CEO

Álvaro Fernández, the Chairman and CEO of ALFA, emphasized that the initial phase of the year has been pivotal for their operations, marking a shift towards a global branded food entity. The encouraging performance indicators and improved credit ratings reflect a comprehensive understanding of market dynamics and a proactive approach in navigating through economic challenges. As Sigma solidifies its position within the formidable food industry landscape, the company is well-positioned for sustained growth and enhanced enterprise value.

With clear deliverables on the horizon, ALFA, S.A.B. de C.V. continues to set the stage for a transformative year ahead, backed by robust financial health and strategic focus.