#Mexico #San Pedro Garza García #Alfa|SIGMA #EBITDA 2025 #Consumer Staples

Alfa|SIGMA Reports Second Quarter 2025 Results

Alfa|SIGMA, the prominent food company operating under ALFA, S.A.B. de C.V., has released its unaudited financial results for the second quarter (2Q25) and the first half of 2025, showcasing a remarkable EBITDA of $305 million for the quarter and $576 million year-to-date. The company has undergone notable transformations aligning its strategic focus on becoming a pure-play branded food business, starting operations under the new designation on April 7, 2025.

Key Highlights from 2Q25

In 2Q25, Alfa|SIGMA reached historic revenue levels, growing by 1% in nominal terms year-over-year, while achieving a remarkable 7% growth when adjusted for currency fluctuations compared to 2Q24. Despite challenging market conditions, Alfa|SIGMA's efforts to recover from flood-related damages included a notable EBITDA figure of $312 million which also incorporates reimbursements from affected operations.

• - Revenue Insights:

- Mexico: Notably, this region secured the second-highest revenue figures in the company's history for the quarter, even amidst a noteworthy decline in EBITDA from the foodservice sector.
- United States: The company achieved record quarterly volumes and revenues, credited to its well-established National and Hispanic brands.
- Europe: Results remained steady due to an ongoing recovery plan related to previous flood impacts, although ongoing challenges persisted in Spain.
- Latin America: Affected by rising protein input costs, EBITDA dropped by 18% year-over-year.

Management Perspectives

Message from the Chairman & CEO

Álvaro Fernández, Chairman and CEO, stated that the landmark quarter reflects substantial progress toward Alfa|SIGMA's transformation. With its new classification under the Global Industry Classification Standard (GICS) as a "Consumer Staples" entity, the company has improved visibility among investors and strengthened its commitment to long-term value creation. The steady performance is highlighted by solid operating results, alongside an underlying push for financial prudence amid fluctuating protein supply costs.

"The second quarter was a pivotal time for Alfa|SIGMA, as we transitioned into a fully-fledged branded food enterprise. Collaborative efforts across our teams have paved the way to remarkable operating results that not only meet growth expectations but also build momentum for enhanced shareholder engagement moving forward."

Insight from SIGMA's CEO

Rodrigo Fernández, CEO of SIGMA, reflected on the robust performance across regions, emphasizing successful strategic initiatives to address flood-related challenges and enhance competitive positioning within Europe. The adaptability of their operational structure and dedication to growth during turbulent economic conditions were particularly highlighted, reinforcing the business's fundamental goals.

"As we navigate through dynamic industry landscapes, consumer-centric innovation will remain at the forefront of our strategies, ensuring a reliable path toward achieving our organizational objectives while focusing on operational excellence and enhanced productivity."

Future Prospects and Corporate Developments

Furthermore, preparations for rebranding as SIGMA are ongoing; this includes changing the company name and ticker symbol, which is set to bolster its identity significantly in the consumer goods market. The company’s year-to-date comparable EBITDA stands robustly providing a solid foundation to continue building upon through the year. SIGMA’s commitment to expanding its range of high-quality branded food products resonates through its investment strategies, underscoring its operational resilience.

In conclusion, Alfa|SIGMA’s 2Q25 results are indicative of its strategic realignment and transformation within the food sector, showcasing adaptability and resilience in a challenging market. With thoughtful preparations for rebranding and continual financial commitments, the future looks promising for this perennial leader in the food industry.