#Financial Performance #Mexico #EBITDA Growth #San Pedro Garza García #Sigma Foods

Sigma Foods' Third Quarter Highlights for 2026

Sigma Foods, S.A.B. de C.V., a leading multinational in the food industry, has released its unaudited financial results for the third quarter of 2026. In this quarter, the company reported a remarkable EBITDA of $303 million, reflecting a solid year-on-year growth across its operations. Following a robust performance, the company has revised its full-year Comparable EBITDA guidance upward to approximately $1.14 billion from an earlier estimate of $1.10 billion.

Key Performance Metrics

• - Overall Volume and Revenue Growth: Sigma Foods achieved a record quarterly volume increase of 2% and revenue growth of 3% for Q3 2026 compared to the same period last year. This success is attributed to improvements in various product categories and strong market presence across different regions.
• - Regional Contributions:

- Mexico: The corporation noted a substantial 3% volume increase, 11% rise in revenues, and an 18% increase in EBITDA, marking its strongest quarter to date.
- Europe: Quarterly volume surged by 5%, largely propelled by the growth of the Fresh Meats segment. The EBITDA for this region reached its highest level since 2020, up by 50% year-on-year when evaluated in euros.
- United States: Although revenue decreased by 2% year-on-year due to a decline in volume, operational efficiency efforts helped lift EBITDA by 2% year-on-year, aided by an enhanced EBITDA per ton metric driven by larger operational efficiencies.
- Latin America: The region registered a record third-quarter volume increase of 1%, notably driven by strong demand in countries like Peru and Ecuador.

CEO's Insights

In a statement, CEO Rodrigo Fernández emphasized the ongoing strong performance and record growth metrics across all regions. He highlighted the company’s approach to navigating challenges in the U.S. market and shared insights into their successful integration of the recently acquired Roger Wood Foods, which contributed positively to operational results. The commitment to operational efficiency has yielded over $20 million in savings year-to-date, helping maintain robust financial health.

Investment and Future Outlook

Sigma Foods' capital investment strategy remains focused on enhancing operational performance and boosting growth in targeted categories. Approximately 70% of the capital expenditure of $295 million invested so far this year has been channelled into strategic projects across different regions.
Moreover, the company has demonstrated a commitment to returning value to shareholders, having already distributed $150 million in cash dividends for 2026, reflecting a 26% increase from the prior year. A commendable Net Debt-to-EBITDA ratio of 2.4x at the conclusion of Q3 2026 indicates a strong financial foundation to pursue growth opportunities.

Looking ahead, Sigma Foods anticipates a supportive raw material environment in 2027, particularly in the Americas, coupled with a planned expansion of operations, including the opening of a new facility in Valencia, Spain, essential for the manufacturing footprint. The company is poised to capitalize on the increasing consumer awareness of the importance of protein in diets. With a diversified portfolio and robust innovation capabilities, Sigma Foods aims to seize ongoing opportunities in the food industry, driven by a mission of providing delicious food for a better life.

Conclusion

Sigma Foods continues to demonstrate resilience and strategic growth amid evolving market conditions. Their commitment to leveraging operational efficiencies, expanding product offerings, and ensuring sustainable profitability positions them well for future advancements as they navigate through 2026 and beyond.