SAN
PEDRO GARZA GARCÍA, N.L., Mexico, July 24,
2024 /PRNewswire/ -- ALFA, S.A.B. de C.V. (BMV:
ALFAA) ("ALFA") announced today its unaudited results for the
second quarter of 2024 ("2Q24"). All figures have been prepared in
accordance with International Financial Reporting Standards
("IFRS").
2Q24 HIGHLIGHTS
ALFA
|
• Accumulated
EBITDA of US $870 million, up 18% year-over-year driven mainly by
Sigma. ALFA's 2024 EBITDA Guidance increased 5% to US $1.590
billion to incorporate upward revision from Sigma
• ALFA actively
pursuing debt reduction initiatives to complete transformation;
various non-core asset sale processes advanced further
• Consolidated
Net Leverage ratio of 3.3 times; Alpek 3.3x and Sigma
2.0x
|
Sigma
|
• Thirteenth
consecutive quarter of year-on-year sales growth supported by
record volume of 462 ktons, up 3% versus 2Q23
• Accumulated
EBITDA of US $542 million, up 33% year-on-year driven by strong
growth across all regions
• Upward Guidance
revision: Sigma's 2024 EBITDA expected to reach historic milestone
of US $1.0 billion, 9% higher than original estimate
• Net Leverage
ratio of 2.0 times represents lowest level in nearly 11
years
|
Alpek
|
• Accumulated
Comparable EBITDA of US $312 million is on track to reach full-year
guidance of US $600 million. The global petrochemical industry
continued to face certain headwinds such as low reference
margins
• Completed
structural cost reduction initiatives which are expected to deliver
US $75 million in annualized cost savings
• Net Debt
decreased 5% quarter on quarter driven by solid cash
flow
|
Message from ALFA's Chairman & CEO
"ALFA's consolidated results exceeded our initial estimations as
both business units continued to successfully capitalize on
resilient demand and better-than-expected dynamics in the food
sector. EBITDA grew at double-digit rates year-on-year in 2Q24 and
the first half of 2024 (1H24) driven by Sigma, which is key to
completing ALFA's transformational process.
Alpek's Comparable EBITDA of US $312
million during the first half of 2024 is on track to meet
our petrochemical business' expectations for the full year. In
addition, Alpek completed its structural cost reduction initiatives
which are expected to deliver US $75
million in annualized cost savings to mitigate the impact of
sustained global industry headwinds.
Sigma maintained its growth momentum, reporting the thirteenth
consecutive quarter of year-on-year increase in Revenues. Moreover,
EBITDA reached a new quarterly record-high of US $279 million. Importantly, all regions
contributed to these strong results, including outstanding
performance in Mexico and the
U.S.
Looking ahead, Sigma expects its 2024 EBITDA to reach the
historic milestone of US $1.0
billion, 9% higher than its original guidance of US
$920 million. Accordingly, ALFA's
consolidated, full-year EBITDA guidance was raised to US
$1.590 billion, up from US
$1.510 billion.
During the second quarter, Sigma announced an organizational
update to its European operations. The company appointed
Juan Ignacio Amat as CEO of Sigma
Europe, effective on June 1st.
Juan Ignacio brings over 20 years of
experience in large consumer goods companies across Europe, holding various leadership positions
where he was responsible for the successful implementation of
transformational plans. We welcome Juan
Ignacio and support Sigma's commitment to raise
profitability in its second largest region.
Sigma was also active on the financial front, successfully
tapping the local debt capital markets for a second time this year.
The latest issuance includes the only tranche from a Mexican
corporate that has a twelve-year term, with a bullet amortization
and a fixed rate. The proceeds were used mainly to complete the
full redemption of the remaining principal of Senior Notes due
2026, extending Sigma's average debt maturity to 5.7 years.
Sigma's solid financial position and extraordinary operating
performance provide essential support in the final phase of ALFA's
transformation process. On the other hand, Alpek is fully capable
of operating as an independent business unit. However, the
aggregate debt outside of Alpek, which totaled US $3.251 billion at the close of 2Q24, must be
reduced to ensure an adequate leverage post-separation.
To achieve the desired financial conditions, our near-term
efforts remain focused on obtaining funds to pay down debt. Various
formal sale processes involving non-core assets advanced further
during the second quarter.
We are confident that the strategic initiatives to accelerate
debt reduction, as well as the better-than-expected operating
results from Sigma and Alpek put ALFA on the right path to complete
the transformation process and realize its unique value potential
in the near term. Thank you for your support and trust".
All the best,
Álvaro Fernández
Important note on changes to ALFA's
Consolidated Financial Statements
ALFA's shareholders approved to spin-off ALFA's share ownership
of Axtel into a new, listed entity called "Controladora Axtel" on
July 12, 2022. The shares of
"Controladora Axtel" were distributed to ALFA shareholders and
began trading on the Mexican Stock Exchange on May 29, 2023. In accordance with International
Financial Reporting Standards (IFRS), Axtel meets the definition of
a "Discontinued Operation" for purposes of ALFA's Consolidated
Financial Statements. "Discontinued Operations" are the net results
of an entity that is either being held for disposal or which has
already been disposed of.
The changes in ALFA's Consolidated Financial Statements are as
follows:
- The Consolidated Statement of Financial Position no longer
presents Axtel's assets as "Current assets from discontinued
operations" nor its liabilities as "Current liabilities from
discontinued operations" at the close of 2Q23.
- The Consolidated Statement of Income presents Axtel's net
revenues and expenses as a single line item "Profit (loss) from
discontinued operations" as follows:
- 2Q23: accumulated figures for the one month and 29 days ended
May 29, 2023
- 1Q24: no figures presented related to Axtel
- 2Q24: no figures presented related to Axtel
- 2023: accumulated figures for the four months and 29 days ended
May 29, 2023
- 2024: no figures presented related to Axtel
- The Change in Net Debt no longer presents Axtel's net inflows
and outflows in "Net Debt from discontinued operations"
SELECTED FINANCIAL INFORMATION (US $ MILLION)
|
|
|
|
(%) 2Q24 vs.
|
|
|
|
|
2Q24
|
1Q24
|
2Q23
|
1Q24
|
2Q23
|
2024
|
2023
|
Ch. %
|
ALFA &
Subs
|
|
|
|
ALFA
Revenues
|
4,197
|
4,106
|
4,221
|
2
|
(1)
|
8,303
|
8,306
|
-
|
Alpek
|
1,921
|
1,903
|
2,050
|
1
|
(6)
|
3,825
|
4,112
|
(7)
|
Sigma
|
2,246
|
2,170
|
2,143
|
3
|
5
|
4,416
|
4,134
|
7
|
ALFA
EBITDA1
|
445
|
425
|
360
|
5
|
23
|
870
|
736
|
18
|
Alpek
|
170
|
168
|
148
|
1
|
15
|
338
|
335
|
1
|
Sigma
|
279
|
264
|
217
|
6
|
28
|
542
|
409
|
33
|
ALFA Comparable
EBITDA2
|
433
|
411
|
425
|
5
|
2
|
844
|
821
|
3
|
Alpek
|
158
|
154
|
201
|
3
|
(21)
|
312
|
408
|
(23)
|
Sigma
|
279
|
264
|
229
|
6
|
21
|
542
|
421
|
29
|
Majority Net
Income3
|
52
|
60
|
4
|
(14)
|
-
|
112
|
(10)
|
-
|
CAPEX &
Acquisitions4
|
67
|
75
|
196
|
10
|
66
|
142
|
282
|
50
|
ALFA Net
Debt
|
4,977
|
5,094
|
4,994
|
(2)
|
-
|
4,977
|
4,994
|
-
|
Alpek
|
1,726
|
1,807
|
1,879
|
5
|
8
|
1,726
|
1,879
|
8
|
Sigma
|
2,019
|
2,084
|
2,012
|
3
|
-
|
2,019
|
2,012
|
-
|
ALFA Net
Debt/EBITDA5
|
3.3
|
3.5
|
3.3
|
|
|
|
|
|
ALFA Interest
Coverage6
|
3.6
|
3.6
|
4.1
|
|
|
|
|
|
|
1 EBITDA = Operating
Income + depreciation and amortization + impairment of
assets
|
2 Comparable EBITDA =
Operating Income + depreciation and amortization + impairment of
assets + extraordinary items
|
3 Majority Net Income
includes Majority Net Income from Discontinued Operations (Axtel)
for 2Q23
|
4 Includes
divestments
|
5 Times. LTM= Last 12
months. Ratio calculated with Discontinued Operations for all
periods
|
6 Times. LTM= Last 12
months. Interest Coverage= EBITDA/Net Financial Expenses with
Discontinued Operations for all periods
|
2Q24 EARNINGS CALL INFORMATION
Date:
Thursday, July 25, 2024
Time:
1:30 p.m. EDT (NY) / 11:30 a.m. CST (CDMX)
Registration:
https://us02web.zoom.us/webinar/register/WN_dxVDIKZLSb68HL9KGBdXMQ
Replay:
https://www.alfa.com.mx/en/events/
About ALFA
ALFA is comprised mainly of two businesses with global
operations: Sigma, a leading multinational food company, focuses on
the production, marketing, and distribution of quality foods
through recognized brands in Mexico, Europe, the United
States, and Latin America.
Alpek is one of the world's top producers of Polyester (PTA, PET,
PET sheet and rPET), and the leader in the Mexican market for
Polypropylene (PP) and Expandable Polystyrene (EPS). In 2023, ALFA
reported revenues of Ps $291,207
million (US $16.4 billion),
and EBITDA of Ps $24,783 million (US
$1.4 billion). ALFA's shares are
quoted on the Mexican Stock Exchange and on Latibex, the market for
Latin American shares of the Madrid Stock Exchange. For more
information, please visit www.alfa.com.mx
Disclaimer
This release may contain forward-looking information based on
numerous variables and assumptions that are inherently uncertain.
They involve judgments with respect to, among other things, future
economic, competitive and financial market conditions and future
business decisions, all of which are difficult or impossible to
predict accurately. Accordingly, future results could vary from
those set forth in this release. The report presents unaudited
financial information. Figures are presented in Mexican pesos or
U.S. dollars, as indicated. Where applicable, peso amounts were
translated into U.S. dollars using the average exchange rate of the
months during which the operations were recorded. Financial ratios
are calculated in U.S. dollars. Due to the rounding up of figures,
small differences may occur
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SOURCE ALFA, S.A.B. de C.V.