ALFA reports 1Q24 EBITDA of US $425 million
1Q24 HIGHLIGHTS
ALFA |
• Álvaro
• Alejandra Palacios Prieto appointed Independent Member of the Board of
• Paid US
• 1Q24 Comparable EBITDA of US |
Sigma |
• Twelfth consecutive quarter of year-on-year sales growth supported by
• Record quarterly EBITDA of US
• Sustained improvement in Net Debt to EBITDA ratio; 2.2 times driven by |
Alpek |
• Álvaro
• 1Q24 volume up 4% year-on-year and 9% higher quarter-on-quarter,
• Comparable EBITDA of US
• Net Debt up 5% versus 4Q23 driven by investment in |
Message from ALFA's Chairman & CEO
"With enthusiasm, I assumed the additional role as Chairman of the Board during the first quarter. I greatly appreciate our Shareholders' support for entrusting me with this important responsibility. We stand at a special time as ALFA celebrates its 50th Anniversary and focuses on completing its transformation.
Over the past half-century, our Company has built a legacy that transcends both industry and community. It is a privilege to continue working with ALFA's Board and the entire team to fulfill our transformational vision which is based on independent Business Units.
In terms of consolidated results, 1Q24 represents a better-than-expected start to the year, highlighted by double-digit EBITDA growth as our two key businesses benefitted from solid demand.
Alpek reported higher 1Q24 volume driven by its Polyester segment. In addition, Asian reference polyester margins posted a slight sequential improvement even as feedstock prices rose versus 4Q23. Moreover, Alpek is on track with the implementation of its comprehensive plan to capture efficiencies across administrative functions and production facilities. First quarter Comparable EBITDA of US
Sigma reported its 12th consecutive quarter of year-on-year increase in Revenues and achieved an all-time high quarterly EBITDA of US
Preferred brands are a crucial force behind Sigma's results by region. It is exciting to see Sigma further strengthening its portfolio by adding three of its dairy brands to the select group generating annual sales higher than US
Another noteworthy Sigma development was the successful placement of Ps
Sigma's robust financial position is fundamental to complete ALFA's transformation process. Moreover, Alpek is prepared to advance as an independent entity, given that the planned separation would not have any financial or operational impact on our petrochemical business.
Debt reduction is a key element of ALFA's final transformation phase. Consolidated debt at the close of 1Q24 was US
ALFA is advancing on the selective monetization of non-core assets to reach the desired financial conditions, with various formal sale processes currently underway. Additionally, ALFA Shareholders approved a lower dividend payout at the Annual Shareholders' meeting.
On the Corporate Governance front, ALFA Shareholders also approved the appointment of
Looking ahead for 2024, we are committed to continue building upon our 50-year legacy by driving to realize ALFA's full value potential. 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
The changes in ALFA's Consolidated Financial Statements are as follows:
- The Consolidated Statement of Financial Position presents Axtel's assets as "Current assets from discontinued operations" and its liabilities as "Current liabilities from discontinued operations" at the close of 1Q23. Prior periods are not restated.
- The Consolidated Statement of Income presents Axtel's net revenues and expenses as a single line item "Profit (loss) from discontinued operations" as follows:
- 1Q23: accumulated figures for the three months ended
March 31, 2023 - 4Q23: no figures presented related to Axtel
- 1Q24: no figures presented related to Axtel
- 1Q23: accumulated figures for the three months ended
- The Change in Net Debt presents Axtel's net inflows and outflows as a single line item "Decrease (Increase) in Net Debt from discontinued operations" as follows:
- 1Q23: accumulated figures for the three months ended
March 31, 2023 - 4Q23: no figures presented related to Axtel
- 1Q24: no figures presented related to Axtel
- 1Q23: accumulated figures for the three months ended
SELECTED FINANCIAL INFORMATION (US $ MILLION) |
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(%) 1Q24 vs. |
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|
1Q24 |
4Q23 |
1Q23 |
4Q23 |
1Q23 |
ALFA & Subs |
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ALFA Revenues |
4,106 |
3,885 |
4,085 |
6 |
1 |
Alpek |
1,903 |
1,691 |
2,062 |
13 |
(8) |
Sigma |
2,170 |
2,161 |
1,991 |
- |
9 |
ALFA EBITDA1 |
425 |
282 |
376 |
51 |
13 |
Alpek |
168 |
53 |
187 |
217 |
(10) |
Sigma |
264 |
229 |
192 |
15 |
38 |
ALFA Comparable EBITDA2 |
411 |
395 |
396 |
4 |
4 |
Alpek |
154 |
167 |
207 |
(8) |
(26) |
Sigma |
264 |
229 |
192 |
15 |
38 |
Majority Net Income3 |
60 |
(652) |
(14) |
109 |
520 |
CAPEX & Acquisitions4 |
75 |
192 |
86 |
61 |
13 |
ALFA Net Debt |
5,094 |
4,919 |
5,049 |
4 |
1 |
Alpek |
1,807 |
1,729 |
2,082 |
5 |
(13) |
Sigma |
2,084 |
2,025 |
1,840 |
3 |
13 |
ALFA Net Debt/EBITDA5 |
3.5 |
3.5 |
2.7 |
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ALFA Interest Coverage6 |
3.6 |
3.5 |
5.3 |
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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 1Q23 |
4 Includes divestments |
5 |
6 |
1Q24 EARNINGS CALL INFORMATION
Date: |
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Time: |
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Registration: |
https://us02web.zoom.us/webinar/register/WN_htlSXobxQSmHHBgeFqxxYA |
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Replay: |
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
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
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