Grupo Herdez (HERDEZ) investor relations material

Executive summary

• Second quarter 2026 results were impacted by weak consumption in Mexico and the front-loading of sales ahead of an ERP transition, which was completed successfully and is expected to improve operational efficiency in the future.

• The company remains confident in normalizing business performance in the second half and reaffirmed its full-year 2026 targets.

Financial highlights

• Net sales for 2Q26 were $3.7 billion, down 23.0% year-over-year, mainly due to front-loading and a challenging macroeconomic environment; first half net sales declined 3.6% to $8.9 billion.

• Gross profit for 2Q26 was $1.3 billion, down 12.1% year-over-year, but gross margin expanded 4.3 percentage points to 35.0% due to a better sales mix and lower discounts.

• Operating income for 2Q26 was -$103 million, with a margin of -2.8%, a contraction of 10.6 percentage points year-over-year; first half operating margin was 5.8%.

• EBITDA for 2Q26 was $81 million (2.2% margin), down 85.3% year-over-year; first half EBITDA was $891 million (10.0% margin), down 26.1%.

• Consolidated net income for 2Q26 was $79 million, down 85.9% year-over-year, mainly due to discontinued operations from the McCormick de México divestment; majority net income was $53 million (1.4% margin).

• Extraordinary gain of $18.9 billion from discontinued operations drove first half net income to $19.4 billion.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: consolidated net sales growth of 7–9% and EBITDA between $2.5 billion and $2.7 billion.

• Product innovation and value differentiation strategies are being executed to counter adverse market conditions.