Investor Presentaiton
MANAGEMENT'S DISCUSSION AND ANALYSIS
Net Sales
Total sales showed a 14.1% growth totaling $8,265.6 million pesos in
2009, compared to $7,247.2 million obtained in 2008.
Domestic sales grew 14.0% due to volume increases and to better
price negotiations, standing out the following segments: "Sauces
and Dressings" grew 15.3% derived from an increase in mayonnaise
and ketchup sauces, while "Meat and Seafood" grew 15.7% driven
by extraordinary tuna fish sales made during the Lent period.
"Vegetables" and "Pasta" also reported solid performance in values
by increasing 11.8% and 11.1% respectively.
Export sales increased 14.5% from January through December
2009, mainly benefited from the strengthening of the dollar versus
the peso.
Total volume sales reached 48.0 million cases, which represented
a 3.3% increase. In domestic terms, sales increased 4.9% from 41.9
million cases in 2008 to 43.9 million cases in 2009. "Vegetables" grew
8.0% due to the solid performance of the Del Fuerte tomato puree
and the Herdez vegetables, while "Sauces and Dressings" increased
7.5% due to the reasons mentioned previously.
Conversely, export sales decreased 11.0%. This performance can be
attributed to two factors: 1) the integration of MegaMex Foods, LLC.;
association which began operations in October 2009 and therefore
the sales figures in the fourth quarter are not entirely comparable,
and 2) compliance with some export standards which although
caused delays in the shipment of the products to the United States,
did not impact sales to end customers.
Cost of Sales
During 2009, the cost of sales as a percentage of sales decreased
2.6 percentage points from 66.6% to 64.0%, as a consequence of
three main factors:
1. Greater stability in the prices of some raw materials such as
vegetable oils and wheat semolina, as of the second semester
of the year.
2. Greater efficiencies in the supply chain, including operating
savings derived from the Herdez Del Fuerte integration;
3. Greater efficiency in the price policy.
Expenses represented 20.5% of sales, which represented one
percentage point less than the previous year; reflecting the
absorption of fixed operating expenses.
0.4
0.2
Net Debt Consolidated
Equity
times
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