Investor Presentaiton
24
CONSISTENCY IN OUR STRATEGY
Operating Income and EBITDA
As a result of the mentioned above, operating income from January
through December 2009 had a sound 48.8% increase, totaling
$1,284.4 million. This was translated into a 3.6 percentage point
expansion in the operating margin which reached a 15.5%.
In addition, the EBITDA operating flow reached $1,404.9 million
pesos, increasing 43.8% during 2009, or a 3.5 percentage points
increase in the margin to represent 17.0% over net sales.
Comprehensive Financing Result
The comprehensive financing cost in 2009 was $115.7 million, in
comparison with $113.5 million registered in 2008. A reduction in net
interest payments was registered due to the lower Company's debt
level, offsetting an exchange loss derived from the appreciation of
the dollar. Therefore, the integral financing cost increased only 1.9%
versus the same period of the prior year.
Net Income Before Discontinued Operations
and Minority Interest
Net consolidated income before discontinued operations totaled
$1,009.0 million, or a 34.2% increase versus the 2008 net consolidated
income. This figure includes revenues of $96.9 million recorded
in "other income" which are basically derived from the net gain
obtained from the contribution of Herdez Corporation shares for the
creation of MegaMex Foods, LLC.
Discontinued Operations
During the year $9.2 million pesos were registered as "Discontinued
Operations", or $7.7 million more than the amount recorded in 2008,
due to the relocation of the tuna fish operations from the Mazatlan to
the Chiapas plant.
Net Income
Net consolidated income reached $998.8 million, which represented
a 33.2% increase, while minority interest increased 50.8% totaling
$253.7 million. Therefore, net income for Grupo Herdez shareholders
was $746.1 million, or a 28.1% increase versus the income registered
in 2008.
Net Cash Flows from Operating Activities
Net consolidated cash flows from operating activities in 2009 totaled
$1,181.5 million, $940.3 million more than in 2008, period when a
lower income before taxes was recorded and higher working capital
requirements were made.
Net capital expenditures in 2009 amounted to $366.8 million pesos,
being the most representative investments the increase in tuna
fishing capacity and cold storage expansion in the Chiapas Plant,
the construction in process of the "Teoloyucan" Distribution Center
and the acquisition of Litoplas S.A. de C.V., company engaged in the
manufacturing of labels.
986.6
1,108.2
Bank Debt
1,284.1
1,182.0
Nominal million pesos of
each yearView entire presentation