MEXICO: H1 profits up at Grupo Herdez
Herdez products on sale in US included cooking sauces launched earlier this year
Grupo Herdez, the Mexico-based company, has booked higher half-year profits thanks to a "strong" organic performance and the acquisition of frozen yoghurt business Nutrisa.
Herdez, which sells products from salsa to tuna, posted a 7.3% increase in net majority income to MXN378m (US$29.5m). Operating income was up 13% at MXN829m. Net sales grew 10.2% to MXN5.74bn.
The company, which successfully completed a tender offer to buy 99.8% of Nutrisa in May, said the new business had boosted operating income and sales at home.
Profit and sales from Herdez's international business, which includes its MegaMex Foods venture with Hormel Foods in the US fell due in part to the impact of foreign exchange.
"Despite the slow market dynamics, we continued to benefit from some momentum in our domestic operations, including new growth coming from Nutrisa, and saw stable underlying performance in the United States," chairman and CEO Héctor Hernández-Pons Torres said.
Herdez's domestic business also includes contracts to distribute Kikkoman, Ocean Spray and Truvia products in Mexico.
M&A levels remained relatively subdued in 2013. Growing private-equity interest and something of a shift in capital flows to mature markets have been significant trends shaping the M&A landscape. Whil...
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