Sigma Alimentos, the Mexico-based food maker, has reported declining sales and earnings for the first nine months of the year, hit by the stronger US dollar and lower sales volume.
The company, which manufactures products from ham and sausages to cheese and yogurt, posted operating income of US$352m, down 21% on the year.
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Revenues stood at $4.26bn, down 4%. Excluding the impact of exchange rates, revenues increased 5%.
Sigma, meanwhile, indicated the strength of the US dollar against the Mexican peso had offset the benefits of “favourable” commodity prices, with most companies in the industry importing raw materials.
The company said its revenues in the US were affected by lower sales volume. The company said there were signs “consumer markets were weakened across its main regions of operations” in the third quarter. However, it said data in the US suggested confidence was improving, pointing to a recent survey from The Conference Board.
Sigma is part of Mexican conglomerate Alfa Group. It accounted for 37% of Alfa’s revenues and 29% of its EBITDA in the third quarter. Sigma operates 66 plants in 17 countries in Mexico, Europe, the United States and Latin America.
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