Alfa|SIGMA Achieves Remarkable 2024 Financial Milestone

Alfa|SIGMA Reports Stellar Comparable EBITDA Performance

ALFA, S.A.B. de C.V. (BMV: ALFAA), also known as Alfa|SIGMA, has showcased outstanding performance by reporting a comparable EBITDA of US $1 billion for the year. This impressive achievement comes alongside strategic advancements in the company’s operational framework, including the ongoing spin-off of Alpek as a discontinued operation.

Transformative Changes in Corporate Structure

The recent changes within ALFA have aimed to streamline operations and enhance focus on its primary business unit, Sigma. The initiative to transform ALFA into a unified food business unit highlights the company's commitment to branding and strategic market positioning.

Emphasis on Complete Spin-off

One of the major goals outlined by Alfa|SIGMA is the swift distribution of Controladora Alpek shares to its shareholders. This move is pivotal in allowing the company to concentrate on its core food business while providing added value to its investors.

Stellar Financial Performance

During 2024, Alfa|SIGMA achieved a consolidated net leverage ratio of 2.5 times, meeting internal targets and supported by strong cash flow. Additionally, the EBITDA for 2024 was impacted by extraordinary items, which saw a deduction of US $54 million unrelated to the ongoing operations of Sigma.

Growth and Expansion of Sigma

Sigma has set a record for itself with continuous annual sales growth over the past four years. It reported substantial sales of US $2.2 billion in 2024, bolstered by six brands surpassing annual sales of US $100 million each. This indicates a robust expansion in the brand's portfolio.

Return to Shareholders

In 2024, the company paid out a significant dividend totaling US $228 million, signaling a commitment to returning value to its shareholders. This achievement reflects the successful strategies implemented by ALFA during its transformation phase.

Alpa|SIGMA's Consolidated Financials in 2024

To grasp the influence of the restructuring, it is essential to look at the consolidated financials. Alfa|SIGMA reported total revenues reaching over US $8.9 billion, showcasing an increase compared to previous years. Thus, the company remains a significant player in the food industry, with continuing dedication to profitability.

Strategic Focus on Debt Management

Alfa|SIGMA ended the financial year with a net debt of US $2.5 billion, a notable decrease from earlier financial periods. This reduction is a testament to Alfa|SIGMA's effective debt management strategy, ensuring financial stability and the maintenance of an investment-grade balance sheet.

Market Recognition and Future Outlook

As Alfa|SIGMA narrows the valuation gap to its global peers, the recognition of its robust fundamentals in the branded food sector continues to grow. The company's restructuring strategy is positioned to unlock significant value potential, promising a bright future for its operational divisions.

Frequently Asked Questions

What financial milestone did Alfa|SIGMA achieve in 2024?

Alfa|SIGMA reported a comparable EBITDA of US $1 billion, demonstrating impressive financial performance.

What is the focus of ALFA's transformation?

ALFA is concentrating its efforts on transforming into a unified food business unit centered on Sigma.

How did Sigma perform in terms of sales growth?

In 2024, Sigma reported continuous sales growth, with notable contributions from several key brands.

What was the dividend payout by Alfa|SIGMA in 2024?

The company paid record dividends totaling US $228 million during the year, reflecting strong operational performance.

What is Alfa|SIGMA's strategy regarding debt management?

Alfa|SIGMA has successfully reduced its net debt to US $2.5 billion by implementing effective debt management strategies.

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