Background on Grupo Alfa and Sigma Alimentos
Grupo Alfa, a Monterrey-based conglomerate, recently presented its third quarter 2025 financial results, focusing solely on Sigma Alimentos. This strategic move aims to enhance value for its shareholders.
Revenue and Earnings Overview
Sigma Alimentos reported total revenues of $2,422 million for Q3 2025, marking an 8% year-over-year increase and a 5% rise from Q2 2025. The growth was primarily driven by higher average prices in Sigma’s products.
Accumulated revenues reached $6,810 million, reflecting a 1% year-over-year increase.
Operating Cash Flow and Net Income
The operating cash flow (EBITDA) stood at $245 million, representing an 11% decrease compared to Q3 2024 and a 20% drop from Q2 2025.
Accumulated EBITDA amounted to $821 million, a 3% increase compared to Q3 2024. This improvement was partly due to non-recurring gains, such as insurance reimbursements for property damages at Sigma’s Torrente plant.
Operating profit reached $179 million in Q3 2025, a 16% decrease from the same period in 2024. Accumulated operating profit was $625 million, a 2% year-over-year increase reflecting higher cash flow.
Analysts’ Perspective
According to Banco Bx+ analysts, Sigma Alimentos reported weak annual figures. The company experienced lower sales volumes due to weakened consumer demand, despite average price increases. However, rising raw material costs significantly impacted Sigma’s operational and net profitability.
Debt and Financial Ratios
Sigma’s net debt stood at $2,709 million by the end of Q3 2025, a $22 million increase from the previous quarter. The rise in net debt is mainly attributed to capital investments and working capital in Sigma.
The net debt to cash flow ratio was 2.7 times, and the interest coverage ratio was 3.7 times at the end of the reported quarter.
Pricing and Costs
Average prices increased by 8% in USD (5% in local currencies) year-over-year and 5% quarter-over-quarter. This was due to Sigma’s selective pricing actions to counter raw material cost pressures across all regions.
Accumulated average prices rose by 2% (6% in local currencies), supported by effective revenue management amid rising protein raw material costs.
Key Questions and Answers
- Q: What were the main financial results for Sigma Alimentos in Q3 2025?
A: Sigma Alimentos reported total revenues of $2,422 million for Q3 2025, with an 8% year-over-year increase. Operating cash flow (EBITDA) was $245 million, an 11% decrease from Q3 2024. Operating profit was $179 million, a 16% decrease from Q3 2024.
- Q: How did Sigma Alimentos perform in terms of debt and financial ratios?
A: Sigma’s net debt increased by $22 million to $2,709 million by the end of Q3 2025. The net debt to cash flow ratio was 2.7 times, and the interest coverage ratio was 3.7 times.
- Q: What factors influenced Sigma Alimentos’ pricing and cost dynamics in Q3 2025?
A: Sigma Alimentos implemented selective pricing actions to counter raw material cost pressures, resulting in 8% and 5% increases in average prices on a year-over-year and quarter-over-quarter basis, respectively. Despite these price increases, rising raw material costs impacted Sigma’s profitability.
