Net sales in the Impulse segment were 4.677 billion pesos, which is 19.4% higher than in the prior year. These results reflect solid sales performance at Helados Nestlé^®, particularly in the traditional channel, and a recovery trend in visits to retail stores.

Export sales were 2.708 billion pesos, 13.5% higher than in 2022, benefiting from the vegetable, chile, and homemade salsa categories. Additionally, the new mayonnaise presentation for price clubs grew due to expansion in new regions. In dollar terms, sales increased 28.7%.

At year-end, Preserves represented 80%, Impulse 13%, and Export 7% of total net sales, a mix very similar to that reported in 2022.

Consolidated gross margin improved by 3.5%, increasing to 38.9%. This is explained due to the combination of lower prices for key raw materials, and appreciation of the peso against the dollar for Preserves and Impulse. Gross margin in the Export segment shrank 2.5% to 9.6%, mainly due to higher prices for some ingredients.

General consolidated expenses increased 1.4% to 25.1%, as a proportion of net sales allocated to different initiatives intended to drive demand during the year.

EBIT before Other Income and Expenses was 4.982 billion pesos, or 34.2% higher than in the previous year. The margin expanded 2.0% to 13.8%. The Company reported other revenues of 40 million pesos during the year.

Consolidated EBIT was 31.1% higher than in the prior year, reaching a record of 5.022 billion pesos. The margin improved by 1.8%, closing at 13.9%.

The all-in result of financing was 728 million pesos, 5.1% lower than in 2022, due to higher interest earned, and lower debt during the fourth quarter of the year.

The interest in associated companies was 772 million pesos, 65.6% above the figure reported in 2022, due to lower avocado prices and logistics expenses, in addition to better results at the Don Miguel^® business.

Consolidated net income and majority net income increased 46.8% and 70.0%, rising to 3.326 billion and 1.320 billion pesos, respectively. Consolidated and majority net margins were 9.2% and 3.6%, increases of 2.0% and 1.2%, respectively, compared to the prior year.

EBITDA for the year rose to 6.214 billion pesos, 25.7% higher than in 2022, representing 17.2% of net sales, 1.5% above the prior year.

CAPEX was 550 million pesos and was earmarked mainly for the digital transformation project, maintenance projects, increased capacity in salsas for export, short pasta, and tomato sauce.

As of December 31, 2023, the Company’s cash position was 1.986 billion pesos, 420 million pesos lower than in 2022. This is mainly due to paying down one billion pesos in debt in the last quarter of the year. Consolidated debt thus decreased to 9.5 billion pesos.

Free cash flow increased to 3.185 billion pesos, 877 million pesos higher than the prior year. This was mainly due to favorable changes in working capital allocated to i) the payment of one billion pesos in debt; ii) the payment of 400 million pesos in dividends; and iii) the repurchase of shares for 223 million pesos.

At year end, debt was fully denominated in Mexican pesos, of which 63% was at a fixed rate. Furthermore, 42% of the consolidated debt is linked to sustainability. In 2023, water consumption per ton produced was 2.15 m3/ton, in line with the objective of 2.16 m³/ton established in the framework of the sustainability-linked bonds HERDEZ 22-2L and HERDEZ 22L.

Consolidated net debt to EBITDA was 1.4 times, while net debt to consolidated shareholders’ equity was 0.5 times.

The annual return to shareholders considering dividends and share repurchase was 4.1%.