Sigma Foods, S.A.B. de C.V.

Sigma said Q2 revenue increased 6% year over year and first-half revenue increased 10%; comparable EBITDA was 17% higher in both the quarter and the first half. Reported first-half net financial cost was $123 million versus $57 million a year ago, and first-half net income was $164 million versus $209 million last year. Net debt ended the quarter at approximately $2.9 billion, up $78 million sequentially, and leverage was 2.7x. Looking ahead, management reiterated full-year EBITDA guidance of $1.1 billion and said net leverage should trend closer to its 2.5x target by year-end.

Rodrigo Martinez emphasized that Sigma’s diversified model is delivering record results and helping the company navigate a fluid macro environment. He highlighted strategic progress in Europe’s capacity recovery plan, the Roger Wood Foods acquisition in the U.S., and continued investment in brands and manufacturing, while also stressing disciplined capital allocation through dividends and buybacks. His tone was constructive and confident, but grounded in execution and balance-sheet discipline.

Roberto Olivares said results were driven by consistent execution and currency translation, with revenue up 6% and comparable EBITDA up 17% year over year. He noted Mexico, Europe and Latin America all contributed, while the U.S. showed sequential improvement and Roger Wood’s first two months were in line with expectations. Below EBITDA, he said higher net financial cost was mainly due to lower FX gains as the peso appreciated less than last year, and he pointed to net debt of about $2.9 billion and leverage of 2.7x, with an expectation that strong cash generation will bring leverage closer to 2.5x by year-end.

Analysts pressed on the U.S. recovery, raw-material costs, Europe pricing, SG&A, free cash flow, and the rationale for Roger Wood. Management said U.S. volumes should improve in the second half because of a lower comparison base and new retail listings, while raw-material tailwinds in turkey and pork should help offset some freight and packaging headwinds. They also said SG&A was higher due to FX, payroll inflation, freight and marketing, and that free cash flow should improve in the second half as working capital seasonality eases.