Revenues at Sigma-an ALFA business-increased 10% in Q3 2022, year over year, driven by volume growth in all regions.
However, EBITDA (operating income + depreciation and amortization + asset impairments) declined 13% in the same period as strong performance in the Americas was more than offset by a decline in European operations.
Sigma controls several businesses related to the refrigerated and matured food industry.
In particular, performance in Europe continued to be negatively affected by higher energy prices and the depreciation of the euro, as well as other unexpected inflationary pressures.
Mexico, the United States and Latin America have achieved positive year-over-year cumulative EBITDA growth in local currencies.
Going forward, Sigma’s ability to generate stronger cash flow is key to ALFA’s Value Release process, beyond the Axtel spin-off.
Sigma
On the other hand, Sigma’s Growth Business Unit is committed to developing new revenue streams through high-potential opportunities with global categories and new business models.
Better Balance, the recently launched global vegetable protein-based brand, recently reached more than 1,000 points of sale in Spain, Mexico and the United States.
In addition, during the third quarter of 2022, 12 startups were selected for pilot testing in different regions following the third edition of Tastech by Sigma, a business accelerator that seeks to transform the food industry.
Sigma is a leading multinational company in the food industry that produces, markets and distributes quality branded foods, including deli meats, cheese, yogurt and other refrigerated and frozen foods.
Sigma has production operations in Mexico, the United States, Costa Rica, El Salvador, the Dominican Republic, Peru, Ecuador, Honduras, Nicaragua, Guatemala, Spain, France, Italy, the Netherlands, Romania, Germany, Belgium, and Portugal.
It markets its products in more than 650,000 points of sale through various channels such as the modern channel comprising supermarkets, hypermarkets and convenience stores, and the traditional channel comprising small grocery stores, traditional butcher shops, delicatessens and wholesalers.
As of December 31, 2021, ALFA was comprised of four business groups: Alpek (petrochemicals), Sigma (food), Axtel (information technology and communications) and Newpek (oil and natural gas).
On December 14, 2020, the full spin-off of ALFA’s interest in Nemak (aluminum auto parts) was completed and it ceased to be part of ALFA’s businesses at the end of that year.
Then, on July 12, 2022, ALFA’s shareholders approved the spin-off of ALFA’s equity interest in Axtel into a new listed entity called «Controladora Axtel».
