Alfa SAB de CV Class A ( (ALFFF) ) has released its Q4 earnings. Here is a breakdown of the information Alfa SAB de CV Class A presented to its investors.
Alfa, S.A.B. de C.V. (BMV: ALFAA), a prominent player in various sectors with a global operational footprint, is undergoing significant transformation, focusing on its wholly-owned food business, Sigma. The company recently released its unaudited results for the fourth quarter of 2024, reflecting these strategic changes.
In the fourth quarter of 2024, Alfa reported revenues of US $2.197 billion, remaining stable year-on-year. The company’s net leverage ratio improved to 2.5 times, supported by a successful capital increase and robust cash flow generation. Sigma, Alfa’s main focus post-spin-off, recorded a record high annual volume and EBITDA, surpassing US $1 billion. Meanwhile, Alpek, treated as discontinued operations, reported a comparable EBITDA of US $699 million for 2024.
Sigma’s performance was marked by a fourth consecutive year of sales growth and a record EBITDA margin. The company achieved significant milestones with 16 of its brands surpassing US $100 million in sales. Additionally, Sigma paid record dividends totaling US $228 million in 2024, indicating strong operating cash flow. Alpek also surpassed its earnings guidance, achieving substantial cost savings and a reduced net leverage ratio.
Looking ahead, Alfa remains focused on completing its transformation by distributing Controladora Alpek shares to shareholders. The company is also enhancing its marketing strategy and pursuing new growth opportunities within Sigma. Alfa’s management is optimistic about future prospects, as evidenced by the recent credit rating upgrade and ongoing improvements in financial metrics.