Sigma Alimentos’ profits fall in 2016 due to currency adjusment
Mexico-based meats and dairy business Sigma Alimentos saw a decline on its sales and profitability in 2016 due to weakening of the Mexican peso against the US dollar.
Sigma, subsidiary Mexican conglomerate Alfa, posted revenues for US$ 776.8 million, a fall of a 3% compared to previous year. The consolidated EBITDA from Sigma was US$ 32.45 million, down 24% year-on-year.
Excluding the impact of exchange rates, the division’s revenue grew 5%. Sales in Mexico grew 10% as Sigma upped prices to try to absorb the impact of higher raw-material costs. European sales “continued to improve”, Sigma said.
Sigma’s fourth-quarter EBITDA was down 42%. Excluding the non-recurring gains of US$ 88 million from property damage and US$ 38 million from “business interruption insurance proceeds” related to a plant fire, EBITDA was 3% lower due in the main to the depreciation of the peso.
On a currency-neutral basis, EBITDA would have been up 12%, Sigma said.