In 2014, Sigma transformed itself in terms of size and geographic coverage with the completion of the acquisitions in Spain and Ecuador. By doing so, it entered in seven European countries and expanded its operations in South America.
The company’s results were positive despite operating in a difficult environment characterized by higher costs of raw materials, depreciation of the peso and sluggish growth in food consumption.
FUD®, the company’s flagship brand, celebrated its 60th anniversary in Mexico. With that in mind, Sigma launched a dedicated campaign, which also helped strengthen its whole branding strategy.
In order to continue to meet consumers' needs, Sigma launched various innovative campaigns to improve the consumption experience of its products. Among these were the new individual packaging for processed meats and cheeses, and the ongoing transformation of the yogurt category, with new presentations of Greek, Disfruta and Placer products. Also, it developed a new technology to produce artisan cheeses which facilitates their marketing and distribution.
Sigma's Foodservice business completed the integration of the operations of ComNor, and a wider range of refrigerated, frozen and dry products is now being supplied to institutional clients, thus providing them a better service.
In June 2014, Sigma completed the acquisition of Campofrio. It now owns 62% of its capital stock. Campofrio has a solid position in the European processed meats market. After assuming control, Sigma and its partner WH Group began the process of identifying and taking advantage of opportunities and synergies. Toward the end of the year, Sigma acquired Fábrica Juris, an Ecuadorian processed meats company. This is Sigma’s first venture into that country. With these two acquisitions, Sigma now operates in 18 countries, and 57% of its sales are made outside Mexico.
Sigma’s sales volume totaled 1.5 million tons, 21% more than in 2013. Revenues totaled U.S. $5,359 million and EBITDA was U.S. $636 million, increases of 40% and 22%, respectively, when compared to 2013. The consolidation of Campofrio during the second half of the year was the main driver for growth. Even without Campofrio, however, the company was able to grow in a challenging environment of higher raw material costs, a weakened peso and low food consumption.
Looking ahead, Sigma will continue to pursue value creation through synergies of operations at Campofrio and the integration of Juris. Likewise, Sigma will continue to focus on expanding its operations, both organically and in new segments and geographies. In addition, it will continue to develop strategies to maintain consumer preference for its brands, through innovation and satisfaction of their needs