Sigma, a subsidiary of the Mexican conglomerate Alfa, created the Growth Business Unit, made up of a global team of more than 80 employees with entrepreneurial skills and agile methodologies to execute the part of its long-term strategy that considers new sources of income.
This team will promote the company’s participation in the entrepreneurial ecosystem, e-commerce, underdeveloped categories, as well as innovation in global categories of Snacking and Plant-Based.
So far, some of the main achievements were:
- 11% growth in Snacking income year over year.
- The launch of Better Balance, the global brand of plant-based protein foods in Europe, the United States and Mexico.
- The expansion of Grill House, the premium service mobile application with grill items, which at the end of 2021 was operating in five cities in Mexico.
- The second generation of Tastech by Sigma, with 11 startups running pilot tests in all the company’s regions.
Elsewhere, Sigma is on track to hit its double-digit EBITDA margin target in Europe by 2025, with an improvement of 93 basis points during 2021.
In addition to progress in improving profitability, product innovation and cost saving initiatives, the company made progress in optimizing its geographic coverage.
For now, Sigma has announced the sale of eight facilities of the 25 that it operated throughout Europe; six plants are in the process of being sold in Belgium and the Netherlands, in addition to two plants sold in France.
The company achieved Revenues of 6,817 million dollars and a flow of 741 million dollars, figures 7 and 8% higher compared to 2020, respectively
In Europe, Sigma seeks to increase the EBITDA margin to double digits with a plan that includes focusing on its main markets, optimizing the product portfolio, operating efficiencies and strengthening the supply chain to secure the foundations for further growth in the region.
Major advances include:
- The signing of an agreement for the sale of its operations in Belgium and the Netherlands, subject to approval by the competition authorities and consultation rights of local employees.
- The sale of two plants in France, to gradually concentrate its production in its most competitive sites.
In Mexico, the United States and Latam, initiatives were implemented to address the rise in raw material costs and improve operating processes.