...June 10, 2024 Global plant-based food producer Upfield (Sigma Holdco B.V.)'s 2023 results were largely in line with our base-case projections. For fiscal year 2023 (ending Dec. 31), revenues declined by 3.0% but increased by 1.2% organically, excluding currency-exchange effects and scope changes. Organic sales increased in the Americas; and in Asia, the Middle East, and Africa; but declined in Europe, the company's largest region. Volumes declined in 2023 but were more than fully offset by price increases. This trend started to reverse in the first quarter of 2024 thanks to Upfield¦s efforts to support volumes with lower pricing and higher promotional activity. Meanwhile, profitability improved with S&P Global Ratings-adjusted EBITDA reaching 778 million in 2023 (a 510 basis point- adjusted EBITDA margin uplift) thanks to higher pricing and cost savings, which largely offset moderating cost inflation. Free operating cash flow (FOCF) was positive at 143 million, which supports the group's...
