Sigma Foods: Protein cost tailwinds support margins and FCF generation

Research evidence excerpt

Sigma Foods: Protein cost tailwinds support margins and FCF generation

J P M O R G A N Latin America Credit Research

27 July 2026

Neutral

Sigma Foods SIGMA

Protein cost tailwinds support margins and FCF Moody's:S&P: Baa3BBB Outlook:Outlook: StableStable

generation Fitch: BBB Outlook: Stable

The above agency ratings are at the corporate level

EM Latin America Corporate

Sigma reported a decent quarter, in our view, marked by comparable Research

EBITDA growth, positive FCF, and a slight deterioration in net leverage. AC Florencia Palacios

EBITDA benefited from FX and raw-material cost tailwinds, driving margin

(1-212) 622-1129

expansion, while FCF turned positive in 2Q26 and brought 1H26 FCF close florencia.x.palacios@jpmorgan.com

to breakeven after the 1Q working-capital investment. We remain J.P. Morgan Securities LLC

comfortable with the credit given Sigma’s diversified geographic footprint,

broad portfolio, solid liquidity, and manageable maturity schedule. That said,

relative value remains less compelling in the ’28s, as they continue to trade

inside stronger Mexican IG names despite Sigma’s exposure to a weaker US

consumer, which those peers do not have. This supports our UW on the 28s,

while the ’44s screen fair versus peers, underpinning our Neutral stance.

• 2Q26 results were decent, in our view, with EBITDA growth supported by

FX effects and cost tailwinds, and cash generation benefiting from

improved operating results and a small working-capital release. Volumes

grew 1% yoy, driven by growth across all regions except the US, where

volumes remain under pressure. Prices increased 6% yoy in US dollar terms,

mainly driven by FX, while in local currency they declined 1% yoy due to lower

prices in Europe from a mix shift. Reported EBITDA declined 3% yoy to US