Kuo (KUO B) investor relations material

Executive summary

• Pro forma Q2 revenue was $12,422 million, down 8.5% YoY; EBITDA was $1,052 million, down 16.6%, amid weaker Consumer results and strong Synthetic Rubber performance.

• Pro forma figures proportionally consolidate 50% stakes in Herdez Del Fuerte and Synthetic Rubber joint ventures, unlike IFRS 11 reporting.

Financial highlights

• Q2 pro forma operating profit was $451 million, down 30.7% YoY; operating margin fell 1.2 pp to 3.6%.

• Pro forma controlling-interest net income was $312 million versus $770 million; continuing-operations profit was $314 million versus $627 million, while discontinued operations contributed a $3 million loss versus $143 million profit.

• H1 pro forma revenue fell 8.1% to $24,894 million; EBITDA declined 16.5% to $2,218 million and operating profit fell 29.2% to $1,025 million.

• Exports were 55% of Q2 pro forma revenue, primarily to North America and Japan; export value declined 4.3% YoY to $6,824 million.

Segment performance

• Consumer Q2 revenue declined 11.8% to $7,115 million; EBITDA fell 41.3% to $582 million and operating profit fell 54.6% to $343 million.

• Industrial Q2 revenue decreased 3.1% to $5,238 million, while EBITDA rose 38.2% to $423 million and operating result improved from a $44 million loss to $87 million profit.

• Synthetic Rubber revenue grew 17% on improved pricing and higher volumes; EBITDA increased 172%, aided by favorable inventory valuation and lower expenses.

• Pork Meat revenue fell 8% as lower selling prices offset stable volumes; Transmissions revenue declined 18% on lower volumes, while Herdez Del Fuerte sales weakened on lower volumes.