Corporación Moctezuma (CMOCTEZ) Q1 2023 earnings summary

Executive summary

• Q1 2023 net sales rose 26.6% YoY to MXN 4,850m; operating income grew 35.9% to MXN 2,159m, and controlling net income increased 38.5% to MXN 1,569m.

• Commercial pricing actions and cost-efficiency measures supported results while preserving sales volume capture; management said the outlook for coming months remained uncertain.

Financial highlights

• Net sales were MXN 4,849.9m, up 26.6% YoY; gross profit reached MXN 3,134.9m, up 34.3%.

• Operating income increased 35.9% to MXN 2,158.6m; operating margin was 44.5%, versus 41.5% in Q1 2022.

• EBITDA rose 32.5% to MXN 2,309.8m; EBITDA margin was 47.6%, versus 45.5% a year earlier.

• Controlling net income grew 38.5% to MXN 1,569.0m; net margin was 32.4%, versus 29.6%, and basic EPS was MXN 1.82 versus MXN 1.30.

• Cost of sales increased 14.6% and operating expenses 31.4% YoY, below sales growth; depreciation and amortization was MXN 151.3m, down 1.8%.

Outlook and guidance

• Priorities include maintaining profitability through cost control, production and logistics efficiencies, continued investment in facilities, and greater use of alternative fuels.

• Commercial strategy centers on controlled price adjustments while continuing to capture sales volume; management intends to sustain Q1 performance but noted uncertainty for coming months.

• No numerical earnings or sales guidance was stated; management’s medium-term aim is a solid, profitable business focused on efficiencies, cost reduction, and sustainable value creation.