Corporación Moctezuma (CMOCTEZ) Q1 2024 earnings summary

Executive summary

• Q1 2024 revenue rose 1.8% YoY to MXN4,939m; operating income slipped 0.4%, while net income increased 5.2% to MXN1,650m.

• EBITDA was nearly flat at MXN2,312m (+0.1%); higher net financial income supported earnings growth despite increased operating expenses.

Financial highlights

• Gross profit increased 2.4% to MXN3,210m; cost of sales rose 0.8% to MXN1,729m.

• Operating expenses rose 11.1% to MXN1,110m; operating income was MXN2,149m, down 0.4% YoY.

• Net financial income was MXN139m versus MXN18m in Q1 2023, reflecting interest income growth and lower foreign-exchange losses.

• Net income attributable to controlling shareholders rose 5.2% to MXN1,650m; basic EPS increased 5.5% to MXN1.92.

Outlook and guidance

• Management expects continuing challenges in 2024, with results in coming months uncertain; priorities include operational efficiency, customer service, and infrastructure modernization.

• Roadmap 2030 sets a sustainability path focused on energy efficiency, lower clinker-to-cement ratios, alternative fuels, and environmental impact reduction.

• Growth and capital spending are expected to be supported by operating cash generation; available credit lines can be accessed if needed.