Corporación Moctezuma (CMOCTEZ) Q2 2023 earnings summary

Executive summary

• H1 2023 revenue rose 25.6% YoY to MXN 9,827.5m; operating income increased 33.3%, EBITDA 34.7% and net income 31.9%.

• Higher sales and lower energy costs supported operating profit growth; cash and equivalents reached MXN 5,682.5m at June 30, with no cost-bearing debt reported.

Financial highlights

• H1 revenue was MXN 9,827.5m vs MXN 7,825.6m YoY; gross profit rose 36.2% to MXN 6,286.6m.

• H1 operating income grew 33.3% to MXN 4,157.9m; net income increased 31.9% to MXN 2,991.2m.

• H1 EBITDA increased 34.7% to MXN 4,464.9m; financial result was a MXN 57.2m gain, up 39.4% YoY.

• Q2 revenue increased 24.6% YoY to MXN 4,977.7m; operating income rose 30.6% to MXN 1,999.3m and net income rose 25.3% to MXN 1,422.2m.

Outlook and guidance

• Priorities include cost control, production efficiency, alternative fuels, lower logistics costs, customer service and continued reinvestment in productive facilities.

• Management plans to maintain and improve H1 results through commercial execution and cost efficiency; no specific financial targets were stated.

• IMF forecasts cited for 2023 were 2.8% global GDP growth and 1.8% growth for Mexico; management noted uncertainty around global deceleration and interest rates.