Corporación Moctezuma (CMOCTEZ) Q2 2024 earnings summary

Executive summary

• H1 2024 results exceeded H1 2023: revenue rose 4.0%, operating income 5.3%, EBITDA 5.5% and net income 15.5%.

• Commercial execution and cost efficiency supported growth; lower energy costs and higher sales contributed to operating-income gains.

Financial highlights

• H1 net sales were MXN 10,224 million, up 4.0% YoY; Q2 sales were MXN 5,285 million, up 6.2%.

• H1 gross profit was MXN 6,688 million, up 6.4%; cost of sales was nearly flat at MXN 3,536 million, down 0.1%.

• H1 operating income increased 5.3% to MXN 4,377 million; operating expenses rose 10.2% to MXN 2,364 million.

• H1 net income rose 15.5% to MXN 3,455 million; financial result improved to MXN 496 million from MXN 57 million.

• H1 EBITDA was MXN 4,711 million, up 5.5%; financial income included MXN 319 million of interest income and MXN 190 million of net FX gains.

Outlook and guidance

• Management is focused on sustaining and improving H1 performance through commercial execution, efficiency initiatives and customer service; no numerical operating targets were stated.

• Growth and modernization are expected to be funded by operating cash generation, with continued reinvestment in facilities, equipment and innovation.

• Roadmap 2030 frames sustainability efforts, including lower energy use, alternative fuels and raw materials, and a lower clinker-to-cement ratio.