Corporación Moctezuma (CMOCTEZ) Q3 2024 earnings summary

Executive summary

• Nine-month results advanced YoY despite slower Mexican construction activity: revenue rose 2.7%, operating income 3.1%, EBITDA 3.4% and controlling net income 11.6%.

• Commercial execution and cost efficiency supported performance; operating cash flow funded investment while the balance sheet remained practically free of interest-bearing debt.

Financial highlights

• 9M revenue was $15,176m vs $14,777m YoY; gross profit increased 3.8% to $9,862m, with cost of sales up 0.7%.

• 9M operating income rose 3.1% to $6,384m; EBITDA increased 3.4% to $6,894m, and controlling net income grew 11.6% to $5,109m.

• Q3 revenue was $4,952m vs $4,950m; operating income was $2,007m vs $2,034m and net income was $1,655m vs $1,588m.

• 9M net financial income increased to $795m from $253m, supported by a $331m FX gain vs a $94m loss and higher interest income.

Outlook and guidance

• Priorities include continued commercial execution, cost efficiency, preventive maintenance, infrastructure modernization and reinvestment funded by operating cash flow.

• Roadmap 2030 guides sustainability efforts, including alternative fuels and raw materials, lower energy use and reduced clinker-to-cement ratios.

• New Mexican rail and real-estate infrastructure plans could support a construction recovery; foreign investment interest and T-MEC advantages were also cited as potential supports.