Corporación Moctezuma (CMOCTEZ) Q4 2023 earnings summary

Executive summary

• FY2023 net sales rose 20.8% YoY to MXN19,662m; operating income increased 38.6% to MXN8,291m and net income rose 40.6% to MXN6,166m.

• Q4 net sales grew 11.8% YoY to MXN4,885m; operating income rose 36.7% to MXN2,100m and net income increased 44.4% to MXN1,587m.

Financial highlights

• FY gross profit grew 36.9% to MXN12,742m as cost of sales declined 0.8% to MXN6,920m despite higher revenue.

• FY EBITDA increased 37.8% to MXN8,928m; EBITDA for Q4 was MXN2,262m, up 34.8% YoY.

• FY financial result was a MXN333m gain, supported by MXN531m interest income; FX losses increased 73.2% YoY, including a MXN176m loss in 2023.

Outlook and guidance

• Priorities include cost control, operational efficiency, productivity improvements, alternative fuels, lower distribution costs, continued plant investment and sustainable value creation.

• Management plans to reinvest operating cash in facility maintenance, modernization and growth while continuing dividends and maintaining a prudent, nearly debt-free financial position.