Corporación Moctezuma (CMOCTEZ) Q4 2024 earnings summary

Executive summary

• FY24 net sales rose 0.7% YoY to MXN 19,797 million; net income increased 5.8% to MXN 6,521 million, while operating income and EBITDA declined.

• Q4 sales fell 5.4% YoY, operating income fell 18.3%, and net income fell 11.0%, reflecting softer demand and higher operating costs.

• Strong liquidity, no financial borrowings, and continued internally funded investment supported a solid balance sheet amid a weakening construction market.

Financial highlights

• FY24 net sales were MXN 19,797 million, up 0.7% YoY; gross profit rose 0.4% to MXN 12,788 million.

• Operating income declined 2.3% to MXN 8,099 million as cost of sales increased 1.3% and operating expenses rose 6.2%.

• Net income reached MXN 6,521 million, up 5.8%; Q4 net income was MXN 1,412 million, down 11.0% YoY.

• Financial result was a MXN 1,040 million gain, driven by MXN 655 million of interest income and a MXN 418 million net FX gain.

• Q4 sales totaled MXN 4,621 million, down 5.4% YoY; operating income was MXN 1,715 million, down 18.3%.

Outlook and guidance

• Management aims to improve on FY24 results, citing commercial execution, cost efficiency, customer service, and a prudent financial structure; no numerical outlook was stated.

• Mexican government plans include starting passenger rail routes, housing programs, and infrastructure projects in H1 2025, potentially supporting construction activity.

• Near-term demand remains exposed to the construction slowdown and uncertainty around public and private investment; management continues monitoring supply-chain availability and costs.