Grupo México (GMEXICOB) Q4 2021 earnings summary

Executive summary

• FY2021 sales reached a record $14.77B, up 35.5% YoY; EBITDA rose 66.6% to $8.93B and net income increased 74.9% to $3.71B.

• Record results reflected higher commodity prices and stronger transportation volumes, while investments reached $1.36B, up 22.2% YoY.

• Balance-sheet leverage remained low at 0.3x net debt/EBITDA; 2022 investment plans total approximately $2.27B.

Financial highlights

• FY2021 revenue was $14.777B versus $10.909B in 2020; operating profit was $7.467B, up 88.6% YoY.

• EBITDA reached $8.933B, up 66.6% YoY; net income was $3.706B, up 74.9%.

• Cash generated by operations was $5.627B, up 50% YoY; cash flow after investing and financing activities was $1.165B.

• Consolidated CAPEX was $1.362B, up 22.2% YoY; taxes paid were $2.964B, up 87%.

Outlook and guidance

• 2022 investment program is approximately $2.274B; planned mining investment is $935M, including $558M in Mexico, $335M in Peru and $42M in the U.S.

• Copper production is expected to exceed 1.3M tonnes from 2024 onward as Pilares, El Pilar, Buenavista Zinc and Tía María enter operation.

• Fenicias wind farm commercial operations were planned for Q2 2022; the 168 MW project was fully constructed and testing had concluded by year-end 2021.