Grupo México (GMEXICOB) Q4 2022 earnings summary

Executive summary

• 2022 revenue was $13.87B, down 6.1% YoY; EBITDA was $7.14B, down 20.1%, and net profit was $2.86B, down 22.9%.

• Results improved across virtually all business units in Q4, supported by business diversification and sustained investment.

Financial highlights

• Q4 revenue reached $3.79B, up 0.3% YoY; EBITDA was $2.09B, down 4.9%, with a 55.2% margin versus 58.1%.

• Full-year cost of sales rose 15.8% to $6.45B; EBITDA margin was 51.5% versus 60.5% in 2021.

• Operating cash flow was $4.14B, down 26% YoY; cash flow after investing and financing was negative $439M.

Outlook and guidance

• Planned 2023 investment is $1.83B; mining plans target doubling copper and by-product production by 2030, with higher ore grades and organic growth supporting output.

• Mining project milestones include Buenavista Zinc and El Pilar starts in 2023, Tía María in 2025, Los Chancas in 2027, and El Arco in 2028.

• Infrastructure plans $117M of 2023 investment, mainly for renewable energy, fuel terminals, highways, and construction equipment.