Grupo Pochteca (POCHTEC B ) Q2 2024 earnings summary

Executive summary

• Q2 sales fell 1.9% YoY to MXN 2,140m, while gross margin recovered to 21.8% and EBITDA rose to MXN 94m, the strongest quarter in the last six reported.

• Operating profit was MXN 39m versus an operating loss of MXN 26m in Q2 2023; net loss widened to MXN 61m, primarily due to greater FX losses.

Financial highlights

• Q2 gross profit increased 12.1% YoY to MXN 467m; gross margin expanded 270 bps to 21.8%.

• Q2 EBITDA rose 172.5% YoY to MXN 94m from MXN 34m; EBITDA margin improved to 4.4% from 1.6%.

• H1 sales declined 10.0% YoY to MXN 4,108m, while gross profit increased 5.0% to MXN 882m and EBITDA increased 69.1% to MXN 150m.

• Q2 net loss was MXN 61m versus MXN 50m; net financial expense rose to MXN 82m from MXN 37m, reflecting FX effects.

Outlook and guidance

• Management expects restored access to financial services for the raw-materials subsidiary to enable normal operations and eventually support a return to pre-restriction growth trends.

• Further operating expense adjustments are expected to be reflected in the remaining two quarters of 2024.

• Management expects net debt/EBITDA to improve as EBITDA continues its upward trend in 2024.