Kuo (KUO B) Q1 2025 earnings summary

Executive summary

• 1Q25 pro forma combined revenue rose 11.3% YoY to MXN 13,515 million; EBITDA increased 55.7% to MXN 1,394 million, led by Pork Meat.

• Majority net income reached MXN 3,649 million versus MXN 187 million in 1Q24, including MXN 3,460 million from discontinued operations.

Financial highlights

• Pro forma combined operating profit was MXN 797 million, up 168.2% YoY; operating margin increased to 5.9% from 2.4%.

• Pro forma EBITDA margin expanded to 10.3% from 7.4%; exports were MXN 7,137 million, 53% of revenue.

• Net financial expenses were MXN 397 million, including MXN 235 million net interest expense and MXN 173 million foreign-exchange loss.

• Pro forma income tax provision was MXN 211 million: MXN 193 million current tax and MXN 18 million deferred tax.

Segment performance

• Consumer revenue grew 20.3% to MXN 8,032 million; operating profit rose 179.2% to MXN 787 million and EBITDA increased 96.2% to MXN 1,031 million.

• Pork Meat benefited from a 20% increase in average prices, 4% higher volume, better cost absorption, and lower corn and soy-paste costs.

• Herdez Del Fuerte and Megamex gained from higher volumes, favorable U.S. exchange effects, and stronger prices in select Mexican categories; avocado costs rose 33%.

• Industrial revenue edged down 0.5% to MXN 5,363 million; operating profit rose 77.9% to MXN 72 million and EBITDA grew 7.3% to MXN 402 million.

• Polymers benefited from favorable mix and inventory adjustment; Synthetic Rubber faced higher butadiene costs (+31%), while Transmissions faced lower demand and higher warranty expenses.