Kuo (KUO B) Q2 2024 earnings summary

Executive summary

• 2Q24 pro forma combined revenue rose 3.1% YoY to MXN 13,021 million; EBITDA increased 20.8% to MXN 1,142 million, led by Pork Meat and Chemical businesses.

• Net majority loss was MXN 179 million, versus income of MXN 411 million in 2Q23, mainly due to a quarter-specific foreign-exchange loss.

Financial highlights

• 2Q24 pro forma combined operating profit reached MXN 534 million, up 144.0% YoY; EBITDA margin expanded to 8.8% from 7.5%.

• H1 pro forma combined revenue declined 2.7% YoY to MXN 25,160 million; operating profit rose to MXN 831 million from MXN 306 million and EBITDA increased 23.1% to MXN 2,037 million.

• H1 pro forma combined net income attributable to controlling interests was MXN 8 million, down from MXN 649 million; continuing operations recorded a MXN 313 million loss.

Outlook and guidance

• Agreement to sell the Aftermarket business aims to strengthen the financial structure and refocus the portfolio on businesses with high growth potential.