Kuo (KUO B) Q4 2024 earnings summary

Executive summary

• 4Q24 revenue rose 13.5% YoY to MXN 13,630m and EBITDA increased 27.5% to MXN 1,203m; controlling-interest net loss was MXN 1,161m.

• Growth was led by Pork Meat and improved Chemical business volumes and cost absorption; Transmissions weighed on operating results.

Financial highlights

• FY24 revenue increased 4.6% to MXN 51,872m; operating profit rose 109.4% to MXN 1,636m, and EBITDA grew 42.3% to MXN 4,630m.

• FY24 controlling-interest net loss was MXN 1,350m versus income of MXN 736m in FY23, primarily reflecting net foreign-exchange losses and higher financial expenses.

• 4Q24 net financial expense was MXN 677m, including MXN 383m FX loss and MXN 237m net interest expense; income-tax provision was MXN 447m.

• 4Q24 exports were 52% of revenue; pro forma combined revenue excludes Aftermarket as a discontinued operation under IFRS 5 in both comparative quarters.

Outlook and guidance

• Proceeds from the January 2025 Aftermarket sale are intended for debt prepayments, strategic projects and other corporate purposes.