Unifin Financiera (UNIFIN A) Q1 2025 earnings summary

Executive summary

• Focused on implementing the 2025-2027 Business Plan, with tactical plans for all critical areas and strict liquidity and expense controls.

• Successfully exited bankruptcy (Concurso Mercantil) in January 2024, completing all restructuring acts and formalizing new credit lines with Bancomext and Nafin.

• Originated 20 new leasing operations totaling over MXN 30 million, with positive market reception from both existing and new clients.

• Continued asset sales and recovery of overdue portfolios to strengthen liquidity.

Financial highlights

• Interest income fell 34% year-over-year to MXN 547.9 million, mainly due to portfolio amortization and limited new originations.

• Net loss for 1Q25 was MXN 986.2 million, a 72% improvement from the MXN 3,553.1 million loss in 1Q24, driven by lower provisions and cost reductions.

• Gross margin adjusted dropped 95% to -MXN 129.5 million, reflecting lower revenues and a significant decrease in provisions for bad debts.

• Operating expenses decreased 21% year-over-year to MXN 465.4 million.

• Cash and equivalents at quarter-end were MXN 684.1 million, down 39% from 1Q24.

Outlook and guidance

• With the restructuring completed, the company is positioned to resume funding and origination activities in line with the new business plan and strict adherence to the restructuring agreement.

• Management expects improved financial margins and profitability in future periods as new funding is deployed.