Grupo Mexico SAB de CV (GMBXF) Q3 2024 Earnings Call Highlights: Strong Revenue Growth and ...

GuruFocus News
4 min read

In This Article:

  • Cumulative Revenue: Over $20 billion for the first nine months of 2024, a 12.5% increase compared to the same period in 2023.

  • EBITDA: Increased by 17.3% for the first nine months of 2024 compared to the same period in 2023; 23% improvement on a quarterly basis.

  • Net Cash Costs: MXN1.12, a more than 7% improvement versus 2023.

  • Copper Production: 819,638 tons for the first nine months of 2024, a 7.1% increase compared to the same period in 2023; 10.6% increase on a quarterly basis.

  • Dividend: MXN1.3 per share approved for the quarter, up from MXN1.2 last quarter, with a 4.7% implied dividend yield.

  • Net Debt to EBITDA Ratio: 0.1, indicating low leverage.

  • Cash and Equivalents: $7.6 billion at the end of the quarter.

  • Mining Division Revenue: Over $9.4 billion for the first nine months of 2024, a 13.2% increase compared to the same period in 2023.

  • Mining Division EBITDA: $5.1 billion year-to-date, 22.8% higher than 2023; 32.3% higher on a quarterly basis.

  • Transportation Division Revenue: Almost $2.6 billion for the first nine months of 2024, a 7.5% increase versus the previous year.

  • Infrastructure Division Revenue: Increased by over 9.1% year-over-year.

  • Infrastructure Division EBITDA: Grew by almost 27% year-over-year.

  • Infrastructure Division Net Income: Grew by 75% year-over-year, totaling $100 million.

Release Date: October 23, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Grupo Mexico SAB de CV (GMBXF) reported a 12.5% increase in cumulative revenue for the first nine months of 2024 compared to the same period in 2023, driven by higher copper and byproduct volumes sold.

  • The company's EBITDA increased by 17.3% year-over-year for the first nine months of 2024, with a notable 23% improvement in quarterly results compared to the previous year.

  • The mining division achieved a 13.2% increase in revenue for the first nine months of 2024, supported by higher copper, gold, and silver prices.

  • Grupo Mexico SAB de CV (GMBXF) maintained a strong balance sheet with low leverage, boasting a net debt to EBITDA ratio of 0.1.

  • The infrastructure division demonstrated robust performance with a 27% growth in EBITDA and a 75% increase in net income year-over-year, driven by increased revenues and traffic across various business units.

Negative Points

  • The transportation division experienced an 8% decrease in EBITDA for the first nine months of 2024, attributed to network congestion and operational challenges.

  • Grupo Mexico SAB de CV (GMBXF) faced a slowdown in the average train speed due to network congestion, impacting operational efficiency and increasing costs.

  • The company reported a decrease in revenue from the cement and automotive segments, with a 4% and 5% decline respectively, due to reduced demand and competition.

  • Southern Copper, a subsidiary, has been paying dividends partially in stock, which may indicate liquidity preservation concerns.

  • The company is cautious about future capital allocation, focusing on organic growth rather than diversification, which may limit expansion opportunities.

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