- Consolidated Sales: MXN59 billion, a growth of 6.6% in the quarter.
- Consolidated Operating Income: MXN7 billion, up from MXN6.4 billion in Q4 2023.
- Consolidated EBITDA: MXN9.2 billion, compared to MXN8.6 billion a year ago.
- EBITDA Margin: Improved by 20 basis points from 15.5% to 15.7%.
- Consolidated Controlling Net Income: Grew 27.1% to MXN4.2 billion, from MXN3.3 billion last year.
- Grupo Sanborns Sales Increase: 2.2% due to promotions and new product launches.
- Grupo Sanborns Operating Income: MXN2.5 billion, up from MXN1.1 billion a year ago.
- Grupo Sanborns EBITDA Margin: Recovered from 7.4% to 12.7%.
- Grupo Sanborns Net Income Improvement: 83.6% increase.
- Retail Area Stores: Ended with 451 stores, with openings and closings noted.
- Grupo Condumex Sales: MXN12.7 billion, up from MXN10.3 billion last year.
- Grupo Condumex Operating Income and EBITDA: MXN1.3 billion and MXN1.5 billion, respectively.
- Carso Infraestructura y Construcción Sales: MXN10.9 billion.
- CICSA Operating Income and EBITDA Decrease: Down 58.4% and 53.7%, respectively.
- CICSA Controlling Net Income: Reduced 52.1% to MXN749 million.
- CICSA Backlog: MXN23.9 billion, down from MXN33.3 billion a year ago.
- Elementia/Fortaleza Sales Increase: 12.3% to MXN8.8 billion.
- Elementia/Fortaleza Operating Income and EBITDA Growth: 344% and 24.6%, respectively.
- Carso Energy Sales Increase: 9.7% to MXN959 million.
- Carso Energy Operating Income and EBITDA: MXN733 million and MXN842 million, respectively.
- Carso Energy Net Result: MXN356 million.
- Zamajal Division Revenue: Additional MXN364 million recorded.
- Zamajal Division Operating Result: Loss of MXN313 million.
- Zamajal Division EBITDA: MXN243 million, compared to a loss of MXN2.3 million a year ago.
Release Date: January 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Consolidated sales of Grupo Carso SAB de CV (GPOVF, Financial) grew by 6.6% in the fourth quarter, reaching MXN59 billion.
- Grupo Sanborns recorded a significant improvement in profitability, with operating income increasing from MXN1.1 billion to MXN2.5 billion.
- Elementia/Fortaleza saw a 12.3% increase in sales, driven by higher volumes and favorable exchange rates.
- Carso Energy's performance improved by 9.7%, with increased tariffs from natural gas transportation services contributing to higher sales.
- The consolidated controlling net income grew by 27.1%, reflecting better operating and financial results.
Negative Points
- Carso Infraestructura y Construcción experienced a 5.8% reduction in sales due to the completion of large infrastructure projects.
- The operating income and EBITDA for Carso Infraestructura y Construcción decreased by 58.4% and 53.7%, respectively.
- Zamajal division reported a loss of MXN313 million in operating results due to start-up activities.
- Grupo Sanborns closed two Sears stores, indicating a potential challenge in maintaining profitability in certain locations.
- The backlog for Carso Infraestructura y Construcción decreased from MXN33.3 billion to MXN23.9 billion, suggesting a decline in future project opportunities.
Q & A Highlights
Q: Where do you plan to invest the cash from the sale of Giant Holding, and what percentage of Condumex sales growth is due to the favorable exchange rate versus higher volumes?
A: The sale of Giant Cement plants will yield around $300 million, with part of the proceeds used to pay for Fortaleza Holding and the rest invested in Mexican plants. Approximately 60% of Condumex's sales increase is attributed to the favorable exchange rate, while the remaining growth is due to higher volumes, particularly in the harnesses division. - Arturo Spinola Garcia, Treasurer
Q: Can you provide more details on Grupo Sanborns' increasing EBITDA performance and your 2025 guidance?
A: The increase in Grupo Sanborns' EBITDA is primarily due to improved control over client accounts and the absence of last year's negative impacts. For 2025, the industrial division is expected to grow due to new business in the harnesses division. However, the construction division may see a 9-10% decrease in sales due to fewer new projects. Grupo Sanborns aims to optimize sales floors and expects a two-digit increase in the coming years. - Arturo Spinola Garcia, Treasurer
Q: What are the expectations for Zamajal's profitability and future margins?
A: Zamajal is currently in the development phase, with sales expected to increase to around MXN600 million by the fourth quarter. The group aims for a 15-16% EBITDA margin in 2025, with Zamajal potentially reaching breakeven by 2026 or 2027. - Arturo Spinola Garcia, Treasurer
Q: What are the short-term and medium-term plans for store openings in Grupo Sanborns?
A: Grupo Sanborns plans to open 10-15 new stores, primarily in the Dax format, and four to five iShop stores this year. The focus is on optimizing existing sales floors rather than opening new stores. - Arturo Spinola Garcia, Treasurer
Q: What is the CapEx plan for this year, and does it include oil projects in Zamajal?
A: The company plans to invest around $800 million in CapEx this year, covering various divisions, including hydrocarbons, industrial, Elementia, and Carso Energy. The Zamajal projects are under review and may require additional investment. - Arturo Spinola Garcia, Treasurer
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
