Grupo Mexico Reports Decline in Q4 Profits

Mining giant Grupo Mexico $GMEXICOB.MX, controlled by billionaire Germán Larrea, has reported a decline in net profits for the fourth quarter of 2024, missing analysts' expectations. The company faced losses in its infrastructure segment and a decrease in profits within the transportation division.

Profit and Revenue Indicators

Grupo Mexico's net profit decreased by 6.5% to $686.5 million, falling short of analyst forecasts, which predicted net profits of $945 million.

Meanwhile, the company's revenue grew by 13% to $3.85 billion. Despite this growth, it still fell short of expectations from the research company LSEG, which had forecasted revenues of $4.04 billion.

Key Factors Affecting Profit

1. Losses in Infrastructure Division. The infrastructure segment encountered significant losses, negatively impacting the overall financial results.

2. Reduced Profits in Transportation. The transportation division, which operates freight railroads in Mexico, the United States, and Peru, showed a decrease in profits, affecting the overall performance.

Key Achievements in the Mining Sector

The company showed significant growth in its mining sector, which remains a core focus of its operations.

- Sales: Mining division sales rose by 17.4% over the quarter.

- Copper Production: Copper production increased by 0.8%, reaching 1.086 million tons annually, aligning with the company's forecasts.

- Zinc Production: Zinc output more than doubled, marking a notable achievement for the company.

For the coming year, the company forecasts copper production at 1.083 million tons. These plans reflect a steady approach to production and resource management, which is central to Grupo Mexico's strategy.

Conclusion

Despite the decline in net profit and financial challenges in the infrastructure and transportation segments, Grupo Mexico shows stable results in the mining sector. The company continues to develop its key operations and has a confident outlook for the future, as evidenced by its plans for 2025.