Grupo México Reports Strong 2Q24 Results, Boosted by Mining

Grupo México achieved record sales of US$4.397 billion and a 59% year-over-year increase in net profit, reaching US$1.065 billion for 2Q24. The company attributed this success to a 27.4% rise in sales compared to 2Q23, largely driven by the mining division, which saw a 33% increase in revenue.

In the mining division, EBITDA surged by 60.7% to US$1.883 billion, and net profit jumped by 74.2% to US$925 million. This growth was fueled by a 2.5% increase in copper sales, totaling 260,05t, alongside higher average prices.

"Grupo México reported strong financial results that surpassed market expectations. The quarter was marked by rising metal prices, particularly an 18.2% increase in average copper prices, and higher production levels, which boosted sales. Additionally, cost-saving synergies from increased production volumes and reduced administrative expenses contributed to improved operating results," noted Benjamín Álvarez, Stock Market Analyst, CI Casa de Bolsa.

CI Casa de Bolsa anticipates a more stable environment for metal prices and consistent growth across Grupo México's three divisions—mining, transportation, and infrastructure—in the 2H24.

Despite ongoing uncertainties in its operating regions, Grupo México stated it is advancing with its expansion plans in Peru and Mexico. "Our long-term investment strategy and focus on cost management have allowed us to benefit from favorable copper prices, leading to double-digit growth across all metrics, with the mining division at the forefront."