Grupo Mexico Reports 17.55% Increase in Third-Quarter Profit Boosted by Copper Prices
Mining and transport conglomerate Grupo Mexico has reported a 17.55% increase in net profit for the third quarter, driven by rising copper prices and higher production levels. The company's net profit reached \$820.1 million, which was below analysts' expectations of \$935.65 million, according to a poll conducted by LSEG.
Grupo Mexico, controlled by billionaire German Larrea, is one of the world's largest copper producers, with mining operations in Peru, the United States, Spain, and its home country of Mexico, where it also operates major freight railroads. Revenue for the third quarter increased by 13.13% to \$4.13 billion, while consolidated earnings before interest, tax, depreciation, and amortization (EBITDA) rose 22% to \$2.17 billion compared with the same period last year.
Copper production during the quarter totaled 280,897 metric tons, an increase of 10.6% from the third quarter of 2023. This contributed to a 17.8% increase in sales for the mining division. The company also slightly upgraded its copper production forecast for 2024 to 1.09 million metric tons, up from the previous outlook of 1.08 million metric tons provided in July.
Grupo Mexico noted that copper prices had increased by almost 8% over the year, further boosting its financial performance. However, its transport division experienced a 1.9% decline in sales compared to the year-earlier period, primarily due to higher selling costs.
