Mexican Orbia reports weaker financial results for Q1 2024
by ChemOrbis Editorial Team - content@chemorbis.com
Mexica’s PVC producer Orbia revealed its financial results for the first quarter of 2024, with a net loss of $32 million.
The company’s net revenues at $1.9 billion showed an 18% decrease compared to the first quarter of 2023, mainly due to lower purchasing volumes and prices in Connectivity Solutions, Polymer Solutions and Building & Infrastructure segments.
The company’s EBITDA for the first quarter declined significantly by 46% from last year and stood at $253 million. Lower revenues and the negative impact of the appreciation of Mexican Peso came to the forefront as the main drivers for the company’s lower EBITDA.
Orbia’s Polymer Solutions business group’s (Vestolit and Alphagary) revenues at $658 million indicated a 15% decrease year-on-year. The slowdown in domestic demand has led to an increase in exports from China and the US, which in turn pulled PVC and caustic soda prices down. The business group registered an EBITDA of $86 million for Q1 2024, also indicating a 41% decline from last year.
“Our first quarter results were in line with the guidance that we shared for the first half of the year. While we are seeing month over month improvements in some of the businesses, interest rates staying higher for longer may further delay demand recovery, necessitating a continued prudent approach,” said Sameer Bharadwaj, CEO of Orbia.
The company’s net revenues at $1.9 billion showed an 18% decrease compared to the first quarter of 2023, mainly due to lower purchasing volumes and prices in Connectivity Solutions, Polymer Solutions and Building & Infrastructure segments.
The company’s EBITDA for the first quarter declined significantly by 46% from last year and stood at $253 million. Lower revenues and the negative impact of the appreciation of Mexican Peso came to the forefront as the main drivers for the company’s lower EBITDA.
Orbia’s Polymer Solutions business group’s (Vestolit and Alphagary) revenues at $658 million indicated a 15% decrease year-on-year. The slowdown in domestic demand has led to an increase in exports from China and the US, which in turn pulled PVC and caustic soda prices down. The business group registered an EBITDA of $86 million for Q1 2024, also indicating a 41% decline from last year.
“Our first quarter results were in line with the guidance that we shared for the first half of the year. While we are seeing month over month improvements in some of the businesses, interest rates staying higher for longer may further delay demand recovery, necessitating a continued prudent approach,” said Sameer Bharadwaj, CEO of Orbia.
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