Mexican steel producer Industrias CH (ICH) saw its net profit decline 36 percent in Q1, year-on-year, to MXN 750 million ($39.8 million) on an appreciated MXN over the USD, the company said this week.
According to ICH, net revenues in Q1 this year rose 25 percent, year-on-year, to MXN 8.8 billion ($467.6 million). Steel sales volumes followed the same uptrend in Q1, increasing 4 percent, year-on-year, to 629,000 mt.
ICH said cost of sales in Q1 grew 22 percent, year-on-year, to MXN 7.02 billion ($373.02 million). Despite the increased cost of sales, the company’s gross profit in Q1 totaled MXN 1.79 billion ($95.1 million), 39 percent up, year-on-year, due to the increased revenues seen in Q1, which offset the growing costs.
ICH reported a MXN 1.78 billion ($94.5 million) EBITDA in Q1, which was 44 percent up, year-on-year.
USD = 18.81 (April 28)