Grupo KUO’s exports rose 22.6% in 2021 at the annual rate, amounting to 32,795 million pesos.
Grupo KUO is a leading industrial conglomerate in Mexico, with annual revenues of 57.3 billion pesos during 2021, exports to around 70 countries on all continents and approximately 24,000 employees.
Its current business portfolio includes three sectors: Consumer, Chemical and Automotive.
During the fourth quarter of 2021, Revenues reached 14,969 million pesos, an increase of 18% compared to the same period of 2020, which is explained by the good performance of all the businesses in the portfolio, highlighting in the Consumer sector better volume and price in Porcícola, as well as better sales prices and volume in Herdez Del Fuerte, mainly in tomato puree and ketchup in the domestic market, in addition to sauces and guacamole in the United States.
In the Chemical sector, Synthetic Rubber registered a better price level, especially in applications for tires, while Polymers had a higher price in applications, particularly in the electronics segment, together with the distribution of chemicals.
Meanwhile, in the Automotive sector, higher sales of transmissions and components in the Transmissions business, as well as better displacement of brake, engine and powertrain lines in the Parts business.
The percentage of exports to total revenues during the quarter was 55%, an increase of 12%, driven by the Synthetic Rubber, Polymers and Transmissions businesses.
For the 2021 financial year, KUO does not expect significant impacts on its consolidated financial results and cash flows, however, this will largely depend on the evolution of the Covid-19 pandemic, the effectiveness of health and vaccination campaigns and measures of mitigation, the adequate functioning of the productive chains, as well as the economic recovery in the industries and markets where the company operates.
Some supply chains started to operate on a regular basis from the second half of 2020; however, not all industries have been able to supply the raw materials or products that they stopped offering during 2020.
An example is the shortage in supply of semiconductors that is having a negative impact on the automotive industry.
If this supply of semiconductors, as well as other components for automobiles, cannot be replenished in the coming months, the lack of these products could lead to a delay in the production of automotive vehicles on the platforms in which the automotive business participates. Transmissions, with an unfavorable effect on the results of this division.