The company Nemak reported its financial results for the fourth quarter of last year, highlighting a total net sales of 1,209 million dollars (mdd), representing a six percent increase compared to the same period of the previous year, when they reached 1,141 mdd. This increase in revenue was attributed to favorable business negotiations despite a decrease in sales volume, which fell 7.3 percent year-on-year, reaching nine million equivalent units.
The reduction in volumes was mainly related to clients' inventory optimization strategies, plant shutdowns in certain regions, and a slower transition towards electromobility than expected. Regarding operating cash flow, Nemak reported 156 mdd in the quarter, reflecting a 21.2 percent increase from the previous year, while for the full year, the flow was 633 mdd, an increase of 9.4 percent compared to 2023.
According to the company, these increases in operating cash flow were due to cost optimization measures, contractual negotiations, and the depreciation of the Mexican peso, resulting in a flow per equivalent unit of 17.2 dollars in the fourth quarter and 16.0 dollars for the full year. On the other hand, in the quarter, Nemak reported a net loss of 51 mdd compared to the loss of 26 mdd recorded in the same quarter of the previous year.
This variation was attributed to factors such as a lower operating result, higher financial expenses associated with debt refinancing, and increased deferred taxes, which outweighed the positive effect of currency appreciation.
