The company Nemak has presented a new operating flow guide of 640 million dollars for this year, despite weak sales in recent quarters. According to Alik García, deputy director of stock analysis at Valores Mexicanos Casa de Bolsa (Valmex), this guide is very ambitious due to trade negotiations, which have been isolated and recurrent.
In the conference with analysts, Nemak mentioned that trade negotiations have had a positive development, but due to confidentiality agreements, no details were provided on how much of the improvement in the Ebitda guide is due to these agreements. To achieve the annual Ebitda estimate, Nemak would have to report a year-over-year increase of close to 27.3% in the fourth quarter, reaching around 163 million dollars in nominal terms.
In recent quarters, Nemak has faced pressures in North America, with six consecutive quarters of year-over-year declines in its Ebitda. However, the European region has shown positive dynamics, with seven consecutive quarters of year-over-year growth. North America accounts for 43.4% of Nemak's Ebitda so far in 2024, while Europe contributes 43.1% in the same period.
In a comparative analysis with the previous year, if Nemak achieves its guide, it will show an increase of 10.73% compared to 2023, remembering that it reported an annual flow of 578 million dollars. Although in the last year and a half Nemak has not surpassed the double-digit increase in its Ebitda, a solid year-end could be glimpsed if it reaches its stipulated targets.
