The third quarter results of Grupo Alfa and its subsidiaries, Alpek and Nemak, listed on the Mexican Stock Exchange (BMV), recorded an increase in their operating cash flow (EBITDA) as a result of improvements in the sales and prices of raw materials. used in their processes.
Alfa reported an increase in EBITDA of 77.15% to 12 638 million pesos, compared with 7.134 million reported in the same period of 2017, according to its report published on the BMV.
"The flow increased year after year in all business units due to their market leader positions and the successful execution of their strategies," said Álvaro Fernández, Alfa's CEO, in the report.
The profit of the inspection party increased to 1,358 million pesos, compared to the loss for the same period last year of 5,939 million pesos. The improvement was a result of the increase in margins in Alpek.
The petrochemical subsidiary of Alfa showed a historic increase in the third quarter of 5,200 million pesos in EBITDA, compared to 59 million in the same period of 2017, thanks to a strong performance in the polyester segment.
The result was higher than estimated by the analysts in Banorte, who expected a total of 4,400 million pesos.
One of the most important catalysts that benefited Alpek is the increase in the price of Brent crude oil, which stimulated the increase in raw material prices and the consolidation of Petroquímica Suape and Citepe.
The third quarter of last year was an atypical period for the company because there were non-recurring costs related to the total provisions and impairment of M & G's assets, customer and supplier of Alpek.