Grupo Collado, one of the largest steel processing and service centers in Mexico, reported net income of MXN 10.3 million ($0.5 million) in the third quarter (Q3) of the year, a figure that represented an increase of 332.4 percent compared to the same period last year. The growth was driven by financial issues, according to the company's financial statements reviewed by SteelOrbis.
The company's sales totaled the equivalent of $140.8 million in the quarter, 1.1 percent more than in the third quarter of last year. The percentage change is measured in pesos.
Despite the increase in sales, the cost of sales margin decreased 4.0 percentage points to 70.9 percent of total sales. Thus, gross profit increased 17.3 percent and operating profit grew 18.4 percent in the period.
In the third quarter, Collado posted net earnings of $0.5 million, up 332.4 percent from the $0.12 million net earnings in the third quarter of 2023.
According to the company, net earnings were partially driven by “a lower foreign exchange loss during the period”.
From January to September, total sales were equivalent to $406 million, of which 67.7 percent ($275 million) were from local sales in Mexico and 32.2 percent ($131 million) from exports. Accumulated net income was $1.7 million, down 81.4 percent from $9.1 million in the January-September 2023 period.