The Mexican Grupo Acerero (GASA), the fifth largest producer of rebar in Mexico, recorded net losses of MXN 48.1 million ($2.54 million) in the second quarter (Q2) of the year, 51.2 percent less compared to the net losses of the same quarter of 2023.
In the first half of the year, it recorded net income of MXN 161 million ($8.5 million), 78.6 percent less than the same period last year.
According to the company's financial report, seen by SteelOrbis, the net loss was generated by lower sales prices by 27.1 percent and higher financial expenses (49.0 percent more to $15.4 million), because sales volume increased 30.1 percent compared to the same quarter of 2023.
Sales of the steel company located in the central Mexican state of San Luis Potosí totaled the quarter equivalent to $227.7 million, 0.2 percent (measured in pesos) less than the April-June period of last year.
The total debt balance as of June was MXN 5,777 million ($306.1 million), thus the leverage ratio, Net Debt/EBITDA, was 3.1x. Ebitda was $21.0 million, 9.2 percent more than in the reporting period.