Orbia’s sales stood at 2,291 million dollars in the third quarter of the year, in line with the same period of the previous year, while its operating flow -or Ebitda- fell 28% and its net profit decreased 56%, derived from the complex macroeconomic environment, including high inflation, pockets of economic slowdown, the energy crisis in Europe, Covid-19 lockdowns in China and unfavorable exchange rates.
The Polymer Solutions, Building and Infrastructure and Precision Agriculture segments fell mainly due to weak final markets in the context of the current macroeconomic environment and the devaluation of the main currencies, according to the third quarter financial report presented by the business group to the Mexican stock exchange.
This drop was offset by an increase in sales of its Connectivity Solutions segments (specializing in fiber optic cables and accessories and other technologies) and Fluorinated Solutions (focused on fluorinated products and solutions).
The Connectivity Solutions business complemented the acquisition of Biarri Networks, a leading provider of technological services, specialized in the design of fiber optic networks, leading the business group to offer complete customized solutions.
Meanwhile, Building and Infrastructure acquired Bow Plumbing Group, a North American leader in the manufacture of plastic pipes and accessories for the residential and commercial construction industry, amplifying Orbia’s geographic presence and expanding the group’s product range.
Ebitda stood at 381 million dollars, decreasing 28% in the quarter, due to the slowdown in demand in some markets, along with the devaluation of currencies and higher input costs, particularly in Polymer Solutions, Building and Infrastructure and Precision Agriculture. .
The net income of the conglomerate was 86 million dollars in the third quarter of the year, decreasing 56% compared to the same period last year, derived from the aforementioned decrease in EBITDA.
Regionally, Orbia’s sales in the third quarter fell 12% in South America and 11% in Europe, this drop was offset by growth of 27% in Africa and others, 16% in North America and 4% in Asia.
“Our results this quarter demonstrated our resilience, as strong results from Connectivity Solutions and Fluorinated Solutions, as well as our vertical integration, helped mitigate difficulties from other business groups,” said Sammer Bharadwaj, CEO of Orbia.
