The increase in prices has the world on the brink of a crisis, and companies are not spared from its effects. In the third quarter, the increase in the cost of energy and the weakness of currencies affected Alfa ‘s results.
Although from July to September the revenues of the Monterrey conglomerate increased 28% to 98,289 million pesos, its operating flow (Ebitda) grew only 4% to 9,211 million pesos, since the 11% increase in Alpek , its petrochemical unit , was partially offset by a 13% decrease in Sigma , “because the performance in Europe continued to be negatively affected by the increase in energy costs and the depreciation of the euro, among other unexpected inflationary pressures,” said Álvaro Fernández, director Alpha general .
Alpek represents 61% of the conglomerate’s total revenues. This unit registered an increase of 42% in income and 11% in its operating flow. These results include “a carryover effect in the midst of the recent drop in prices of petrochemical raw materials, ” Fernández said. Without this extraordinary effect, Alfa’s Ebitda would have been 11,578 million pesos, a record for any third quarter.
On the other hand, Sigma -food unit- recorded a 10% increase in its revenues in the quarter and a 13% drop in its operating flow affected by its operations in Europe . “Going forward, Sigma’s ability to generate a more solid flow is key to Alfa’s value release process, beyond the spin-off of Axtel,” said Fernández.
In July, the company’s shareholders approved the spin-off of the telecommunications unit, Axtel. The operation will follow the same process that Nemak carried out at the time.
Once this transaction is completed, Alfa will have a lighter structure composed of only two main subsidiaries: Sigma and Alpek, which strengthen the company’s financial position with investment grade credit ratings.