Grupo Mexico: GMEXICO, Quarterly Report 2Q21: Once again with record revenues and EBITDA
Despite market concerns about the new Peruvian government, we believe that this will not have a significant impact. GMexico's 2Q21 figures showed year-over-year sales growth of 62.5% to US$3.9 billion and EBITDA growth of 127.1% y/y to US$2.4 billion, in line, but with a margin expansion of 17.6pp to 61.7%, beating estimates. The report should be welcomed. The results confirm our positive outlook for the company, given its leadership position in the industry. While issues related to the newly president-elect in Peru, Pedro Castillo, have caused a lot of noise among investors, we believe that the biggest impact for the company could be a royalty hike, although it will be difficult to approve.