BUSINESS DIVISIONS
COMMERCIAL AND CONSUMPTION
GRUPO SANBORNS
In 2023 the sales of the commercial and consumption division totaled $73,327 million pesos, hailing a significant growth of $8,581 million pesos more than in 2022. In Sears, Sanborns and Promotora Musical (iShop-Mix Up), the recovery was marked by a greater flow of customers in the department stores, the gaming stores and the restaurants. The sales floor space was 1,183,634 m2, including 444 stores, an area that remained stable, with a slight variation of -0.4% versus the previous year.
The accumulated operating income totaled $4,938 million pesos, decreasing by 2.1% from the $5,046 million pesos of the previous year. However, the mixture of products and formats with a larger profit margin, as well as the increase of income from sales on credit improved the profitability. The operational and administrative expenses in relation to sales increased during the last quarter of the year, which was attributable to a greater reserve for unrecoverable accounts. For the same reasons, the annual EBITDA of Grupo Sanborns diminished slightly by 0.2%, going from $7,124 million in 2022 to
$7,111 million in 2023, with an EBITDA margin that decreased from 11.0% to 9.7% on sales.
The controlling net income of Grupo Sanborns totaled $3,713 million pesos, compared to $4,010 million pesos in 2022. This was due to the operating results mentioned above, added to the lower financial income in the comprehensive financing results.
Grupo Sanborns’ capital investments totaled $1,173 million pesos, an amount that was 36.6% greater than the $859 million pesos of the previous year, owed mainly to the opening of eleven Dax stores, four iShop stores, one MixUp store, the reopening of the Insurgentes Sanborns store, projects in process, the remodeling of stores, and the acquisition of furnishings and equipment.
Sales (millions of pesos)
Operating income (millions of pesos)
EBTIDA (millions of pesos)
INDUSTRIAL AND MANUFACTURING DIVISION
GRUPO CONDUMEX
In 2023 Grupo Condumex sales totaled $44,620 million pesos, which was a reduction of 10.0% versus the $49,600 million in sales recorded in 2022. The principal cause of this performance was the exchange rate, since the Mexican peso appreciated by an annual rate of 13.0% against the dollar, affecting the income of all the businesses of the industrial division.
The operating income and the EBITDA totaled $5,366 and $5,842 million pesos, respectively. In these amounts the one-time effect (PPA) of the incorporation of control over Elementia and Fortaleza in the second quarter of 2022, previously mentioned, is taken into account.
The net controlling income of Grupo Condumex was $3,683 million pesos, in which the extraordinary effect mentioned above is included, compared to the $8,699 million pesos in 2022.
Sales (millions of pesos)
Operating income (millions of pesos)
EBITDA (millions of pesos)
INFRASTRUCTURE AND CONSTRUCTION DIVISION
CARSO INFRAESTRUCTURA Y CONSTRUCCIÓN
The sales of Carso Infraestructura y Construcción were $45,010 million pesos. This is explained primarily by the greater volume of works executed in all our sectors, mainly those related to the installation of pipelines, the construction of private projects and infrastructure works.
The consolidated income and EBITDA reached $6,544 and $7,452 million pesos.
The controlling net income in 2023 was $3,782 million pesos.
Sales (millions of pesos)
Operating income (millions of pesos)
EBITDA (millions of pesos)
Anual Backlog* (Thousands of pesos)
*Amount of contract for pending works to build
ENERGY DIVISION
CARSO ENERGY
Carso Energy experienced a reduction of 15.5% in its sales, going from $4,115 million pesos in 2022 to $3,477 million pesos in 2023, mainly due to variations in the exchange rate, since 100% of its operations are in dollars.
The revenue from the transmission of natural gas service through the pipelines in Waha (Texas, USA), in which we have a participation of 51.0% (unconsolidated) and the revenue from the SamalayucaSásabe gas pipeline (100% owned by the Group) continued their solid performance, but since the revenue is in dollars it was negatively affected by the exchange rate.
The construction of the compression station of the Samalayuca-Sásabe gas pipeline was completed in December of 2023, and its commissioning process has started. This will increase its capacity for the transmission of gas to a significant degree, beginning in April of 2024.
At the beginning of the year in Panama the two hydroelectric plants had a greater volume of rain water. However, during the second half of the year a reduction in the volume of water began, due to the “El Niño” phenomenon, which has affected the offer of hydro-electricity.
Sales (millions of pesos)
Operating income (millions of pesos)
Utilidad de operación (millones de pesos)
For the reasons previously mentioned, the operating income and EBITDA of Carso Energy experienced a decrease of 10.9% and 11.0%, totaling $2,674 million and $3,007 million pesos, respectively. The net controlling income in Carso Energy was $2,047 million pesos at the end of December, 2023, decreasing by 26.2% compared to the $2,775 million during the same period of the previous year. As a part of the growth of Carso Energy and its constant search for new projects and business opportunities, its subsidiary, Gasoducto Centauro del Norte, S.A. de C.V., subscribed an investment, development and gas transmission service agreement with the CFE for the construction and operation of a gas pipeline that will be a continuation of the Samalayuca-Sásabe pipeline to Mexicali, with an approximate length of 416 kilometers. The investments in fixed assets carried out by Carso Energy during 2023 were in the amount of $474 million pesos.
ELEMENTIA / FORTALEZA DIVISION
Since May of 2022 the Elementia and Fortaleza numbers are consolidated within Grupo Carso.
In 2023 this division reported $32,262 million pesos in sales, which was 11.2% less than in 2022. This was due to the fact that in 2023 – particularly in the United States and Central America –, the housing market, which is Construsistemas’ business, saw a drop compared to 2022, mainly because of the inability of the public to pay the higher mortgage rates and the rise in the price of houses. The above notwithstanding, Construsistemas’ business in Mexico and the Andean region had a growth that drove new investments in capacity and new products. In the cement division the markets in which we operate showed a positive behavior in
demand, which we took advantage of to raise our prices and to improve our position in the various markets.
The Elementia/Fortaleza operating income improved by 4.2%, advancing from $3,328 million in 2022 to $3,467 million in 2023, which is attributed to greater sales of cement and efficiency in production costs, added to a reduction in distribution expenses by Construsistemas.
For the same reasons, the EBITDA increased by 6.9% to $6,169 million pesos, with a margin that improved by 320 basis points, increasing from 15.9% to 19.1% in respect to sales.
Sales (millions of pesos)
Operating income (millions of pesos)
EBITDA (millions of pesos)
The net controlling income of this division totaled $106 million pesos, less than the $1,005 million pesos recorded in the same period the previous year.
The capital investments of Elementia/Fortaleza during the year totaled $1,522 million pesos, compared to $1,613 million pesos the previous year, and they were made mainly for the modernization and increase of capacity of the fibrocement plants in the United States and Mexico, and increase of capacity of the cement plant. Also, a significant amount was set aside in order to ensure the major maintenance of the plants in general.
ASSOCIATED COMPANIES
Grupo Carso maintains important investments in companies of various segments, such as in the case of GMexico Transportes, S.A.B. de C.V. (railroad, 15.1%); Transpecos Pipeline L.L.C., and Comanche Trail Pipeline L.L.C. (51.0%), which manages the Waha–San Elizario and the Waha–Presidio pipelines in Texas, USA); and Inmuebles SROM, S.A. de C.V. (14%), which is a real estate firm owning commercial malls in Mexico. The book value, or the market value – as the case may be – of these investments is $38,681 million pesos. We acknowledge our participation in the Results Statements of Associated companies or in dividend income in our Results Statements.
The Sales and EBITDA of these companies in 2023 that would proportionately correspond to Grupo Carso are $10,481 and $4,008 million pesos, respectively.
