Grupo Kuo stock under pressure as Q3 EBITDA drops 21 percent

Grupo Kuo reported a weaker third quarter on October 20, 2026, as pressure in its consumer operations offset a recovery in industrial activities. Milenio said the Mexican conglomerate recorded EBITDA of 954 million Mexican pesos for the quarter, down 21 percent from a year earlier.

Consumer operations remain the drag

The consumer division was the main weakness. Its EBITDA fell 52.1 percent to 569 million Mexican pesos from 1.187 billion pesos a year earlier, reflecting weaker margins in the pork business and higher freight, ingredient, logistics and promotional costs at Herdez Del Fuerte.

Grupo Kuo also faced lower pork prices and volumes, stronger competition from US pork imports and oversupply in Asian markets. MegaMex Foods reported weaker sales, particularly in guacamole, amid lower avocado prices.

Industrial activities regain momentum

The industrial segment provided a counterweight. Its EBITDA improved to 393 million Mexican pesos from a loss of 3 million pesos in the third quarter of 2025, while segment revenue increased 18 percent. Automotive transmissions, synthetic rubber and polymers posted stronger sales, although polymers still faced margin pressure and unfavorable inventory adjustments linked to crude-oil volatility.

Group revenue reached 13.024 billion Mexican pesos between July and September, 0.5 percent below the comparable period. Majority net income turned to a loss of 184 million pesos from a profit of 60 million pesos a year earlier, underscoring the earnings pressure despite the industrial recovery.

What investors should watch next

The next focus is whether improved industrial demand can offset continued pressure in food and pork markets. Investors will also be watching freight, ingredient and promotional costs, along with selling prices and volumes in the consumer businesses.

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