Context and Environment

The global environment remained marked by heightened economic volatility, persistent geopolitical tensions, and a more demanding trade framework. In this context, regionalization assumed a central role in decision-making and reshaping supply chains, trade flows, and investment priorities.

For KUO, these conditions required a selective portfolio management approach targeted on regions where we have operating capabilities, scale, and structural conditions that support our competitiveness. North America remained the Group’s strategic core, complemented by a targeted presence in specific markets in Asia and Europe, guided by strict profitability and operational discipline criteria.

Mexico’s economic integration with North America under the USMCA represents a structural advantage for the Group’s businesses, particularly in terms of market access, logistics efficiency, and proximity to customers.

Performance by Sector

The Consumer sector consolidated its position as the Group’s primary source of stability and cash flow, driven by the solid performance of the Pork Meat business and the continued contribution of the Branded Foods business.

In the Pork Meat business, we reaffirmed our leadership in pork meat production in Mexico, supported by an operating structure encompassing production, processing, and commercialization. This configuration strengthens sanitary control, efficiency, and traceability—key attributes in increasingly demanding markets.

At the international level, we consolidated our presence in strategic export markets, particularly Japan, a global benchmark for sanitary standards and technical specifications, further confirming the reliability of our operations.

During the year, we continued to strengthen our Maxicarne retail network, expanding our presence in the domestic market and reinforcing participation at the final stage of the supply chain. In parallel, we defined strategic action lines to enter higher value-added categories.

The Branded Foods business maintained a strong competitive position within its categories in Mexico and the United States, supported by the strength of leading brands in our domestic market, including Del Fuerte®, Herdez®, Doña María® and Embasa®, as well as by the performance of MegaMex Foods in the U.S. market, where brands such as Wholly Guacamole®, La Victoria®, and Chi-Chi’s® stand out. This performance was supported by innovation, disciplined portfolio management, and a focus on profitability.

Overall, the Consumer sector reflects the strength of a business model that combines productive scale, solid market positioning, and direct market presence.

In contrast, the Industrial sector—comprising Synthetic Rubber, Polymers, and Transmissions—operated in a more complex market environment,, characterized by lower demand in certain applications, pricing pressure, and heightened competition resulting from the oversupply of Asian products in some chemical segments. In the Transmissions business, performance was influenced by volume and demand adjustment decisions by certain customers.

In response to this conditions, the Group maintained prudent resource management, implemented timely capacity adjustments, and prioritized projects with higher value creation. Investments in innovation, technology, and process improvement were directed toward strengthening competitiveness and establish more solid foundation for the future.