Despite the aforementioned, portfolio balance was positive, we managed to contain, to a great extent, negative effects caused by external factors, at the same time that we concluded the largest expansion stage of the Group in the last years.

Pork Meat business is in the final phase of the expansion plan that began in 2016, to double its capacity. With this new scale, we will continue consolidating our position as the largest pork producer in the country, innovating in technology, sustainability, and food safety.

This impulse contributed to the fact that Pork Meat business registered a record year in Revenue, reaching efficiency ratios within the best in the industry worldwide, making it a reference for quality and leading edge in Mexico and abroad.

In Transmission business, we completed the development of the Dual Clutch Transmission (DCT), to supply this part to GM's "2020 Chevrolet Corvette Stingray" platform, as well as Ford's "Mustang Shelby GT500". The new DCT family combines the business's expertise in manufacturing rugged, high-performance transmissions with state-of-the-art mechatronics and software, with proprietary design, making it an outstanding technological achievement, not only for KUO, but for the automotive industry.

In Branded Food JV, we continue to strengthen our reputation as one of the leaders in processed foods in Mexico, as well as the largest producer of guacamole, with the fastest growth in the sauce category, in the United States.

In view of the foregoing, again we recorded double-digit EBITDA margin at consolidated level.

On the other hand, results of Chemical sector businesses were affected by a slow global dynamism, both in volume and revenue, where in the Automotive sector, results were impacted by lower economic activity in Mexico, as well as in some of our main markets.

The focus on sustainability that we’ve had since the origins of the Group, has translated actions in to awareness, care and improvement of the environment, transparency and strengthening of corporate governance, efficiency in quality control and processes with our customers and suppliers, as well as commitment to the wellness of our people and the communities with which we live, aiming to continue creating value for our shareholders and stakeholders.

The accomplishments made during 2019 stem from the talent of more than 24,000 employees that make up our staff. Teamwork is one of the most important institutional values for us, and our human capital continues to be the cornerstone for the execution and subsequent success of the projects. Their commitment and experience have been key to achieve the results so far and to guarantee the permanence of KUO in the future.

Operating and Financial Highlights

During 2019, portfolio recorded similar figures to previous year in Revenue and EBITDA, driven by the strong dynamism in Consumer sector, with 9% growth in Revenue and 3% in EBITDA, while Chemical and Automotive sectors experienced a contraction in margins due to lower prices and volume in main categories.

At years’ end, within our business portfolio, Consumer sector accounted for 50% of consolidated Revenues, followed by Chemical sector with 31% and Automotive sector with 19%.

In Consumer sector, the strong performance of the Pork Meat business should be highlighted, growing in price and volume, as well as in geographical coverage, partially attributed to the outbreak of African swine fever in the greatest part of China, which caused a rise in pork prices globally. The important activity of the export market stands out, with an increased demand of products to Japan, South Korea and China, the latter market being very active during the last quarters of the year. Similarly, Maxicarne retail network registered growth in sales, average ticket and market coverage, ending the year with 530 stores in operation. These two distribution channels accounted for more than 70% of the business' sales, which allows us to break down sales more efficiently and maintain stability in margins.

Branded Food JV had a rise in demand in domestic market main categories, underscoring tomato puree, vegetables and salsas, while in the export market, in Megamex Foods, salsas and guacamole categories stand out, the latter being affected at EBITDA level, due to the increase in avocado costs throughout the year. It is worth noting that Herdez® salsas continue to have a high growth rate in the U.S. market.

Chemical sector recorded a revenue and EBITDA decline due to lower prices and volume in both businesses, derived from low demand, mainly in the United States and Europe. Prices of basic raw materials for the businesses experienced high volatility throughout the year, with a marked downward trend, in turn putting pressure on margins in both Synthetic Rubber and Polymers businesses.

Automotive sector recorded an increase in revenues derived from higher demand for prototypes and components in the Transmission business, as well as in brake lines in Aftermarket business. As mentioned before, during 2019 we completed the infrastructure required for the mass production of the DCT to serve two new platforms with this technology. Expenses related with this development, as well as a less favorable sales mix, generated a negative effect on EBITDA for the business.

We have focused our experience and competences on streamlining operations and maintaining a solid Balance Sheet, in an uncertain and changing environment, while maintaining a long-term growth vision. During 2019, foreign-currency-denominated liabilities and costs were offset by revenue generation in U.S. dollars. We are confident that the completion of our expansion investments will begin to bear fruit in the short term, strengthening the positioning of our businesses in all the markets in which we participate.

Going Forward

Year 2020 is just beginning and is perceived as a challenging year, with high uncertainty as a constant in Economy. Against this backdrop, we will continue to strengthen our business model, leveraging on the competitive advantages we have developed over the years, adapting to new conditions, and reinventing ourselves when circumstances demand it.

We will focus on the implementation of Pork Meat and Transmissions businesses projects, to capitalize on the resources invested, as well as on the continuity and growth of the other businesses in the portfolio.

We will remain betting on innovation and improvement in all our operations, to seize opportunities and consolidate our position.

This year is the beginning of a new phase and a new decade in KUO, we are confident we will keep on writing a success story. We have the talent, passion and creativity to turn challenges into strengths.

At KUO we have a sustainable vision that binds us to our shareholders and stakeholders in creating value with profitability and responsibility. Thus, we endorse our commitment to the development of our country.