Weaker end markets and consequently lower sales volumes also determined the first quarter of 2023 for Mexican PVC group Orbia (Tlalnepantla; www.orbia.com). While revenues fell 12% to USD 2.28 bn (EUR 2.07 bn) compared to the same period last year, EBITDA plummeted 23% to USD 469 mn. The decline in net profit was even more pronounced, with the more than 70% year-on-year drop pushing it to USD 80 mn.

The 28% decline in sales at the core PVC business Polymer Solutions was significant as the operations accounts for the largest share of sales with nearly one-third. EBITDA even fell by more than half to USD 147 mn. The decline in turnover was primarily due to lower prices for basic PVC, but also to reduced sales volumes, the company said.

The business unit includes Germany-based Vestolit (Marl; www.vestolit.de) and US PVC compounder Alphagary (Leominster, Massachusetts; www.alphagary.com) and supplies PVC products to a worldwide customer base and to its own downstream business at Dutch pipe and fitting manufacturer Wavin (Zwolle; www.wavin.com).

Related: Orbia's PVC unit said to be up for sale

As far as the outlook for the current year is concerned, the group remained cautiously optimistic. Currently, an EBITDA of USD 1.65 bn “or more” is being targeted, after USD 1.91 bn in the previous year, it says.