Grupo KUO, a major industrial and food conglomerate in Mexico, announced a significant decline in its operational cash flow (EBITDA) for the fourth quarter of 2025, reaching 1,159 million pesos, which is 2.9% lower compared to the same period the previous year. The company attributed this drop primarily to the imposition of tax credits by the Mexican government on its pork business and the impact of tariffs on its industrial division in the United States. These factors, combined with increased distribution costs, have contributed to reduced profit margins.

In the financial report submitted to the Mexican Stock Exchange, KUO detailed how the pork division was adversely affected by government actions leading to higher operational costs. Concurrently, its industrial segment faced elevated expenses due to tariffs imposed in the U.S. market. This situation has led to a broader contraction of profit margins, which the company noted would require strategic adjustments to enhance financial performance going forward.

Moreover, the consumption division of KUO saw a stark 35.2% contraction in operational flow, raising concerns about its capacity to maintain competitiveness in the market. The challenges posed by exchange rate fluctuations and increased operational expenses further complicate the landscape for KUO, underscoring the critical nature of policy decisions and economic conditions that directly impact large conglomerates in Mexico.