What are the main macro trends affecting the chemical distribution segment in Latin America?

The diversification of our business to provide a broad product portfolio to our customers and has been part of our strategy not only in different market segments where we participate but also in our supply chain, developing suppliers from different continents especially Latin America where we see a particular interest in local suppliers and manufacturers.

Pochteca is one of the largest chemical distributors globally. What is the strategy to maintain this position, and what added value do international distributors have compared to local ones?

Pochteca’s core value proposition is based on providing customers with a broad product portfolio including environmental and logistics solutions. Our product and service offering to customers includes highly technical solutions with customized formulations to increase our customers´ process performance as well as to provide a reliable supply of commodity product lines. Our unique geographical footprint in Latin America, a diversified product portfolio and access to different sales channels allow us to be able to reach and successfully service our customers across different countries and industrial sectors.  

As a local and Latin American-owned distributor, we are very familiar with all the complexities our continent is facing constantly. We have a lot of experience in doing business in high inflation countries as well as managing fluctuations in market demand due to political and economic instability. This is a competitive advantage as it gives us flexibility and the ability to respond quickly to our customers’ requirements in the region.    

How could consolidation in the Latin American chemical distribution segment benefit the sector, and what types of companies might be of interest to Pochteca from a mergers and acquisitions perspective?

The chemical distribution market is in constant movement, especially considering that market players face an always challenging supply chain and variable economic and political conditions.  Consolidation provides customers access to a one-stop-shop supply, while distributors strive to achieve a more diversified and integrated operation to improve efficiency and reduce risk. 

Pochteca has a strong organic and inorganic growth track record, with a history of seven successful acquisitions. The Group is always open to consider acquisition opportunities to reinforce its geographical footprint or diversification in a specific segment. Local small-medium size companies are always interesting as long as they align with Pochteca´s growth strategy and are value accretive.    

What is the importance of sustainability from a business and value chain perspective?

Most of our customers are highly conscious of the importance of sustainable and eco-friendly industrial activity, and our company is involved in several of these initiatives. We have an eco-friendly product portfolio in most market segments and provide several environmental solutions to our customers. We have one business division focused on environmental solutions to provide waste management for our customers, including providing collection, classification and final disposal services. 

In relation to our customers' processes, we have sustainable initiatives that strongly impact our customer’s industrial value chain, such as solutions for solvent recovery and coolant recycling. We have several references in different industries where we are providing these solutions to customers.

We also continue to invest in installing solar panels on our sites to reduce carbon emissions.

What new technologies is Pochteca leveraging?

Proyecto Cacao is about our digital transformation. Digital transformation is the integration of digital technology into all areas of our business, fundamentally changing how we operate to deliver value to our customers, including accessing the potential of artificial intelligence. It's also about a cultural change that requires our organization to continually challenge the status quo, keep learning and get comfortable with continuous improvement to optimize our processes and ways of doing business.

What are the company's objectives and priorities for 2025?

Key objectives for 2025 include reinforcing our company's growth and expansion through organic and inorganic initiatives. Among our priorities are expanding our geographical footprint and sales channels, increasing our presence, and continuously improving our customer service.

Pochteca is today present in 11 countries, which provides a great opportunity to generate value through synergies within the group, replicating our product portfolio and business solutions across our operations.