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Companies 154

Written by May 07 2018 0

Medellin-based textile giant Fabricato announced May 1 that it posted a COP$11.6 billion (US$4.1 million) net loss for first quarter (1Q) 2018, 13% worse than the COP$10 billion (US$3.5 million) net loss in 1Q 2017.

Sales also dipped 13.6% year-on-year, while earnings before interest, taxes, depreciation and amortization (EBITDA) dropped 45% year-on-year, to COP$1.8 billion (US$637,000).

However, the 1Q 2018 business environment improved compared to the immediate prior quarter (4Q 2017) thanks to relatively low inflation, low interest rates, rising oil prices and an improved consumer confidence index, according to the company.

In addition, Colombia’s textile sector “is beginning to see the positive effect of [government] measures taken at the end of last year against illegal competition,” including “intensification in the fight against contraband [clothing imports] and especially the antidumping measure taken against denim imports from China,” according to Fabricato.

In addition, the start-up of the new free-trade agreement between Colombia and the Mercosur nations enables favorable flow of fabrics at zero tariffs between Colombia, Mexico, Peru, Argentina and Brazil, the company noted.

Meanwhile, Fabricato continues to transfer operations from its shuttered “Riotex” factory in Rionegro, Antioquia, to its centralized Bello, Antioquia, production facilities, hence boosting productivity. Completion of this operational transfer is expected by July.

Reviewing 1Q 2018 results, Fabricato highlighted what it termed as a “bad January, but a good February and March, with EBITDA positive, to a level aligned with our budget.”

In addition, “another relevant factor is our new business model, under which the volume of production is aligned with sales expectations for the period, instead of employing the concept of maximum capacity utilization,” according to Fabricato.

“This has reduced product inventory by 25% in [Colombia Peso] terms and 32% in volume terms, year-on-year,” the company added.

Written by April 27 2018 0

Medellin-based multinational foods giant Grupo Nutresa announced April 27 that its first quarter (1Q) 2018 net profits fell 13.1% year-on-year, to COP$121 billion (US$43 million).

The profit dip “is mainly explained by not accounting a portion of the dividends from our investment portfolio during the period, COP$26 billion [US$9.3 million], which will be registered during the second quarter of this year. Eliminating this effect, Grupo Nutresa’s net profit [for 1Q 2018] would have grown 5.7%,” according to the company.

Corporate-wide consolidated sales for 1Q 2018 rose 3.1% year-on-year, to COP$2.1 trillion (US$748 million), according to Nutresa.

“Sales in Colombia showed a positive performance -- in alignment with better consumption dynamics -- amounting to COP$1.3 trillion [US$463 million], which represents 64% of Grupo Nutresa’s total sales, a growth of 2.4% when comparted to the corresponding [1Q] in 2017, the company added.

Revenues outside Colombia grew 6.6% year-on-year, to US$265.2 million, accounting for 36% of total sales, according to Nutresa.

Consolidated gross profit rose 5% year-on-year, to COP$935.6 billion (US$333 million), “resulting from a sound commodities sourcing strategy,” according to the company.

Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 3.3% year-on-year, to COP$273 billion (US$97 million), with EBITDA margin at 13% of sales. “This is the reflection of our efforts in productivity and cost efficiency, along with a continued investment in the market,” according to Nutresa.

Grupo Nutresa boasts of a 59.8% market share in processed foods in Colombia “and one of the most relevant players in the sector in Latin America, with consolidated sales of COP$8.7 trillion [US$3.1 billion] in eight business units: cold cuts, biscuits, chocolates, Tresmontes Lucchetti [Italian specialties], coffee, retail food, ice cream and pasta,” according to the company.

Written by April 02 2018 0
Canada-based multinationals Gran Colombia Gold (GCC) and Red Eagle Mining (REM) in late March both reported progress in their gold mining operations here in Antioquia during 2017.
 
For GCC, adjusted net income for fourth quarter (4Q) 2017 nearly tripled, to US$9.1 million, from US$3.4 million in 4Q 2016. Similarly, for full-year 2017, GCC’s adjusted net income rose to US$23 million, up from US$15.6 million in 2016.
 
“The improvement in 2017’s annual adjusted net income compared with last year reflects the positive impact on income from operations of the higher gold production this year, lower financing costs due to debt reductions, and a decrease in Colombian wealth tax compared with the prior year,” according to GCC.
 
As for Red Eagle, full-year 2017 net loss worsened year-on-year, to US$15.7 million, compared to a net loss of US$6.9 million in 2016.
 
“The [2017] net loss increased compared to the 2016 period primarily due to increased mine site expenses, as less costs were capitalized during 2017, mineral property exploration costs [rose] at Santa Rosa as regional targets were drilled for the first time, and interest expense [rose]. Total assets and shareholders’ equity increased primarily due to increased mine development,” REM added. 
 
“The focus for the second half of 2017 was to complete enough underground development to support sustainable production and give access to underground drill pads.
 
“With most of the new equipment having arrived at site through February and March [2018] and the final scoops due for delivery in April, the mine is planned to ramp up to 750 tonnes per day in second-quarter 2018.
 
“The additional underground development and infill drilling will allow consistent production resulting in an estimated 45,000 ounces of gold produced during 2018. The mine now has sufficient underground development to support sustainable production,” REM added. 
 
GCC Highlights
 
Commenting on recent progress, GCC executive co-chairman Serafino Iacono added that “our 2017 results demonstrate that we are firing on all cylinders [as] 2017’s gold production was up 16% from 2016.
 
“Adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] increased by 14% over last year and is almost double the amount reported for 2015. Excess cash flow came in as expected at US$16.4 million.
 
“At Segovia [Antioquia], we added more ounces to our mineral resource estimate through exploration than we mined in 2017 and we reported our first ever mineral reserve for the project today.
 
“We continued to invest in the infrastructure at Segovia, not just in mine development and mining equipment but in areas that raise the bar in health and safety, environmental management and through our foundation, social projects that benefit the community,” he added.
 
Gran Colombia exceeded its guidance for 2017 with total gold production reaching 173,821 ounces, up 16% over 2016, according to the company.
 
“Fueled by continued growth in the company’s high-grade Segovia operations, total gold production increased to 51,699 ounces in the fourth quarter of 2017, up 26% over the fourth quarter last year.
 
“Gran Colombia expects its Segovia operations will produce 158,000 to 167,000 ounces in 2018, raising 2018’s total gold production guidance to a range of 182,000 to 193,000 ounces,” the company added.
 
Written by March 25 2018 0

Medellin-based multinational personal-hygiene products manufacturer Grupo Familia announced March 23 that its full-year 2017 consolidated net income more than doubled year-on-year, to COP$231 billion (US$81 million).

Operating income also rose 75% year-on-year, to COP$343 billion (US$120 million), according to the company.

Gross income rose slightly (just under 2%) year-on-year, to COP$2.3 trillion (US$809 million) in the eight countries where Familia now operates.

Familia also boasted that it launched 15 new products last year, under its various brand names, including “Nosotras,” “Pomys,” “Petys,” “Pequeñín,” and “Familia,” according to the company.

Grupo Familia also noted that its 2017 highlights included purchase of 100% of the stock of Dominican Republic-based product distributor Continental de Negocios, for US$16.5 million.

During 2017, Familia also launched a partnership with Massachusetts Institute of Technology (MIT) to review the company’s environmental sustainability plans.

Finally, subsequent to the close of fiscal year 2017, Grupo Familia also noted that it has now completed the buy-out of 100% of the stock of Productos Sancela del Peru, for US$37.7 million. That move bolsters Familia's market strength in Peru and Bolivia, the company added.

Written by March 22 2018 0

Medellin’s “Ruta N” technology-company hosting center announced March 22 that Madrid-based Konecta now has 100 engineers working here -- and exporting services to nine countries including Spain, Portugal, United Kingdom, Morroco, Argentina, Chile, México, Perú and Brazil.

Konecta offers business process outsourcing (BPO, software development and a contact center for “diverse sectors,” according to Ruta N.

The company’s goals for 2018 include updating its technology capacity and providing “effective mechanisms to connect clients with solutions for their needs,” according to Ruta N.

“Our company’s strategy defined the need to centralize software development in one country,” added Konecta Colombia president José Roberto Sierra.

“We analyzed different alternatives before finally deciding upon Medellin, given the high availability in this city of professionals with good qualifications, as well as the decided commitment of local government in favor of innovation and development of projects in the technology sector,” he added.

With coordinated help from Colombian business-development agency Procolombia, Ruta N and Medellin’s ACI (Agencia de Coopercion e Inversion de Medellin y el Area Metropolitana), Konecta first installed its multi-disciplinary innovation center in October 2017, the agency noted.

Separately, Konecta announced February 1 that its full-year 2017 sales hit €770 million (COP$2.7 trillion) thanks to “sustained organic growth” along with integration of recently acquired Allus and B-Connect in Latin America.

“Over the past year, [Konecta] launched a digital transformation and efficiency unit, as well as Konecta Software Factory, its center for technological innovation in Medellin,” the company added.

“Looking ahead, Konecta will keep on searching for opportunities that favor its growth in the American, Brazilian, and European markets, to allow Konecta to meet its goal of ranking among the top world’s five companies in the sector,” according to the company.

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