Enka 3q 2025 Net Income Declines Year-on-Year

Medellin-based textiles and plastics-recycling specialist Enka announced November 10 that third quarter (3Q) 2025 net income fell 50% year-on-year, to a relatively modest COP$886 million (US$235,000), from COP$1.77 billion (US$451,000) in 3Q 2024.

On the other hand, revenues jumped by 155% year-on-year, to COP$314.7 billion (US$83.5 million), from COP$123 billion (US$32.6 million) in 3Q 2024.

Earnings before interest, taxes, depreciation and amortization nearly doubled, to COP$18 billion (US$4.8 million), versus COP$9.9 billion (US$2.6 million) in 3Q 2024.

On positive fronts, “exports to the U.S. from our ‘Green’ businesses grew by 572%, and industrial businesses saw a 51% increase in exports to Europe, mitigating the slower local [Colombia] growth,” according to Enka.

“Fixed costs and expenses (excluding depreciation) decreased by 17.4%, despite a 9.5% increase in the minimum wage and 5.2% inflation.”

What’s more, “the company’s cash balance exceeded total debt at the end of the third quarter, resulting in a negative net debt ratio (-0.7 times EBITDA).

“Since 2009, when we began our industrial transformation process using post-consumer [plastic] waste as raw material, we have evolved to become the leading producer of recycled PET granules in Colombia.

“Furthermore, through our plants that allow us to produce fibers from recycled PET, recycled polyethylene from bottle caps, and polypropylene from labels, we prevent millions of water and soda bottles, caps, and labels from ending up in our country’s water sources, streets, oceans, and forests,” the company added.

On the other hand, “during 3Q 2025, the challenges that have been intensifying since the previous year persisted, such as the trade war between the United States and China, the pressure of Asian overcapacity in international markets, and the reassessment of sustainability goals by major brands.

“These factors continue to affect industry volumes and margins, especially in the Colombian market, where competition from low-cost virgin resins from Asia has reduced the consumption of recycled material to the minimum required by current regulations,” the company explained.

To respond to those pressures, “Enka has been implementing an efficiency plan that has allowed the reduction of operating costs and fixed expenses (excluding depreciation) from COP$89 billion [US$23 million] in 2024 to COP$73.5 billion i[US$19.5 million] in 2025, even with the impact of the increase in the minimum wage decreed the previous year (+9.5%) and inflation (+5.2%),” the company explained.

“Amidst the global escalation of tariffs, Enka has achieved a 572% (6.7-fold) increase in sales from its ‘Green’ businesses in the U.S., which now represent 55% of exports to that country, versus 12% in 2024.

“Similarly, sales in Europe grew by 51% in the Industrial businesses, offsetting the slower performance of the Green businesses in Colombia and in Brazil due to the closure of our Filaments line.

“As of the end of September, exports reached US$32.5 million (2024: US$32.9 million), which, excluding Textile Filaments exports, represents an 11% increase.”

What’s more, “65% of the company’s revenue now comes from Green businesses, which reached COP$203 billion [US$54 million] as of the end of September, a figure similar to that recorded in 2014 (COP$201 billion[US$53 million], despite a 7.6% decrease in sales volumen,” according to the company.

“This performance has occurred in a highly challenging environment, marked by overcapacity in virgin PET production in Asia, fueled by low-cost raw materials from Russia. Added to this are the tariffs imposed by the U.S. on China, which have led that country to reduce international prices to historically low levels,” Enka added.