Coltejer Posts Net Loss for 2Q 2024, Reversing 2Q 2023 Profit
Medellin-based Coltejer – historically a giant in Colombian textile manufacturing, but now a mere shadow of its former self – announced August 26 a second quarter (2Q) 2024 net loss of COP$18.3 billion (US$4.5 million), a sharp reversal from a 2Q 2023 net profit of COP$24.8 billion (US$6.1 million).
“This negative result has weakened the company’s financial position,” the company revealed in a filing with Colombia’s Superfinanciera oversight agency.
“Current assets decreased by 15% — from COP$11.36 billion [US$2.8 million] in December 2023 to COP$9.7 billion [US$2.4 million] in June 2024 — reflecting a reduction in the liquidity available to cover short-term obligations.
“The company’s total liabilities increased by 3.6% — to COP$508.5 billion [US$126 million] in 2024 versus COP$490 billion [US$121.5 million] in 2023 — driven mainly by an increase in non-current accounts payable,” the company explained.
Given the complete shutdown of all its giant factories here in Antioquia, Coltejer “managed to generate COP$9.9 billion [US$2.4 million] in other income, which shows the company’s ability to diversify its sources of income, but these were not sufficient to offset operating losses,” the company added.
As a consequence of poor results, “the company has had to adjust its strategy due to the net losses, including the reduction of its staff and the restructuring of its business model towards smaller-scale activities and marketing of imported fabrics,” Coltejer explained.
“Cash and cash-equivalents decreased from COP$2.1 billion [US$521,000] to COP$1.23 billion[US$305,000], indicating a reduction in the company’s ability to generate cash from its operations,” the company added.
“The net loss and decrease in shareholders’ equity from COP$359 billion [US$89 million] to COP$341 billion [US$84.6 million] could affect the perception of value among investors and their ability to exercise political rights with greater influence,” the company concluded.
