Conconcreto 1Q 2024 Net Profits Plummet 80% Year-on-Year
Medellin-based international highways-and-housing construction giant Conconcreto announced May 15 that its first quarter (1Q) net income dropped 80% year-on-year, to COP$2.7 billion (US$704,000), from COP$14 billion (US$3.6 million) in 1Q 2023.
Revenues also fell 50% year-on-year, to COP$127 billion (US$33 million).
Conconcreto blamed the revenue drop “mainly due to the reduction in participation in the Vía 40 Express concession [in Colombia] and lower execution in construction services.”
As for operating profit, Conconcreto earned COP$25.7 billion (US$67 million) with an operating margin of 10.6%, according to the company.
During 1Q 2024, Conconcreto sold COP$85 billion (US$22 million)| worth of housing units — a 162.4% improvement over 1Q 2023.
“This increase in sales occurred due to the good performance of these projects: Bosscatta 147, located in Bogotá, Contree Palmas Torre 2, located in Medellín and Nuevo Poblado, located in Itagüí,” according to the company.
“In the current macroeconomic context characterized by inflationary uncertainty and high interest rates, the company has demonstrated its ability to successfully execute its projects and achieve a consolidated net profit [in its housing division] of COP$6.1 billion [US$1.59 million],” according to Conconcreto.
At the end of 1Q 2024, Conconcreto closed with a construction and infrastructure backlog totaling COP$3.5 trillion (US$913 million), “equivalent to 3.5-years of execution at a rate of COP$1 trillion [US$261 million] per year,” with 65% of the backlog in Colombia and 35% in south Florida (USA), the company added.
