Conconcreto Posts Net Loss for 2Q 2023, Reversing Net Profit in 2Q 2022
Medellin-based construction giant Conconcreto on August 14 posted a second quarter (2Q) net loss of COP$1.55 billion (US$378,000), a sharp year-on-year reversal from the COP$25 billion (US$6 million) net profit in 2Q 2022.
Revenues also plunged to COP$268 billion (US$65 million), from COP$319 billion (US$78 million) in 2Q 2022.
For first half (1H) 2023 (January through June), net income has fallen to COP$4.7 billion (US$1.1 million), down from COP$47 billion (US$11.5 million) in 1H 2022, the company added.
“Despite challenging conditions in the macroeconomic environment current situation, characterized by inflationary uncertainty and high interest rates, the company has managed to guarantee the execution of its projects and recorded a [1H 2023] consolidated net profit of COP$4.7 billion [US$1.1 million], attributable mainly to performance in the investment business,” according to Conconcreto.
The company also noted a 1H 2023 year-on-year revenue increase of 2.6%, “driven by higher execution in the construction business.”
Operating profit during 1H 2023 likewise dipped to COP$73 billion (US$17.8 million), down from COP$102 billion (US$25 million) in 1H 2022.
On the positive front, construction backlog (projects pending) rose to COP$3.7 trillion (US$904 million) in 2Q 2023, up from COP$2.7 trillion (US$660 million) in 2Q 2022.
Of that total, 60% of the backlog is in Colombia, with the remaining 40% in South Florida (USA). “The backlog is made up of 49% of self-generated projects, in which the company invests and hires itself for the construction,” Conconcreto added.
