Conconcreto Posts Net Loss for Full Year 2024, Reversing 2023 Gains
Medellin-based buildings-and-highways construction giant Conconcreto announced February 28 a COP$176 billion (US$42 million) net loss for full-year 2024, a reversal from a COP$880 million (US$21 million ) net profit in 2023.
Revenues also fell 28% year-on-year, to COP$883 billion (US$213 million), while earnings before interest, taxes, depreciation and amortization (EBITDA) declined 39% year-on-year, to COP$78 billion (US$18.8 million), versus COP$128 billion (US$31 million) in 2023.
The financial reverses “are derived mainly from two factors,” according to Conconcreto: sale of investments in FCP Pactia and construction-business losses.
The Pactia divestment “resulted in a loss of COP$88 billion [US$21 million] due to the sale at a discount of the FCP Pactia units for the payment of the debt of the syndicated loan. This loss will be recovered over time through savings in financial expenses,” according to Conconcreto.
Meanwhile, “the construction business reported a loss of COP$108 billion [US$26 million], caused by lower productivity in the execution of works due to mobility restrictions, delays in the delivery of properties and negotiations with public utility companies,” according to the company.
Despite the poor results last year, Conconcreto nevertheless “closed 2024 with a solid equity structure of COP$1.25 trillion [US$302 million] and prepared to face the challenges of the sector, thanks to a significant improvement in its risk profile,” according to the company.
“Consolidated debt went from COP$768.6 billion [US$186 million] to COP$249 billion [US$60 million],” according to the company.
“This [debt reduction] was achieved through a negotiation with the participating banks of the syndicated loan, in which an exchange of units of the FCP Pactia Inmobiliario was agreed as a form of debt payment.
“This new capital structure will allow the company to improve its liquidity and profitability position over time, optimizing financial expenses and facilitating access to credit and new sources of financing,” the company concluded.
