Construcciones El Condor Posts Net Loss For Full-Year 2024
Medellin-based highway construction giant Construcciones El Condor reported February 28 a full year 2024 net loss of COP$171 billion (US$41 million ) – a 34% reduction compared to the COP$259.7 billion (US$62.5 million) net loss in 2023.
Despite the continuing losses, 2024 revenues rose 34% year-on-year to COP$1.77 trillion (US$426 million), according to the company.
“This [revenue boost] is associated with the billing of the construction contracts for the Magdalena 2 [highway] project, which was in its finalization stage of functional unit two, and the Ruta al Sur Project,” according to El Condor.
Full-year 2024 earnings before interest, taxes, depreciation and amortization (EBITDA) came-in at COP$30.5 billion (US$73 million million), “equivalent to an EBITDA margin of 2.61%,” according to the company.
Gross profit was COP$22.7 billion (US$54.6 million), equivalent to a gross margin of 1.94%, but the company nevertheless suffered an operating loss of COP$61.3 billion (US$14.7 million) with a operating margin of (minus) -5.23%.
“Interest expense increased 6.71% compared to the third quarter of 2023, of which 1.09% corresponds to the increase in debt and 3.99% corresponds to the increase in interest rates, this being the main variable generating the net loss,” according to El Condor.
“The company expects that the evolution of inflation will allow interest rates to decrease in the medium term and that with the sale of one of our assets, part of our debt can be paid, mitigating the risk of increased interest rates,” the company added.
