Enka 1Q 2025 Profits Dive 73% Year-on-Year

Medellin-based textiles and plastics-recycling specialist Enka announced May 14 that its first quarter (1Q) 2025 net income fell 73% year-on-year, to COP$956 million (US$227,000), from COP$3.5 billion (US$831,000) in 1Q 2024.

Revenues also dipped 6.4% year-on-year, to COP$117 billion (US$27 million), while earnings before interest, taxes, depreciation and amortization (EBITDA) fell 28% year-on-year, to COP$7.2 billion (US$1.7 million), according to the company.

Despite the declines in sales and profits, “exports increased 21% in value and 41% in volume compared to 1Q 2024, reaching COP$51 billion (US$12.3 million) from sales of ‘EKO-PET’ [recycled plastics] to the North American market,” according to Enka.

Also, “operating income increased 5.4% compared to fourth quarter (4Q) 2024, driven by Green Business [recycled plastics] and the sale of surplus electric power,” according to the company.

Explaining the current market situation, “the trade war between the United States and China and the volatility of tariff policies create an environment of uncertainty, which continues to provoke China to flood our markets with low-cost raw materials and products,” Enka explained.

“In Colombia, the slow implementation of the Single-Use Plastics Law (PUSU), exchange rate volatility, and inflationary pressures lead us to be cautious about the outlook for this year,” the company added.

“We began a cost reduction process last year to counteract new global dynamics such as the strong Asian presence in our strategic markets, lower demand, and high inflation.

“As a result, in the first quarter of the year, costs and fixed expenses showed savings of 13.7% or COP$4.2 billion [US$9.9 million] — even with increases due to the consumer price index (5.2%) and minimum wage hike (9.5%).

“EBITDA for the first quarter of this year reached COP$7.2 billion [US$1.66 million], higher than the last quarter of 2024 (4Q 2024) due to higher export sales volumes, which offset the lower TRM [U.S. Dollar-Colombian peso exchange rate] and lower local sales.

“Net income returned to positive territory after overcoming a 4Q 2024 loss, impacted by lower sales volumes and the temporary effects of the closure of our filaments production line,” the company added.