Enka 2Q 2023 Net Income Jumps 61% Year-on-Year
Medellin-based textiles and waste-plastics recycling specialist Enka announced August 11 that its second quarter (2Q) 2023 net income rose 61% year-on-year, to COP$10.5 billion (US$2.6 million).
However, earnings before interest, taxes, depreciation and amortization (EBITDA) fell by 21%, to COP$12.6 billion (US$3.1 million), according to the company.
While the year-on-year 2Q 2023 EBITDA fell, it was better than 1Q 2023 “as a result of the start of sales at the new EKO-PET [waste plastics recycling] plant and lower cost overruns due to the situation of raw materials from the previous year,” according to Enka.
Operating revenues in 2Q 2023 dipped 7.5% year-on-year, to COP$287 billion (US$72.3 million), “mainly due to minor declines in international prices and lower demand from the textile and industrial businesses, partially offset by higher sales of green businesses mainly due to the new EKO-PET plant,” according to the company.
As for first-half (1H) 2023, net income fell 33%, to COP$15 billion (US$3.7 million), while EBITDA fell 57%, to COP$21.7 billion (US$5.5 million), “due to the fact that in 2022 demand was much stronger and the impacts of commodity prices were higher,” along with an “increase in financial costs,” according to Enka.
Total assets at the end of 2Q 2023 ended at COP$792 billion (US$199 million), down COP$16 billion (US$4 million) from year-end 2022, “mainly due to gradual normalization of inventories after the situation of raw materials of the previous year,” according to Enka.
Total liabilities closed at COP$288 billion (US$72 million), down COP$38.7 billion (US$97 million) “due to a reduction in financial indebtedness and better valuation of hedges due to revaluation of the Colombian peso,” the company added.