Enka Full-Year 2019 Profits Skyrocket by 253% Year-on-Year
Medellin-based textiles and waste-plastics recycling specialist Enka Colombia revealed in a February 6 filing with Colombia’s Superfinanciera oversight agency that its full-year 2019 net profits jumped 253% year-on-year, to COP$15 billion (US$4.4 million).
“In addition to good operating results, the net result was favored by lower financial expense due to the reduction in indebtedness, the better impact due to exchange differences and a lower tax burden as a result of the [2019 Colombia tax-reform] financing law,” according to Enka.
Operating revenues came-in at COP$402 billion (US$118 million), with exports accounting for 45% of sales.
“Brazil, the United States and Canada stand out as the main destinations because of our focus on added value and growth potential,” according to Enka.
Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 13% year-on-year, to COP$35.8 billion (US$10.5 million), while EBITDA margin on sales improved from 7.7% in 2018 to 8.9% in 2019 – “the best result in the company’s recent history,” according to Enka.
“The main factors for the good operational result were the devaluation of the peso [against the U.S. dollar], the greater collection of plastic bottles [which Enka converts into synthetic fibers] and the diversification of markets.”
Meanwhile, Enka’s board of directors will propose to its March 12 shareholders meeting that 2019 profits would be redirected to absorb losses from previous years.