Enka Full-Year 2025 Net Income Plunges 70% Year-on-Year
Medellin-based textiles and plastics-recycling specialist Enka on March 12 posted a 70% year-on-year drop in net income for full-year 2025, at COP$3.1 billion (US$841,000), versus COP$10 billion (US$2.7 million) in 2024.
Revenues also declined 16% year-on-year, to COP$406 billion (US$110 million), versus COP$475 billion (US$129 million) in 2024.
Earnings before interest, taxes, depreciation and amortization (EBITDA) likewise declined 22% year-on-year, to COP$29.7 billion (US$8 million), versus COP$36 billion (US$9.7 million) in 2024.
Despite the declines in revenues, EBITDA and net income, a portion of Enka’s various “green” plastics recycling businesses showed improvement — but that sector also suffered from trade barriers, cutbacks in some customer “sustainability” goals, and cheap, non-recycled Chinese supplies of virgin PET (polyethylene terephthalate) competing with recycled PET.
“EKO-PET export revenues increased 109% compared to 2024, primarily to the U.S., mitigating the slower local market [in Colombia],” according to the comnpany.
“The company has capitalized on its transformation experience to ensure its growth and maintain its leadership in post-consumer recycling in Colombia, with a clear vision for international expansion . . .
“[However], the recycling industry faced low prices for virgin PET due to oversupply from China and trade barriers that widened the gap with recycled PET, leading major brands to adjust their sustainability goals,” the company added.
Despite those problems, “green” businesses still represented 65% of Enka’s corporate 2025 revenue.
“Through our four plants — two for ‘EKO-PET,’ one for ‘EKO-Polyolefins,’ and one for ‘EKO-Fibers’ — we have the installed capacity to continue growing alongside our customers in Colombia and to further develop new export markets,” according to Enka.
Faced with declining revenues and profits, “we achieved a 15.6% reduction in fixed operating costs and expenses compared to the previous year, even with 5.2% inflation and a 9.5% increase in the minimum wage projected for 2025,” according to Enka.
“We ended the year [2025] with a net debt ratio of 0.1-times EBITDA, a reflection of the company’s financial strength that will allow us to capitalize on growth opportunities in the short term,” the company added.
As for its 2026 outlook, “with the increase in the minimum recycled PET resin content percentages required by [Colombia’s] Single-Use Plastics Law (PUSU) for 2026 — 55% for water bottles and 22% for other beverages — we expect a higher volume of local sales compared to 2025,” according to Enka.
“Additionally, we are making determined progress toward obtaining new certifications that will allow us to open new export destinations for ‘EKO-PET’ and conquer other strategic markets,” the company added.
