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Companies 217

Written by August 24 2019 0

Medellin-based multinational paper products and personal-hygiene specialist Grupo Familia revealed in an August 20 filing with Colombia’s Superfinanciera corporate oversight agency that its first half (1H) 2019 net income rose to COP$126 billion (US$37 million), up from COP$98 billion (US$28 million) in 1H 2018.

Gross revenues also rose, to COP$1.28 trillion (US$374 million), from COP$1.14 trillion (US$333 million) in 1H 2018. Operating earnings likewise rose to COP$190 billion (US$55 million) versus COP$153 billion (US$45 million) in 1H 2018.

As for second quarter (2Q) 2019, gross revenues rose to COP$667 billion (US$195 million) versus COP$578 billion (US$169 million) in 2Q 2018, while operating earnings rose to COP$88 billion (US$25.7 million) versus COP$73 billion (US$21 million) in 2Q 2018.

Net income climbed to COP$56 billion (US$16 million) in 2Q 2019 versus COP$44 billion (US$13 million) in 2Q 2018, the filing shows.

Commenting on the results, Familia general manager Andrés Gómez Salazar cited “solid growth” in 2019 sales based in part on the launch of new products including a novel four-ply “Expert” toilet paper, “AcochaMax” kitchen towels, “Premium Touch” baby diapers and “Buenas Noches” feminine-hygiene napkins.

Grupo Familia markets its products in 20 Latin American/Caribbean countries and has its principal factories in Medellin and Rionegro, Antioquia; two other plants in Colombia; two more plants in Ecuador and single factories in Argentina and the Domincan Republic.

Written by August 16 2019 0

Medellin-based socially responsible gold miner Mineros SA announced that its second quarter (2Q) 2019 net income fell 41% year-on-year, to COP$11 billion (US$3.2 million).

“The decrease in net income is mainly explained by an increase in financial expenses -- close to COP$6.6 billion (US$1.9 million), derived from the acquisition of Gualcamayo [mining in Argentina], as well as [currency] exchange [costs] on the order of COP$3.7 billion [US$1.07 million) and higher exploration expenses” for proposed mining projects in Argentina and Chile, according to Mineros.

On the other hand, earnings before interest, taxes, depreciation and amortization (EBITDA) rose 47% year-on-year, to COP$94 billion (US$27 million). EBITDA margin for the latest quarter rose slightly, to 31.5%, compared to 31.1% in 2Q 2018, according to Mineros.

Revenues also rose 45% year-on-year, to COP$298 billion (US$$86.7 million), “explained by a 30% increase in production due mainly to the new ounces from our [recently acquired] operations in Argentina, at an 11.8% higher sale price of gold” as measured in Colombian pesos, according to the company.

Operating costs also rose 55% year-on-year, hitting COP$235 billion (US$68 million), “due to the operating costs (about COP$75 billion/US$22 million) in Argentina that did not exist in the prior year, as well as greater purchases of mining material in Nicaragua [at COP$9.3 billion/US$2.7 million],” according to Mineros.

Gross profit for 2Q 2019 grew 17%, reaching COP$63 billion (US$18 million), with a margin of 21.2%, versus COP$54 billion (US$15.7 million) with a margin of 26.3% in 2Q 2018.

Gold production rose 30% year-on-year, of which Colombia accounted for 15,172 ounces, while Nicaragua contributed 31,610 ounces and Argentina contributed 23,935 ounces.

Full-year 2019 gold production is now estimated in the range of 280,000 to 300,000 ounces of gold equivalent, with “expectations that gold prices continue with high volatility and with an upward tendency,” according to the company.

Colombia Permit Update

Regulatory permitting delays had been holding-up expansion of Mineros' environmentally responsible alluvial mining in Antioquia, although “we have made some progress,” according to Mineros.

The company recently won permit approval from the Forest Directorate of the Ministry of Environment, following an environmental study on possible impacts on epiphytic species. The company also eventually convinced Corantioquia to lift a prior ban on riverbank mining.

On another front, Mineros recently completed a required impact study for Colombia’s national environmental licensing agency (ANLA) for some proposed logging near a mining site. Then, in an August 16 filing with Colombia's Superfinanciera corporate oversight agency, Mineros announced that it has finally won crucial ANLA approvals. 

"Mineros S.A. informs the market that via 'Resolución No. 01612' of August 15, 2019, ANLA resolved our request to modify the environmental management plan for our alluvial operation, unifying some of the resource-use permits," according to the company announcement. 

"Through this modification it is [now] possible to continue our alluvial operation, which had been restricted because of delays in obtaining permits," the company added. 

Written by August 16 2019 0

Medellin-based multinational Grupo Orbis – which includes paint manufacturing giant Pintuco – on August 15 reported COP$6 billion (US$1.7 million) net income for second quarter (2Q) 2019, a big reversal from a COP$17 billion (US$4.9 million) net loss in 2Q 2018.

Earnings before interest, taxes, depreciation and amortization (EBITDA) skyrocketed by 490% year-on-year, to COP$43.6 billion (US$12.6 million), according to the company.

“This good result was due to the dynamics of its businesses in Colombia and its subsidiaries abroad,” according to Orbis.

“In the paints business, [profits growth were from] significant growth of Pintuco stores and high performance coatings in Colombia, the recovery of profitability in Central America, and the optimization of raw material costs and operational expenses,” according to the company.

“In the [Andercol] chemical business, the good results of Brazil and the profitability of the companies in Colombia [can be credited to] finishing the process of stabilization of the new production plants.

“In O-tek [water-treatment technologies subsidiary], results are tied to the good performance of our subsidiary in Argentina and in the [favorable] positioning of the cleaning business, with 7.3% growth in its brands,” according to Orbis.

For first half (1H) 2019, corporate-wide revenues grew 4.11% year-on-year, to COP$680 billion (US$197.6 million), while gross profit rose 12%.

“These results are due to various dynamics within our businesses, among which the following stand out: a 10% increase in sales of the paints business, where the decorative painting and high performance coatings businesses stand out; the completion of the transfer of Colombian plants for chemical business to Cartagena; and better results of the group’s subsidiaries abroad, especially in Brazil, Central America and Argentina,” according to the company.

Written by August 15 2019 0

Toronto, Canada-based Gran Colombia Gold (GCC) – operator of Colombia’s largest underground gold-mine in Antioquia – on August 14 reported second quarter (2Q) 2019 adjusted net income of US$14 million, up from US$8.2 million in 2Q 2018.

Meanwhile, for the first half (1H) 2019, adjusted net income rose to US$27 million, up from US$18.1 million in 1H 2018.

“Improved earnings in the second quarter and first half of 2019 compared with the corresponding periods last year continued to reflect the significant contribution of Segovia [Antioquia] operating performance in 2019 on revenues, total cash costs per ounce, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) and income from operations,” according to GCC.

“With the recent run up in gold prices, well above the average for the first half of this year, our second half earnings, cash flows and cash balance are poised to benefit from our leverage to gold prices,” added GCC CEO Lombardo Paredes.

“We’ve continued to improve our liquidity in the second quarter, bolstering our mid-year cash position to US$51.3 million, including the net proceeds of the convertible debentures financing completed in April.

“The recently announced high-grade results from our drilling program at Segovia in the first half of 2019, and the work we are doing to identify and prioritize step out and brownfield drilling targets, increase our confidence in the potential to add mineral reserves and extend mine life at our flagship operation.”

GCC raised its annual gold production guidance for 2019 to a range of between 225,000 and 240,000 ounces. Total gold production of 57,882 ounces in the second quarter of 2019, up 9% over the second quarter last year brought the total for the first half of 2019 to 118,483 ounces, up 12% over the first half last year.

“With another 18,166 ounces produced in July, the company’s trailing 12-months’ gold production at the end of July 2019 now stands at 229,776 ounces, up 5% over 2018’s annual production,” according to GCC.

“Despite a 1% year-over-year decline in spot gold prices to an average of $1,307 per ounce in the first half of 2019, the company reported a $6 per ounce improvement in realized gold prices to an average of $1,296 per ounce in the first half this year.

“This was the result of lower charges in a new refining contract that the company entered into in January 2019 with an international refinery, saving approximately $20 per ounce sold compared with its previous arrangement.

“With the ‘London P.M. Fix’ gold price ranging from a low of $1,390 per ounce to a high of $1,506 per ounce thus far in the third quarter, the company expects to see a significant increase in revenue and operating cash flow in the second half of 2019 compared with the first half of 2019 if spot gold prices remain at the current level.”

Total cash costs per ounce came-in at $655 per ounce in 2Q 2019, down from $696 per ounce in the 2Q 2018, bringing the average for the first half of 2019 to $638 per ounce, down from $683 per ounce in the first half last year.

Adjusted EBITDA rose 25% year-on-year to US$33.2 million, bringing the total for the first half of 2019 to $68.5 million, up 27% over the first half last year.

Written by August 15 2019 0

Medellin-based multinational retail giant Grupo Exito on August 14 reported a COP$18 billion (US$5.2 million) net loss for second quarter (2Q) 2019, down from a COP$114 billion (US$33million) net profit in 2Q 2018.

Recurring earnings before interest, taxes, depreciation and amortization (EBITDA) were flat year-on-year, at COP$868 billion (US$252 million).

Meanwhile, operating revenue (measured in Colombian pesos) rose 12.3%, to COP$14.5 trillion (US$4.2 billion).

Revenue growth was strongest in Brazil (up 11.2%) and in Colombia (up 3.3%) thanks to the “multichannel” strategy, which combines conventional store sales with growing on-line (internet) and home-delivery sales.

Colombia sales so far this year have benefitted from a 47% jump year-on-year in internet and home-delivery sales, totaling 1.7 million shipments in first-half 2019, representing 4.7 % of total sales of Grupo Éxito Colombia, according to the company.

“The positive results of the organization in Colombia were also leveraged on [store] innovation, with the Éxito ‘Wow,’ Carulla ‘FreshMarket’ and ‘Surtimayorista’ value formats, which grew double-digit sales,” according to the company.

Meanwhile in Brazil, the Grupo Pão de Açúcar (GPA) division “continued to report outstanding figures, due to the consistent growth of the ‘Assaí’ wholesale model and the digital transformation actions,” according to Exito.

As for Uruguay operations, this division “had a solid growth in profitability.”

As for Argentina operations, this division “achieved positive EBIDTA margins amid a challenging macroeconomic context,” according to Exito.

“The joint work between the four countries where the company has a presence continues to focus on digital transformation initiatives and synergies of best commercial practices and joint purchases,” according to Exito.

Grupo Éxito ended the second quarter of 2019 with 1,510 food outlets: 531 in Colombia, 864 in Brazil, 91 in Uruguay and 24 in Argentina, with a consolidated sales area of more than 2.8 million square meters.

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Medellin Herald is a locally produced, English-language news and advisory service uniquely focused upon a more-mature audience of visitors, investors, conference and trade-show attendees, property buyers, expats, retirees, volunteers and nature lovers.

U.S. native Roberto Peckham, who founded Medellin Herald in 2015, has been residing in metro Medellin since 2005 and has traveled regularly and extensively throughout Colombia since 1981.

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