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Enka Plastic-Bottle Recycling Continues to Grow Enka Plastic-Bottle Recycling Continues to Grow Source: Enka Colombia

Enka Colombia 1Q 2022 Net Income Steady Year-on-Year

Published in Companies Written by  May 13 2022 font size decrease font size increase font size 0
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Medellin-based textiles and plastics-recycling specialist Enka Colombia announced today (May 13) that its first quarter (1Q) consolidated net income was essentially flat year-on-year, at COP$13.79 billion (US$3.35 million), versus COP$13.78 billion (US$3.35 million) in 1Q 2021.

Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) dipped slightly, to COP$17.1 billion (US$4.15 million) in 1Q 2022, versus COP$17.5 billion (US$4.25 million) in 1Q 2021.

Consolidated operating income likewise came-in essentially unchanged at COP$155.78 billion (US$37.8 million) for 1Q 2022, versus COP$155.97 billion (US$37.89 million) in 1Q 2021.

“The year 2022 begins with a solid behavior of the demand, which has allowed us to maintain good sales levels in strategic markets,” according to Enka. Positive results came from an “increase in international prices as a result of the high prices of the petrochemical chain and high global demand, and at a higher rate exchange” between the Colombian peso and the U.S. dollar, according to the company.

While EBITDA remained steady as measured in pesos, “the EBITDA margin showed a decrease of 15%, to 11%, due to the effect of transferring higher production costs to sales prices,” according to Enka.

On other 1Q 2022 fronts, Enka noted investments of COP$59 billion in a new “EKO-PET” recycling plant, “advancing under estimated schedules and budgets.”

Assets during the quarter rose by COP$48 billion (US$11.6 million), to COP$732 billion (US$177.8 million), while liabilities rose COP$33 billion (US$8 million), to COP$253 billion (US$61 million). “The debt ratio ends at 0.6-times EBITDA, increasing compared to the end of 2021 (0.15-x EBITDA) -- but at healthy levels for future investments,” according to the company.

During 1Q 2022, exports totaled US$18.9 million, accounting for 47% of total sales -- better than the 40% share seen in 1Q 2021, once including the impact of polyethylene terephthalate (PET) waste-plastic sales.

For all of its “green” waste-plastics recycling businesses, Enka saw a 45% year-on-year over-all hike in revenues, “mainly due to higher international prices that offset a 5% lower sales volume,” according to the company.

“The capture of plastic bottles grew by 25% compared to 1Q 2021, fulfilling the growth plan of the collection network with a view to supplying the-entry-into operation of the new 'EKO-PET' plant,” according to Enka.

Meanwhile, the “EKO-Fibras” line saw sales dip 7%, mainly because of an increase in “Asian imports at low prices and closure of Coltejer” textile production in Medellin.  “However, the exports grew 19%, driven by new developments for Geotextiles, made from bottles of colors that are difficult to recycle,” according to Enka.

On the other hand, the “EKO-Polyolefins” line saw sales rise by 28%, mainly for the local market rather than exports.

Textile/Industrial Businesses

Once excluding the production of virgin PET, textile revenues grew 51% year-on-year, “mainly due to the strong increase in international prices. Exports reached US$17.2 million, which represents 63% of the income from this line and 91% of the company’s total exports,” according to Enka.

The industrial yarns line saw a 6% hike in volume, “with growth in both canvas for tires as well as technical yarns, thanks to the good behavior of the demand in United States and the recovery of the Brazilian market,” according to Enka.

As for textile filaments, this line grew 6.3%, “mainly in exports, both in Argentina and Brazil, which offset the reactivation of Asian imports Asian in the local market,” according to the company.

Read 52 times Last modified on Last modified on May 13 2022

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