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Grupo Argos Profits Hurt by Covid-19 Crisis Grupo Argos Profits Hurt by Covid-19 Crisis Source: Grupo Argos

Grupo Argos 1Q 2020 Profits Plummet Year-on-Year

Published in Companies Written by  May 15 2020 font size decrease font size increase font size 0
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Stung by the Coronavirus crisis, Medellin-based electric power, cement and airport/highways concessionaire Grupo Argos announced May 14 that its first quarter (1Q) 2020 net income plunged to COP$26 billion (US$6.6 million), down from COP$953 billion (US$243 million) in 1Q 2019.

Consolidated revenues for 1Q 2020 dipped 3% year-on-year, to COP$3.6 trillion (US$919 million).

Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) closed at COP$819 billion (US$209 million), down from COP$953 billion (US$243 million) in 1Q 2019.

“The strategic businesses -- Cementos Argos, Celsia, Odinsa and the real estate business -- made positive contributions to both revenue and EBITDA, confirming the benefits and strength of the infrastructure portfolio diversification strategy,” according to Grupo Argos.

The company closed 1Q 2020 with consolidated reserves and credit lines totaling COP$1.2 trillion (US$306 million), “providing it with the financial flexibility and liquidity required for this moment in time,” according to Grupo Argos.

In addition to its reserves and credit lines, Grupo Argos also touted a COP$520 billion (US$133 million) cost-reduction plan and postponement of COP$870 billion (US$222 million) in investments.

“These efforts, which will continue expanding, initially represent close to COP$2.5 trillion [US$638 million] in essential resources that provide the company with greater maneuvering space at this time,” according to the company.

Meanwhile, “in the areas of philanthropy and corporate citizenship, Grupo Argos has contributed over COP$16.5 billion [US$4.2 million] to strengthen the healthcare system and support the country’s most vulnerable families,” according to the company.

“Grupo Argos has defined the health and well-being of its collaborators and families as its top priority, together with protecting the employment of close to 14,000 people. Along these lines, it has implemented a strategy that includes ongoing medical, social, physical and emotional assistance for all its employees, including those that are working from home.

“Simultaneously, the organization has set aside over COP$3.5 billion [US$898,000] for supporting vulnerable populations that depend on informal work with food assistance that is reaching over 110,000 families with assistance and support from other allies,” the company added.

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