Companies 414
Medellin-based paints, chemicals, hardware supplies and pipe manufacturer Grupo Orbis this month posted a second-quarter 2017 net loss of COP$1.5 billion (US$504,000), an improvement over the COP$11 billion (US$3.7 million) net loss in 2Q 2017.
Sales improved slightly in 2Q 2017 to COP$369 billion (US$124 million), versus COP$366.9 billion (US$123 million) in 2Q 2016, according to the company, which produces the popular “Pintuco” brand of paints at its Rionegro, Antioquia manufacturing complex.
While first-quarter 2017 results inside Colombia were in-line with budget forecasts, the second quarter 2017 showed a decline in consumer demand, according to the company.
On the positive side, Orbis sales in Central American markets and in Argentina exceeded expectations. But Brazil sales results were hurt by continuing macroeconomic headwinds, according to Orbis.
Corporate financing costs for first-half (1H) 2017 grew to COP$36 billion (US$12 million), versus COP$27 billion (US$9 million) in 1H 2016.
While Grupo Orbis describes itself a significant finished-products exporter, the company “has a significant exposure to imported raw materials that may have potential impacts on costs due to adjustments in the exchange rate,” according to the company.
Medellin-based gold mining giant Mineros SA announced August 17 that its first-half (1H) 2017 net profits dipped 2.9% year-on-year, to COP$74 billion (US$24.7 million), while operating income dipped 4%, to COP$199 billion (US$66.6 million).
Earnings before interest, taxes, depreciation and amortization (EBITDA) fell 12.2% year-on-year, to COP$100 billion (US$33 million), while operating costs rose 1.6%, to COP$106 billion (US$35 million).
Consolidated revenues rose 14.4% year-on-year, to COP$402 billion (US$134 million), but Colombia revenues fell 4% year-on-year as gold prices (in Colombian pesos) fell 7.24%, according to the company.
Revenues in its Nicaragua operations rose 40% year-on-year thanks to production increases, while EBITDA margin in Nicaragua hit 26%, versus 50% in Colombia.
The company foresees future annual gold production in Nicaragua hitting 120,000 ounces “over the médium term” and predicts economical synergies between its Colombian and Nicaraguan operations.
Most of the Colombian gold production by Mineros is alluvial (river barge dredging) whereas most of the Nicaraguan production is via underground mines. Colombian production dipped slightly to 54,983 ounces in 1H 2017, versus 56,409 ounces in 1H 2016, while Nicaraguan production rose 36.6% year-on-year, to 53,725 ounces, according to the company.
Medellin-based construction giant Construcciones El Condor announced August 11 that its second-quarter (2Q) 2017 net income rose nine-fold year-on-year, to COP$159 billion (US$53.6 million), while revenues jumped 55%, to COP$455 billion (US$153 million).
Earnings before interest, taxes, depreciation and amortization (EBITDA) rose five-fold, to COP$226 billion (US$76 million), according to the company, which focuses mainly upon highway construction.
Operating revenues for first-half 2017 were COP$275 billion (US$92.7 million), up 62% over the same period last year “mainly due to considerable construction revenues in [Colombian highway] projects which are in the construction stage as is the case with Pacifico 2, Pacifico 3, Transversal de las Americas and Ruta al Mar among others,” according to the company.
“The company expects to continue achieving its revenue budgets, which could generate an additional increase for the second semester of 2017,” the company added.
The big jump in net income “is explained principally by the income from sale of investments (non-recurring event) and the increase in profit from construction services provided, which the company expects to maintain during the second semester. Net margin was 57.6%,” according to the company.
“The infrastructure sector continues to be a key economic driver and this quarter´s figures reflect projects that are maturing and increasing their rate of execution. The projects that supported the construction revenues in the second quarter of 2017 were Transversal de las Americas, Caucheras, Pacifico 3, Pacifico 2 and Cesar Guajira,” the company added.
As of June 2017, the company administers an investment portfolio with infrastructure projects that have a book value of approximately COP$668 billion (US$225 million).
Debt ratio was 26% (calculated over total assets) and net equity as of June 31, 2017, was COP$905 billion (US$305 million), up 16.9% year-on-year.
Meanwhile, order backlog -- the balance of works hired and works to be implemented -- was COP$2.782 trillion (US$938 million), the company added.
Medellin-based multinational insurance, pensions and investment giant Grupo Sura announced August 15 that its first-half (1H) 2017 net income dipped 34.6% year-on-year mainly because of Colombian peso devaluation against the U.S. dollar.
However, revenues rose 22.4% year-on-year to COP$9.9 trillion (US$3.3 billion), while investment income jumped 61.5%, to COP$1.1 trillion (US$372 million), according to the company.
“These results reflect the dynamic operation of our affiliates Sura Asset Management – specialized in pensions, savings and investments – and Suramericana, in the sector of insurance and risk-management,” according to Sura.
Its affiliation with associates Bancolombia and pension specialist Proteccion delivered US$169 million in revenues, according to the company.
Expenses rose 29.7% year-on-year, to US$3 billion, mainly due to the acquisition of insuror RSA.
Leaving aside the impact of peso devaluation and certain non-recurring charge provisions, net income would have grown 11.4% year-on-year, according to the company.
Assets grew 4.9% year-on-year, to COP$71.2 trillion (US$23.3 billion), while shareholder equity grew 0.9% year-on-year, to US$7.5 billion, according to the company.
The Suramericana insurance subsidiary saw premium income rise 47.2%, to US$1.8 billion, sparked by the acquisition of RSA last year.
Meanwhile, the Sura Asset Management subsidiary saw its assets under management grow 14.4%, to US$126 billion.
Operating income from its pension administration group rose 11.7%, to US$383 million, with the voluntary pension segment growing 28% year-on-year, according to the company.
Medellin-based multinational supermarket giant Exito reported August 14 that its first-half (1H) 2017 net profits rebounded to COP$61.6 billion (US$20.7 million), up from a COP$47.7 billion (US$16 million) loss in 1H 2016.
Revenues also rose 12.4% year-on-year, to COP$26.8 trillion (US$9 billion), while recurring earnings before interest, taxes, depreciation and amortization (EBITDA) rose 40% year-on-year, to COP$1.7 trillion (US$573 million), according to the company.
While Colombia’s relatively weak economy this year pinched over-all results, a rebounding Brazilian economy boosted Exito’s corporate-wide earnings, according to the company.
In Brazil, Exito’s “Grupo Pão de Açúcar” (GPA) chain saw revenues rise 8.1% year-on-year (measured in local currency) and the “Assai” cash-and-carry supermarket chain saw a 28% jump in operational earnings.
In Uruguay, sales rose 7.4% year-on-year (measured in local currency) and EBITDA margin hit 8%, according to the company.
In Argentina, the company’s commercial real-estate business expanded to 161,000 square meters of rentable space, putting Exito in the number-one position (outside of Buenos Aires) in offering commercial gallery space.
In Colombia, Éxito’s “Surtimayorista” cash-and-carry chain continues to grow, with eight stores now open and showing promising results.
Surtimayorista is “one of the strategies of the [Éxito] group to confront the challenging macroeconomic situation” in Colombia, according to the company.
The private-label clothing business also is showing exemplary results, as 97% of all Éxito-branded clothing ítems are produced in Colombia, generating US$6 million in export income, according to the company.
Synergies between all of Éxito’s business lines in Latin America are now expected to deliver US$50 million in corporate-wide savings this year, the company added.
The company now has 1,563 retail locations, with 568 in Colombia, 884 in Brasil, 81 in Uruguay and 30 in Argentina.
“The first-half results continue to show us that our internationalization strategy is producing good results and positive diversification in income and profits for our group,” added Grupo Éxito president Carlos Mario Giraldo.
