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Companies 313

Written by February 12 2020 0

Colombia-based cement/concrete producer Cemex LatAm Holdings revealed in a February 12 filing with Colombia’s Superfinanciera oversight agency that its full-year 2019 net profits plummeted to US$4 million, from US$63 million in 2018.

For fourth quarter (4Q) 2019, the company posted a net loss of US$3 million, compared to a 4Q 2018 net profit of US$10 million.

Sales for full-year 2019 likewise declined 11% year-on-year and 9% quarter-on-quarter, according to Cemex LatAm.

Results in Colombia generally improved, compared to company operations elsewhere in Latin America.

“In Colombia, our net sales and operating [cash] flow improved by 7% and 3%, respectively, in terms of local currency throughout the year 2019,” according to Cemex.

Cement prices in Colombia rose by 11% from December 2018 to December 2019 in terms of Colombian pesos, while sales volumes improved by 9% during 2019.

As for the current outlook on expected sales volumes in Colombia, Cemex estimates that 2020 cement volumes will decline by 4% to 6%, but concrete volumes should rise by 3% to 5%.

In the Colombia residential sector, “we estimate that national cement shipments to this sector increased by a low digits during 4Q 2019 and the full year, compared to the same periods last year,” according to Cemex.

“Cement volumes for the self-construction segment [in Colombia] improved during 2019, driven by economic recovery and remittances [of U.S. dollars from Colombians working overseas].

“In [Colombia’s] social housing segment, indicators such as permits, launches and sales improved in double digits during the last six months.”

As for Colombia’s infrastructure sector, “this was the sector with the best performance during 2019, increasing in double digits. We expect the national cement/concrete demand for the fourth generation ['4G' highway construction program] to increase more than 50% in 2020.

“Our [2019] volumes for this sector were supported by 4G projects, as well as projects in Bogotá such as the Salitre water treatment plant and the CETIC Hospital, among other projects throughout the country,” Cemex added.

Commenting on the over-all results, Cemex LatAm general director Jesús González stated that the company is “satisfied with our results in Colombia.”

“However, our consolidated results were affected by the depreciation of the Colombian peso against the U.S. dollar and much weaker markets in Panama, Costa Rica and Nicaragua. To respond to this challenge -- and as part of our ‘stronger Cemex’ plan in 2019 -- we achieved recurring savings of US$20 million and dedicated our free cash flow to reduce financial debt.

“During 2019, our free cash flow improved by 68%, reaching US$93 million and reducing our net debt by US$92 million dollars, or 11%.

"Additionally, during December we refinanced loans with maturity in 2020. Now, our debt maturity profile is more manageable, and we have no significant debt maturities until December 2022."

Beyond Colombia, Cemex LatAm’s corporate-wide 4Q 2019 volumes of gray cement, concrete and aggregates decreased by 3%, 13% and 10%, respectively, compared to 4Q 2018.

In Panama, 4Q 2019 cash flow dropped by 23%, to US$10 million. Net 4Q sales likewise fell 27%, to US$38 million, according to the company.

In Costa Rica, 4Q 2019 cash flow fell 27%, to US$7 million, while net sales fell 20%, to US$22 million.

In the rest of its operating areas (Nicaragua, El Salvador and Guatemala), cash flow fell 25% year-on- year in 4Q 2019, to US$14 million, while 4Q 2019 net sales declined 11% year-on-year, to US$52 million.

Written by February 11 2020 0

Spain-based Air Europa announced February 10 that it’s expanding its Medellin-Madrid-Medellin nonstop service to four times per week (up from three currently) starting in April 2020.

“This new operation, which responds to the good [market-demand] behavior shown by the route since its launch [last June], will mean an average increase of 30.7% in the number of seats,” according to the company.

The Medellin-Madrid-Medellin service attracted 44,000 passengers last year, with plane occupancy rates “close to 90%,” according to the company, a division of the Globalia tourism conglomerate.

The expansion means that Air Europa nonstop service on Boeing 787-8 “Dreamliners” will include Fridays in addition to Tuesdays, Thursdays and Saturdays.

The new-generation, fuel-efficient planes carry 274 passengers in economy class and 22 in business, “generating less [greenhouse gas] emissions than any other aircraft of similar size,” according to Air Europa.

Via its hub operations in Madrid, “Air Europa will consolidate other destinations on its international map with an increase in frequencies and the progressive arrival of the new Boeing 787-9” aircraft, according to the company.

“The Air Europa fleet is one of the most modern on the [European] continent. It consists of more than 50 aircraft whose average age does not exceed four years,” according to the company.

Air Europa is a member of the SkyTeam alliance, formed by 19 airlines that collectively transport more than 630 million passengers annually through 15,400 daily flights to more than 1,000 destinations in more than 170 countries.

Written by February 10 2020 0

Medellin-based real-estate developer Valores Simesa on February 7 reported an after-tax profit of COP$21.1 billion (US$6.1 million) for full-year 2019 -- and simultaneously revealed in a filing with Colombia’s Superfinanciera agency a proposed COP$20 billion (US$5.8 million) stock buyback.

Simesa is the developer of the giant “Ciudad del Rio” residential, commercial and office-building project on the site of the former Siderurgica Simesa iron/steel mill in Medellin.

According to the company’s most recent annual report, two-thirds of Simesa’s stock is held by the investment banking division of Medellin-based Bancolombia.

Simesa’s board of directors wil put the stock-buyback proposal to a vote at the anual stockholders meeting March 11 in the Medellin Museum of Modern Art (MAMM), located in Ciudad del Rio.

Written by February 07 2020 0

Medellin-based textiles and waste-plastics recycling specialist Enka Colombia revealed in a February 6 filing with Colombia’s Superfinanciera oversight agency that its full-year 2019 net profits jumped 253% year-on-year, to COP$15 billion (US$4.4 million).

“In addition to good operating results, the net result was favored by lower financial expense due to the reduction in indebtedness, the better impact due to exchange differences and a lower tax burden as a result of the [2019 Colombia tax-reform] financing law,” according to Enka.

Operating revenues came-in at COP$402 billion (US$118 million), with exports accounting for 45% of sales.

“Brazil, the United States and Canada stand out as the main destinations because of our focus on added value and growth potential,” according to Enka.

Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 13% year-on-year, to COP$35.8 billion (US$10.5 million), while EBITDA margin on sales improved from 7.7% in 2018 to 8.9% in 2019 – “the best result in the company's recent history,” according to Enka.

“The main factors for the good operational result were the devaluation of the peso [against the U.S. dollar], the greater collection of plastic bottles [which Enka converts into synthetic fibers] and the diversification of markets.”

Meanwhile, Enka’s board of directors will propose to its March 12 shareholders meeting that 2019 profits would be redirected to absorb losses from previous years.

Written by January 30 2020 0

Medellin-based textile giant Coltejer on January 29 revealed in a filing with Colombia’s corporate oversight agency Superfinanciera that it suffered a full-year 2019 net loss of COP$24.9 billion (US$7.2 million), a small improvement over the COP$28.9 billion (US$8.5 million) net loss in 2018.

Sales also dipped slightly, to COP$141.9 billion (US$41.7 million ) in 2019 versus COP$144 billion (US$42 million) in 2018, while total corporate-wide income dipped to COP$172 billion (US$50 million) versus COP$176 billion (US$51.7 million) in 2018.

However, operating income improved to COP$13 billion (US$3.8 million) compared to COP$6.8 billion (US$2 million ) in 2018.

Coltejer and other major textile producers in Colombia have been suffering losses mainly because of contraband textile and clothing imports, which Colombian police recently estimated at US$3 billion last year.

In a related note, Coltejer stated that its annual shareholders meeting will be held February 20, 2020, at company headquarters.

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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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