Tuesday, May 17, 2022

Become part of our community

captcha 

Companies 476

Written by July 31 2021 0

Medellin-based multinational foods manufacturer and retailer Grupo Nutresa announced July 30 that its second-quarter (2Q) 2021 net income was essentially flat year-on-year, at COP$140.6 billion (US$36.3 million), versus COP$139.9 billion (US$36 million) in 2Q 2020.

Operating revenues for 2Q 2021 rose to COP$2.9 trillion (US$748 million), up from COP$2.66 trillion (US$686 million) in 2Q 2020.

As for first-half (1H) 2021, consolidated net profit rose 11.5% year-on-year, to COP$357 billion (US$92 million), from COP$331 billion (US$85 million) in 1H 2020, according to the company.

Sales in 1H 2021 rose 8.5% year-on-year, while earnings before interest, taxes, depreciation and amortization (EBITDA) rose just 0.4% year-on-year, to COP$749 billion (US$193 million).

“Grupo Nutresa’s revenues in Colombia maintain a positive trend, amounting to COP$3.5 trillion [US$903 million], which represent 60.8% of the total sales, with 11.2% growth rate in relation to the same period in 2020,” according to the company.

“International sales, which totaled to US$625 million, were 6.6% higher than in 2020’s first half and represent 3.2% of the total sales. When stated in Colombian pesos, these sales are equivalent to COP$2.3 trillion, representing a 4.5% growth,” the company added.

Gross margin dipped 1% year-on year “mainly due to the increase in the cost of some raw materials associated with the global commodities super-cycle,” according to the company.

Operating profit rose 0.8% year-on-year, “considering a 7.7% increase in operating expenses, which include expenses associated with biosecurity and cleaning measures, an increase in non-recurring logistics expenses, and a higher investment in our brands at the points of sale,” according to Nutresa.

As for its Covid-19 response, “as of July 30, 65.9% of Grupo Nutresa’s Colombian employees had already initiated the vaccination process,” the company added.

Grupo Nutresa’s various business segments include production and sale of processed meats; cookies and crackers; chocolates; cold drinks; pastas; coffees; edible oils; juices; soups; desserts; teas and coffees; ice creams; fast foods and pet foods.

Written by July 29 2021 0

Colombia-based Cemex LatAm Holdings announced this morning (July 29) that its second quarter (2Q) 2021 net income more than doubled year-on-year, to US$23.8 million.

Operating earnings before interest, taxes, depreciation and amortization (EBITDA) likewise rose 81% year-on-year, to US$53 million. Net sales – adjusted for currency fluctuations -- jumped 54%, to US$228 million, according to the company.

“Higher cement volumes in all countries, as well as higher prices in Costa Rica and the rest-of-Cemex-LatAm-region, were the main drivers of the improvement,” according to the company. “During the same [2Q] period of last year, sales were impacted by Covid-19 restrictions in most of our markets.”

Cost of sales as a percentage of net sales decreased by 3.7 percentage points during the quarter, from 63.4% in 2Q 2020 to 59.6% in 2Q 2021, according to the company.

The big improvement in operating EBITDA during 2Q 2021 “was due to higher contributions from all our countries. Operating EBITDA margin increased by 3.6 percentage points compared with that of the second quarter of 2020. The margin expansion was mainly driven by higher volumes and lower selling, general and administrative expenses, despite higher maintenance expenses and expenses related to the social protests in Colombia,” the company added.

The net income improvement “was mainly driven by higher operating earnings,” while “net debt declined US$6 million from March to June, reaching US$613 million at the end of the quarter,” according to Cemex LatAm.

“In Colombia, the growth momentum observed in industry cement volumes year-to-date April was interrupted by the social protests, mainly during May. We estimate industry activity returned to first-quarter levels in June, as the road blockades and protests gradually eased.

“The housing and infrastructure sectors continued driving demand in the country. We believe the outlook for cement volumes remains favorable, supported by the resilience of the self-construction sector, record home sales, the execution of the existing 4G [fourth-generation] highway projects, as well as the rollout of new infrastructure programs,” according to the company.

“In Panama, our cement, ready-mix and aggregates volumes showed strong growth during the quarter due to an easy base of comparison in the same period of 2020, which was impacted by Covid-19 restrictions. However, industry cement volumes during the quarter remained weak, below those of 2019.

“In Costa Rica, our cement volumes during the second quarter increased by 16% on a year-over-year basis. The positive volume trend in the industry continued during the quarter, mainly driven by the infrastructure and housing sectors. Our quarterly cement prices improved by 4% year-over-year and by 2% sequentially, in local currency terms.

“In the rest-of-Cemex-LatAm region, our cement volumes during the quarter improved by 25% year-over-year and 9% sequentially, reaching record levels. Cement volumes during the quarter increased year-over-year in Nicaragua, Guatemala, and El Salvador.

“Increased remittances supported cement consumption across the region. In Guatemala, our cement volumes were driven mainly by strong activity in the self-construction sector -- a segment where we have a higher relative presence -- and by a gradual recovery in the formal sector.

“Our cement prices improved by 2% year-over-year and 1% sequentially, in local-currency terms.

“In Nicaragua, our cement volumes were driven mainly by the self-construction sector and by government-sponsored projects. Going forward, socio-political risk in the country could increase due to the presidential elections scheduled for this November.”

As for its rest-of-2021 spending plans, “we are guiding to a strategic capex of US$40 million for 2021. US$28 million is related to the development of our overall Maceo [Antioquia] cement plant project in Colombia,” the company added.

Written by July 28 2021 0

Medellin electric power giant EPM announced today (July 28) that its Board of Directors voted to reject a proposed swap of the departmental government of Antioquia’s majority share in the (estimated) US$5 billion Hidroituango hydroelectric project -- in exchange for giving Antioquia a minority share in EPM.

The EPM Board “analyzed the proposal of [acting] Governor of Antioquia Luis Fernando Suárez Vélez to sell to EPM the 52.88% participation share of the [Antioquia] government and [its development subsidiary] IDEA in the Hidroituango Hydroelectric Society,” EPM announced in a press release.

“The Board concluded that it is important for [EPM] to continue with the working groups in charge of the issue, since it considered the possibility of EPM being able to buy said participation of great interest.

“However, the Board of Directors did not see the proposed form of payment [that is, the share swap] presented by the Antioquia government and instead proposed that payment through ordinary resources be studied within the negotiating tables,” EPM added.

In the meantime, “the department of Antioquia -- always close to the heart of [EPM] -- will see between 2021-2024 investments by EPM amounting to COP$10.4 trillion [US$2.68 billion], during one of the most challenging times for humanity due to the pandemic of Covid-19,” according to EPM.

“These [investment] resources -- included in the update of the EPM investment plan -- were approved by the Board of Directors in its session on July 27, 2021. The investments will allow the development of 132 infrastructure projects in Antioquia, providing services of [electric] energy, natural gas, aqueduct and sewerage, with quality, continuity, coverage and reliability.

“These investments in the Antioquia subregions are added to the transfers from the electricity sector that the company periodically gives to 52 Antioquia municipalities located in the Magdalena Medio, Northeast, North, West, East, Southwest and Valle de Aburrá, in addition to the Regional Autonomous Corporations: Corantioquia , Cornare and Corpourabá, in jurisdictions where EPM has hydropower generation reservoirs, including the river basins that supply them, or where powerhouses -- both hydraulic and thermal -- are installed.

“Between 2016 and 2020 these municipalities and corporations received COP$364 billion [US$94 million,” EPM added.

Written by July 28 2021 0

Medellin-based multinational supermarket/dry-goods retailer Almacenes Éxito announced July 27 that its second quarter (2Q) 2021 net profits soared 297%, to COP$50.7 billion (US$12.9 million), from COP$12.8 billion (US$3.2 million) in 2Q 2020.

The quadrupling of net income is credited to a “group diversification strategy with a higher contribution of complementary businesses, mainly royalties from TUYA [credit cards] and the development of real estate projects,” according to Éxito.

“Moreover, the company profited from a leaner financial structure and lower levels of non-recurring expenses from Covid-19. Results were partially offset by lower sales levels and the variation in income tax derived from the use of the statutory rate,” the company added.

Recurring earnings before interest, taxes, depreciation and amortization (EBITDA) for 2Q 2021 rose 2.5%, to COP$306.5 billion (US$78 million), while revenues climbed a modest 0.2%, to COP$3.7 trillion (US$942 million), according to the company.

Corporate consolidated results include Colombia, Uruguay and Argentina store operations, as well as the discontinued operation of Transacciones Energéticas S.A.S., according Éxito.

Revenue growth “benefitted by the recovery of complementary businesses, solid omni-channel growth and a higher share on sale of innovative formats (up 20.2% in Colombia, up 43.9% in Uruguay, up 9.3% in Argentina),” according to Éxito.

Recurring EBITDA growth came from “higher contribution from TUYA [credit-card] royalties, the real estate business and increased productivity,” according to the company.

Consolidated capex for 2Q 2021 was COP$54.9 billion (US$14 million), 72% of which was “focused on innovation, omni-channel and digital transformation activities,” according to the company.

The Éxito “Wow” and “FreshMarket” stores “continued growing sales above non-converted stores. New model ‘Vecino’ [format] implemented in ‘Super Inter’ allowed a remarkable double-digit sales evolution,” the company added.

For its rest-of-2021 outlook, Éxito expects to spend US$110 million to US$130 million in capex, of which US$90 million to US$110 million would be inside Colombia.

Commenting on the 2Q 2021 results, Éxito CEO Carlos Mario Giraldo stated: “Despite mobility restrictions in LatAm and social disruption in Colombia, Grupo Éxito continued improving its performance during the second quarter of 2021.

“The company consistently developed innovative formats, its on-line and omni-channel businesses, while our ‘Puntos Colombia’ and complementary businesses -- mainly the real estate and the financial divisions -- gained traction.

“Today, innovation has proved its importance more than ever and consumer trends confirm the statement. Our clients look forward to combining virtual and in-store purchases and we have continued capitalizing from it by strengthening our retail platform,” he added.

Gross margin improved by 124 basis points (bps), to 26% in 2Q 2021, and rose 158 basis points in first-half 2021, to a margin of 26.3%. “Quarterly margins were boosted by the higher contribution of complementary businesses mainly in Colombia,” according to the company.

“Retail margin (when excluding other revenue) gained 60 bps versus the one posted in 2Q 2020, driven by contribution from the development of real estate projects in Colombia and from cost efficiencies across countries,” the company added.

Written by July 28 2021 0

Medellin-based multinational utilities giant EPM announced July 27 that its first half (1H) net income hit COP$1.9 trillion (US$483 million), more than double the COP$717 billion (US$192 million) profit in 1H 2020.

Earnings before interest, taxes, depreciation and amortization (EBITDA) rose to COP$3.5 trillion (US$890 million), up from COP$2.8 trillion (US$752 million) in 1H 2020, while EBITDA margin hit 30% and net profit margin came-in at 16%, according to the company.

Gross revenues in 1H 2021 rose 26% year-on-year, to COP$11.7 trillion (US$2.97 billion), according to the company.

So far this year, EPM Group has invested COP$1.7 trillion (US$432 million) in infrastructure projects, of which COP$627 billion (US$160 million) correspond to the Hidroituango hydroelectric project in Antioquia.

Commenting on the results, EPM general manager Jorge Andrés Carrillo Cardoso stated: “These positive figures were achieved in part thanks to the community’s commitment to paying their bills for the public services, plus the improvement in operations due to the greater generation of energy from our hydropower plants -- which had high water inputs -- and also to higher energy sales.”

As of June 30, 2021, Grupo EPM total assets had grown 2% year-on-year, to COP$65.3 trillion (US$16.6 billion), while liabilities rose 4%, to COP$38.1 trillion (US$9.7 billion). The debt-to-EBITDA indicator for EPM Group closed at 4.0 in 1H 2021, compared to 3.9 for 1H 2020, the company added.

Page 7 of 37

About Medellin Herald

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.

Medellin Herald welcomes your editorial contributions, comments and story-idea suggestions. Send us a message using the "contact" section.

Contact US

logo def
Medellin Herald: Find news, information, reviews and opinion on business, events, conferences, congresses, education, real estate, investing, retiring and more.
  • COL (4) 386 06 27
  • USA (1) 305 517 76 35
  •  www.medellinherald.com 
  •  This email address is being protected from spambots. You need JavaScript enabled to view it. 
  • Medellin, Antioquia, Colombia

Medellín Photo Galery

Medellin, contrasting colors and styles by Gabriel Buitrago

MPGMPGMPGMPGMPGMPGMPGMPGMPGMPGMPGnav