Fabricato 1H 2021 Net Income Moves to Black Year-on-Year
Medellin-based textile giant Fabricato announced August 4 that its first-half (1H) 2021 net income moved into the black year-on-year, to a net COP$2.4 billion (US$614,000), versus a COP$19.4 billion (US$4.96 million) net loss in 1H 2020.
The 1H 2021 net profit “breaks the loss trend of the last five years,” according to the company. “We achieved the highest gross profit in the last seven years, equivalent to COP$33.7 billion [US$8.6 million].
“We obtained an operating profit of COP$17.2 billion [US$4.4 million]. The last time we reported a first-half operating profit was in 2016, at COP$4.0 billion [US$1.02 million],” the company added.
Earnings before interest, taxes, depreciation and amortization (EBITDA) for 1H 2021 skyrocketed by 1,164% year-on-year, to COP$23 billion (US$5.88 million), up from COP$1.8 billion (US$460,000) in 1H 2020.
In total, “96% of the result achieved at the EBITDA level corresponds to the textile operation, which contributed COP$22 billion [US$5.6 million],” Fabricato explained.
Post-pandemic textile demand “reactivated faster than expected, but the market was short on supply in terms of its inventory levels,” according to the company.
“Additionally, the supply of imported and contraband products — very relevant in the [Colombian] textile market — was diminished due to a global shortage and restrictions on the capacity of international freight transport logistics, a situation that persists to date and likely will not normalize in what remains of this year 2021.”
On the other hand, “Fabricato was not immune to the economic and operational damages generated by the national protests and roadblocks that caused delays and major effects on our supply chain including deliveries to our customers and large cost overruns that affected the financial results of the company, putting direct and indirect jobs at risk.”
Meanwhile, “a redefinition of the competitive map of textile companies in the Colombian market is emerging, which generates great opportunities for Fabricato to grow, to compete locally and internationally,” the company added.