Fabricato 1Q 2025 Net Income Rises 130% Year-on-Year
Medellin-based textiles and clothing manufacturer Fabricato announced May 14 that its first quarter (1Q) 2025 net income rose 130% year-on-year, to COP$4 billion (US$950,000), compared to a net loss of COP$13.5 billion (US$3.2 million) in 1Q 2024.
Sales dipped 1% year-on-year, to COP$69 billion (US$16 million), while earnings before interest, taxes, depreciation and amortization (EBITDA) soared by 337% year-on.year, to COP$13 billion (US$3.08 million), versus COP$3 billion (US$713,000) in 1Q 2024.
The profit turnaround came “as a result of the execution of strategies in product innovation, the circular [recycling] economy, and process optimization that help improve our competitiveness and results for the period,” according to Fabricato.
“This is evidenced by the decrease in our costs and operating expenses year-on-year and the transformation of production processes to achieve greater efficiencies.”
Despite the profit improvement, sales dipped, the company noted.
“In an environment of high economic uncertainty, a conservative trend in consumption in segments such as apparel and textiles continues, immediately reflected in lower production requirements,” according to Fabricato.
“We once again report, although to a lesser extent for this quarter, a 0.1% decrease in sales volume and a 1.9% decrease in sales value compared to the fourth quarter of 2024. This continues to impact working capital.”
Aside from the relative weakness in its textile-clothing markets, Fabricato still realized some extra profits from its real-estate operations, generating COP$4.8 billion (US$1.1 million) in revenues and COP$2.7 billion (US$642,000) in net income in the latest quarter.
