February 23, 2024
Companies

Fabricato 2Q 2022 Net Income Best in Five Years

Medellin-based textile giant Fabricato announced August 12 that its second quarter (2Q) 2022 net income hit COP$5.1 billion (US$1.22 million) – its best quarter in five years — while first-half (1H) 2022 net income is up 110% year-on-year.

Sales during 2Q 2022 also hit levels not seen since 2013, at COP$235 billion (US$56.5 million), while 1H 2022 textile earnings before interest, taxes, depreciation and amortization (EBITDA) rose 42% year-on-year, to COP$31.4 billion (US$7.54 million) – a whopping 2,700% improvement over 1H 2020.

“Fabricato continues in the task of following the path of better results and it has been like this for the last two years,” according to the company.

“We also hope that the new national government will resolve the vicissitudes of textile-clothing policy so that Colombia can have more and better jobs in a sector capable of exploiting its advantages, having an integrated production chain from spinning to clothing.

“The textile offer that we have developed for the satisfaction of clients and consumers revives the Colombian textile industry with the consequent impact on the reactivation of our country,” while Fabricato’s separate real-estate business “is also developing and is generating the expected results,” the company added.

“The second quarter of 2022 maintained a positive trend of economic reactivation,” according to Fabricato. “It was lower than that registered in the first quarter, but it is growing compared to the same quarter of 2021.

“International logistics is still in the process of normalization. This has facilitated imports between January and June, which leads to a growth of 33% for the textile and clothing sector compared to the same period in 2021.

“Exports also had a positive performance, growing by 52% compared to of the same period of 2021. The denim-and-poplin segment is the one with the highest increase.

“The main markets for the exports of Fabricato during 2Q 2022 were Ecuador, with 48.3%, followed by Peru and Mexico, with 18.27% and 13% respectively.

“High volatility and uncertainty persist regarding the price and availability of the main raw materials. The raw material with greater volatility and greater impact on cost increases has been cotton, as its price ended on 2021 at US$1.10 per pound and closed on June 31 2022 at US$0.98.

“However, during the second quarter, cotton reached prices of US$1.46/pound, an increase of 32%. We achieved internal efficiencies by reducing the impact of this increase.”

Meanwhile, “we are focused on obtaining new clients in markets that we must attend, seeking to reach directly to manufacturers and micro/medium sub-distributors through a permanent service and supply strategy.

“The market maintains high product inventories, as a result of processes of supply by reactivation.

“We maintain a portfolio of products with permanent supply, with circular economy and sustainability approach. In addition, we accompany Colombian exporters with the supply of fabrics where the certificate-of-origin allows them to be competitive,” the company added.

“Natural fibers other than cotton are being ‘cottonized,’ which allows Fabricato to be at the forefront of product development with other natural fibers.

“’Cottonizing’ is an industry term that prepares natural fibers other than cotton to incorporate them into the production of fabrics, with sustainability and quality advantages,” the company explained.

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