Fabricato 2Q 2023 Net Losses Worsen Year-on-Year
Medellin-based textile giant Fabricato on August 14 posted a second quarter (2Q) net loss of COP$28 billion (US$6.8 million), worse than the COP$786 million (US$192,000) net loss in 2Q 2023.
Revenues also fell year-on-year, to COP$88.8 billion (US$21.7 million) in 2Q 2023, versus COP$112 billion (US$27 million) in 2Q 2022, according to the company.
The 2Q decline in sales reflected “the economic slowdown, with greater weakening in the industrial sector, which is seen reflected in the decrease in sales of 11% in value and 5% in volume, compared to the first quarter of 2023,” according to Fabricato.
The company also cited “increased costs that cannot be passed on to customers. Unit price average of the products sold in the second quarter decreased by 6%, which was not passed-on.”
As for first half (1H) 2023, Fabricato’s net loss came-in at COP$51 billion (US$12 million), down from a net profit of COP$5.1 billion (US$1.2 million) in 1H 2022.
Total revenues for 1H 2023 also fell year-on-year, to COP$187 billion (US$45.7 million), versus COP$241 billion (US$59 million) in 1H 2022.
Earnings before interest, taxes, depreciation and amortization (EBITDA) for 1H 2023 fell to a negative COP$13.7 billion (-US$3.3 million), also worse than last year, according to the company.
Fabricato blamed the losses on “the slowdown economic situation in Colombia, reflected in the different sectors of the economy.”
“Inventories as of June 2023 decreased by 30% compared to the same period of the previous year, due to the company’s approach of producing only what matches purchase orders by our customers. [As a result], we obtained greater efficiency in the process of purchases of raw materials and in the evacuation of slow-moving inventories.”
Through 1H 2023, “financial expenses at the end of June 2023 increased by 77% compared to the same period of 2022, which correspond to higher interest rates, to the reprofiling debt with national banks and negotiations with different companies at a national and international level,” according to the company.