Fabricato 3Q 2021 Profits Soar Year-on-Year
Medellin-based textile giant Fabricato reported November 6 that its third quarter (3Q) 2021 net profit came in at COP$11.1 billion (US$2.86 million), a big reversal from the COP$3.3 billion (US$852,000) net loss in 3Q 2020.
As for the first nine months of 2021, net income reached COP$12.1 billion (US$3.1 million), up from a COP$22 billion (US$5.7 million) net loss for the first nine-months of 2020.
Earnings before interest, taxes, depreciation and amortization (EBITDA) for nine-months 2021 jumped 386% year-on-year, to COP$41.5 billion (US$10.7 million), with EBITDA margin at 13.3%, up sharply from 3.2% in nine-months 2020.
“The textile operation accounted for 96% of total EBITDA,” according to Fabricato.
Revenues through nine-months 2021 are up 55% year-on-year, to COP$311 billion (US$80 million), the company added.
“So far this year, we have achieved positive operating profit and EBITDA every month,” Fabricato reveraled in its filing with Colombia’s Superfinanciera oversight agency.
Through September 2021, “we present the highest gross profit of the last seven years, at a value of COP$58 billion [US$15 million],” the company added.
Meanwhile, technological innovation is moving hand-in-hand with improved profitability, according to Fabricato.
“Recently, machines were acquired to recover cotton from used garments, and investments will be made aimed at optimizing/reusing the water and some chemicals used in the textile process, thus contributing to mitigating the environmental impact of disposal of textiles in landfills and contributing to the circular economy.
“They will be in operation in early 2022 with great environmental benefits and cost optimization,” according to the company.
Also boosting results: “We increased self-generation of energy with respect to 2019 in the same period of time by 30% with a positive impact on cost,” according to Fabricato.
“The focus on making the company profitable both in the textile operation and in the real estate activity continues, complemented by rigorous monitoring of spending efficiency.
“Despite the international crisis in the supply of raw materials, we have lowered the average lead times of the different production lines by between 15% and 20%, compared to 2019.
“The quality index of all production lines has been improved between 2 and 3 basis points, compared to 2019.
“Labor productivity measured in meters produced per capita rose 20% compared to 2019.
“The various structural factors that are manifested by global shortages and logistics restrictions worldwide will continue to arise and for this we have prepared ourselves with improvements and efficiencies in all areas of the company,” the company added.