Fabricato Posts Another Net Loss For Full-Year 2024
Medellin-based textile-clothing manufacturer Fabricato announced February 27 a full-year 2024 net loss of COP$43 billion (US$10.4 million) — an improvement over the COP$122 billion (US$31.8 million) net loss in 2023.
Fabricato blamed the continuing net losses on an economic slowdown in Colombia, volatility in n raw material prices, declining exports and “unfair competition such as under-invoicing, invoicing without VAT [value-added tax], smuggling, dumping, money laundering and technical smuggling.”
Revenues also fell 21% year-on-year, to COP$268 billion (US$65 million), as a result of Fabricato’s “strategic decision to scale down the textile operation in the face of financial sustainability.”
Despite the net losses and declining revenues, earnings before interest, taxes, depreciation and amortization (EBITDA) were positive, at COP$13.9 billion (US$3.4 million), compared to a net loss of COP$41 billion (US$9.9 million) in 2023.
“Inventories as of December 2024 decreased by 20% compared to the same period of 2023, due to the company’s approach to produce what is ordered by our clients,” according to the company.
“Greater efficiency was obtained in working capital, raw material purchasing processes and the evacuation of slow-moving inventories. [As a result], the textile operation has had four consecutive months with high levels of operational efficiency and financial sustainability,” the company added.
As for Fabricato’s real-estate operations, 2024 revenues rose 20% year-on-year, to COP$15.9 billion (US$3.8 million), while real-estate EBITDA rose 21% year-on-year, to COP$$10 billion (US$2.4 million), according to the company.
Since filing for bankruptcy in July 2024, “the company is constantly working on defining strategies that allow it to ensure business continuity and, as proof of this, it can be seen in the decrease in our costs and operating expenses year after year and the transformation of our processes seeking the greatest efficiencies,” Fabricato added.
