Grupo Argos 1Q 2021 Net Income Skyrockets 622%
Medellin-based cement, electric power and airport/highway concessionaire Grupo Argos announced May 13 that its first quarter (1Q) 2021 net income jumped 622% year-on-year, to COP$190.5 billion (US$51.7 million).
Argos credited the boost “mainly due to the increase in sales, our operating leverage and a decrease in financial expenses.”
Consolidated revenues rose 3.2% year-on-year, to COP$3.7 trillion (US$1 billion). “This is an important growth considering that the result registered in 1Q 2020 had few effects from the pandemic and reflected the good regional economic dynamics,” according to the company
“The increase in income from sales of goods and services is mainly explained by an increase in the contributions of Cementos Argos (+ COP$141 billion/US$38 million) and the increase in Celsia (+COP$51 billion/US$13.8 million) that are higher than the contraction in the concessions business (-COP$112 billion/-US$30 million) in which the airport business continues to be affected by lower traffic as a result of the pandemic,” the company added.
Cost-of-sales remained stable “even with a significant increase in the sales of the different businesses (volume of cement +16% year-on-year and power generation + 18%),” according to Argos.
“This stability in costs with growing sales is an example of the efficiency and operating leverage that the company achieved during the 2020 juncture and that it maintains in 2021 to improve its profitability incrementally.”
Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 16% year-on-year, to COP$952 billion (US$258 million), “explained by 3.2% higher sales, which is magnified when combined with the efficiency in costs and expenses that the company achieved during 2020,” according to Argos.
