Grupo Argos 1Q 2024 Profits Skyrocket 1,041% Year-on-Year
Medellin-based Grupo Argos – parent company of Cementos Argos, power producer Celsia and highway/airport concessionaire Odinsa – announced May 15 a first quarter (1Q) 2024 net profit of COP$6.5 trillion (US$1.7 billion) — a whopping 1,041% year-on-year increase.
“With the successful closure in January of this year of the asset combination between Summit Materials and Argos USA, a leading platform in the construction materials sector with a national scale in the United States was created, with a company value of US$9.5 billion, which represented a net profit of COP$5.3 trillion [US$1.38 billion] for Grupo Argos,” the company noted.
“Additionally, during the first quarter of this year, our company recorded a net gain of COP$2.5 trillion [US$653 million] from the divestment in Grupo Nutresa.
“In the last 12 months, driven by solid financial results, the materialization of those announced transactions, and other value-revealing measures, the market capitalization of the listed companies of Grupo Argos has increased by COP$15 trillion [US$3.9 billion], thereby doubling its value,” the company added.
During 1Q 2024, Grupo Argos saw revenues rise 21% year-on-year, to COP$4.5 trillion (US$1.17 billion) and earnings before interest, taxes, depreciation and amortization (EBITDA) jump 90% year-on-year, to COP$2.4 trillion (US$627 million), the company noted.
Beyond the big jump in profits for cement/concrete maker Cementos Argos and highways/airports concessionaire Odinsa, Grupo Argos’s electric power subsidiary Celsia “demonstrated its ability to provide reliability to the electrical system amid the challenges posed by the El Niño [drought] phenomenon in Colombia’s power generation,” the company noted.
As for Grupo Argos’s comparatively tiny urban-development business, “net cash flow for the quarter was COP$23 billion [US$6 million], a positive result considering the market slowdown,” the company added.
