Grupo Argos 1Q 2025 Profits Plunge Year-on-Year When Discounting One-Time 1Q 2024 Gains

Medellin-based Grupo Argos – the holding company of Cementos Argos (concrete/cement), Celsia (electric power) and Odinsa (highway-airports-utilities asset manager) – on May 15 reported a sharp year-on-year profits decline for first quarter (1Q) 2025, all because of the one-time gains reported in 1Q 2024.

During 1Q 2024, Grupo Argos had recorded a profit of COP$5.3 trillion (US$1.26 billion) mainly as a result of its asset-merger agreement between Argos USA and Summit Materials.

Also during 1Q 2024, Grupo Argos realized a one-time COP$1.4 trillion (US$333 million) gain from a stock-share swap deal with Grupo Nutresa.

“And finally, the reclassification of Grupo Sura’s equity method as a discontinued operation [within Grupo Argos] as a result of the spin-off agreement implied financial results for 1Q 2024,” the company explained.

Once including all those extraordinary, one-time financial gains in 1Q 2024, the year-on-year net profit decline for 1Q 2025 becomes understandable, according to Grupo Argos.

Despite the 1Q 2025 profits dip, Grupo Argos nevertheless recorded a 1Q 2025 revenue gain of 7% year-on-year, to COP$2.9 trillion (US$690 million) , while earnings before interest, taxes, depreciation and amortization (EBITDA) grew 47% year-on-year, to COP$809 billion (US$192 million), according to the company.

“Net profit for 1Q 2025 was COP$2.2 trillion [US$524 million] and a net profit to the controlling interest was COP$1.2 trillion [US$285 million], which represents a reduction compared to the previous year due to the effects mentioned above,” the company explained.

Thanks to all the share swaps in unrelated companies — where it formerly held substantial shares — “over the last year [2024], Grupo Argos’ investment portfolio appreciated by COP$4.3 trillion [US$1.02 billion], leveraged by strategic transactions,” according to the company.

“The divestment of Nutresa and operations like the one involving Summit Materials have meant that two-thirds of Grupo Argos’ portfolio is currently in infrastructure, and this specialization in infrastructure would increase to 100% after Grupo Argos no longer has a stake in Grupo Sura,” the latter holding of which is about to be sold following a pending shareholders’ vote, the company added.