Grupo Argos 2Q 2021 Profits Skyrocket 534% Year-on-Year
Medellin-based multinational cement, electric power and airport/highways concessionaire Grupo Argos announced August 12 that its second quarter (2Q) consolidated net income soared 534% year-on-year, to COP$392 billion (US$102 million).
Revenues rose 20% year-on-year, to COP$4 trillion (US$1.04 billion), while earnings before interest, taxes, depreciation and amortization (EBITDA) rose 46%, to COP$1.3 trillion (US$338 million).
First-half (1H) 2021 net income likewise soared 561%, to COP$583 billion (US$152 million), according to the company, which produces cement/concrete (Cementos Argos), electric power (Celsia) and operates airport/highway concessions (Odinsa).
By segment, the Argos cement group produced COP$257 billion (US$67 million) in net income for 2Q 2021, while the electric power segment netted COP$198 billion (US$51 million).
Portfolio investments produced another COP$112 billion (US$29 million) in 2Q 2021 net income, while real estate investments netted COP$39 billion (US$10 million).
The only money-losing segment for 2Q 2021 was in highway/airport concessions, which suffered a net los of COP$13 billion (US$3.4 million) as the Covid-19 pandemic continued to hurt airline traffic and highway vehicle movement through toll booths.
“Increased revenues from the sales of goods and services during 2Q 2021 can mainly be explained by growth in all business lines, including contributions from Cementos Argos (up COP$347 billion) and the growth in [revenue, but not profit in] the concessions business (+COP$180 billion),” according to the company.
“Increased costs and expenses for the period (+17% year-on-year) is due to increased variable costs from greater sales volumes during the period. This 17% increase is less than the 20% increase in revenue, which translates into a higher contribution margin, evincing the company’s operating leverage.
“Higher sales levels resulted in increased EBITDA, which closed out the quarter at COP$1.3 trillion [US$338 million] and the year-to-date at COP$2.3 trillion [US$598 million]. Even eliminating the effect of the divestment in the Dallas concrete operations, equal to COP$174 billion [US$45 million] in EBITDA, operating results grew compared to 2020 and 2019,” the company added.
