Grupo IMSA 1Q 2024 Profits Soar 409% Year-on-Year
Medellin-based multinational diversified manufacturer Grupo IMSA announced May 14 a 409% year-on-year hike in first quarter (1Q) profits, hitting COP$90.6 billion (US$23.6 million).
“The increase in net profit is explained by the better operating results of our companies and the receipt of an additional payment derived from the sale agreement of O-tek Internacional to WIG Latam Holding GmbH in 2023, for COP$100 billion [US$26 million],” IMSA explained.
That payout from WIG Latam “contributes to maintaining negative net financial debt — that is, with higher levels of cash and temporary investments than financial debt, totaling COP$290 billion [US$75.9 million], maintaining adequate levels of indebtedness and liquidity, with total liabilities that represent 24% of our total assets, compared to 25% as of December 2023,” the company added.
Revenues during 1Q 2024 rose by a more-modest 7% year-on-year, to COP$122 billion (US$31.9 million), according to IMSA.
Among IMSA’s various subsidiaries, its composite-materials and polyester businesses in Brazil achieved 1Q 2024 sales of COP$57 billion (US$14.9 million) “due to good commercial performance in sectors such as construction, electrical energy and solar energy,” the company boasted.
Meantime, its “Addimentum” food-additives subsidiary enjoyed sales of COP$4.07 billion (US$1.06 million), “leveraged by the dynamism in the markets of Brazil, Chile and Argentina,” according to IMSA.
As for its partial holdings in plastic pipes/poles maker O-tek Argentina, this division netted IMSA sales of COP$24 billion (US$6.3 million), “taking advantage of the opportunities to participate in private projects in the oil-and-gas sector,” according to IMSA.
As for its “MCM” consumer-products division, this unit saw double-digit growth in sales — especially in the personal-care and insecticide lines — generating COP$31.7 billion (US$8.3 million), according to the company.
As for corporate-wide profitability — once excluding companies divested in 2023, in order to make year-on-year analysis comparable – “gross profit ended at COP$40.9 billion [US$10.7 million], increasing 9%, with a gross margin that stands in 33%,” according to IMSA.
As for earnings before interest, taxes, depreciation and amortization (EBITDA), 1Q 2024 came-in flat year-on-year, at COP$15.3 billion (US$4 million), the company explained.
Once including the divestment last year of Andercol México (food additives) and O-tek Internacional (Colombia and Mexico operations), year-on-year 1Q 2024 gross profit actually dipped 41% and EBITDA fell 57%, the company added.
