April 13, 2024
Companies

Grupo Imsa First-Half 2022 Profits Jump 136% Year-on-Year

Medellin-based multinational Grupo Imsa – a spinoff last November from Medellin-based paints, chemicals and hardware multinational Grupo Orbis, the latter now part of global chemicals giant AkzoNobel – on August 31 posted a second quarter (2Q) 2022 net profit of COP$2.24 billion (US$501,000), while first-half (1H) net profits soared 136% year-on-year, to COP$13.437 billion (US$3 million).

Grupo Imsa produces industrial tubing and posts (O-tek division), food additives (Addimentum) composite materials (Novascott, Novapol and Novaforma), cleaning/disinfectant products (MCM), and also develops commercial real-estate projects in Colombia. Imsa has eight production facilities in four nations: Colombia, Brazil, Mexico and Argentina.

On two new fronts, Imsa now reports expansion into the U.S. and Canada for its food-additives lines.

Consolidated sales in 1H 2022 rose 36% year-on-year, to COP$340 billion (US$76 million), while 2Q 2022 gross margin rose 36% year-on-year, according to Imsa, which now trades on Colombia’s BVC stock exchange.

Improved profits this year came “despite the strong impact on raw material costs associated with restrictions in the supply chain worldwide,” according to Imsa.

Sales for 2Q 2022 at the company’s chemical business in Brazil rose 15% year-on-year, to COP$134 billion (US$30 million), “driven by the reactivation of the Brazilian market and the search for new business opportunities,” according to Imsa.

The “Addimentum” food-additives businesses in Mexico and Colombia saw 1H 2022 sales rise 28% year-on-year, to COP$42 billion (US$9.4 million). “This business continues to consolidate market share, mainly in North America, with current contracts and approvals in Mexico, the United States, and the development of new clients in Canada,” according to Imsa.

As for the “O-tek” industrial pipes-and-poles division in Argentina, Mexico and Colombia, this unit saw sales jump 84% year-on-year, to COP$127 billion (US$28.4 million).

O-tek is “increasing its market share in high-pressure applications in aqueducts, hydroelectric plants and industrial projects, with innovative products such as lock-joint technology, which gives access to a new market for large diameter pipes with greater pressure,” according to the company.

As for the MCM division –specializing in products for the home, vehicles and industry – sales are up 20% so far this year, to COP$40.7 billion (US$9.1 million), according to Imsa.

“Grupo Imsa has a solid capital and liquidity structure and a low level of indebtedness that allows it to support this growth. The Imsa Group holding reports that in the second quarter of 2022, it maintained financial indicators that reflect its solidity, without financial debt and its total liabilities only represent 3% of total assets, while this indicator as of December 2021 stood at 1.8%.

“On the other hand, its current assets of COP$172 billion [US$38.5 million] exceed its current liabilities by 11 times, maintaining a favorable liquidity situation.

“At a consolidated level, Grupo Imsa also maintains adequate levels of indebtedness and liquidity, with total liabilities representing 33% of its total assets, compared to 30% at the end of 2021. In turn, it maintains a current ratio that at the end of June stood at 2.0 times, while as of December 2021 this indicator stood at 2.1 times,” the company added.

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