Grupo IMSA Nine-Months 2023 Net Profits Triple Year-on-Year
Medellin-based Grupo IMSA announced November 14 that its nine-months (January through September) 2023 net income tripled year-on-year, to COP$81 billion (US$19.8 million), from COP$27 billion (US$6.6 million) in nine-months 2022.
Revenues for nine-months 2023 also jumped, to COP$136 billion (US$33.3 million), versus COP$109 billion (US$26.7 million) for nine-months 2022.
For third quarter (3Q) 2023, revenues fell 20% year-on-year, to COP$43 billion (US$10.5 million) versus COP$54 billion (US$13 million) in 3Q 2022.
Net income for 3Q 2023 rose to COP$15 billion (US$3.67 million) versus COP$13.7 billion (US$3.3 million) in 3Q 2022.
IMSA is a holding company that invests in a variety of sectors including composite materials and polyester businesses in Brazil, food additives in Colombia, pipes and poles in Argentina, mass-consumer hardware items in Colombia and administration of some real properties in Colombia.
The company noted in its latest financial report that on July 26, 2023, IMSA signed a share purchase contract with WIG Latam Holding GmbH of Austria for the sale of IMSA’s participation in pipes/poles maker O-tek International — which includes 100% of the O-Tek businesses in Colombia and Mexico, and 25% of O-tek Argentina .
“Analyzing the performance of each of its businesses, O-tek Argentina — the pipe-and-pole company — maintained stable commercial operations in U.S. dollars, despite the volatility of the Argentine economic environment — with sales totaling US$19 million, decreasing just 1% versus nine months of 2022,” IMSA noted.
Meanwhile, the “MCM” company — specialized in selling products for the home, vehicles, personal care, pets and industry – saw nine-months 2023 sales jump 27% year-on-year, to COP$77 billion (US$ million), according to the company.
As for the “Addimentum” company — specialized in manufacture and sale of food additives in Colombia – this unit achieved sales of COP$13.5 billion (US$3.3 million) for nine-months 2023 “and continues to mark its path of expansion of commercial offerings in the local Colombian market, Brazil and the Southern Cone,” according to IMSA.
Finally, the chemical business unit in Brazil saw sales decline 19% year-on-year, to COP$178.8 billion (US$43.8) for nine-months 2023, “due to the trend in decreasing average market prices and the decision to reconfigure the portfolio, targeting markets and segments that are more valued,” according to IMSA.
As for gross margins for the entire IMSA group, this rose to 38% for nine-months 2023, compared to 23% for nine-months 2022.
As for corporate debt levels, IMSA “maintains adequate debt and liquidity levels, with total liabilities that represent 21% of its total assets, versus 31% as of December 2022,” according to the company.
“The main variations in the balance sheet at a consolidated level correspond to the increase in cash and cash equivalents of COP$155 billion [US$38 million] — 125% more than in December 2022 — attributable to the better generation of operating cash from businesses and the payment received due to the divestments of Neotrimental and O-tek International,” IMSA added.
