Grupo Nutresa 2Q 2024 Net Income Rises 17.4% Year-on-Year
Medellin-based multinational foods giant Grupo Nutresa announced July 25 that its second quarter (2Q) 2024 net income rose 17.4% year-on-year, to COP$164 billion (US$40.8 million), from COP$140.4 billion (US$34.9 million) in 2Q 2023.
Gross revenues for 2Q 2024 rose 4.9% year-on-year, to COP$565 billion (US$140.6 million), according to a filing with Colombia´s Superfinanciera oversight agency.
Earnings before interest, taxes, depreciation and amortization (EBITDA) for 2Q 2024 rose 4.9% year-on-year, to COP$566 billion (US$140.8 million), according to the company.
First-Half (1H) 2024 Results
As for its consolidated results for January through June 2024, Nutresa reported 1H 2024 sales of COP$8.8 trillion (US$2.19 billion), down 8.8% year-on-year from 1H 2023.
EBITDA for 1H 2024 rose by just 0.1%, to COP$1.187 trillion (US$295 million), but jumped by 17.4% as measured in U.S. dollars.
Despite the EBITDA gain, net profit for 1H 2024 actually plunged 23.5% year-on-year, to COP$366 billion (US$91 million). But ¨excluding the effect of [one-time gains from] dividends from Grupo Sura and Grupo Argos in 2023, net income [in 1H 2024] would grow by 4.0%,¨the company added.
Sales in Colombia during 1H 2024 dipped 4.2% year-on-year, to COP$5.3 trillion (US$1.32 billion), while international sales as measured in U.S. dollars dipped 0.7% year-on- year, to US$876.1 million.
Commenting on over-all market conditions during 1H 2024, Nutresa noted ¨evidence of an impact on the purchasing power of consumers, high volatility in currency exchange rates in the region and the progressive adjustment to higher taxes on some foods in Colombia.¨
Corporate-wide gross profit for 1H 2024 came-in at COP$3.7 trillion (US$921 million), with a slight boost (400 basis points) in gross margin. ¨This was achieved mainly due to supply management and hedging decisions,¨according to the company.
¨In terms of post-operating expenses, there was a 6.2% decrease in financial expenses due to lower debt during the period. Likewise, and for comparability purposes with previous years, it is important to mention that as of this year, dividends associated with the portfolio of shares in Grupo Sura and Grupo Argos are not recorded, since said portfolio was split at the end of 2023,¨ meaning Nutresa no longer holds any shares in Sura nor in Argos.
