Grupo Nutresa Full-Year 2023 Net Profits Dip 18% Year-on-Year

Medellin-based multinational processed foods giant Grupo Nutresa announced February 22 that its full-year 2023 net profits declined 18% year-on-year, to COP$739 billion (US$186 million), from COP$903.7 billion (US$228 million) in 2022.

Despite the profits dip, total 2023 revenues rose 11% year-on-year, to COP$18.9 trillion (US$4.76 billion), versus COP$17 trillion (US$4.28 billion) in 2022.

Earnings before interest, taxes, depreciation and amortization (EBITDA) also grew 11.8% year-on-year, to COP$2.2 trillion (US$554 million), with a margin on sales at 11.7%, according to Nutresa..

As for fourth quarter (4Q) 2023, net profits also fell by 18%, to COP$132.8 billion (US$33 million), versus COP$163 billion (US$41 million) for 4Q 2022.

For 4Q 2023, EBITDA rose 3.9%, to COP$509.7 billion (US$128 million), from COP$490 billion (US$123 million) in 4Q 2022.

Following a complex stock-swap agreement between Nutresa’s former part-owners (Grupo Argos and Grupo Sura), the main shareholders of Grupo Nutresa today are the Cali-based Gilinski family and their Abu Dhabi-based investment partners — with Gilinski’s JGDB Holdings having a 40.6% share and Nugil SAS a 34% share of Nutresa stock.

Commenting on more-or-less positive 2023 results, Nutresa cited “growth in all business units,” although a weaker second-half 2023 resulted in “moderation in consumption and household spending.”

On the other hand, “double-digit growth of the cookies, chocolates, Tresmontes Luchetti [pastas], consumer foods, ice cream and others businesses stand out” among Nutresa’s many subsidiaries, the company added.

In Colombia, corporate revenues rose 10.8% year-on-year, hitting COP$11.2 trillion (US$2.8 billion), with Colombia sales representing 59.2% of total global sales.

International sales grew by 11.2% year-on-year, to COP$7.7 trillion (US$1.9 billion), or 10% growth if yearly comparisons are measured solely in terms of U.S. dollars, according to the company.

Consolidated gross profit rose 18.6% year-on-year, to COP$7.4 trillion (US$1.86 billion), with margin improvement of 250 basis points year-on-year, thanks to “moderation in the cost of some raw materials, and the progressive normalization in the global logistics chain during the year,” according to the company.

As for operating expenses, Nutresa cited “greater investment in the market to support brands in a persistent inflationary environment, and lower dilution of fixed expenses due to lower volumes in some countries.”

Financial income grew 29% year-on-year, hitting COP$77 billion (US$19 million), but finance costs skyrocketed by COP$799 billion (US$199 million) — up 78% — “mainly due to higher interest rates in the different countries” where Nutresa operates.

In addition, Nutresa recorded a COP$101 billion (US$25 million) charge for currency exchanges, “due to the effect of hedging in some working capital accounts of foreign operations,” according to the company.