Grupo Orbis 2Q 2019 Net Income Greatly Improves Year-on-Year
Medellin-based multinational Grupo Orbis – which includes paint manufacturing giant Pintuco – on August 15 reported COP$6 billion (US$1.7 million) net income for second quarter (2Q) 2019, a big reversal from a COP$17 billion (US$4.9 million) net loss in 2Q 2018.
Earnings before interest, taxes, depreciation and amortization (EBITDA) skyrocketed by 490% year-on-year, to COP$43.6 billion (US$12.6 million), according to the company.
“This good result was due to the dynamics of its businesses in Colombia and its subsidiaries abroad,” according to Orbis.
“In the paints business, [profits growth were from] significant growth of Pintuco stores and high performance coatings in Colombia, the recovery of profitability in Central America, and the optimization of raw material costs and operational expenses,” according to the company.
“In the [Andercol] chemical business, the good results of Brazil and the profitability of the companies in Colombia [can be credited to] finishing the process of stabilization of the new production plants.
“In O-tek [water-treatment technologies subsidiary], results are tied to the good performance of our subsidiary in Argentina and in the [favorable] positioning of the cleaning business, with 7.3% growth in its brands,” according to Orbis.
For first half (1H) 2019, corporate-wide revenues grew 4.11% year-on-year, to COP$680 billion (US$197.6 million), while gross profit rose 12%.
“These results are due to various dynamics within our businesses, among which the following stand out: a 10% increase in sales of the paints business, where the decorative painting and high performance coatings businesses stand out; the completion of the transfer of Colombian plants for chemical business to Cartagena; and better results of the group’s subsidiaries abroad, especially in Brazil, Central America and Argentina,” according to the company.