Grupo Orbis Posts COP$8 Billion Net Loss for 3Q 2018

Medellin-based Grupo Orbis – which includes Pintuco paints, Andercol Chemicals and O-Tek water treatment technologies – on November 14 posted a COP$8 billion (US$2.5 million) net loss for 3Q 2018, compared to a COP$3.2 billion (US$1 million) net profit in 3Q 2017.

For the nine-months of 2018, Orbis posted a net loss of COP$35.5 billion (US$11 million), which was worse than the COP$6.5 billion (US$2 million ) net loss in nine-months 2017.

Revenues also declined year-on-year, to COP$367 billion (US$115 million) in 3Q 2018 versus COP$435 billion (US$136 million) in 3Q 2017, while nine-months 2018 revenues fell to COP$1.02 trillion (US$320 million) versus COP$1.2 trillion (US$376 million) in nine-months 2017.

“This result was impacted by the sales performance of the third quarter, decreasing by 2%,” according to Orbis.

“This situation is partly attributable to the slow performance during 2018 of the consumer, construction and industrial sectors, both in Colombia and in the other countries where we have a presence.

“In relation to the cost behavior, the group continues in its process of operational transformation with the transfer of its main chemical and piping business plants to the city of Cartagena, which has generated a temporary pressure on operating costs. Additionally, there has been a strong price increase in some strategic raw materials, which has temporarily affected the profitability of the businesses.

“To offset this performance, during the quarter adjustments were made in operating expenses, which are reduced by 12.3%. Accumulated [from January] to September 2018, the reduction in expenses is equivalent to 10.5% compared to the same period of 2017.

“Grupo Orbis continues with the goal of reducing its net debt, which in the last 12 months has been reduced 19%, or COP$95.9 billion [US$30 million],” according to the company.