IMSA 1Q 2025 Profits Fall 22% Year-on-Year
Medellin-based multinational diversified manufacturer-marketer Grupo IMSA announced May 15 that first quarter (1Q) 2025 net income fell 22% year-on-year, to COP$70 billion (US$16.7 million), versus COP$90 billion (US$21.5 million) in 1Q 2024.
Revenues likewise fell 35% year-on-year, to COP$79.6 billion (US$19 million), versus COP$$122 billion (US$31.9 million) in 1Q 2024.
For 1Q 2025, 50% of corporate revenues came from its Composite Materials and Polyester products business units in Brazil, 46% to consumer-products unit MCM, and the remainder to food additives sales and real-estate projects in Colombia.
Earnings before interest, taxes, depreciation and amortization (EBITDA) for 1Q 2025 fell 68% year-on-year, to COP$4.78 billion (US$1.14 million), versus COP$15.3 billion (US$4 million) in 1Q 2024.
However, “analyzing the results comparatively with 1Q 2024 — that is, administratively excluding divested companies — EBITDA was very similar to that of the same period in 2024,” according to IMSA.
As for liquidity and leverage, IMSA “maintained its negative net financial debt, meaning it had higher levels of cash and temporary investments than financial debt, totaling COP$273.7 billion [US$65 million]. Total liabilities represented 16% of its total assets, compared to 15% in March 2024,” the company added.
“This favorable cash position for the company and its businesses allows it to continue with the planned capital expenditure plan for the year, which includes urban development of the Group’s properties, the installation of solar panels at the MCM plant, the expansion of production capacities to meet the business’s strategic plans, and ongoing investment in maintaining asset conditions and safeguarding occupational health and safety,” according to IMSA.
During 1Q 2025, “the urban planning license was obtained for the Group’s [real-estate development] property located in the municipality of Rionegro [near Medellin] and the sale of a portion of it was completed.”
Meanwhile, “MCM Company has continued to see the partial materialization of the risk of disruption to the company due to the loss of a key customer, given the concentration of sales in certain customers in the ‘hard discount’ market, considering end-consumer preferences for these types of channels,” according to the company.
MCM also has suffered from “disruption to the supply chain resulting in some non-compliance or delays in the provision of raw materials, supplies.”
As for its Composite Materials business in Brazil, “the risk of regulatory changes that could directly affect the company’s business model is materializing, specifically due to the constant changes in tax matters and tariff policies implemented by various governments.”
As for its “Addimentum” food-additives business, “there are no materializations [of new business risks] for this quarter, other than the aforementioned economic losses related to exchange rate fluctuations, for which actions are being taken by our treasury department,” IMSA concluded.
