Medellin’s Grupo Nutresa 2016 Profits Dip 7.2% Year-on-Year
Medellin-based multinational foods conglomerate Grupo Nutresa announced February 24 that its full-year 2016 net profits dipped 7.2% year-on-year, to COP$399.7 billion (US$138 million).
Gross profit rose 7.9% year-on-year, to COP$3.7 trillion (US$1.27 billion), while consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) rose 5.5% year-on-year, to COP$1 trillion (US$345 million), according to the company.
Sales in Colombia rose 9.1% year-on-year, to COP$5.4 trillion (US$1.86 billion), while total sales in all markets rose 9.2%, to COP$8.7 trillion (US$3 billion), according to the company.
In Colombia, “excluding January and February 2016 Grupo El Corral [restaurant] sales, which are not comparable with those of 2015, [sales] growth was 7.7%,” according to the company.
“This was made possible by the construction of a differentiated value offer for clients, buyers and consumers, and by the development of distribution networks that allowed us to take our products to more than 405,500 points of sale in Colombia with well-known and beloved brands.
“Sales abroad, measured in Colombian pesos, were 9.4% higher [in 2016] than those registered in December 2015 and amounted to COP$3.3 trillion, representing 38.2% of the total. In dollars, this equaled US$1.1 billion, 1.0% lower than those of last year.”
The year-on-year improvement in gross profit “reflects the combined effect of responsible price management and the increased costs of some raw materials,” according to Nutresa.
As for the EBITDA improvement, “this level is largely explained by the high inflation rates registered during the year, the effect of the devaluation of currencies, and the El Niño [drought] phenomenon in Colombia, which were partially mitigated by responsible price management with a long-term vision of volume protection,” according to Nutresaa.
Founded in 1920, Grupo Nutresa now has more than 45,000 employees, 45 production plants in 14 countries, and markets its food products in 72 countries through a network of more than 11,700 vendors, according to the company.