Nutresa 1Q 2018 Profits Dip Year-on-Year, but Sales Rise
Medellin-based multinational foods giant Grupo Nutresa announced April 27 that its first quarter (1Q) 2018 net profits fell 13.1% year-on-year, to COP$121 billion (US$43 million).
The profit dip “is mainly explained by not accounting a portion of the dividends from our investment portfolio during the period, COP$26 billion [US$9.3 million], which will be registered during the second quarter of this year. Eliminating this effect, Grupo Nutresa’s net profit [for 1Q 2018] would have grown 5.7%,” according to the company.
Corporate-wide consolidated sales for 1Q 2018 rose 3.1% year-on-year, to COP$2.1 trillion (US$748 million), according to Nutresa.
“Sales in Colombia showed a positive performance — in alignment with better consumption dynamics — amounting to COP$1.3 trillion [US$463 million], which represents 64% of Grupo Nutresa’s total sales, a growth of 2.4% when comparted to the corresponding [1Q] in 2017, the company added.
Revenues outside Colombia grew 6.6% year-on-year, to US$265.2 million, accounting for 36% of total sales, according to Nutresa.
Consolidated gross profit rose 5% year-on-year, to COP$935.6 billion (US$333 million), “resulting from a sound commodities sourcing strategy,” according to the company.
Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 3.3% year-on-year, to COP$273 billion (US$97 million), with EBITDA margin at 13% of sales. “This is the reflection of our efforts in productivity and cost efficiency, along with a continued investment in the market,” according to Nutresa.
Grupo Nutresa boasts of a 59.8% market share in processed foods in Colombia “and one of the most relevant players in the sector in Latin America, with consolidated sales of COP$8.7 trillion [US$3.1 billion] in eight business units: cold cuts, biscuits, chocolates, Tresmontes Lucchetti [Italian specialties], coffee, retail food, ice cream and pasta,” according to the company.