Nutresa 1Q 2024 Net Income Plunges 41% Year-on-Year

Medellin-based multinational foods giant Grupo Nutresa announced April 25 that first quarter (1Q) 2024 net income dropped 41% year-on-year, to COP$207 billion (US$52 million), versus COP$348 billion (US$87.7 million) in 1Q 2023.

Earnings before interest, taxes, depreciation and amortization (EBITDA) as measued in Colombian pesos dipped 3.8% year-on-year, to COP$647 billion (US$163 million), although EBITDA as measured in U.S. dollars actually rose16.7% year-on-year, to US$158.8 million, according to the company.

Meanwhile, 1Q 2024 gross revenues as measured in Colombian pesos fell 11.8% year-on-year, to COP$4.3 trillion (US$1.08 billion). However, corporate-wide revenues as measured in U.S. dollars actually rose 7.1% year-on-year, to US$1.1 billion, according to the company.

“Revenues in Colombia totaled COP$2.6 trillion [US$655 million], dropping 6.8% with regard to the previous year, and represented 60.7% of Grupo Nutresa’s consolidated sales,” according to the company.

“International revenues in dollars stood at US$430.9 million, with a slight decrease of 1.1%. However, due to a marked revaluation of the Colombian peso during the period, when consolidating these sales in Colombian currency, international sales were COP$1.7 trillion [US$428 million ] — a negative variation of -18,5% — and represented 39.3% of the organization’s total sales.”

Explaining the profits drop, Nutresa cited a “challenging business dynamic in Colombia,” which featured “consumers having lower purchasing power after long inflationary periods, a highly competitive and demanding market and the introduction of new taxes on several food products.

“The organization addressed these challenges by relying on its corporate capabilities, streamlining processes, prioritizing the affordability and competitiveness of the portfolio and listening to and understanding consumers to anticipate their needs,” according to Nutresa.

Operating profit dipped 8.4% year-on-year, to COP$492 billion (US$124 million), but financial expenses also declined 9.6% year-on-year “due to the decreased debt recorded over the period,” Nutresa added.