Nutresa 2Q 2018 Profits Jump 27% Year-on-Year
Medellin-based international packaged foods giant Grupo Nutresa announced July 27 that its second-quarter (2Q) 2018 profits rose 27% year-on-year, to COP$124 billion (US$43 million), while sales rose 5%, to COP$2.2 trillion (US$765 million).
Earnings before interest, taxes, depreciation and amortization (EBITDA) rose a modest 1.6%, to COP$267 billion (US$93 million), while EBITDA margin hit 12.5% during the first half (1H) of 2018, according to the company.
While Colombia currently represents 64% of its total global sales, Central America now accounts for another 9.3%; Chile 8.6%; the USA 7.5%; Mexico 2.6%; Peru and the Caribbean each 1.8%; and Ecuador 1.4%, according to Nutresa.
During 1H 2018, sales in Colombia rose 4.4% year-on-year, to COP$2.8 trillion (US$974 million), due to a 3.8% hike in product volumes “accompanied by a prudent pricing strategy and a decisive investment in brands in the different channels served,” according to Nutresa.
Also during first-half 2018, international sales grew 5.9% (as measured in U.S. dollars), hitting US$547.3 million, according to Nutresa.
Gross profit for 1H 2018 grew 5.6% year-on-year, to COP$1.9 trillion (US$661 million), reflecting “the increase in sales, efforts in productivity and the constant search for greater efficiencies in purchasing strategies and coverage of our raw materials,” according to Nutresa.
In Colombia, the company boasts of a 71% market share in sales of processed meats (Zenu and Pietran brands); a 54% share in crackers/cookies (Noel, Tosh, Dux); a 69% share in packaged chocolates (Corona, Jet, ChocoListo); a 50% share in coffees (Colcafe, Sello Rojo, La Bastilla, Matiz); a 52% share in pastas (Doria); and significant market shares in fast-food restaurants (El Corral, Leños y Carbon, Helados Bon, Krispy Kreme, Taco Bell, Starbucks, Papa John’s and Beer Station).
The company also boasts of robust sales of Italian processed-food specialties through its Tresmontes Lucchetti division in several countries.