Nutresa 3Q 2019 Net Profit Grows 6.9% Year-on-Year
Medellin-based multinational foods giant Grupo Nutresa on October 25 reported that third quarter (3Q) 2019 net profits grew 6.9% year-on-year, to COP$412 billion (US$121 million).
Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) likewise rose 18% year-on-year, to COP$992 billion (US$292 million), while margin on sales grew by 13.8%, according to the company.
Total sales for the third quarter grew 8.9%, to COP$7.2 trillion (US$2.1 billion), while sales in Colombia rose 6.4% year-on-year, to COP$4.5 trillion (US$1.3 billion), thanks to a 5.8% rise in sales volume and a modest 0.5% hike in prices.
International sales rose to COP$2.7 trillion (US$839 million), up 1.1% in dollar terms or up 13.5% in Colombian peso terms.
The 3Q 2019 results are now stated using the new IFRS16 international accounting terms, according to the company.
“Innovation of both products and experiences for our consumers continue to be an important driver of growth and differentiation for the company,” according to Nutresa, citing a 21.9% jump in this type of sales.
Consolidated gross profit came-in at COP$3.2 trillion (US$943 million), up 7.5% year-on-year, but gross margin fell by 0.6% “mainly due to an increase in the cost of imported commodities,” according to Nutresa.
“Separating the effect of the previously mentioned new IFRS16 accounting standard, Grupo Nutresa’s operating profit would have grown by 8.0% and EBITDA by 4.7%, with a margin of 12.2% on sales,” the company added.
“Net post-operative expenses, which amount to COP$141 billion [US$41.5 million], include the accounting of the expenses related to lease contracts, as well as the reduction in financial expenses due to lower interest rates.
Meanwhile, “for the first time in its history, Grupo Nutresa was ranked as the most sustainable food company in the DJSI World Index 2019,” the company boasted.
Nutresa won this recognition because of “excellent standards in corporate practices related to tax strategy, health and nutrition, materiality, human capital development, corporate citizenship and philanthropy, operational eco-efficiency, packaging, water-related risks, and environmental reporting,” the company added.