Nutresa 3Q 2023 Net Income Falls 48% Year-on-Year

Medellin-based multinational foods giant Grupo Nutresa announced October 27 that its third quarter (3Q) 2023 net income fell 48% year-on-year, to COP$114 billion (US$27.7 million), while nine-months 2023 net income dipped 18%, to COP$592.7 billion (US$144 million).

Soaring finance costs hurt the bottom line, according to the company.

For 3Q 2023, sales rose 2.7%, to COP$4.67 trillion (US$1.14 billion), while nine-months 2023 sales rose 17.5% year-on-year, to COP$14.3 trillion (US$3.48 billion).

In 3Q 2023, earnings before interest, taxes, depreciation and amortization (EBITDA) declined 4.5%, to COP$507 billion (US$123.5 million), while nine-months 2023 EBITDA rose 14.3% year-on-year, to COP$1.69 trillion (US$412 million), according to the company.

So far this year (nine-months), “sales in Colombia reached a total of COP$8.4 trillion [US$2.05 billion], growing by 14.7% over the same term in 2022,” according to Nutresa.

Colombia sales accounted for 58.7% of the company’s corporate-wide revenues so far this year.

For the nine months this year, “gross profit reached COP$5.5 trillion [US$1.34 billion], a 23% expansion,” according to Nutresa. “A timely hedging strategy and cost reductions from several commodities benefited this result, which signified a 170 basis-points margin expansion.”

Earlier this year, Abu Dhabi-based IHC and Cali, Colombia-based Grupo Gilinski jointly acquired 87% of the shares of Grupo Nutresa in a complex stock-swap deal, with a value roughly estimated at more than US$2 billion.

Grupo Nutresa describes itself as “the leading company in processed foods in Colombia, with 52.3% of consolidated market share, as well as one of the most relevant players in the sector in Latin America through eight business units: meats, cookies, chocolates, coffees, consumer foods, ice creams and pastas.”

The company boasts of a direct-to-consumer presence in 17 countries, as well as sales representation in a total of 82 countries.