Nutresa Full-Year 2017 Profits Rise 6.2% Year-on-Year
Medellin-based multinational foods giant Grupo Nutresa on February 22 reported a 6.2% year-on-year rise in profits for full-year 2017, hitting COP$420 billion (US$147 million).
Consolidated sales rose 2.4% year-on-year, to COP$8.7 trillion (US$3 billion), after excluding sales in economically failing “socialist” Venezuela.
In Colombia, sales rose 2.5% year-on-year, to COP$5.5 trillion (US$1.9 billion), representing 63.2% of Grupo Nutresa’s consolidated revenues.
Sales abroad (excluding Venezuela) rose 5.7% year-on-year, to US$1.1 billion, accounting for 36.8% of Grupo Nutresa’s total sales.
“Furthermore, exports from Colombia presented strong positive dynamics over the year, growing 19.4% in U.S. dollars,” according to the company.
“Gross profit improved by 3.5% in relation to 2016, amounting to COP$3.8 trillion [US$1.3 billion]. This outcome is the result of a strong commodities sourcing and management strategy, the favorable prices of some commodities, and the productivity programs set in motion by the company,” Nutresa added.
As for earnings before interest, taxes, depreciation and amortization (EBITDA), Nutresa realized a modest 1.5% gain year-on-year, to COP$1.04 trillion (US$364 million).
“This result is explained to a large extent by moderate sales in our local market, the execution of various productivity-focused projects, and a sensible pricing strategy focused on protecting volumes,” according to the company.
Meanwhile, Nutresa saw a 4.5% growth in total assets, closing the year at COP$14.3 trillion (US$5 billion). “This increase is largely due to a greater cash generation during the period and the higher valuation of the investments in [Medellin-based multinational companies] Grupo Sura and Grupo Argos,” according to Nutresa.