Orbis 3Q 2020 Net Income Rises 12% Year-on-Year
Medellin-based multinational paints, chemicals, piping and hardware giant Grupo Orbis announced November 10 that its third quarter (3Q) 2020 net income rose 12% year-on-year, to COP$14.6 billion (US$4 million), excluding the effect of the sale of a non-operating property in Central America.
Orbis brands include Pintuco paints, Andercol chemicals, O-tek piping and Mundial hardware supplies.
Earnings before interest, taxes, depreciation and amortization (EBITDA) were essentially flat year-on-year, at COP$88 billion (US$24 million), “thanks to the results in the plan of profitability in the midst of the challenges generated by the [Covid-19] pandemic,” according to the company.
Favorable returns “have made it possible to continue with the debt payment plan, which reaches an indicator of net financial debt-to-EBITDA of 1.7-times compared to 2.8-times as of September 2019,” according to Oribs.
“The chemical business has focused on implementing its profitability model, focused on topics such as innovation and entrepreneurship, product differentiation and modernization of the portfolio around sustainable chemistry.
“For its part, the hardware distribution unit has achieved a rapid recovery of its sales in a profitable way thanks to the strengthening of the link with its customers and suppliers, and the implementation of a new market-arrival model,” the company added.
Profitable mass-market product launches this year included a new line of antibacterial gels along with aerosol air and surface disinfectants that kill Covid-19, according to Orbis.
As for the Pintuco paints division, “results were [negatively] affected as it was the only business that had a total closure of its operations as a result of the pandemic, especially in April and May. However, in the third quarter of 2020 [Pintuco] presented a growth in sales of 4%,” despite relatively weakness in the broader market, according to the company.
“O-tek, for its part, although it has achieved an important geographic expansion developing projects in the southern cone [of South America] and positioning itself in the United States, it was affected by the suspension and postponement of infrastructure works” because of Coronavirus quarantine orders.
“For the last quarter of 2020, the Group will continue to focus on boosting sales and closing the accumulated gap of -7% in its commercial results compared to 2019, as it did in the third quarter, a period in which, even with the current conditions of uncertainty, achieved a growth of 4.4% compared to the previous year,” the company added.