Grupo de Inversiones Suramericana (GRUPOSURA) Q3 2024 earnings summary

Executive summary

• 9M pro forma revenue was COP 25.977T (+29.2%), operating profit COP 8.1T (+124.9%) and controlling net income COP 5.682T, including Nutresa transaction effects.

• Excluding Nutresa effects, revenue was COP 21.963T (+17.1% at constant FX), operating profit COP 4.068T (+25.6%) and adjusted controlling net income COP 2.032T (+14.1%).

• An October memorandum with Grupo Argos proposes two independent businesses without reciprocal investments, with fair shareholder treatment and value creation; implementation remains subject to approvals and further discussions.

Financial highlights

• Nutresa transaction effects included COP 4.014T in sale profit and COP 363.2B in taxes; comparative figures also exclude a COP 142B 2023 equity-method contribution.

• LTM EPS was COP 6,295, up 60.7%; the calculation reflects share repurchases and shares outstanding after Sociedad Portafolio liquidation.

Outlook and guidance

• SURA Asset Management expects year-end ROE near 10% as reserve accounting normalizes, with double-digit profitability targeted in future periods; Colombia and Peru pension reforms may affect medium-term expectations.

• Debt is expected to decline organically; taxes related to the transaction are expected next year, and the framework-agreement payment is due in April.

• The aim is to replace over time the roughly 10% of 2024 dividends received from Grupo Argos with dividend growth from the three financial investments.

• Suramericana expects investment returns to align with lower interest rates and inflation while maintaining solid real returns; priorities include optimizing its business footprint and insurance profitability.