Grupo Nutresa (NUTRESA) Q3 2024 earnings summary

Executive summary

• Total sales for the third quarter reached COP 4.7 billion, up 1.8% year-over-year, with growth in chocolates, retail food, biscuits, and other segments.

• Accumulated sales for the year reached COP 13.5 billion, down 5.4% year-over-year, but with improving trends in the third quarter.

• Net profit for the nine months was COP 587,903 million, a decrease of 3.1% year-over-year, while total comprehensive income improved significantly due to positive exchange differences.

• Extraordinary dividend of COP 1,135.98 per share was declared and paid in September 2024, totaling COP 520,002 million.

• Recognized as the third company with the best reputation in Colombia, maintaining a top-three position for 16 consecutive years.

Financial highlights

• EBITDA for the quarter was COP 602.9 billion, up nearly 20% year-over-year, and for the nine months reached COP 1,790,402 million.

• Net profit for the quarter was COP 211 billion, up 85.3% year-over-year; accumulated net profit for the year was COP 587 billion, down 2.6% year-over-year.

• Gross margin improved by 90 basis points in the quarter and 300 basis points year-to-date, reaching 41.6% for the nine months.

• Financial expenses reduced by almost 15% in the quarter due to lower interest rates; average interest rate on debt was 11.36% as of September 2024.

• Total assets as of September 30, 2024, were COP 16,788,639 million, with total liabilities of COP 9,938,924 million and equity of COP 6,849,715 million.

Outlook and guidance

• Expectation of gradual improvement in commercial performance for the last quarter, with positive trends both domestically and internationally.

• Continued focus on managing commodity and currency volatility through hedging strategies and efficiency plans.

• Anticipation of better returns and improved net profits for the remainder of the year.

• The effective tax rate as of September 30, 2024, was 35.14%, slightly above the theoretical rate due to non-deductible expenses.

• No significant events after the reporting date that would impact the financial position as of September 30, 2024.