Grupo Argos closes the third quarter of the year with a consolidated net profit of COP 1.4 trillion (+33%), maintaining its positive trend.
9 November 2023
The announced asset combination between Argos USA and Summit Materials will result in one of the largest U.S.-based construction materials companies listed on the New York Stock Exchange, in which Cementos Argos will have a 31% stake.
During the third quarter of the year, Celsia announced the acquisition of the Caravelí Wind Project in Peru, with a capacity of 218 MW and a value of USD 240 million. The start of operations is scheduled for the second half of 2025.
In airport concessions, traffic continued to improve with 12 million passengers mobilized in the third quarter, growing 10% year-on-year. The favorable dynamics of Quito Airport stood out, growing over 22% in traffic.
The Urban Development Business of Grupo Argos continued to show favorable growth, increasing accumulated cash flow by 29% compared to the same period the previous year.
During the third quarter of 2023, Grupo Argos maintained growth in its financial results due to the positive performance of its operations and investments. By September, consolidated revenues reached COP 17 trillion, growing by 9% compared to the same period the previous year. EBITDA reached COP 4.4 trillion, with an increase of 13%, and net profit stood at COP 1.4 trillion, marking a 33% increase. The net profit of the holding company closed at COP 908 billion, showing a growth of 56%.
“We continue to make progress with positive results, allowing us to achieve a net profit for the holding company of COP 908 billion (+56%) by the third quarter, while also advancing with significant strategic transformations such as the agreement for the combination of Cementos Argos’ operations in the United States with Summit Materials.”
Jorge Mario Velásquez President of Grupo Argos
Cementos Argos reported consolidated revenues of COP 3.1 trillion, remaining stable compared to the same quarter of the previous year. EBITDA closed at COP 722 billion, growing by 23% year-on-year. In the U.S. region, revenues grew by 11%, and EBITDA by 42%, driven by the positive dynamics in the commercial and infrastructure segments in that country. Similarly, exports in the Colombian region grew by 10% compared to the third quarter of 2022.
In Celsia, consolidated revenues reached COP 1.5 trillion during the third quarter, growing by 14% year-on-year, and EBITDA closed at COP 414 billion. For the year-to-date, EBITDA, including the solar generation, transmission, and distribution platforms, closed at COP 1.8 trillion, growing by 15% compared to the first nine months of 2022.
In Odinsa, the average daily traffic on the road platform decreased slightly due to the reduction in traffic on Autopistas del Café, as a result of the situation at the Puente el Alambrado, which began to normalize with the operation of the new infrastructure on October 12th. Meanwhile, airport traffic grew by 10% compared to the accumulated figures for the third quarter of 2022. Additionally, Odinsa made the payment of bonds issued in 2020 totaling COP 280 billion, resulting in a significant reduction of debt in the company and strengthening its capital structure.
The Urban Development Business of Grupo Argos recorded revenues in the third quarter of COP 80 billion, a 170% increase compared to the previous year, along with an EBITDA of COP 21 billion. In the accumulated figures, revenues total COP 211 billion, a 45% year-on-year increase, and EBITDA COP 70 billion, an 81% growth compared to the previous year.
Integral Value Generation: Well-being and Development for colombians
Grupo Argos’ Urban Development Business has received two recognitions for its contribution to the construction of sustainable cities in the Colombian Caribbean. The Realismo Mágico Park was awarded the Excellence in Sustainable Architecture – Vidrio Andino Prize. This infrastructure was designed and built in October 2022 in collaboration with the District Mayor’s Office of Barranquilla, the District Infrastructure Agency, Siembra Más, and Public Lighting. It provides 10,000 m2 of public space, and since its inauguration, more than 7,000 people have benefited from a range of 145 activities.
Additionally, in October, Grupo Argos’ Urban Development Business received the National Social Responsibility Award 2023 from Camacol Nacional for its Recycle Together Barú project. This initiative has benefited over 18,000 residents and visitors, with the participation of more than 150 recyclers who have recovered over 100 tons of waste in the last 16 months. This program has contributed to the formalization of recyclers, mostly people in extreme poverty, transitioning to become entrepreneurs or public service entrepreneurs. They are now partners in a Sorting and Utilization Station, earning income, improving working conditions, and gaining access to training and development.