Financial results

Grupo Argos prioritizes the health of its employees and maintains an EBITDA margin of 27% year after year

13 August 2020

• The organization implemented a close strategy of medical, physical and emotional support for its 14,000 employees.
• Thanks to the timely execution of a cost and expense variability strategy, Grupo Empresarial Argos managed to mitigate the lower revenues recorded during the quarter and maintained the EBITDA margin at 27% year after year.
• The quarterly results demonstrated the organization’s ability to adapt, which registered a quarterly EBITDA of COP 890,000 million and revenues of COP 3.3 billion, in a period that was impacted by the effects of COVID-19.
• At a consolidated level, the company has managed COP 2.8 billion in available resources to face the challenges of the situation. The positive cash generation of the companies of the business group stands out, amounting to COP 327,000 million as of June, which demonstrates its operational strength.

“At Grupo Empresarial Argos we maintain full confidence and optimism in the future of the country, and we are also more committed than ever to the process of rapid and safe reactivation that can generate an effective revitalization of the economy and help us overcome this situation. We trust in the experience and trajectory of the organization, in our more than 14,000 collaborators and in the orientation of the higher purpose that has guided us for the last 90 years to benefit the progress and development of the territories where we operate ”.

Jorge Mario Velasquez
President of Grupo Empresarial Argos

The results of the second quarter of the year show the adaptability of Grupo Empresarial Argos and the operational strength of its companies. During the quarter, the organization implemented the shock plan designed at the beginning of the situation and the expectations raised by the administration at the end of March were exceeded. Consolidated revenues for the second quarter reached COP 3.3 billion, while ebitda reached COP 890,000 million, both with a decrease of 15% compared to the same period of the previous year, where the performance of the cement businesses stands out. energy and urban development, while impacts were recorded in the concessions business, mainly derived from the closure of the El Dorado Airport as a result of the pandemic.

The positive signs observed in June are highlighted, a historical month in the generation of ebitda for Cementos Argos with COP 180,000 million, this being the best result in this period of the year for the cement business. In energy, the increase in the net profit of the parent company for the quarter that closed at COP 73,000 million stands out, as a result of Celsia’s strategic execution in recent years. For its part, in concessions, the recovery figure for road traffic stands out, which is between 60% and 70% of the historical figure. Finally, in the urban development business, agreements were recorded for COP 47,000 million derived from the negotiations of real estate for buildings in the department of Atlántico.

“Despite the decrease in economic activity in the regions in which we are present, the commitment of our collaborators has allowed us to successfully execute a shock plan to face this situation, demonstrating that we are resilient and have the ability to adapt quickly . In addition, diversification in sectors, currencies and regions has confirmed the power of the company’s strategy ”, stated Jorge Mario Velásquez.

During the pandemic, Argos Business Group has contributed more than COP 20,000 million to increase the care capacity of the health system with the provision of ICU beds for hospitals, the provision of tests and equipment to increase the diagnostic capacity of COVID-19, the delivery of personal protection items and the donation of food aid to vulnerable families in all regions of Colombia.