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Grupo Argos reports net profit of COP 726 billion (+25%), with positive business performance

12 August 2022
  • Cementos Argos reported the highest income for the first half of the year, with COP 5.4 trillion (+13% year to year) thanks to good commercial dynamics in the United States and Colombia.
  • Celsia recorded historical results and advanced in the construction of solar farms with 17 new plants totaling 260 MW capacity and investments of COP 1 trillion.
  • Odinsa presented positive results with 19 million passengers in airports so far this year and 104,000 vehicles per day in the road concessions.
  • During the quarter, Macquarie became a strategic partner of the road axis, which is part of the materialization of Grupo Argos’ strategic initiatives to maximize the transfer of fundamental value to its shareholders.

During the second quarter of 2022 Grupo Argos ratified the strength of its operating and financial fundamentals with historical results in its businesses and investments. The company closed the second quarter of 2022 with accumulated income of COP 10.5 trillion, growing 35% compared to the same period of the previous year, and accumulated EBITDA of COP 2.6 trillion, with a 16% year-to-year growth. Accumulated net profit closed at COP 726 billion, an increase of 25%, while the controlling company’s net profit closed the semester at COP 391 billion, an increase of 37%.

The cement business closed the first half of the year with accumulated income of COP 5.4 trillion, with an annual growth of 13%, while EBITDA reached COP 954 billion.

Also, the energy business closed June with accumulated income of COP 2.5 trillion, an increase of 31% year to year, leveraged on higher energy generation and the positive dynamics of the market. EBITDA reached COP 912 billion, which is equivalent to an annual growth of 40%, driven by the positive contribution of the businesses in Colombia.

Meanwhile, Odinsa’s road concessions closed at 104,000 vehicles per day, an increase of 28% year to year, excluding the concessions divested in the Dominican Republic in December 2021. The company made progress in closing the road axis, with the creation of Odinsa Vías, a private equity fund in alliance with Macquarie, the world’s largest infrastructure investor, where Odinsa acts as manager and receives remuneration for the administration of the road concessions Autopistas del Café, Malla Vial del Meta, Pacífico 2 and Túnel Aburrá Oriente.

On its part, airport traffic closed at 19 million passengers mobilized, a figure that doubles that registered in the first half of 2021. The airports El Dorado in Bogota and Mariscal Sucre in Quito were recognized as the best in South America, according to the evaluation of Skytrax, a British organization in charge of evaluating the service offered by more than 500 airports around the world.

“Grupo Argos has solid fundamentals that demonstrate its ability to generate economic value. We are making progress in the strategic initiatives we announced to the market to transfer that fundamental value to our shareholders.”
Jorge Mario Velásquez – Grupo Argos CEO

In terms of sustainability, during the quarter the organization reached major milestones in its climate change strategy with Celsia’s carbon neutrality certification by Icontec. Regarding the progress made to reach this milestone, it is worth noting that in the last four years Grupo Argos’ energy business reduced its greenhouse gas emissions by 76%. This achievement is part of the transversal Climate Change strategy of the Business Group, to mitigate and offset the consolidated carbon footprint and adapt the businesses to its effects.

In addition, and with the aim of contributing to water security in rural areas of 14 departments of Colombia, Fundación Grupo Argos is delivering 5,000 filters for access to safe water that will benefit more than 23,000 people in rural areas of Antioquia, Atlántico, Bolívar, Boyacá, Córdoba, Cundinamarca, La Guajira, Meta, Risaralda, Santander, Sucre, Valle del Cauca, and Tolima.

Summary of Financial Results