Grupo Nutresa Grows 4.9% in Sales in Colombia

• Sales in Colombia performed well and amounted to COP 1.3 trillion, 4.9% higher than in the same period in 2016.
• Sales abroad amounted to USD 248.7 million and reflect a 3.6% growth, after excluding – for comparative purposes – the first-quarter sales of 2016 in Venezuela.
• In terms of profitability, an accumulated EBITDA of COP 264,549 million was reported in the period, representing 13% of sales.

Grupo Nutresa S.A. (BVC: NUTRESA) announces its consolidated financial result as of March 31, 2017.

During the first quarter of 2017, we highlight the good sales dynamics in Colombia, which amounted to COP 1.3 trillion, representing 64% of Grupo Nutresa’s consolidated sales and growing 4.9% compared to the same period last year.

Sales abroad amounted to COP 727,127 million, representing 36% of total sales. Expressed in Dollars, these sales totaled USD 248.7 million, a 4.9% decrease that, by excluding first-quarter 2016 sales in Venezuela, reflect a growth of 3.6%.

Total sales in Colombian Pesos stand at COP 2.04 trillion, a growth of 0.3% (considering the exclusion mentioned of Venezuela) resulting from a lower exchange rate compared to the same period in 2016.

This commercial dynamic, both nationally and internationally, is the result of important efforts in innovation, quality and productivity, supported by a constant development of channels and a powerful distribution network that allows us to deliver a differentiated offer to our customers, buyers and final consumers.

Grupo Nutresa’s operating profit amounted to COP 203,785 million, with an operating margin of 10%, favored by the good performance of sales and administration expenses, which recorded growth below Colombian inflation, and a 5% reduction in production expenses.

In terms of profitability, an EBITDA for COP 264,549 million was reported, 13% of sales. This result is the product of a strategy of rigorous management of expenses, constant efforts in operational efficiencies and the reduction of the cost of certain raw materials.

Net post-operative expenses for COP 30,420 million are 21.6% lower than those of the same period last year and include the effect of the revaluation of the Colombian Peso.

Finally, consolidated net profit totals COP 139,150 million, an 8.3% decrease against the first quarter of 2016, primarily due to the accounting record of investments in Venezuela as a financial instrument and a lower exchange rate compared to the same period in 2016.

Grupo Nutresa S. A. Separated Financial Statements

In the Grupo Nutresa S. A. Separated Financial Statements, operating income for the first quarter of 2017 is reported for COP 137,135 million, which comes from the application of the equity method on subsidiaries and associates for COP 82,931 million, and from the recognition of dividends from the investment portfolio for COP 54,204 million. Net profit is COP 136,579 million; equity amounts to COP 8.4 trillion.

The annexes below, both for the Consolidated and Separate Financial Statements, are an integral part of this communication, namely: The Comprehensive Income Statement as of March 31, 2017; the Statement of Financial Position as of March 31, 2017; and Indicators.