Grupo Nutresa starts 2019 with a 6,7% growth in sales and an ebitda margin of 14,3%

• Grupo Nutresa’s consolidated sales deliver a positive performance, amounting to COP 2,2 trillion, 6,7% higher than the revenues for the first quarter of 2018.
• Sales in Colombia totaled COP 1,4 trillion, exhibiting a growth rate of 4,6% compared to the 1Q sales in 2018.
• International sales, which amounted to USD 267,3 million, grew by 0,8% in relation to the international sales of the past year’s first quarter. In COP, this growth is equivalent to 10,5%.
• In terms of profitability, the Organization reports an ebitda of COP 320.118 million, representing 14,3% of the sales.
• The results mentioned above are reported using a new accounting standard for leases in Grupo Nutresa’s financial statements. This new standard, IFRS 16 Leases, eliminates the distinction between operating and financial leases, proposing a unique model for the reporting of such contracts. The changes emerging from the application of the new standard can be reviewed in full detail in the financial information published on Grupo Nutresa’s website.

Medellin, April 26, 2019. Grupo Nutresa S.A. (BVC: NUTRESA) discloses its Consolidated Financial Results as of March 31, 2019.

As of the closing of the first quarter of 2019, Grupo Nutresa’s total sales show positive growth dynamics both in Colombia and abroad. Consolidated sales amount to COP 2,2 trillion, representing a 6,7% increase with regard to the corresponding term in 2018.

In Colombia, Grupo Nutresa’s sales had a positive performance, amounting to COP 1,4 trillion, which represent 62,7% of the total, with a growth of 4,6% in relation to the same period in 2018.

International sales in USD amount to USD 267,3 million, exhibiting a 0,8% growth and representing 37,3% of the total. When expressed in Colombian Pesos, these revenues stand at COP 837.572 million, that is 10,5% higher than those of the first quarter in 2018.

Consolidated gross profit amounts to COP 992.228 million, growing by 6,0% over the consolidated gross profit for the past year’s first quarter. This is the result of increasing sales and higher costs of the imported commodities due to the depreciation of several currencies in Latin America against the US Dollar.

Thus, the operating profit amounted to COP 230.163 million, which is 14,0% greater than the equivalent profit for the first term of 2018.

In terms of profitability, the ebitda totals COP 320.118 million, representing a 17,1% increase with
regard to the same period of the previous year, with a margin on sales of 14,3%. This result is the
product of actions focused on managing expenses in search for the constant improvement of Grupo
Nutresa’s productivity and operational efficiency.

For comparison purposes, it should be noted that, with the accounting standard formerly used, operating profit would have increased 9,3%, and the ebitda growth would have reached 3,6%, with a margin of 12,6%.

Net post-operative expenses, which totaled COP 7.343 million, represent 0,3% of the Organization’s sales and reflect the continuous reduction in financial expenses as a consequence of lower financial costs and lower overall debt over the past months.

Finally, and capturing the aforementioned highlights, the consolidated net profit amounts to COP 174.437 million, that is 44,3% higher than the first quarter of 2018. It is worth mentioning that in 2018 the dividends of our investment in Grupo Argos, which totaled COP 26.176 million, were officially declared in the second quarter, not in the first one as per usual. If such fact were omitted, Grupo Nutresa’s net profit would present a growth rate of 18,6%.

Separate Financial Statements of Grupo Nutresa S.A.

The Separate Financial Statements of Grupo Nutresa S.A. report COP 176.948 million in operating revenues over the first quarter of 2019, derived from the application of the equity method on subsidiaries and associated companies for COP 115.455 million, and from the recognition of dividends from the investment portfolio totaling COP 61.493 million. Net profit amounts to COP 176.330 million and the equity totals COP 8,6 trillion.