Grupo Nutresa, a people-centered organization, reports its consolidated results as of the third quarter of 2022

Medellín, October 21, 2022. Grupo Nutresa’s remains committed to leading a people-centered, conscious and competitive Organization that creates value for all its stakeholders, while making progress in alignment with its higher purpose of building a better world where development benefits everyone.

Consequently, the Company shares the progress achieved over certain relevant matters for the Organization:

Cooperating with people, partners and society: nutrition, health and well-being

Grupo Nutresa is committed to developing food solutions that make a positive contribution in terms of people’s nutrition, well-being and health. This is based on research and development capacities that enable the Organization to have an innovative portfolio that is constantly evolving.

Over the past ten years, the Company has improved the nutritional profile of 3.144 products by reducing and replacing ingredients of particular interest from the public health stance. In addition, Grupo Nutresa has entered new categories such as the specialized nutrition segment with its brand Bénet, the alternative-protein category with the brands Pietrán, Kibo and Tosh, and the 100% baked snacks category, among other initiatives.

As part of its 2030 objectives, the Organization strives to continue complementing its portfolio with other nutritious and healthy alternatives, which is why the Company has set a goal to ensure that 50% of its innovations improve the consumers’ health conditions.

Preserving the planet: responsible and productive sourcing

The Company continues making progress towards its strategic goal for 2030 of sourcing 100% of the supplies in a productive and sustainable way while preserving biodiversity. This is managed through a competitive procurement model that allows a positive balance between sustainability-driver efforts and productivity.

To fulfill this purpose, Grupo Nutresa develops strategies along the value chain focusing on competitiveness, training in digital capabilities, biodiversity and agricultural and livestock development, Human Rights, and inclusive businesses through projects that cover the Organization’s top 16 commodities, which make up for more than 80% of the Company’s procurement volume.

Inspiring development, growth and innovation. Consolidated financial results of Grupo Nutresa S. A. for the third quarter of 2022

As of the closing of this year’s third quarter, Grupo Nutresa’s sales continue showing a positive trend by amounting to COP 12,2 trillion, which is 33,1% higher than the equivalent sales in 2021.

All of Grupo Nutresa’s geographies and Business Units recorded two-digit growth rates, reflecting responsible pricing with sustained volumes. This is supported by a broad portfolio of well-known and appreciated brands, an innovative offer, and leading market positions that allow the Company to create value to clients, customers, consumers and shoppers.

Revenues in Colombia grow 31,5% and amount to COP 7,3 trillion, which represents 60,2% of Grupo Nutresa’s consolidated sales. International sales totaled COP 4,8 trillion, with a 35,5% growth rate regarding last year’s equivalent sales. When stated in dollars, these sales amount to USD 1,2 billion and post a growth rate of 22,9%. In the international context, it is also worth highlighting the exports from Colombia, totaling USD 337 million, which grew 38,5%.

Grupo Nutresa continues managing the impact of global inflation and the restrictions along the global supply chain through an adequate administration and hedging of commodities, as well as a disciplinined cost and expense agenda within the Organization. Consequently, the Company reports COP 4,5 trillion in gross profits, achieving a 19,6% growth rate over the period.

The implementation of digital capabilities and the constant pursuit for go-to market agility and productivity have enabled Grupo Nutresa to maintain an operating expense structure that grows by a lower rate than sales, which translates into savings for the Organization. Along this line, the Company’s operating profit amounts to COP 1,1 trillion, which is 32% higher than the equivalent profit for the same period in 2021.

As for profitability, Grupo Nutresa reports an EBITDA margin of 12,2% over sales, amounting to COP 1,5 trillion, with a growth rate of 25,8%.

In the context of post-operative items, financial expenses grew 63,8% mainly due to the increase in the interest rates in the multiple geographies where Grupo Nutresa operates.

The consolidated net profit amounts to COP 723.049 million, growing by 35,2% in comparison to last year’s profit.

Separate Financial Statements

The Separate Financial Statements of Grupo Nutresa S. A. report COP 733.630 million in operating revenues, from which COP 643.438 million correspond to the profit obtained through the equity method of the investments in food companies and COP 90.192 million correspond to dividends from the investment portfolio. Furthermore, the net profit totaled COP 723.163 million.