Publicly traded companies will obtain their financial results for the fourth quarter of 2022. Yesterday it was the turn of Argos and Mining Cement. Both reported to the Financial Superintendence an increase in their income but a drop in their profits.
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At the end of 2022, Argos Cement there was a record high in terms of consolidated revenue, with a total of 11.7 trillion pesos, which represents a growth of 19 percent compared to 2021.
However, the net profit for the year was 214,814 million pesos, which represents a 59 percent drop compared to 2021; and its net profit closed at 403,000 million pesos, 14.4 percent lower than that of 2021. According to the company, this situation was mainly due to the notable increase in financial expenses due to the increase in interest rates.
On the other hand, income from miners they reached 2.2 trillion pesos in 2022, which represented an increase of 21 percent, thanks to the 10 percent increase in gold production and a devaluation close to 7 percent. However, the company’s net result for the year had a decrease of 88 percent, standing close to 19,082 million pesos.
Precisely, a report by the brokerage firm Casa de Bolsa predicts that the construction and materials sector will be the worst performing sector in this period of results, as a consequence of the notorious impact that the high cost environment would maintain on profit margins.
Results expectations
According to this report, most issuers will have neutral financial results and a slowdown will occur amid variables such as high inflation, higher interest rates, the rise of the dollar and the higher.
The sectors exposed to the international prices of commodities would be the ones with the best results, according to the commission agent. There are the oil & gas and public services (utilities) companies, such as Ecopetrol, ISA and Grupo de Energía de Bogotá.
For example, according to Casa de Bolsa, the net profit for Ecopetrol shareholders would be 7.4 trillion pesos in the fourth quarter of 2022, which would represent a growth of 21.7 percent compared to the same period of the previous year.
In an environment of slowdown in spending and economic activity in general, the consumer sector would present results between neutral and negative. In addition, inflation and the exchange rate would keep profit margins under pressure.
Despite presenting annual improvements, a quarterly moderation would also begin to be evidenced in the financial sectorwith pressures derived from higher funding costs.
