Grupo Nutresa has seen an increase in first half sales but a fall in profits

Grupo Nutresa has seen an increase in first half sales but a fall in profits

Acquisition charges have hit Grupo Nutresa's first-half profits, although the Colombian food company saw operating income and revenue rise.

For the six months ended 30 June, Grupo Nutresa reported an 8.7% drop in profits to COP229.6bn (US$75,024). The fall was mainly due to the debt incurred for the acquisition of restaurant chain Grupo El Corral in February and an increase in income tax. Operating income rose 5.6% to COP371.6bn.

International sales were up 19.3% against the same half last year to COP1.3trn. In US dollar terms, sales fell 5.8%, explained by the devaluation of currencies against the US dollar in Latin America, Nutresa said.

Sales overall were 16.8% up on the same period last year at COP3.6trn on the back of "outstanding performance" in Colombia, higher volumes and price adjustments. The top line was also boosted sales from Grupo El Corral.