Grupo Nutresa, the Colombia-based food group, has reported rising first-half net earnings but falling operating profit, with investment in distribution weighing on that metric.
Nutresa booked a 2% increase in net profit to COP235.68bn (US$78.3m) for the first six months of 2017.
A lower tax bill helped Nutresa’s bottom line. The company’s operating profit fell 9.4% to COP397.38bn amid an increase in sales expenses, which was linked to greater investment in distribution.
Nutresa’s operating revenue dipped 1.1% to COP4.16trn.
The company said its sales rose 1.9% to COP4.2trn, if the results from its operations in the ailing Venezuela economy were excluded from the results.
Group sales within Colombia rose 3.9% to COP2.7trn, representing 64% of Nutresa’s sales.
Looking at the performance of Nutresa’s business units, revenue from Nutresa’s cold cuts arm, its biggest by sales, dropped 10.3% to COP880.59bn. The company’s cold cuts business comprises the production and sale of processed meats, matured meat, ready meals, canned foods, and mushrooms.