Colombia’s Grupo Chocolates 2010 net profit jumps 23%

Grupo Nacional de Chocolates SA, Colombia’s largest food company, reported a 23% jump in net profits in 2010 compared with 2009.

A statement from the company posted on the website of Colombia’s securities regulator said net profits reached COP263.2 billion ($138.3 million), up from COP213.3 billion in 2009.

Total revenues, however, saw a 2.8% drop to COP4.46 trillion ($2.34 billion) from COP4.59 trillion in 2009. The company blamed this on both the devaluation of Venezuela’s currency, which hurt international sales, and the strengthening of the local Colombian peso against the dollar, which pinched domestic sales.

Grupo Chocolates said its earnings before interest, taxes, depreciation and amortization, or Ebitda, fell 2.3% to COP538 billion.

The Medellin-based company participates in various food sectors including meats, coffee, chocolate, ice cream and pasta. They lead most of the sectors they are involved with.

Chocolates’ shares have fallen 13% this year, closing Friday at COP23,600, partly due to investors’ concerns over torrential rains last year that damaged food crops and roadways, pushing up operating costs for food producers such as Chocolates.

The Colombian Stock Exchange’s main IGBC index is down 5% in 2011.

(Dan Molinski, Dow Jones)

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