During the first half of 2017, Colombian construction company Conconcreto reported 23.1bn pesos (US$8mn) in profit, which is a 41.8% decrease from the year before. At the same time, revenue decreased 2.3% to 671bn pesos, while Ebitda fell 14% to 94.5bn pesos.
The company's president, Juan Luis Aristizábal, attributed the poor results on the country's economic slowdown. "This is a project-based business, therefore its results will be in function of the country's economic cycles. Because of that, net profit will be impacted when compared to 2016", he told daily El Colombiano.
Colombia faced a rough start to this year. Due to deceleration in mining and oil, lower internal demand, and a controversial tax reform going into effect, the country's GDP was only up 1.1% y-o-y in the first quarter, and 1.3% during the second. Even the country's president, Juan Manuel Santos, admitted that the first half of the year was "bad."
However, Conconcreto is now betting on its infrastructure portfolio in order to finish the year on a good note, as that was the only segment of its construction business that registered an increase in revenue during the first semester, with 283bn pesos.
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