Arcor lost $ 144 million in 2019, but the operating breakdown fell sharply

Grupo Arcor concluded fiscal year No. 59, between January 1 and December 31, 2019, with a loss of 144 million pesos, in

comparison to a loss of 1,555 million pesos of the same period of the previous year.

As reported, Argentina’s sales, which include exports to third parties, accounted for 67% of consolidated sales, while sales from foreign companies reached 33%.

With regard to business abroad, a slow recovery of sales in volumes and billing in Brazil, and the good performance of subsidiaries in Mexico and Paraguay.

The performance of the mass consumption segment in Chile, Bolivia and Ecuador was affected in the last quarter of 2019 by the conflicts that occurred in those countries.

Argentina’s mass consumption businesses suffered a decrease in volumes sold during the year, the company said, in line with the generalized decline in the domestic market, “product of a complex scenario of economic recession, high levels of inflation and the impact of currency devaluation, “added Arcor.

“In this context, consumption in general was affected by the fall in the purchasing power of consumers,” he explained.

However, the group’s solid distribution network, vertical integration of its operations, innovation in commercial actions, portfolio and brand diversity, and adequate management of its resources, allowed the company to compensate for the loss of volume reaching an operating profit of 6,549 million pesos, compared to an operating profit of 7,044 million pesos of the same period of the previous year.

In its report also sent to the National Securities Commission (CNV), he explained that in the face of the situation of “high volatility in Argentina and in the region, the group applied strong cost containment policies, adequate management of working capital and a reduction in productive investments, in order to have the necessary liquidity to fulfill its commitments “.

In that sense, as of December 31, 2019 the liquidity level of the group amounts to 9,967 million pesos, registering a net increase in cash of 2,905 million pesos, with respect to the position at the beginning of the year.

Written by Argentina News

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