- The holding’s 2022 earnings are mainly explained by record performance of CSAV, Banco de Chile, Nexans and Enex.
- Quiñenco CEO Francisco Pérez Mackenna highlighted that these results “are the product of the long-term strategy designed by the company and the flexibility we have achieved to navigate a challenging and complex global economic context.” He added that “without a doubt 2022 was an exceptional year, in which most of our companies posted outstanding, above-trend growth, posing, therefore, an extraordinary challenge for the future.
Santiago, March 30, 2023. The historical results in 2022 of Compañía Sud Americana de Vapores (CSAV) and its main asset, the German shipping company Hapag-Lloyd, as well as record performance of Banco de Chile, Nexans and Enex, strongly boosted Quiñenco’s earnings for the year ended last December.
During the period, Quiñenco’s net income amounted to Ch$3,535 billion, the company’s best result during its 65 years. This was accomplished despite a challenging context of rising costs of supplies, inflationary pressures and the slowdown in global economic growth, as well as lower contributions from CCU and SM SAAM to the company’s results, and the impact of inflation at the corporate level.
“For a long time we have been pursuing a diversification and internationalization strategy that has been successful. Doing business requires confidence, perseverance, and effort, and today we are proud of the results of that work,” commented CEO Francisco Pérez Mackenna. “This performance is the result of the long-term strategy designed by the company and the flexibility we have achieved to navigate a challenging and complex global economic context, thanks to the quality and commitment of the teams in each of our companies,” he added.
“Undoubtedly 2022 was an exceptional year, in which most of our companies posted outstanding, above-trend growth, posing, therefore, an extraordinary challenge for the future,” said Pérez Mackenna.
Earnings by Segment
In the transport sector, CSAV reflected the excellent performance of Hapag-Lloyd, which reported net income of US$17.9 billion in 2022, representing an increase of 67.1% over 2021. In the shipping industry, the year was initially characterized by high demand for containerized transport and sustained disruption in global supply chains, although during the second half of the year activity began to normalize and congestion at ports began to ease.
In the financial segment, Banco de Chile boasted a 77.9% increase in net income, primarily due to higher operating revenues during 2022, a period in which it also faced higher operating expenses and an increase in expected credit loss expenses es as a result of quality indicators returning to normal levels.
Meanwhile, in the manufacturing sector, the French multinational Nexans reported net income of €245 million for 2022, 49.4% higher than the previous year. Operating income increased by 40.5%, driven by organic sales growth of 6.3%, which reflects the good performance of all segments, particularly those associated with electrification.
In energy, Enex increased its contribution to consolidated net income by 30.5%, attributable to strong growth in revenue and inventory revaluations during the period as a result of the upward trend in fuel prices. During the year, volumes climbed 7.6% with respect to the prior year.
Meanwhile, in port services, SM SAAM’s net income was impacted by the accounting effect of a deferred tax expense of US$33.6 million associated with the agreement to sell its port terminals and inland logistics businesses to Hapag-Lloyd. Valued at approximately US$1 billion, the deal is still subject to regulatory approvals, among other conditions. Excluding this accounting effect, SM SAAM’s net income would have increased by 4% in 2022.
Finally, in the beverage sector, CCU’s net income decreased by 40.7% due to the negative impact of a lower result in the Chile segment, which is mainly explained by higher costs due to higher prices of raw materials, the depreciation of local currencies in the countries where the company operates, and higher inflation, all of which are being addressed with revenue management initiatives and greater operational efficiencies.
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With more than 65 years of history, Quiñenco is one of the most diversified and global groups in Chile. The company, along with the 74 thousand employees of its subsidiaries and associates, develops enterprises and seeks to contribute to the progress of all the countries where it operates.
Through Banco de Chile, CCU, Nexans, Enex, CSAV and SM SAAM, Quiñenco contributes to the sustainable progress of people, working with excellence, integrity and respect. More information is available at www.quinenco.cl.