- Banco de Chile and Nexans made noteworthy contributions to the holding company’s results for the first half of the year. CSAV had a positive second quarter, partially offsetting the negative figures registered during the first months of the year.
- “The adjustment in freight rates during the second quarter, in comparison to the previous quarter, favorably impacted Hapag-Lloyd’s results. This process has been gradual and marked by disruptions in the logistics chain arising from geopolitical tensions,” explained Francisco Pérez Mackenna, Quiñenco’s Chief Executive Officer.
Santiago, September 5, 2024.- Quiñenco left its first-quarter losses behind, recording net income of Ch$105,835 million as of June 30. This figure is 79% lower than the same period in 2023, in line with the normalization of the holding company’s performance following the record highs of the last few years.
The company’s net income for the first half of 2024 is comparable to pre-pandemic figures and the resulting disruption in the global logistics chain. The period’s earnings momentum was rooted particularly in good performance at Banco de Chile and Nexans, as well as positive contributions from SM SAAM, CCU and Enex. CSAV, in turn, recorded net income in the second quarter, contrasting with its results for the first months of the year and enabling it to offset first-quarter losses. At Quiñenco corporate level, the non-recurring gain from the partial divestment of Nexans in the first half of 2023 explains an important part of the year-on-year difference in the holding company’s results.
“The adjustment in freight rates during the second quarter, in comparison to the previous quarter, favorably impacted Hapag-Lloyd’s results. This process has been gradual and marked by disruptions in the logistics chain arising from geopolitical tensions,” explained Francisco Pérez Mackenna, Quiñenco’s Chief Executive Officer.
The executive also emphasized the weakened economic conditions in Chile and the region: “We are in the midst of volatile economic times, with investment and consumption figures below those needed to recover dynamism. In this context, the group companies have demonstrated that they are resilient, solid and have clear long-term strategies.
Results by Sector
In transport, Hapag-Lloyd reported net income of US$782 million. While down 75.0% YoY, the figure exceeded market expectations in an industry context of lower average freight rates and a recovery in demand for containerized transport. At Compañía Sud Americana de Vapores (CSAV), income tax expense, primarily Chilean taxes on dividends received from Germany, reduced the company’s contribution to Quiñenco’s results to a loss of Ch$83,813 million.
In the financial segment, Banco de Chile recorded a 3.9% increase in net income, reporting Ch$621,255 million for the period. This performance is attributable to higher operating revenues, which partially offset higher expected credit losses, resulting from a deterioration in credit quality and loan growth, among other factors.
Nexans, in the manufacturing sector, increased its contribution to the holding company by 55.1%, driven by positive operational performance, mainly of the businesses associated with electrification, particularly generation and transmission following the expansion of the high-voltage subsea cable plant in Norway. Thus, Nexans recorded net income of €174 million for the first half of the year.
In the beverage sector, CCU increased its net income by 5.2% to Ch$57,243 million, primarily thanks to a non-recurring gain from the sale of a real estate asset. The company’s operating performance was affected by the devaluation of local currencies and lower sales volumes, reflecting the contraction of the Argentine beer market and lower demand in Chile during the second quarter.
In port services, SM SAAM increased its contribution to the holding’s results by 20.9%, thanks to better performance and the increase in Quiñenco’s percentage ownership of the company from 61.0% in June 2023 to 62.6% as of June 2024. In air logistics, its subsidiary Aerosan experienced a significant increase in tons handled, which largely explains the improved results, combined with greater financial income and a non-recurring gain on the sale of real estate assets. Although revenue in tug boats increased, the business faced higher operating costs and the drought in the Panama Canal.
For the energy segment, Enex’s contribution to Quiñenco’s results fell 73.9%, primarily due to exchange rate differences that negatively impacted the company’s good operating results. It is worth noting that in the first half of 2024, Quiñenco carried out capital increases of US$105 million to strengthen Enex’s capital structure in the context of its development strategy.
Finally, at the corporate level, the unfavorable variation in net income with respect to the same period in the prior year was mainly attributable to the non-recurring gain of Ch$119 billion recorded in the first half of 2023 from the sale of Nexans shares and, to a lesser extent, a higher tax burden in the current period.
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With more than 65 years in business, Quiñenco is one of the most diversified and global groups in Chile. The company, along with more than 75 thousand employees of its subsidiaries and associates, develops enterprises and seeks to contribute to the progress of all the countries where it is present.
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.