In the first semester 2020 Hortifrut recorded an EBITDA of US $ 45.67 million, i.e. 93.44% higher than the US $ 23.61 million obtained in the same period in 2019. This increase in EBITDA is mainly due to the better prices of Chilean fruit due to better quality (+ ~ US $ 7.00 million of EBITDA), better margins in the frozen food business (+ ~ US $ 1.60 million of EBITDA), and the ripening of investments made in China with (+ ~ US $ 11.00 million EBITDA).
Additionally, there was a reduction in costs associated to the fruit's better quality, a reduction of administrative and sales expenses linked to the implementation of efficiencies, and the decrease in other expenses by function, as a result of the lower fair value of the fruit in plants registered at the end of 2019 when compared to the end of 2018.
During the first half of 2020 (1H20), there was a net profit of US $ 8.51 million, an increase of US $ 24.65 million compared to the US $ 16.14 million loss there was in the same period of 2019 (1H19). In addition, the holding company made a profit of US $ 2.50 million in 1H20, which was US $ 18.70 million more when compared to the US $ 16.20 million lost in 1H19.
This improvement is mainly due to a US $ 16.76 million higher gross margin, which was the result of a decrease in costs that was proportionally greater than the decrease in sales revenue. In addition, there was a decrease of US $ 5.65 million in other expenses by function, associated with the lower reversal of the adjustment of the fair value of the fruit at plants registered at the end of 2019, compared to the end of 2018 (US $ 1.40 million in the 1H20 vs US $ 6.33 million in 1H19).
It should be noted that at the end of 1H20, revenue from ordinary activities reached US $ 259.30 million, i.e. 5.75% less than in the same period of 2019, mainly due to the 5.57% drop in sales during 1H20.
Moreover, operating costs totaled US $ 213.25 million during 1H20, i.e. 13.25% less than the US $ 245.83 million registered during 1H19. The lower costs are explained by the lower volume sold in the first quarter of 2020 (1Q20).
During the period between July 2019 and June 2020, the company's EBITDA reached US $ 121.61 million, i.e. 14.9% higher than the US $106.50 million obtained in the previous season. The increase is mainly due to the 16.55% increase in the volume sold during the period, influenced by a better production curve and quality of the fruit, partially offset by the 11.44% reduction in the average price per kilo. In addition, the period's income increased by US $ 17.41 million while costs and expenses before depreciation only increased by US $ 2.30 million.
For more information: www.hortifrut.com