BOGOTA, June 1 (Reuters) - Colombian holding company Grupo Argos SA reported net profit fell 57.3 percent in the first quarter from the same period last year due to non-recurring tax expenses and the implementation of international accounting standards.
Net profit reached 51.6 billion pesos ($20.3 million) between January and March, down from 121 billion pesos in the first quarter of 2014.
Consolidated earnings before interest, taxes, depreciation and amortization came to 651 billion pesos, down 16.6 percent, Grupo Argos said in a statement to Colombia’s financial regulator on Sunday.
“EBITDA and net profit were affected by some non-recurring events like the wealth tax and the effects of the implementation of the International Financial Reporting Standards,” the company said.
IFRS went into effect for Colombian companies this year.
Without the non-recurring expenses, net profit rose 52 percent to 157 billion pesos, according to the company, controlled by the Grupo Empresarial Antioqueno conglomerate.
Year to date, revenue totaled 2.6 trillion pesos ($1 billion), up 16 percent in Colombian pesos over the same period the year before, but down 5.2 percent in dollars.
Grupo Argos’s cement-producing subsidiary, Cementos Argos , this week reported net profit increased 3.3 percent in the first quarter on sales gains in the United States.
The board of Grupo Argos has decided to cancel the issue of preferential shares announced last November.
“This decision was taken keeping in mind the volatility of the Colombian market and different financing options the company has,” the statement said.
The company completed a synthetic credit operation for the equivalent of 100 billion pesos with a year-long time frame, to be paid in March 2016.
Subsidiaries of Grupo Argos operate across Latin America in cement, energy, coal and real estate. ($1 = 2,533.79 Colombian pesos) (Reporting by Julia Symmes Cobb and Nelson Bocanegra; Editing by Jeffrey Benkoe)