Fabricato Loses COP$93,000mn in 2012

Due to reasons including the revaluation of the currency and unfair competition, in 2012 the country's largest textile companies had one of their worst years.

febrero 20 de 2013 - 05:13 p.m.

After the losses announced by Coltejer of COP$52,943mn, compared with a negative balance of COP$3,206mn a year ago, on Tuesday it was the turn of Fabricato to also post losses.

The textile company said that its negative balance totaled COP$93,373mn, COP$87,737mn more than in 2011.

The company reported sales of COP$545,539mn, a 14.7 percent year-on-year decrease, while units sold fell by 9.7 percent.

The company added that it was also affected by factors such as the decrease in sales prices, as more competitive foreign products entered the markets.

Additionally it was hurt by imports of apparel and textiles and slowing demand in the foreign markets where it actively participates such as Mexico and Ecuador.

Despite having recorded a gross profit of COP$27,582mn, it posted an operating loss of COP$51,429mn, as a result of the negative impact of buying supplies and expensive cottons acquired under old contracts.

Although the intrinsic value (equity) of the Fabricato share fell 11.8 percent last year, it was above the valuation range projected by Banca de Inversión SBI, standing at COP$84.99 on December 31.

Last year Fabricato accumulated assets of COP$1.1bn and liabilities for COP$324,532mn, with equity of COP$782,107mn.

The President of Fabricato, Juan Carlos Cadavid, said the company's vision has also changed, as it has evolved from being a producer to being a company which relies on customers and service. For example, if a customer needs uniforms they don't become clothing manufacturers, but they know where to find good designers and manufacturers. This provides them with a market where they can sell fabric.
At the same time he also considers that there is no reason to take protectionist measures to close down domestic markets to protect sectors, because to be competitive companies must look for customers outside the

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