- The Chief Executive Officer of the Company stated that this year’s results, 66% higher than the previous year, “are proof of the continuous progress in the Company’s growth and expansion strategy, firmly anchored in the search for sustainable development as a core part of our business model”.
- In addition, he particularly highlighted the repayment of Banco de Chile’ subordinated debt; Enex’s entry to the United States market; the upcoming inauguration of the Central Cervecera de Colombia plant, and the establishment of a subsidiary of Invexans in London.
Santiago, April 29, 2019. The Company’s CEO, Francisco Pérez Mackenna, reviewed the main milestones of Quiñenco and its subsidiaries during the Annual Shareholders’ Meeting held this morning. In his annual account, he explained that 2018 “was undoubtedly a good year for Quiñenco and its subsidiaries”, with the Company’s net income reaching Ch$180,430 million, 66% higher than in 2017.
“In spite of the difficult environment, with a domestic economy that has recovered dynamism but that has not yet consolidated its takeoff, and an international scenario with diplomatic tension and complex political processes that contributed to a climate of uncertainty, we were able to make progress with great conviction and energy”, he added.
In this sense, Pérez Mackenna outlined “we advanced not only in terms of the Company and its subsidiaries’ results, but also in our internationalization and investment diversification strategy, which has led to our presence in six sectors of the economy and 128 countries. Our route contemplates organic growth in Chile, as well as exploration of inorganic growth opportunities abroad”.
At an international level, the CEO highlighted certain achievements, such as the entry of Enex to the United States with the acquisition of 38 Road Ranger travel centers; the establishment of Invexans’ subsidiary in London to explore new business opportunities; and the progress of CCU in Colombia, where together with its partner Postobón, it already launched the first beer of local production, Andina, manufactured at the plant the company will inaugurate on Friday, May 3rd, in the outskirts of Bogotá.
Regarding the companies in Chile, Pérez Mackenna assured that the repayment of Banco de Chile’s subordinated debt in advance, to be completed tomorrow, Tuesday, April 30th, 17 years prior to its maturity “is a significant milestone in the history of the national banking sector, allowing us to fulfill this commitment well in advance, which indicates that the Bank is doing very well”, he maintained.
“Quiñenco was not a part of Banco de Chile when this debt was entered into, but we have been a part, together with our partners at Citi, of the management effort carried out and we have seen the dedication of all the teams at Banco de Chile to complete this enormous challenge”, he added.
When detailing the Company’s progress, Francisco Pérez Mackenna commented that the increase in profits “is mainly explained by two reasons: Compañía Sud Americana de Vapores (CSAV) reverted the effects of the accounting loss in 2017, resulting from its dilution in Hapag-Lloyd as a consequence of the merger with United Arab Shipping Company (UASC). And the gain posted by CCU in Argentina, where the transaction for the early termination of the Budweiser license in that country was completed, in exchange for a portfolio of own brands and payments for up to US$400 million before taxes within a 3-year term, including an initial cash payment of US$316 million”, he stated.
Thus, while CSAV achieved a net income of Ch$13,846 million in 2018, reverting the loss of the previous year, CCU recorded net income of Ch$306,891 million, 137% higher than the 2017 figure. Regarding Banco de Chile, Pérez Mackenna expressed his satisfaction with the fact that the bank obtained “the highest profit of the system, with a net income of Ch$594,872 million, which represents a 3.3% increase compared to 2017”.
About Enex, he reported that the net income of Ch$19,277 million was 120% higher than the previous year, mainly given its improved operating performance and lower expenses in provisions. Nexans, on the other hand, recorded a €14 million profit, lower than the previous year’s result, leading Invexans to report a loss of Ch$9,162 million.
Regarding SM SAAM, which posted a net income of Ch$32,065 million in 2018, Pérez Mackenna explained that this was mainly due to the effect of the extraordinary gain recorded in 2017 on the divestiture of its interest in Tramarsa, Perú. “Excluding all non-recurring effects, the result (of SM SAAM) would have grown significantly, especially thanks to the good performance of port terminals and logistics”, expressed the CEO.
Together with thanking Shareholders and the employees of Quiñenco and its subsidiaries, Pérez Mackenna ended his intervention reaffirming some of the principles and values of the Company. “We believe in the contribution of private companies to society and we work with the intention of being a source of progress for future generations. This is what drives us”, he assured.
Quiñenco is one of the largest and most diversified business conglomerates in Chile, with consolidated assets of approximately US$60 billion. It participates in leading companies of the financial, beverage and food, manufacturing, energy, transport and port services sectors, which together employ approximately 69 thousand individuals in Chile and abroad. For further information, visit www.quinenco.cl