Saturday, November 27

Mastellone: ​​due to a drop in consumption and price control, it lost $ 2,104 million

“The results for the nine-month period ended on September 30, 2021, reflect a compression in the profit margins caused by the increase in costs due to inflation and the limitations of transferring said increases to our sales prices, fundamentally as consequence of the growing price controls and the pronounced drop in the levels of mass consumption ”, explained the company in a statement sent to the National Securities Commission.

The figures go from red to blue if you take the result of the third quarter of this year, with a profit of $ 76.2 million, in contrast to the loss of $ 739 million that it had had in the third quarter of 2020.

There the data was that after 15 months of freezing prices due to the pandemic, in the middle of this year increases were authorized that eased the company’s accounts, although the negative accumulated is still far from being reversed.

During the pandemic, due to the transfer of food consumption to the home environment, with bars and restaurants closed, the company sold more quantities, but With prices frozen, higher sales also represented higher losses.

Just one month before the new freeze, ordered by the Government from October, the erosion of profitability of Mastellone has already begun to be felt since it handles very high sales volumes. In the third quarter of this year, its revenues amounted to $ 26,823 million.

In the accumulated nine months, revenues totaled $ 77,881 million, which represents a drop of 6.6% compared to the $ 82,961 million in the same period last year.

Regarding the new freezing, Mastellone said: “Faced with this situation, the company is implementing the necessary actions to counteract the negative impacts that this measure could generate. We will seek to sustain sales and billing volumes, in such a way as to maintain a level of profitability in accordance with the commitments assumed and to solve our ambitious investment plan ”.

Regarding the increase in costs, the company that owns the emblematic brand La Serenísima mentioned the rise in prices of milk, its essential raw material, which exceeded the average increase in the prices of its products.

In addition, I quote: “The prices of inputs, in general, have also risen reflecting the increases in international values ​​as a result of the increase in demand, and the strangulation in the availability of world maritime transport and port congestion.”

Mastellone also highlighted that macroeconomic variables such as inflation and devaluation, and the increase in the income tax rate, affected its financial and tax results.

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