The integrated report img_t_427







After nearly a year of being in front of this Organization of which I have been a part for 24 years, I can state without a doubt that we have the talent, culture and commitment to achieve the challenging Mega that we have set for 2020, when we celebrate 100 years of existence.


Carlos Ignacio Gallego Palacio


With gratitude, commitment and full awareness of the contribution of our company to build a country and a better world, we have faced the task entrusted to us.

In the management of a corporation, transparent, timely accountability is indispensable, conditions that we successfully meet in this management report, with the content that is found in the printed report and the supplementary information published on our Website. With pleasure, we present our integrated report, following the framework of the International Integrated Reporting Council (IIRC) and in accordance with the comprehensive option of the Global Reporting Initiative GRI G4 guidelines, which means that it complies with recognized global guidelines on developing reports, which has been developed based on the Grupo Nutresa Materiality Matrix, in order to facilitate the analysis of management, according to the topics of greatest importance for our Organization and its related parties.

In Grupo Nutresa we are committed to sustainability, and we understand it as a corporate ability to prosper, which is supported in the identification and integral management of the risks and opportunities in the economic, social and environmental dimensions, and that it is directly related to the possibility of generating value in the future. This commitment has been ratified for the fourth consecutive year by being included in the Dow Jones World Sustainability Index and the 2014 Emerging Markets, as well as receiving the distinctions as “Industry Mover” and “Silver Class” from RobecoSAM in its Sustainability Yearbook 2015. This places us as the third best company in the world in the food sector in terms of sustainability, and with the maximum score globally in the administration of innovation, codes of conduct, risks related to water, environmental reporting, indicators of labor practices and human rights, and corporate citizenship.

In Grupo Nutresa, faithful to our genuine concern for the nutrition and health of consumers, we innovate to create healthy products, we improve existing products and we promote healthy lifestyles with campaigns such as “Enjoy a healthy life” which we lead, seeking to highlight the importance of sharing with the family, enjoying the outdoors, exercising and having a balanced diet.

In 2014, we made two great advances in our growth strategy, which provide us with clear pathways of development and consolidation in the strategic region in order to achieve the 2020 vision:

  • We consolidated a full year with Tresmontes Lucchetti (TMLUC), confirming the growth potential it has in the markets in which it participates, thanks to its brands and excellent team.
  • We signed an agreement to acquire Grupo El Corral, which continues our process of reaching consumers through a greater participation in the Retail Food category. Grupo El Corral, together with Helados BON and Helados POPS and our participation in Starbucks Colombia, constitutes a solid platform for growth in this category in the region.

In Grupo Nutresa, we are convinced that our base of development is a competent, committed team and we work every day to build a more humane, competitive organization.

Progress on this front is confirmed by studies such as MERCO Personas, which in 2014 highlighted the organization as one of the three best companies to work for in Colombia, and the most attractive in the food sector.

In Grupo Nutresa, innovation is a key part of our strategy, resulting in products and experiences that satisfy the changing needs of our consumers, in the constant search for a business model tailored to the opportunities and challenges offered by the market and in permanent questioning and creation.

Profitable growth

In 2014, Grupo Nutresa sales closed at COP 6,5 Trillion, an increase of 9,5% compared to the previous year. In Colombia, sales had an outstanding performance, as they reached COP 4,2 Trillion, which represents 65,1% of the total, with an increase of 8,6% supported in a greater preference for our brands, obtaining a record 60,6% of the weighted market share, some dynamic, comprehensive coverage networks and an effective innovation strategy. Meanwhile, sales abroad were USD 1.115 Million, an increase of 3,7%, which includes adjustments for the devaluation in the major currencies of the countries where we operate, and the consolidation of operations in Venezuela to the SICAD II rate.

In terms of profitability, the EBITDA margin of 13,4% during the year stands out. The EBITDA was COP 864.257 Billion, 3,8% higher than the previous year. This level is supported in the excellent business dynamics in Colombia, the Grupo Nutresa global sourcing strategy, a 4,3% increase in productivity, and innovation sales equivalent to 17,7% of the total.

Meanwhile, the operating profit was COP 638.340 Billion, with an operating margin of 9,9%, a decrease of 1,8% over the previous year, which is largely explained by the amortization of the mercantile credit to acquire Tresmontes Lucchetti (TMLUC), a non–recurrent accounting item that does not represent a real cash flow.

Post–operational costs for COP 94.672 Billion present a slight decrease of 0,4% from the previous year, which is explained, among others, by income for an exchange difference resulting from the hedging strategy in exchange risks, an increase in financing costs due to the leverage to acquire TMLUC, and a lower monetary correction in Venezuela.

Finally, and after considering the aspects mentioned, we ended the year with a consolidated net profit of COP 377.571 Billion, slightly less than that of last year by 0,7%.

As for the balance, we see an increase of 9,0% in the assets, which end the year at COP 11,5 Trillion. This increase is due to the natural increase in working capital due to increased commercial activity, a higher fixed asset, the product of expansion investments in the production and distribution capacity that were made during the year, and to the growth in the value of our portfolio investments. In liabilities, there was a slight increase, closing at COP 3,3 Trillion, mainly due to the financing of expansion investments and an increased working capital requirement. The index of net financial debt to EBIDTA of 2,0 times is at appropriate levels for our model and allows us to continue the Grupo Nutresa acquisition strategy.

The net effect of the increase in assets and liabilities increases equity to COP 8,2 Trillion, a growth of 10,6%.


Individual results of Grupo Nutresa S.A.

Complying with regulations in Colombia, we report the individual results of Grupo Nutresa S. A.: We registered operating income of COP 396.586 Billion, of which COP 323.884 Billion correspond to profit by the equity method of our investments in food companies and COP 52.950 Billion to dividends from the investment portfolio. The net profit was COP 377.453 Billion.



Acquisitions and other relevant projects

Our development model has been supported in the organic growth of our current operations in Colombia and abroad, as well as an objective search for investment opportunities in strategic markets for the Organization, especially for companies with a business model with a vision akin to that of Grupo Nutresa, with excellent teams, leading brands and that clearly reach consumers through different networks.

During 2014, we managed the first full year of TMLUC, successfully integrating it into Grupo Nutresa from the strategic and productive levels and the information and distribution systems.

Last November, the agreement to acquire Grupo El Corral was announced; it is the largest restaurant company in Colombia, with a total of 345 points of sale, in the segments of fast casual in the market with its El Corral hamburgers and in casual dining with its restaurants El Corral Gourmet, Leños y Carbón and Leños Gourmet. Besides operating these chains, Grupo El Corral also operates leading international brands, such as Papa John’s (pizza), Yogen Früz (frozen yogurt) and Krispy Kreme (doughnuts). It is also present through franchises in Panama, Ecuador, Chile and the United States. The acquisition of Grupo El Corral expands Grupo Nutresa’s presence in the Retail Food segment and strengthens its strategy to actively participate in this new business line, with leading brands and supported in its powerful infrastructure.

After formalizing the Grupo Nutresa alliance with Starbucks and Alsea in 2013, the opening of the chain Coffeehouses was begun during the second semester of 2014, with an excellent balance of completing six Coffeehouses in the city of Bogotá.

In February 2014, and through a strategic alliance agreement with Mitsubishi Corporation, a new company, denominated Oriental Coffee Alliance (OCA), based in Kuala Lumpur, Malaysia, was established, to jointly develop the marketing of coffee products in Asia and seek new business opportunities in other categories in the region.

Organic growth also includes the exploration of production and marketing opportunities for new products in geographies where we already operate and in which we have extensive knowledge of local conditions. Supported in the operations of Tresmontes Lucchetti, the production and marketing of pastas and the production of cold instant beverages was begun in Mexico and the production of cookies and baked snacks was begun in Chile. In addition, and supported in the current biscuit business platform in the United States, the production and marketing of crackers will begin in 2015 in this market with great potential.


Special report of the business group

GRUPO NUTRESA S.A. is the Parent Company of Grupo Empresarial Nutresa, which, at the end of 2014, consisted of 73 companies, which, for administrative purposes, are grouped as follows: i) in the eight food businesses in which we participate and their productive platforms in Colombia and abroad; ii) in an international distribution network; iii) in three national distribution companies; iv) three service companies: one for administrative services, one for logistics and the other for transport, which provide the respective supports for Grupo Nutresa companies.

Following the same enumeration of Article 29 of Law 222 of 1995, we report the following aspects:

  1. The economic relations of the Parent Company with its subsidiaries consist primarily of charging management or administrative fees and receiving profits generated as dividends by the subsidiaries in their business. For fees, the Parent Company received the sum of COP 17.090 Billion; dividends amounted to COP 167.204 Billion.
  2. During 2014, the Grupo Empresarial Nutresa Parent Company endorsed financial obligations of its subsidiaries for USD 77 million in interest. The subsidiaries, in turn, did not conduct operations with third parties from the influence on or interest by the Parent Company.

In addition, we state that during 2014, Grupo Nutresa S. A. did not stop making decisions to attend the interest of or influence any of its subsidiaries, nor did any of its subsidiaries stop making decisions to attend any interest or influence of Grupo Nutresa S. A. Finally, in Note 4 of the Consolidated Financial Statements, which are an integral part of the complementary information published on our Website, we report in figures the evolution of the overall situation of the companies that comprise Grupo Nutresa. 

Legal Provisions 2014

Grupo Nutresa fully complies with all the intellectual property and copyright regulations. The user licenses for the software installed in the Company are valid and have been obtained by the subsidiary Servicios Nutresa S.A.S. through contracts with licensors for use in all the Grupo Nutresa companies. Likewise, trademarks are registered with the competent authorities and the necessary documentation to prove these claims is preserved.

Grupo Nutresa has no claims or lawsuits of consideration, which means that there are no contingent liabilities that may impair the consolidated results for accounting year 2014. Similarly, no significant fines or sanctions were imposed on the Grupo Empresarial Nutresa companies for breach of laws or regulations related to consumer rights, unfair competition, and product safety, among others.

In Note 19 of the Grupo Nutresa Basic Financial Statements published on our Website, operations with shareholders and persons referred to in Article 47 of Law 222 of 1995 and other related regulations are detailed; these operations were conducted under market conditions.

The Company states that it has not obstructed the free flow of invoices issued by Grupo Empresarial Nutresa vendors or suppliers, pursuant to the provisions of Law 1676 of 2013; it further certifies that the financial statements and other relevant reports do not contain any defects, inaccuracies or errors that prevent ascertaining the true financial position of the Company, as set out in Article 46 of Law 964 of 2005.


Evaluation of the performance of the financial information disclosure and control systems

The internal control system of the Company comprises, among other components, the resources necessary to ensure the accuracy and reliability of the information required to plan, manage, control and measure the performance of its business, as well as ensure the adequate disclosure of the financial information to its shareholders and other investors, the market and the public in general. These resources include integral risk management, accountability systems, control plans and programs, budget and cost tools, account plans, standardized policies and procedures, comprehensive information formats and systems to document operations, as well as indicator panels to support the continuous monitoring of processes by the Administration. Through independent, integral assurance management, Internal Auditing ensures the compliance of the goals and objectives of the Company and the adequate protection, utilization and conservation of assets in all processes. In turn, the Fiscal Auditor fulfills the responsibility of verifying and certifying public faith on relevant issues, such as the observance of legal, statutory and administrative regulations by the Company, the reasonableness of its financial statements and the disclosures contained therein.

The results of the continuous monitoring activities by the Administration and the independent evaluations, conducted by Internal Auditing and the Fiscal Auditor, are reported in each case in a timely manner to the appropriate authorities, including the Finance, Audit and Risk Committee, which confirms that the performance of the financial information disclosure and control systems of the Company and its businesses is appropriate. These systems ensure the adequate, timely presentation of this information, which is verified through accounting, as it relates to the operations which – due to their nature – must be reflected and revealed in the financial statements or in accordance with the expectations, projections, cash flows or budgets, whether they deal with business initiatives or projects, all within the constraints that, by virtue of the law, or the contracts or confidentiality agreements, are imposed on the disclosure of such operations. Based on these activities, we also state that there were no significant deficiencies in the design and operation of the internal controls that would have prevented the Company from adequately registering, processing, summarizing and presenting the financial information of the period. Also, no fraud was identified with an effect of the quality of this information, nor were there changes in its evaluation methodology.




Sustainable Nutresa

With the promulgation of Sustainable Development as a strategic objective in 2009, in Grupo Nutresa we have experienced constant learning that has allowed us to define and manage new sustainability objectives. In addition to adhering to the United Nations Global Compact in that year, in 2012, we established our Human Rights policy inspired by the principles of John Ruggie, and in 2013 we adhered to the “CEO Water Mandate,” the covenant of global business leaders to adopt sustainable solutions related to water.

Fruit of the dialogues with related groups, we have updated the Materiality Matrix of our Organization, as well as the risk matrix, which have served as the thread in this integrated report to address the most relevant issues for the future of our Organization.

In line with this, in the coming years we will focus on six areas that will strengthen our sustainability: Sustainable Sourcing, Nutrition and Healthy Living, Responsible Employer and Citizen, Environmental Sustainability, Corporate Governance and Effective Innovation.


For a better society

In Grupo Nutresa we continue to work for the development and quality of life of our employees and their families. In 2014, several Grupo Nutresa companies achieved certification as a Responsible Family Company (Empresa Familiarmente Responsable, EFR), and “Healthy Organizations,” convinced that seeking a balance between family and personal life and helping our teams to incorporate healthy lifestyles contribute to the happiness of employees, while having superior organizational results.

Consistent with the new challenges of an increasingly more demanding environment, we have updated our leadership model and we have defined the attributes and transversal capabilities of the talent in Grupo Nutresa, by posing the challenge to become even better, based on being, knowing our consumers, acting without geographic limits, with a sustainable business vision and collaboratively. For 2015, a high percentage of the Grupo Nutresa leaders will be evaluated against this model and will have identified development plans.

The management system in human rights and the implementation of good labor practices have been working fronts in which we have strengthened in the last two years. In 2014, we formed leaders and work teams in human rights, diversity and inclusion, construction of agreements and competencies to work with persons with disabilities, and we incorporated the “Equipares” international gender–equality standard, in order to provide equal opportunities for men and women. We aspire to be a model Organization on these fronts.

Our external social management has focused on the development of skills in communities, promoting initiatives aligned with the value chain of the Grupo Nutresa businesses. During 2014, we invested COP 33.737 Billion on this front, which benefitted 8,950,837 people and 2,828 institutions. We have more than 10,461 volunteers in 12 countries who donated 28,468 hours and COP 751 Million to support communities in matters related to nutrition, education and income generation.

We also established new partnerships with the Colombian Government to promote quality education and healthy lifestyles. Noteworthy are the 20 years of management in Educational Quality that Fundación Nutresa has promoted, benefitting more than 644 institutions through its “XXI Century Leaders” (“Líderes Siglo XXI”) program.

We invite you to consult the chapters in this report that develop these important issues.

Our planet

The challenges and opportunities that the environment imposes today on the food sector makes Grupo Nutresa have strategies and initiatives aimed at managing the natural capital to have an increasingly minor impact on the environment. The Grupo Nutresa focus of activity in this area is aimed at, but not limited to, three priority issues: water use and conservation, energy use and conservation and climate–change mitigation, which are the most relevant aspects for our Organization and its related groups.

During 2014, we advanced satisfactorily in the environmental goals for 2020. We accumulated an 18,2% reduction in our energy consumption; we decreased greenhouse–gas emissions by 21%, and water consumption, 15,5%. All of these figures are against the 2010 baseline.

With our performance in various public spaces and participation in the investment in the Cuenca Verde Water Fund, we have generated opportunities for training and outreach, to mobilize the public and private sectors toward better management of water resources.

The trend to consume smaller portions presented in individual packages has generated a great challenge for Grupo Nutresa companies to achieve their goal of reducing packing material per ton produced by 2020. In 2014, we created an interdisciplinary team in charge of exploring, designing and implementing actions that reverse this trend in increased packaging.

t is noteworthy that 2014 was an important year in terms of the environmental strengthening of our operations outside of Colombia, given through the integration of the management systems and environmental metrics for all our operations in the strategic region. Moreover, as a reflection of suitable environmental commitment and management, during 2014 we obtained the ISO 14001 Certification in Environmental–Management Systems in nine of our sites and companies, completing a total of 18 certified.

Detailed information on the different environmental indicators and programs related to optimizing the use of resources and their environmental impact are presented later on in this report, which we invite you to learn about in more detail.



The year 2015 presents new, demanding challenges, including lower quotes for some energy and mining raw materials that are an important source of income for various countries and expectations of lower growth dynamics and consumption in the region.

To this we add the devaluation of our currencies in Latin America in relation to the US Dollar, which will increase the costs of some supplies, and, simultaneously, provide us competitiveness against the imported products of some of our competitors, while enhancing our export strategy.

As for the regulatory environment, we foresee that regulatory changes will continue in health and nutrition, which are a global trend, and we will incorporate the impacts of the recent tax reform in Colombia.

Nevertheless, and with the goal of our Centennial Vision, 2015 will positively contribute to achieving our long–term goals. We hope that together with our team of talented, committed and responsible employees, we will seize the opportunities offered by the fact that we operate as locals in 14 countries, especially those that are part of the Pacific Alliance, to continue to excel in such a challenging environment.

We will incorporate Grupo El Corral into our sustainable growth strategy, understanding the particularities of this type of business and leveraging its great capacities from its human aspects, brands, quality and scale to support them through the Grupo Nutresa business vision.

Finally, we must continue to actively monitor the markets of our raw materials that are, somehow, related to fixed prices in Dollars, and that may have a slightly bullish behavior that generates some pressure on profit margins



On behalf of the management team, our thanks to all shareholders for supporting our management. To our employees who are part of this great team, to our clients who make our products available, to consumers for choosing us every day, to our suppliers for their high quality and commitment, and to the community in general for allowing us to develop this business model, thank you, everyone, for contributing and inspiring us to develop Grupo Nutresa sustainably.

  • Antonio Mario Celia Martínez-Aparicio
    Chairman of the Board of Directors
  • David Bojanini García
  • Gonzalo Alberto Pérez Rojas
  • María Clara Aristizábal Restrepo
  • Alberto Velásquez Echeverri
  • Jaime Alberto Palacio Botero
  • Mauricio Reina Echeverri
  • Carlos Ignacio Gallego Palacio