COLOMBIA - Economy
CEO, Grupo Nutresa
Carlos Ignacio Gallego is a civil engineer with a master’s in business administration. He has worked with Grupo Nutresa since 1991. He has held, among others, the position of head of production, industrial vice president, and president of Servicios Nutresa prior to his current position. He studied at EAFIT University and has also completed various graduate programs at Harvard, Northwestern, and MIT focused on strategic business management.
Grupo Nutresa is a human-centered organization that strives for resiliency and competitiveness while being aware of its vulnerability and responsibility. Each day we set out to meet our purpose with hope, conviction, and passion, aware of the need to provide solutions to the global challenges we face. In 2022, we forged ahead to meet our long-term goals, reviewed our opportunities for improvement, and evolved to serve others better. We also managed different challenges such as the global disruption in supply chains, rising raw material costs, high inflation rates, and higher financing costs. Within this context, we took agile decisions for procuring commodities, accelerated our productivity plans, and managed prices responsibly to keep our products affordable while preserving margins. We reported improvements in our business model, which led to market share gains, expansion of our innovative approach to products and services, and an acceleration of our digital transformation strategy. In addition, we led initiatives to support the most vulnerable, as we are convinced that companies are at the core of social development and should make true contributions to society. Our business model operates under a sustainable development framework with long-term goals that pursue value creation for shareholders and stakeholders alike and include the best environmental, social, and corporate governance practices. In terms of the environment, we made progress in our 2030 Climate Change strategy. This involves managing and leading initiatives that boost the efficient use of resources, the regeneration of ecosystems, and the implementation of strategies to preserve biodiversity.
Sustainable value generation over time is one of the main strategic focuses of our organization. We are driven by the chance to provide real benefits to humanity and the planet through what we do. Hence, we recognize the importance of ongoing reflection, evolution, and improvement of our capabilities. Agility, flexibility, and consistency in the strategy were priorities used to drive the challenges and make good use of the opportunities observed this year. 2022 entailed challenges for our value chains and for those of the food industry around the world, and it brought about exchange rate volatility across our strategic region. When facing this scenario, Grupo Nutresa upheld the consistency of its strategy, and became flexible to have a timely sourcing of commodities and highly proactive when managing currencies and commodity hedges. Commercially, the organization obtained an outstanding result in all business units and in all geographies, even achieving double-digit sales growth rates.
In Colombia, the company attained annual sales totaling COP10,108 trillion, growing by 29.9% with a highly positive performance by all business units. As for volume, it increased 7.4%, while prices rose 22.2%. This was the result of price escalation and an increasingly appreciated sales mix. All business units reached double-digit growth rates over the year, with the coffee and business units recording the highest rates. In addition, in the context of volume, all business units had positive variations due to the sound commercial dynamics of Grupo Nutresa’s networks and channels, and the leadership of the organization’s brands.
The challenges associated with the global logistics chain and the increase in the costs of commodities generated inflation pressure throughout the year. Grupo Nutresa addressed these circumstances based on its organizational capabilities, along with support from multiple value chain actors that devoted efforts to ensuring timely and efficient sourcing processes. Thus, the organization attained a 21.% growth rate in terms of gross profit, which amounted to COP 6.2 trillion. In 2022, the organization sustained its leadership, holding relevant positions in the categories where it participates, and the company raised its market share in Colombia to 52.3%. It is worth highlighting the growth achieved in categories such as meat products, milk modifiers, as well as roasted and ground coffee.