César Iglesias’ net profit plunges 99%

Santo Domingo.- César Iglesias ended 2025 with a nearly 99% decline in net profit, but that figure does not mean the company’s stock lost 99% of its value.

The company’s net profit fell from RD$438.4 million in 2024 to just RD$4.5 million in 2025, according to its audited financial statements. The sharp decline came despite relatively stable sales, which increased 1.7% to RD$22.877 billion.

The main pressure came from net financial expenses, which rose 23.9%, from RD$851.2 million to approximately RD$1.055 billion. Operating profit also declined, while a RD$259.1 million income-tax expense further reduced the company’s final earnings.

What happened to César Iglesias’ stock?

César Iglesias made history in August 2023, when its shares began trading on the Dominican Republic’s stock market at RD$128.84. Strong initial demand pushed the stock to approximately RD$170, its all-time high, before the price began a prolonged decline.

The shares closed 2024 at RD$132.99 and 2025 at approximately RD$119.50. In March 2026, the stock fell to around RD$90, about 30% below its original offering price and 47% below its historical high. It subsequently recovered part of that decline, with market data later placing the stock around RD$100-RD$110.

The key distinction is that the 99% decline refers to César Iglesias’ net profit, not its share price. The company’s stock has lost value from its IPO price and historical high, but its decline has been significantly smaller.

Investment continues despite the drop in profit

Despite the sharp decline in earnings, César Iglesias continued investing heavily in its operations. The company allocated approximately RD$1.6 billion to capital expenditures in 2025, more than double the previous year’s investment, for projects including the expansion of its distribution center, the first phase of a paper plant and facilities for producing soap inputs.

The company also raised approximately RD$4.948 billion through the placement of 38.7 million shares in May 2025. However, because of its weak 2025 results and the need to preserve liquidity for its operations and investment program, César Iglesias decided not to distribute dividends from its 2025 earnings.

Stronger operating performance in 2026

César Iglesias began 2026 with stronger operating indicators.

During the first quarter, ordinary revenue reached approximately RD$5.967 billion, while operating profit increased 20% to RD$445 million. EBITDA reached RD$629 million, and the company reduced its financial debt by approximately RD$157 million compared with the end of 2025. The company also reported average net sales of RD$101.1 million per working day, its first time surpassing the RD$100 million mark.

The results suggest that, after a difficult 2025, the company entered 2026 with improved operating performance and continued efforts to reduce its debt burden. However, the first-quarter improvement does not by itself erase the significant decline in profitability recorded the previous year.

Pension funds among major César Iglesias shareholders

The stock’s performance is particularly relevant because Dominican pension funds were major participants in the company’s public offering.

According to El Avance, AFP Reservas, AFP Crecer and AFP Siembra acquired approximately 27.1 million shares for RD$3.492 billion at the original offering price of RD$128.84.

The subsequent decline in the share price has reduced the market value of those holdings at various points compared with their original purchase price. However, the César Iglesias investment represents only a portion of the pension funds’ overall portfolios.

Where César Iglesias stands today

César Iglesias is currently dealing with three different realities:

• Profit: Net income plunged nearly 99% in 2025, from RD$438.4 million to RD$4.5 million.
• Stock: The shares remain below their IPO price and well below the approximately RD$170 historical high, despite recovering from their early-2026 lows.
• Operations: Sales remain above RD$22 billion annually, while first-quarter 2026 results showed stronger operating performance and a reduction in financial debt.

The central question going forward is whether César Iglesias can turn its continued investments, stronger operating performance and debt-reduction efforts into a sustained recovery in profitability, particularly after higher financing costs played a major role in reducing its 2025 earnings.