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Press release content from Business Wire. The AP news staff was not involved in its creation.

Loma Negra Reports 3Q21 Results

November 11, 2021 GMT

BUENOS AIRES, Argentina--(BUSINESS WIRE)--Nov 11, 2021--

Loma Negra, (NYSE: LOMA; BYMA: LOMA), (“Loma Negra” or the “Company”), the leading cement producer in Argentina, today announced results for the three-month period ended September 30, 2021 (our “3Q21 Results”).

3Q21 Key Highlights

  • Net revenue increased by 8.5% YoY to Ps. 17,800 million (US$176 million), mainly explained by the recovery in Concrete, the increase in Cement and the improvement in the Railway segment
  • Decrease in our Consolidated Adjusted EBITDA of 9.1% YoY to Ps. 4,696 million (US$51 million)
  • The Consolidated Adjusted EBITDA margin decreased 512 basis points YoY from 31.5% to 26.4%, mainly due to the normalization of seasonal costs. For the 9-month period ending in September, the margin expanded 55 basis points to 30.7% from 30.2% in the same period of 2020
  • Net Profit of Ps. 1,490 million, showing a reduction of 84.9% versus the same period of the previous year, mainly explained by the extraordinary result in 3Q20 due to the divestment in Paraguay
  • Net Debt /LTM Adjusted EBITDA ratio of -0.02x from 0.27x in 3Q20 and 0.16x in FY20

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The Company has presented certain financial figures, Table 1b and Table 11, in U.S. dollars and Pesos without giving effect to IAS 29. The Company has prepared all other financial information herein by applying IAS 29.

Commenting on the financial and operating performance for the third quarter of 2021, Sergio Faifman, Loma Negra’s Chief Executive Officer, noted: “We are pleased to announce a very good quarter in which we observe a consolidation of cement demand close to historical highs, with world-class profitability margins supported by our high operating standards and a recovery in the other business segments.

The post-pandemic operational normalization and the sustained recovery of demand, led to this quarter, unlike what happened in the same period last year, to include the usual annual maintenance costs, as well as an increase in energy inputs, typical of the winter months.

Despite the seasonal effects on margins, our EBITDA in dollars was US $ 51MM, exceeding what was achieved, both in the same period of 2020 and in the previous quarter.

As for the L’Amalí expansion project, it already shipped cement during the month of October. We are very satisfied with the first results that already show its operating benefits and we hope to begin to see its impact in the coming quarters. This new line, with its production capacity and operational efficiency, provides us with a robust platform on which Loma can support its development. Likewise, it will allow us to advance on the path of sustainability, maximizing the use of energy with low environmental impact.

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Finally, I would like to highlight the committed contribution of all our people and stakeholders, which they make to the operational excellence of Loma and without which these results would not have been possible. Together with the support of our strong productive structure and a solid balance, they are the pillars to keep Loma on a prosperous path of growth.”

 

Table 1: Financial Highlights

(amounts expressed in millions of pesos, unless otherwise noted)

 

Three-months ended
September 30,

 

Nine-months ended
September 30,

 

2021

2020

% Chg.

 

2021

2020

% Chg.

Net revenue

17,800

16,399

8.5%

 

49,370

38,842

27.1%

Gross Profit

4,587

4,590

-0.1%

 

15,076

10,685

41.1%

Gross Profit margin

25.8%

28.0%

-222bps

 

30.5%

27.5%

+303bps

Adjusted EBITDA

4,696

5,167

-9.1%

 

15,161

11,713

29.4%

Adjusted EBITDA Mg.

26.4%

31.5%

-512bps

 

30.7%

30.2%

+55bps

Net Profit (Loss)

1,490

9,833

-84.9%

 

3,220

11,538

-72.1%

Net Profit (Loss) attributable to owners of the Company

1,364

9,813

-86.1%

 

3,322

11,430

-70.9%

EPS

2.3081

16.4634

-86.0%

 

5.6000

7.9704

-29.7%

Average outstanding shares (*)

591

596

-0.9%

 

593

596

-0.5%

Net Debt

(330)

2,587

n/a

 

(330)

2,587

n/a

Net Debt /LTM Adjusted EBITDA

-0.02x

0.27x

n/a

 

-0.02x

0.27x

n/a

(*) Net of repurchased shares

 

Table 1b: Financial Highlights in Ps and in U.S. dollars (figures exclude the impact of IAS 29)

In million Ps.

Three-months ended
September 30,

 

Nine-months ended
September 30,

 

2021

2020

% Chg.

 

2021

2020

% Chg.

Net revenue

17,137

10,487

63.4%

43,601

23,477

85.7%

Adjusted EBITDA

4,957

3,511

41.2%

14,073

7,445

89.0%

Adjusted EBITDA Mg.

28.9%

33.5%

-455bps

32.3%

31.7%

+57bps

Net Profit (Loss)

3,466

8,258

-58.0%

11,354

9,039

25.6%

Net Debt

(330)

2,587

n/a

(330)

2,587

n/a

Net Debt /LTM Adjusted EBITDA

-0.02x

0.27x

n/a

-0.02x

0.27x

n/a

 

In million US$

Three-months ended
September 30,

 

Nine-months ended
September 30,

 

2021

2020

%Chg.

 

2021

2020

%Chg.

Ps./US$, av

97.26

73.35

32.6%

93.42

67.62

38.1%

Ps./US$, eop

98.74

76.18

29.6%

98.74

76.18

29.6%

Net revenue

176

143

23.2%

467

347

34.4%

Adjusted EBITDA

51

48

6.5%

151

110

36.8%

Adjusted EBITDA Mg.

28.9%

33.5%

-455bps

32.3%

31.7%

+57bps

Net Profit (Loss)

36

113

-68.3%

122

134

-9.1%

Net Debt

(3)

34

n/a

(3)

34

n/a

Net Debt /LTM Adjusted EBITDA

-0.02x

0.27x

n/a

-0.02x

0.27x

n/a

 

Overview of Operations

Sales Volumes

Table 2: Sales Volumes 2

 

 

 

Three-months ended
September 30,

 

Nine-months ended
September 30,

 

 

2021

2020

% Chg.

 

2021

2020

% Chg.

Cement, masonry & lime

MM Tn

1.66

1.53

8.4%

4.45

3.54

25.6%

Concrete

MM m3

0.12

0.06

110.8%

0.39

0.15

160.5%

Railroad

MM Tn

1.15

1.06

8.2%

3.20

2.63

21.7%

Aggregates

MM Tn

0.21

0.19

7.2%

0.58

0.35

68.3%

2 Sales volumes include inter-segment sales

Sales volumes of cement, masonry, and lime in Argentina during 3Q21 increased 8.4% to 1.7 million tons mainly leveraged by the recovery of bulk cement, a segment that had been more restricted during the pandemic. Bagged cement sales remain strong due to sustained demand from the retail sector. Considering that bagged products had a more accelerated recovery in 3Q20, in this quarter there is a normalization of the share in this dispatch mode compared with bulk.

Likewise, the volume of concrete showed strong YoY growth of 110.8%, still below pre-pandemic levels, mainly due to the lack of large infrastructure projects, both private and public. Aggregates had an increase of 7.2% with a more moderate growth due to the fact that in 3Q20 it already showed some recovery.

The volumes of the Railway segment experienced an increase of 8.2% compared to the same quarter of 2020, mainly explained by the recovery in the transported volumes of granite stone and frac-sand.

Review of Financial Results

Table 3: Condensed Interim Consolidated Statements of Profit or Loss and Other Comprehensive Income

(amounts expressed in millions of pesos, unless otherwise noted)

 

Three-months ended
September 30,

 

Nine-months ended
September 30,

 

2021

2020

% Chg.

 

2021

2020

% Chg.

Net revenue

17,800

16,399

8.5%

49,370

38,842

27.1%

Cost of sales

(13,213)

(11,810)

11.9%

(34,294)

(28,157)

21.8%

Gross profit

4,587

4,590

-0.1%

15,076

10,685

41.1%

Share of loss of associates

-

(553)

n/a

-

(553)

n/a

Selling and administrative expenses

(1,361)

(1,262)

7.8%

(4,014)

(3,302)

21.6%

Other gains and losses

35

8

309.9%

179

88

103.6%

Impairment of property, plant and equipment

(141)

(1,297)

n/a

(141)

(1,297)

-89.1%

Tax on debits and credits to bank accounts

(174)

(203)

-14.3%

(498)

(492)

1.2%

Finance gain (cost), net

Gain on net monetary position

342

163

110.0%

1,622

488

232.4%

Exchange rate differences

(341)

3,131

n/a

(105)

1,898

n/a

Financial income

21

165

-87.4%

(1,438)

(1,874)

-23.3%

Financial expense

(343)

(408)

-15.8%

89

103

-13.0%

Profit (Loss) before taxes

2,624

4,334

-39.5%

10,769

5,743

87.5%

Income tax expense

Current

(1,047)

(1,471)

-28.8%

(4,612)

(1,792)

157.4%

Deferred

(87)

560

n/a

(2,937)

562

n/a

Net profit (loss) from continuing operations

1,490

3,423

-56.5%

3,220

4,514

-28.7%

Income from discontinued operations

-

6,411

n/a

-

7,024

n/a

Net profit (loss)

1,490

9,833

-84.9%

3,220

11,538

-72.1%

 

Net Revenues

Net revenue increased 8.5% to Ps. 17,800 million in 3Q21, from Ps. 16,399 million in the comparable quarter last year, driven by the recovery of the Concrete segment, the growth in cement and the recovery of the Railway and Aggregates segment.

Cement, masonry cement and lime segment was up 2.4%, with volumes expanding 8.4% impacted by price dynamics.

Concrete posted a revenue increase of 116.6% because the recovery in volume was coupled by an improvement in prices. The Aggregates segment registered a strong increase in revenues of 47.5% due to the fact that the higher volume was combined with a good price performance and a positive sales mix.

Railroad revenues increased 25.4% in 3Q21 compared to the same quarter of 2020, mainly explained by an increase in transported volumes of granite stone, and frac-sand that positively boosts sales due to their impact on average transported distance.

Cost of sales, and Gross profit

Cost of sales increased 11.9% YoY reaching Ps. 13,213 million in 3Q21, mainly as a result of the higher volumes, impacted by higher seasonal costs of thermal and electrical inputs and higher maintenance costs in line with normalized third quarter operation. Typically, during the winter season, we undertake our annual scheduled maintenance, which last year was abnormally affected by the pandemic situation.

Gross profit decreased slightly 0.1% YoY to Ps. 4,587 million in 3Q21, from Ps. 4,590 million in 3Q20, with a gross profit margin that contracted 222 basis points year-on-year to 25.8%, reflecting the impact of higher winter production costs and the maintenance period, together with lower price dynamics.

Selling and Administrative Expenses

Selling and administrative expenses (SG&A) in 2Q21 increased by 7.8% YoY to Ps. 1,361 million, from Ps. 1,262 million in 3Q20, mainly as a consequence of the higher impact of sales on taxes and freight, and higher labor costs compared to last year. As a percentage of sales, SG&A show a slight improvement compared to 3Q20, reaching 7.6%.

Adjusted EBITDA & Margin

Table 4: Adjusted EBITDA Reconciliation & Margin

(amounts expressed in millions of pesos, unless otherwise noted)

 

Three-months ended
September 30,

 

Nine-months ended
September 30,

 

2021

2020

% Chg.

 

2021

2020

% Chg.

Adjusted EBITDA reconciliation:

Net profit (loss)

1,490

9,833

-84.9%

3,220

11,538

-72.1%

(+) Depreciation and amortization

1,435

1,831

-21.6%

3,920

4,242

-7.6%

(+) Tax on debits and credits to bank accounts

174

203

-14.3%

498

492

1.2%

(+) Income tax expense

1,134

911

24.5%

7,549

1,229

514.1%

(+) Financial interest, net

231

(13)

n/a

1,146

1,226

-6.5%

(+) Exchange rate differences, net

341

(3,131)

n/a

105

(1,898)

n/a

(+) Other financial expenses, net

92

256

-64.2%

203

545

-62.8%

(+) Gain on net monetary position

(342)

(163)

110.0%

(1,622)

(488)

232.4%

(+) Share of profit (loss) of associates

-

553

n/a

-

553

n/a

(+) Impairment of property, plant and equipment

141

1,297

-89.1%

141

1,297

-89.1%

(-) Income from discontinued operations

-

6,411

n/a

-

7,024

n/a

Adjusted EBITDA

4,696

5,167

-9.1%

15,161

11,713

29.4%

Adjusted EBITDA Margin

26.4%

31.5%

-512bps

30.7%

30.2%

+55bps

 

Adjusted EBITDA decreased 9.1% YoY in the third quarter of 2021 to Ps. 4,696 million. Typically, in the third quarters we have the incidence of higher production costs, as we incurred in winter energy costs and we undertake most of our annual schedule maintenance. These effects were abnormally softer in 3Q20 due to the pandemic situation.

Likewise, the Adjusted EBITDA margin decreased 512 basis points to 26.4% compared to 31.5% in 3Q20, mainly due to the impact of cement margins. For the 9-month cumulative period, the margin expanded 55 bps to 30.7 from 30.2 in the same period last year.

In particular, the Adjusted EBITDA margin of the Cement, Masonry and Lime segment decreased 484 bps to 29.5%, mainly due to the seasonal increase in costs and lower price performance.

The Adjusted EBITDA margin for Concrete recovered considerably compared to 3Q20, but still registering a negative margin of 4.0%, as the recovery of volumes is still below pre-pandemic levels.

The adjusted EBITDA margin of the Railroad segment improved 97 basis points, mainly supported by an increase in transported volumes and a positive effect from the product mix.

Finally, the aggregates adjusted EBITDA margin improved to 0.3% from a negative margin in 3Q20, due to a strong recovery in revenues as a result of a better sales mix and higher operating leverage.

Finance Costs-Net

Table 5: Finance Gain (Cost), net

(amounts expressed in millions of pesos, unless otherwise noted)

 

 

Three-months ended
September 30,

 

Nine-months ended
September 30,

 

 

2021

2020

% Chg.

 

2021

2020

% Chg.

Exchange rate differences

(341)

3,131

n/a

(105)

1,898

n/a

Financial income

21

165

-87.4%

(1,438)

(1,874)

-23.3%

Financial expense

(343)

(408)

-15.8%

89

103

-13.0%

Gain on net monetary position

342

163

110.0%

1,622

488

232.4%

Total Finance Gain (Cost), Net

 

(322)

3,051

n/a

168

614

-72.6%

 

During 3Q21, the Company reported a total net financial cost of Ps. 322 million compared to a total net financial gain of Ps. 3,051 million in 3Q20, this variation is primarily due to an extraordinary exchange rate difference gain in the third quarter of 2020.

Net Profit and Net Profit Attributable to Owners of the Company

Net Profit for 3Q21 it reached Ps. 1,490 million compared to Ps. 9,833 million in the same period of the previous year. 3Q20 was strongly impacted by the sale of the Company’s stake in Yguazú Cementos.

Additionally, considering the start-up of the new L’Amalí line and taking into account other factors, a non-monetary loss was recognized on the assets of the Sierras Bayas Plant that amounted to Ps. 141 million.

Net Profit Attributable to Owners of the Company reached Ps. 1.4 billion. During the quarter, the Company reported earnings per common share of Ps. 2,3081 and an ADR gain of Ps. 11.5407, compared to earnings per common share of Ps. 16.4634 and an ADR gain of Ps. 82.3171 in 3Q20.

Capitalization

Table 6: Capitalization and Debt Ratio

(amounts expressed in millions of pesos, unless otherwise noted)

 

As of September 30,

 

As of December, 31

 

2021

2020

 

2020

 

Total Debt

3,959

9,170

8,072

- Short-Term Debt

3,480

5,906

5,729

- Long-Term Debt

479

3,265

2,343

Cash, Cash Equivalents and Investments

4,289

6,583

5,484

Total Net Debt

(330)

2,587

2,588

Shareholders' Equity

63,888

57,250

56,886

Capitalization

67,848

66,420

64,957

LTM Adjusted EBITDA

17,756

9,762

16,640

Net Debt /LTM Adjusted EBITDA

-0.02x

0.27x

0.16x

As of September 30, 2021, total cash and cash equivalents were Ps. 4,289 million compared with Ps. 6,583 million as of the September 30, 2020. Total debt at the close of the quarter stood at Ps. 3,959 million, composed by Ps. 3,480 million in short-term borrowings, including the current portion of long-term borrowings (or 87.9% of total borrowings), and Ps. 479 million in long-term borrowings (or 12.1% of total borrowings).

As of September 30, 2021, 83.2% (or Ps. 3,295 million) Loma Negra’s total debt was denominated in U.S. dollars, 9.5% (or Ps. 377 million) in Euros, and 7.3% (or Ps. 288 million) in argentine pesos. The average duration of Loma Negra’s total debt was 0.4 years.

As of September 30, 2021, Ps. 3,280 million, or 82.9%, of the Company’s total consolidated borrowings bore interest at rates based on Libor, and Ps. 679 million of borrowings bore interest at a fixed rate.

The Net Debt to Adjusted EBITDA (LTM) ratio decreased to -0.02x as of September 30, 2021 from 0.16x as of December 31, 2020 as a result of strong cash generation and debt reduction.

Cash Flows

Table 7: Condensed Interim Consolidated Statement of Cash Flows

(amounts expressed in millions of pesos, unless otherwise noted)

 

 

Three-months ended
September 30,

Nine-months ended
September 30,

 

 

2021

2020

2021

2020

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

Net profit (loss)

 

1,490

9,833

3,220

11,538

Adjustments to reconcile net profit (loss) to net cash provided by operating activities

 

2,889

(5,744)

11,524

(1,737)

 

Changes in operating assets and liabilities

 

1,012

1,300

(5,832)

311

Net cash generated by operating activities

 

5,391

5,389

8,912

10,112

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

Proceeds from disposal of Yguazú Cementos S.A.

 

(250)

-

-

-

Property, plant and equipment, Intangible Assets, net

 

(1,544)

(2,382)

(4,249)

(10,928)

Contributions to Trust

 

(20)

(40)

(66)

(76)

Investments

373

11,428

(1,656)

11,428

Net cash (used in) investing activities

 

(1,441)

9,006

(5,971)

423

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

Proceeds / Repayments from borrowings, Interest paid

 

(1,748)

(15,238)

(4,192)

(10,029)

Share repurchase plan

(630)

-

(1,498)

-

Net cash generated by (used in) by financing activities

 

(2,377)

(15,238)

(5,689)

(10,029)

 

Net increase (decrease) in cash and cash equivalents

 

1,573

(843)

(2,748)

506

Cash and cash equivalents at the beginning of the year

 

1,245

3,707

5,993

2,432

Effect of the re-expression in homogeneous cash currency ("Inflation-Adjusted")

(38)

(50)

(141)

(152)

Effects of the exchange rate differences on cash and cash equivalents in foreign currency

 

(300)

4,279

(624)

4,307

Cash and cash equivalents at the end of the period

 

2,480

7,092

2,480

7,092

In 3Q21, our operating cash generation was Ps. 5,391 million, benefited by lower seasonal working capital requirements.

During 3Q21, the Company used cash in financing and investing activities for a total of Ps. 2,377 and Ps. 1,441 million, respectively. Cash allocations to the expansion of production capacity of L’Amalí plant accounted for a total of Ps. 552 million, or 36% of total capital expenditures.

Expansion of L’Amalí Plant.

Loma Negra is moving ahead with the capital expenditure at its L’Amalí plant, which will add 2.7 million tons annually and drive higher profitability. This expansion involves a total capital expenditure, originally estimated at approximately US$350 million.

Having already completed the start-up of the main stages of the new line, at the end of September 2021, it is practically completed, going through the final fine-tuning process satisfactorily.

Share Repurchase Plan.

On September 24, 2021, the Company announced the approval of the third share repurchase program, in accordance with Section 64 of Law No. 26.831 (“LMC”) and the CNV Regulations. The purpose is to efficiently apply a portion of the Company´s cash position which may result in a greater return of value for its shareholders considering the current attractive value of the share.

The plan became effective as from September 28, 2021, the amount to invest will be up to AR$ 700.000.000 (Argentine Pesos Seven Hundred Million) or such lower amount that derives from the repurchase of up to 10% of Company’s capital stock. The maximum amount of shares or maximum percentage of the Company’s capital stock to be repurchased shall never surpass the limit of 10% of the capital stock in accordance with Section 64 of LMC.

A summary of current Share Repurchase Programs is shown below:

 

Repurchase Program III

Maximum amount for repurchase

AR$ 700 million

Maximum price

AR$ 340/ordinary share or US$ 9.5/ADR

Period in force

60 days since September 28, 2021

Repurchase under the program until November 10, 2021

AR$ 465 million

Progress

66.5%

3Q21 Earnings Conference Call

When:

10:00 a.m. U.S. ET (12:00 a.m. BAT), November 12, 2021

Dial-in:

0800-444-2930 (Argentina), 1-833-255-2824 (U.S.), 1-866-605-3852 (Canada), 1-412-902-6701 (International)

Password:

Loma Negra Call

Webcast:

https://services.choruscall.com/links/loma211112msXWsvGS.html

Replay:

A telephone replay of the conference call will be available between November 13, 2021 at 1:00 pm U.S. E.T. and ending on November 19, 2021. The replay can be accessed by dialing 1-877-344-7529 (U.S. toll free), or 1-412-317-0088 (International). The passcode for the replay is 10158956. The audio of the conference call will also be archived on the Company’s website at www.lomanegra.com

Definitions

Adjusted EBITDA is calculated as net profit plus financial interest, net plus income tax expense plus depreciation and amortization plus exchange rate differences plus other financial expenses, net plus tax on debits and credits to bank accounts, plus share of loss of associates, plus net Impairment of Property, plant and equipment, and less income from discontinued operation. Loma Negra believes that excluding tax on debits and credits to bank accounts from its calculation of Adjusted EBITDA is a better measure of operating performance when compared to other international players.

Net Debt is calculated as borrowings less cash, cash equivalents and marketable securities.

About Loma Negra

Founded in 1926, Loma Negra is the leading cement company in Argentina, producing and distributing cement, masonry cement, aggregates, concrete and lime, products primarily used in private and public construction. Loma Negra is a vertically-integrated cement and concrete company, with nationwide operations, supported by vast limestone reserves, strategically located plants, top-of-mind brands and established distribution channels. Loma Negra is listed both on BYMA and on NYSE in the U.S., where it trades under the symbol “LOMA”. One ADS represents five (5) common shares. For more information, visit www.lomanegra.com.

Note

The Company presented some figures converted from Pesos to U.S. dollars for comparison purposes. The exchange rate used to convert Pesos to U.S. dollars was the reference exchange rate (Communication “A” 3500) reported by the Central Bank for U.S. dollars. The information presented in U.S. dollars is for the convenience of the reader only. Certain figures included in this report have been subject to rounding adjustments. Accordingly, figures shown as totals in certain tables may not be arithmetic aggregations of the figures presented in previous quarters.

Rounding: We have made rounding adjustments to reach some of the figures included in this annual report. As a result, numerical figures shown as totals in some tables may not be an arithmetic aggregation of the figures that preceded them.

Disclaimer

This release contains forward-looking statements within the meaning of federal securities law that are subject to risks and uncertainties. These statements are only predictions based upon our current expectations and projections about possible or assumed future results of our business, financial condition, results of operations, liquidity, plans and objectives. In some cases, you can identify forward-looking statements by terminology such as “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “expect,” “predict,” “potential,” “seek,” “forecast,” or the negative of these terms or other similar expressions. The forward-looking statements are based on the information currently available to us. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including, among others things: changes in general economic, political, governmental and business conditions globally and in Argentina, changes in inflation rates, fluctuations in the exchange rate of the peso, the level of construction generally, changes in cement demand and prices, changes in raw material and energy prices, changes in business strategy and various other factors. You should not rely upon forward-looking statements as predictions of future events. Although we believe in good faith that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Any or all of Loma Negra’s forward-looking statements in this release may turn out to be wrong. You should consider these forward-looking statements in light of other factors discussed under the heading “Risk Factors” in the prospectus filed with the Securities and Exchange Commission on October 31, 2017 in connection with Loma Negra’s initial public offering. Therefore, readers are cautioned not to place undue reliance on these forward-looking statements. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason after the date of this release to conform these statements to actual results or to changes in our expectations.

 

 

Table 8: Condensed Interim Consolidated Statements of Financial Position

(amounts expressed in millions of pesos, unless otherwise noted)

 

 

 

As of September 30,

 

 

As of December 31,

 

 

 

2021

 

 

2020

ASSETS

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

Property, plant and equipment

 

72,497

73,351

Right to use assets

 

304

613

Intangible assets

 

214

263

Investments

 

5

5

Goodwill

 

48

48

Inventories

 

2,694

2,953

Other receivables

 

766

659

Total non-current assets

 

 

76,527

77,891

Current assets

 

 

Inventories

 

7,727

7,521

Other receivables

 

1,217

1,667

Trade accounts receivable

 

4,133

4,094

Investments

 

3,887

5,627

Cash and banks

403

365

Total current assets

 

 

17,367

19,275

TOTAL ASSETS

93,893

97,166

SHAREHOLDERS' EQUITY

 

 

Capital stock and other capital related accounts

 

19,113

20,611

Reserves

 

41,184

25,638

Retained earnings

 

3,322

15,546

Equity attributable to the owners of the Company

 

63,619

61,795

Non-controlling interests

269

371

TOTAL SHAREHOLDERS' EQUITY

 

 

63,888

62,166

LIABILITIES

 

 

Non-current liabilities

 

Borrowings

 

479

2,561

Accounts payables

 

-

140

Provisions

 

570

668

Salaries and social security payables

 

69

52

Debts for leases

234

535

Other liabilities

 

78

153

Deferred tax liabilities

12,902

9,965

Total non-current liabilities

 

 

14,332

14,074

Current liabilities

Borrowings

 

3,480

6,261

Accounts payable

 

6,345

7,386

Advances from customers

 

798

1,002

Salaries and social security payables

 

1,873

1,947

Tax liabilities

 

2,933

3,950

Debts for leases

86

192

Other liabilities

157

187

Total current liabilities

 

 

15,673

20,926

TOTAL LIABILITIES

 

 

30,005

35,000

TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES

 

 

93,893

97,166

 

 

Table 9: Condensed Interim Consolidated Statements of Profit or Loss and Other Comprehensive Income (unaudited)

(amounts expressed in millions of pesos, unless otherwise noted)

 

 

 

 

 

Three-months ended
September 30,

 

Nine-months ended
September 30,

 

 

2021

2020

% Change

 

2021

2020

% Change

Net revenue

17,800

16,399

8.5%

49,370

38,842

27.1%

Cost of sales

(13,213)

(11,810)

11.9%

(34,294)

(28,157)

21.8%

Gross profit

 

4,587

4,590

-0.1%

15,076

10,685

41.1%

Share of loss of associates

-

(553)

n/a

-

(553)

n/a

Selling and administrative expenses

(1,361)

(1,262)

7.8%

(4,014)

(3,302)

21.6%

Other gains and losses

35

8

309.9%

179

88

103.6%

Impairment of property, plant and equipment

(141)

(1,297)

n/a

(141)

(1,297)

n/a

Tax on debits and credits to bank accounts

(174)

(203)

-14.3%

(498)

(492)

1.2%

Finance gain (cost), net

Gain on net monetary position

342

163

110.0%

1,622

488

232.4%

Exchange rate differences

(341)

3,131

n/a

(105)

1,898

n/a

Financial income

21

165

-87.4%

(1,438)

(1,874)

-23.3%

Financial expenses

(343)

(408)

-15.8%

89

103

-13.0%

Profit (loss) before taxes

 

2,624

4,334

-39.5%

10,769

5,743

87.5%

Income tax expense

Current

(1,047)

(1,471)

-28.8%

(4,612)

(1,792)

157.4%

Deferred

(87)

560

n/a

(2,937)

562

n/a

Net profit (loss) from continuing operations

 

1,490

3,423

-56.5%

3,220

4,514

-28.7%

Income from discontinued operations

-

6,411

n/a

-

7,024

n/a

Net profit (loss)

 

1,490

9,833

-84.9%

3,220

11,538

-72.1%

Other Comprehensive Income (Loss)

Items to be reclassified through profit and loss:

Exchange differences on translating foreign operations

-

(243)

n/a

-

(392)

n/a

Total other comprehensive income (loss)

 

-

(243)

n/a

-

(392)

n/a

TOTAL COMPREHENSIVE INCOME (LOSS)

 

1,490

9,590

-84.5%

3,220

11,146

-71.1%

Net Profit (loss) for the period attributable to:

 

Owners of the Company

1,364

9,813

-86.1%

3,322

11,430

-70.9%

Non-controlling interests

126

21

508.3%

(102)

108

n/a

NET PROFIT (LOSS) FOR THE PERIOD

 

1,490

9,833

-84.9%

3,220

11,538

-72.1%

Total comprehensive income (loss) attributable to:

 

Owners of the Company

1,518

9,689

-84.3%

3,322

11,230

-70.4%

Non-controlling interests

(29)

(98)

-70.9%

(102)

(84)

21.9%

TOTAL COMPREHENSIVE INCOME (LOSS)

 

1,490

9,590

-84.5%

3,220

11,146

-71.1%

Earnings per share (basic and diluted):

 

2.3081

16.4634

-86.0%

5.6000

7.9704

-29.7%

 

 

Table 10: Condensed Interim Consolidated Statement of Cash Flows

(amounts expressed in millions of pesos, unless otherwise noted)

 

 

 

 

 

Three-months ended
September 30,

Nine-months ended
September 30,

 

 

2021

2020

2021

2020

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

Net profit (loss) from continuing operations

1,490

3,423

3,220

4,514

Income from discontinued operations

 

-

6,411

-

7,024

Net profit (loss)

1,490

9,833

3,220

11,538

Adjustments to reconcile net profit to net cash provided by operating activities

 

Income tax expense

 

1,134

2,918

7,549

3,307

Depreciation and amortization

 

1,435

1,831

3,920

4,242

Provisions

 

5

(42)

(18)

(58)

Interest expense

 

66

25

307

1,426

Exchange rate differences

4

(4,107)

(550)

(3,626)

Share of loss of associates

(0)

553

(0)

553

Interest income

108

-

219

-

Gain on disposal of property, plant and equipment

(20)

34

(102)

60

Impairment of property, plant and equipment

141

1,297

141

1,297

Gain on disposal of shareholding of Yguazú Cementos S.A.

-

(8,417)

-

(9,102)

Impairment of trust fund

16

164

58

164

Changes in operating assets and liabilities

 

Inventories

 

1,057

1,501

320

1,032

Other receivables

(56)

236

(424)

116

Trade accounts receivable

(301)

(838)

(1,227)

(346)

Advances from customers

155

367

(57)

522

Accounts payable

978

892

1,323

926

Salaries and social security payables

 

172

445

502

10

Provisions

 

(47)

(16)

(73)

(57)

Tax liabilities

 

348

(420)

270

(158)

Other liabilities

 

15

11

(100)

(36)

Gain on net monetary position

(342)

(163)

(1,622)

(488)

Income tax paid

 

(967)

(715)

(4,744)

(1,210)

Net cash generated by (used in) operating activities

 

5,391

5,389

8,912

10,112

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

Proceeds from disposal of Yguazú Cementos S.A.

(250)

-

-

-

Proceeds from disposal of Property, plant and equipment

 

37

22

114

54

Payments to acquire Property, plant and equipment

(1,561)

(2,403)

(4,343)

(10,976)

Payments to acquire Intangible Assets

 

(20)

(1)

(20)

(6)

Investments

373

11,428

(1,656)

11,428

Contributions to Trust

 

(20)

(40)

(66)

(76)

Net cash generated by (used in) investing activities

 

(1,441)

9,006

(5,971)

423

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

Proceeds from borrowings

 

497

(0)

1,010

17,319

Interest paid

 

(157)

(1,630)

(447)

(3,874)

Debts for leases

(39)

(56)

(125)

(149)

Repayment of borrowings

 

(2,049)

(13,552)

(4,630)

(23,325)

Share repurchase plan

(630)

-

(1,498)

-

Net cash generated by (used in) financing activities

 

(2,377)

(15,238)

(5,689)

(10,029)

Net increase (decrease) in cash and cash equivalents

 

1,573

(843)

(2,748)

506

Cash and cash equivalents at the beginning of the period

 

1,245

3,707

5,993

2,432

Effect of the re-expression in homogeneous cash currency ("Inflation-Adjusted")

(38)

(50)

(141)

(152)

Effects of the exchange rate differences on cash and cash equivalents in foreign currency

 

(300)

4,279

(624)

4,307

 

Cash and cash equivalents at the end of the period

 

2,480

7,092

2,480

7,092

 

 

Table 11: Financial Data by Segment (figures exclude the impact of IAS 29)

(amounts expressed in millions of pesos, unless otherwise noted)

 

 

Three-months ended September 30,

 

Nine-months ended September 30,

 

 

2021

%

2020

%

 

2021

%

2020

%

 

Net revenue

 

17,137

100.0%

10,487

100.0%

43,601

100.0%

23,477

100.0%

 

Cement, masonry cement and lime

15,320

89.4%

9,801

93.5%

39,029

89.5%

21,433

91.3%

 

Concrete

1,115

6.5%

340

3.2%

3,147

7.2%

917

3.9%

 

Railroad

1,465

8.5%

770

7.3%

3,572

8.2%

2,167

9.2%

 

Aggregates

285

1.7%

128

1.2%

604

1.4%

202

0.9%

 

Others

106

0.6%

29

0.3%

246

0.6%

114

0.5%

 

Eliminations

(1,153)

-6.7%

(581)

-5.5%

(2,997)

-6.9%

(1,356)

-5.8%

 

Cost of sales

 

11,416

100.0%

6,688

100.0%

27,487

100.0%

15,192

100.0%

 

Cement, masonry cement and lime

9,770

85.6%

5,799

86.7%

23,081

84.0%

12,831

84.5%

 

Concrete

1,136

9.9%

531

7.9%

3,322

12.1%

1,260

8.3%

 

Railroad

1,328

11.6%

753

11.3%

3,350

12.2%

2,101

13.8%

 

Aggregates

272

2.4%

162

2.4%

574

2.1%

278

1.8%

 

Others

64

0.6%

24

0.4%

157

0.6%

78

0.5%

 

Eliminations

 

(1,153)

-10.1%

(581)

-8.7%

(2,997)

-10.9%

(1,356)

-8.9%

 

Selling, admin. expenses and other gains & losses

 

1,223

100.0%

728

100.0%

3,214

100.0%

1,774

100.0%

 

Cement, masonry cement and lime

1,052

86.1%

687

94.4%

2,841

88.4%

1,606

90.5%

 

Concrete

27

2.2%

(8)

-1.0%

49

1.5%

1

0.0%

 

Railroad

101

8.2%

30

4.1%

228

7.1%

120

6.8%

 

Aggregates

3

0.3%

1

0.2%

7

0.2%

(2)

-0.1%

 

Others

 

39

3.2%

17

2.3%

88

2.7%

50

2.8%

 

Depreciation and amortization

 

459

100.0%

440

100.0%

1,173

100.0%

935

100.0%

 

Cement, masonry cement and lime

356

77.4%

237

53.9%

885

75.4%

570

61.0%

 

Concrete

16

3.4%

134

30.4%

47

4.0%

168

17.9%

 

Railroad

78

17.0%

62

14.1%

215

18.3%

178

19.0%

 

Aggregates

9

1.9%

6

1.3%

22

1.9%

16

1.7%

 

Others

 

1

0.3%

1

0.2%

4

0.3%

3

0.4%

 

Adjusted EBITDA

 

4,957

100.0%

3,511

100.0%

14,073

100.0%

7,445

100.0%

 

Cement, masonry cement and lime

4,853

97.9%

3,552

101.2%

13,992

99.4%

7,566

101.6%

 

Concrete

(32)

-0.7%

(50)

-1.4%

(177)

-1.3%

(176)

-2.4%

 

Railroad

114

2.3%

49

1.4%

209

1.5%

123

1.7%

 

Aggregates

18

0.4%

(30)

-0.8%

45

0.3%

(57)

-0.8%

 

Others

 

4

0.1%

(10)

-0.3%

4

0.0%

(11)

-0.1%

 

Reconciling items:

 

Effect by translation in homogeneous cash currency ("Inflation-Adjusted")

(261)

1,656

1,087

4,268

 

Depreciation and amortization

(1,435)

(1,831)

(3,920)

(4,242)

 

Tax on debits and credits banks accounts

(174)

(203)

(498)

(492)

 

Finance gain (cost), net

(322)

3,051

168

614

 

Income tax

(1,134)

(911)

(7,549)

(1,229)

 

Share of profit of associates

-

(553)

-

(553)

 

Impairment of property, plant and equipment

(141)

(1,297)

(141)

(1,297)

 

Income (loss) from discontinued operations

-

6,411

-

7,024

 

NET PROFIT (LOSS) FOR THE PERIOD

 

1,490

9,833

3,220

11,538

 

 

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20211111006082/en/

CONTACT: IR Contacts

Marcos I. Gradin, Chief Financial Officer and Investor Relations

Diego M. Jalón, Investor Relations Manager

+54-11-4319-3050

investorrelations@lomanegra.com

KEYWORD: NEW YORK UNITED STATES SOUTH AMERICA ARGENTINA NORTH AMERICA

INDUSTRY KEYWORD: OTHER NATURAL RESOURCES OTHER CONSTRUCTION & PROPERTY MANUFACTURING NATURAL RESOURCES CONSTRUCTION & PROPERTY BUILDING SYSTEMS OTHER MANUFACTURING

SOURCE: Loma Negra

Copyright Business Wire 2021.

PUB: 11/11/2021 04:15 PM/DISC: 11/11/2021 04:15 PM

http://www.businesswire.com/news/home/20211111006082/en