Loma Negra, (NYSE: LOMA) ( BYMA: LOMA), (“Loma Negra” or
the “Company”), the leading cement producer in Argentina, today
announced results for the three-month and six-month period ended
June 30, 2020 (our “2Q20”).
2Q20 Key Highlights
- Net revenue decreased 30.1% YoY to Ps.7,453 million (US$108
million), reflecting the full impact of the COVID-19 pandemic and
the extended lockdown
- Consolidated Adjusted EBITDA down 24.6% YoY to Ps.2,077 million
(US$32 million)
- Consolidated Adjusted EBITDA margin expanded by 204 basis
points YoY from 25.8% to 27.9%, driven by cost control efforts and
efficiency enhancement from previous structure adequacy
efforts
- Net Debt /LTM Adjusted EBITDA ratio of 1.17x from 1.26x in 1Q20
and 0.86x in FY19
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
second quarter of 2020, Sergio Faifman, Loma Negra’s Chief
Executive Officer, noted: “As a consequence of the COVID-19
pandemic, we entered the second quarter amid an unprecedented
nation-wide lockdown which negatively impacted our businesses.
Along the quarter, and depending on how the sanitation situation
developed in each jurisdiction, some of these restrictions were
softened, or even lifted. In anticipation of the effects of
COVID-19, we took proactive measures with special focus on adopting
strict biosafety protocols in our operations and maintaining our
financial strength on our balance sheet.
Cement demand in Argentina in the Second quarter contracted
around 32% YoY and around 4% when compared sequentially with the
previous quarter. Taking a closer look on the behavior of our
demand, we observed that the initial plummeting of sales in April
was followed by a strong recovery since May in the bag segment
across the country.
Our top line for the quarter decreased also around 30%
year-on-year to 7.5 billion pesos, and our adjusted EBITDA declined
by 24.6% to 2.1 billion pesos. Our EBITDA margin expanded by 204
basis points to 27.9%, mainly reflecting our efforts in cost
control and our commitment to maintaining a healthy productivity
and efficiency levels. Our core cement business remained the
principal factor behind these margin expansion.
As previously anticipated, works on L´Amalí project were resumed
on late April after the temporarily restrictions due to the
COVID-19 were lifted. Certainly, this suspension together with the
biosafety protocols adopted have delayed the inauguration date of
the project, which is now expected to be at the beginning of
2021.
We remain alert and cautious regarding the evolution of this
worldwide crisis, which ending seems hard to predict.
I would finally like to thank our people who, in this
unprecedented COVID-19 situation, showed a great responsibility and
resourcefulness in order to overcome difficulties and to keep on
running the business.”
Table 1: Financial
Highlights
(amounts expressed in millions of
pesos, unless otherwise noted)
Three-months ended June
30,
Six-months ended June
30,
2020
2019
% Chg.
2020
2019
% Chg.
Net revenue
7,453
10,664
-30.1%
15,635
22,291
-29.9%
Gross Profit
1,800
2,737
-34.2%
4,293
6,089
-29.5%
Gross Profit margin
24.1%
25.7%
-151bps
27.5%
27.3%
+14bps
Adjusted EBITDA
2,077
2,754
-24.6%
4,819
6,093
-20.9%
Adjusted EBITDA Mg.
27.9%
25.8%
+204bps
30.8%
27.3%
+349bps
Net Profit
111
1,570
-93.0%
1,038
3,238
-67.9%
Net Profit attributable to owners
of the Company
82
1,521
-94.6%
985
3,106
-68.3%
EPS
0.1371
2.5511
-94.6%
1.6528
5.2104
-68.3%
Shares outstanding at eop
596
596
0.0%
596
596
0.0%
Net Debt
14,123
7,281
94.0%
14,123
7,281
94.0%
Net Debt /LTM Adjusted EBITDA
1.17x
0.58x
0.60x
1.17x
0.58x
0.60x
Table 1b: Financial Highlights
in Ps and in U.S. dollars (figures exclude the impact of IAS
29)
In million Ps.
Three-months ended June
30,
Six-months ended June
30,
2020
2019
% Chg.
2020
2019
% Chg.
Net revenue
7,334
7,262
1.0%
14,857
14,395
3.2%
Adjusted EBITDA
2,133
1,958
9.0%
4,724
4,076
15.9%
Adjusted EBITDA Mg.
29.1%
27.0%
+213bps
31.8%
28.3%
+348bps
Net Profit
644
1,025
-37.1%
644
1,025
-37.1%
Net Debt
14,123
4,908
187.8%
14,123
4,908
187.8%
Net Debt /LTM Adjusted EBITDA
1.17x
0.58x
0.60x
1.17x
0.58x
0.60x
In million US$
Three-months ended June
30,
Six-months ended June
30,
2020
2019
%Chg.
2020
2019
%Chg.
Ps./US$, av
67.71
44.04
53.7%
64.59
41.46
55.8%
Ps./US$, eop
70.46
42.45
66.0%
70.46
42.45
66.0%
Net revenue
108
165
-34.3%
230
347
-33.7%
Adjusted EBITDA
32
44
-29.1%
73
98
-25.6%
Adjusted EBITDA Mg.
29.1%
27.0%
+213bps
31.8%
28.3%
+348bps
Net Profit
10
23
-59.1%
10
25
-59.6%
Net Debt
200
116
73.4%
200
116
73.4%
Net Debt /LTM Adjusted EBITDA
1.17x
0.58x
0.60x
1.17x
0.58x
0.60x
Overview of Operations
Sales Volumes
Table 2: Sales
Volumes2
Three-months ended June
30,
Six-months ended June
30,
2020
2019
% Chg.
2020
2019
% Chg.
Cement, masonry &
lime
Argentina
MM Tn
1.01
1.33
-24.5%
2.01
2.70
-25.7%
Paraguay
MM Tn
0.13
0.12
0.8%
0.26
0.28
-6.8%
Cement, masonry & lime
total
1.13
1.46
-22.3%
2.26
2.98
-24.0%
Argentina:
Concrete
MM m3
0.02
0.22
-92.3%
0.09
0.47
-80.4%
Railroad
MM Tn
0.63
1.13
-44.3%
1.57
2.23
-29.8%
Aggregates
MM Tn
0.03
0.30
-90.9%
0.15
0.59
-73.9%
2 Sales volumes include
inter-segment sales
Sales volumes of cement, masonry and lime in Argentina during
2Q20 declined 24.5% to 1.01 million tons reflecting the full impact
of the COVID-19 lockdown and the negative economic momentum in the
country. Bag segment was more resilient, presenting a very strong
recovery dynamic since May, including some positive growth rates
when compared to the year ago quarter. On the other hand, bulk
segment was heavily impacted by the absence of private and public
works, particularly in those jurisdictions where the COVID-19
restriction was stricter.
In Paraguay, the impact of COVID-19 lock-down affected heavily
sales volumes in April. Afterwards, our sales rebounded vigorously,
achieving in June a record high level. Consequently, sales volumes
in the second quarter grew to reached 0.13 million tons, or 0.8%
when compared to 2Q19.
As a result, consolidated total sales volumes of cement, masonry
and lime for the quarter decreased 22.3% YoY to 1.13 million
tons.
Sales volumes in the Concrete segment and Aggregates in
Argentina plummeted 92.3% and 90.9% YoY, to 0.02 million m3 and
0.03 million tons, respectively, heavily affected by the strict
lock-down and the consequent impact in private and public
projects.
Railroad segment volumes experienced a 44.3% decline versus the
comparable quarter in 2019, mainly explained by the volume drop of
building materials and frac-sand, as well as a decline in most
other transported products.
Review of Financial Results
Table 3: Consolidated
Statement of Financial Position
(amounts expressed in millions of
pesos, unless otherwise noted)
Three-months ended June
30,
Six-months ended June
30,
2020
2019
% Chg.
2020
2019
% Chg.
Net revenue
7,453
10,664
-30.1%
15,635
22,291
-29.9%
Cost of sales
(5,653)
(7,928)
-28.7%
(11,342)
(16,202)
-30.0%
Gross Profit
1,800
2,737
-34.2%
4,293
6,089
-29.5%
Selling and administrative
expenses
(641)
(694)
-7.6%
(1,305)
(1,672)
-21.9%
Other gains and losses
4
(17)
n/a
51
(20)
n/a
Tax on debits and credits to bank
accounts
(69)
(58)
19.5%
(177)
(231)
-23.6%
Finance costs, net
Exchange rate differences
(560)
414
n/a
(739)
162
n/a
Financial income
40
(25)
n/a
31
14
117.5%
Financial expenses
(655)
(511)
28.0%
(1,077)
(826)
30.3%
Gain (loss) on net monetary
position
68
499
-86.4%
198
816
-75.7%
Profit before taxes
(12)
2,345
n/a
1,275
4,332
-70.6%
Income tax expense
Current
49
(478)
n/a
(235)
(1,013)
-76.8%
Deferred
73
(297)
n/a
(2)
(81)
-97.5%
Net profit
111
1,570
-93.0%
1,038
3,238
-67.9%
Net majority income
82
1,521
-94.6%
985
3,106
-68.3%
Net Revenues
Net revenue decreased 30.1% to Ps. 7,453 million in 2Q20,
from Ps. 10,664 million in the comparable quarter last year,
reflecting the full impact of the COVID-19 lockdown and the
negative economic momentum.
Revenues in Cement, masonry and lime in Argentina declined by
25.8% YoY, as a result of the sharp volume drop particularly in the
bulk segment. Cement revenues in Paraguay improved 3.3% YoY, as
more flexible conditions were imposed to control the COVID-19
situation.
Railroad revenues decreased 36.1% YoY versus the comparable
quarter in 2019, mainly explained by the drop in building
materials, frac-sand, and most other transported products, and
marginally compensated by higher services rendered.
Concrete and Aggregate revenues plummeted 92.6% and 94.0%,
respectively. Both sales volumes and prices declined when compared
to the 2Q in the year ago period. These segments were much more
impacted by the COVID-19 restrictions as they are strongly related
to private and public infrastructure works and have a higher
exposure to main urban centers.
Cost of sales, and Gross profit
Cost of sales decreased 28.7% YoY reaching Ps.5,653
million in 2Q20 mainly as a result of the lower volume sold coupled
with higher efficiencies and lower unitary energy costs measured in
US dollars. Additionally, structure costs benefitted by previous
footprint adequacy efforts.
Gross profit declined 34.2% YoY to Ps.1,800 million in
2Q20 from Ps.2,737 million in 2Q19, with gross profit margin
contracting 151 basis points YoY to 24.1%, affected by the full
impact of COVID-19 and a higher burden of depreciations and
amortizations.
Selling and Administrative Expenses
Selling and administrative expenses (SG&A) in 2Q20
decreased 7.6% YoY to Ps.641 million, from Ps.694 million in 2Q19.
As a percentage of revenues, SG&A increased 209 basis points to
8.6% in 2Q20, from 6.5% in 2Q19 negatively impacted by the strong
decline in revenues.
Adjusted EBITDA & Margin
Table 4: Adjusted EBITDA
Reconciliation & Margin
(amounts expressed in millions of
pesos, unless otherwise noted)
Three-months ended June
30,
Six-months ended June
30,
2020
2019
% Chg.
2020
2019
% Chg.
Adjusted EBITDA
reconciliation:
Net profit
111
1,570
-93.0%
1,038
3,238
-67.9%
(+) Depreciation and
amortization
914
728
25.5%
1,780
1,697
4.9%
(+) Tax on debits and credits to
bank accounts
69
58
19.5%
177
231
-23.6%
(+) Income tax expense
(123)
775
n/a
237
1,093
-78.3%
(+) Financial interest, net
581
468
24.1%
920
721
27.7%
(+) Exchange rate differences,
net
560
(414)
n/a
739
(162)
n/a
(+) Other financial expenses,
net
34
68
-50.5%
126
92
37.9%
(+) Gain (loss) on net monetary
position
(68)
(499)
-86.4%
(198)
(816)
-75.7%
Adjusted EBITDA
2,077
2,754
-24.6%
4,819
6,093
-20.9%
Adjusted EBITDA Margin
27.9%
25.8%
+204bps
30.8%
27.3%
+349bps
Adjusted EBITDA decreased 24.6% YoY in the second quarter
of 2020 to Ps. 2,077 million. While EBITDA was significantly
impacted by the sharp decline in revenues, our Adjusted EBITDA
margin expanded by 204 basis points to 27.9% compared to 25.8% in
2Q19, which had been impacted by non-recurrent costs related to
production footprint adequacy efforts.
Table 11, presenting financial Data by Segment (Excluding IAS
29), shows that for the Cement, masonry and lime segment in
Argentina Adjusted EBITDA margin expanded by 155 basis points to
30.7% during the second quarter. The Cement segment in Paraguay,
presents an Adjusted EBITDA margin of 42.4%, expanding 104 basis
points compared to the same period one year ago.
In addition, the Concrete and Aggregates segments reported a
sharp decline in Adjusted EBITDA margin posting a negative 82.7%
and 173%, respectively, as a consequence of the virtually
non-existing private or public infrastructure works.
In line with the sharp decline in building material
transportation and in the overall economic activity in this second
quarter, Railroad segment Adjusted EBITDA margin contracted to 6.9%
from 12.8% in the comparable period in 2019.
Finance Costs-Net
Table 5: Finance Costs,
net
(amounts expressed in millions of
pesos, unless otherwise noted)
Three-months ended June
30,
Six-months ended June
30,
2020
2019
% Chg.
2020
2019
% Chg.
Exchange rate differences
(560)
414
n/a
(739)
162
n/a
Financial income
40
(25)
n/a
31
14
117.5%
Financial expenses
(655)
(511)
28.0%
(1,077)
(826)
30.3%
Gain (loss) on net monetary
position
68
499
-86.4%
198
816
-75.7%
Total Finance Costs,
Net
(1,106)
377
n/a
(1,587)
166
n/a
During 2Q20, the Company reported a loss of Ps.1,106 million in
total finance costs-net compared to a gain of Ps. 377 million in
the previous year second quarter, mainly due to a loss in foreign
exchange differences as a consequence of the exchange rate
depreciation during the quarter.
Net Financial expense increased by Ps.78 million to Ps.615
million resulting from a higher gross debt position together with
higher interest rates.
Net Profit and Net Profit Attributable to Owners of the
Company
Net Profit for 2Q20, decreased 93.0% to Ps.111 million
from Ps.1,570 million in the corresponding quarter of the previous
year, heavily impacted by foreign exchange loss.
Net Profit Attributable to Owners of the Company
decreased 94.6% YoY, or Ps.1,439 million, to Ps.82 million in 2Q20.
During the quarter, the Company reported earnings per common share
of Ps.0.1371 and earnings per ADR of Ps.0.6857, compared with
earnings per common share of Ps.2.5511 and earnings per ADR of
Ps.12.7553 in 2Q19.
Capitalization
Table 6: Capitalization and
Debt Ratio
(amounts expressed in millions of
pesos, unless otherwise noted)
As of June 30,
As of December, 31
2020
2019
2019
Total Debt
17,506
9,501
13,888
- Short-Term Debt
9,923
5,300
6,289
- Long-Term Debt
7,583
4,200
7,598
Cash and Cash Equivalents
3,383
2,220
2,916
Total Net Debt
14,123
7,281
10,972
Shareholders' Equity
34,262
29,020
33,314
Capitalization
51,767
38,520
47,202
LTM Adjusted EBITDA
12,053
12,627
12,730
Net Debt /LTM Adjusted EBITDA
1.17x
0.58x
0.86x
As of June 30, 2020, total cash and cash equivalents were
Ps.3,383 million compared with Ps.2,916 million as of the December
31, 2019. Total debt at the close of the quarter stood at Ps.17,506
million, composed by Ps.9,923 million in short-term borrowings,
including the current portion of long-term borrowings (or 57% of
total borrowings), and Ps.7,583 million in long-term borrowings (or
43% of total borrowings).
As of June 30, 2020, 48% (or Ps.8,421 million) Loma Negra’s
total debt was denominated in Argentine pesos, 32% (or Ps.5,515
million) in U.S. dollars, 15% (or Ps.2,696 million) in Guaraníes,
and 5% (or Ps.874 million) in Euros. The average duration of Loma
Negra’s total debt was 1.2 years.
As of June 30, 2020, Ps.13,223 million, or 76%, of the Company’s
total consolidated borrowings bore interest at floating rates,
including Ps.7,035 million of Peso-denominated borrowings that bore
interest at rates based on the Buenos Aires Deposits of Large
Amount Rate, or BADLAR, Ps.4,802 million of foreign
currency-denominated borrowings that bore interest at rates based
on Libor, and Ps.1,387 million of borrowings with other floating
interest rate.
The Net Debt to Adjusted EBITDA (LTM) ratio decreased to 1.17x
as of June 30, 2020 from 1.26x as of March 31,2020 as a result of
cash management and liabilities actions taken during the quarter.
Compared to December 31, 2019 the ratio increased from 0.86x
reflecting the use of funds in investing activities.
Cash Flows
Table 7: Condensed Interim
Consolidated Statement of Cash Flows for the Three-months and
Six-months ended June 30, 2020 and 2019
(amounts expressed in millions of
pesos, unless otherwise noted)
Three-months ended March
31,
Six-months ended March
31,
2020
2019
2020
2019
CASH FLOWS FROM OPERATING
ACTIVITIES
Net profit for the
period
111
1,570
1,038
3,238
Adjustments to reconcile net
profit to net cash provided by operating activities
1,604
1,077
3,286
2,896
Changes in operating assets and
liabilities
1,416
(1,221)
(883)
(3,808)
Net cash generated by operating
activities
3,131
1,427
3,442
2,326
CASH FLOWS FROM INVESTING
ACTIVITIES
Property, plant and equipment,
Intangible Assets, net
(1,013)
(3,793)
(5,270)
(6,744)
Others
(0)
(8)
(22)
(33)
Net cash used in investing
activities
(1,013)
(3,800)
(5,292)
(6,777)
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds / Repayments from
borrowings, Interest paid
(1,088)
1,955
2,401
1,323
Net cash generated (used) in by
financing activities
(1,088)
1,955
2,401
1,323
Net increase (decrease) in
cash and cash equivalents
1,031
(419)
551
(3,129)
Cash and cash equivalents at the
beginning of the year
2,352
2,394
2,916
5,071
Effect of the re-expression in
homogeneous cash currency ("Inflation-Adjusted")
(19)
(54)
(62)
(92)
Effects of the exchange rate
differences on cash and cash equivalents in foreign currency
19
(252)
(22)
(181)
Cash and cash equivalents at
the end of the period
3,383
1,670
3,383
1,670
In the 2Q20, amid the COVID-19 situation, our cash flow
generated by operating activities was Ps.3,131 million compared to
Ps.1,427 million in 2Q19 as we remained focused on operational and
financial actions that resulted in lower working capital
requirements for the quarter. During 2Q20, the Company made capital
expenditures for a total of Ps.1,013 million, mostly allocated to
the expansion of production capacity of L’Amalí plant.
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.
On March 20, and in compliance with the Decree 297 (COVID-19),
the expansion project had been temporarily suspended provoking a
delay on the project execution. In April, permission to re-start
works on the project was granted. Construction works stopped for
approximately 45 days and then restarted with restricted manpower
following biosafety protocols.
In the quarter, all detailed engineering was completed, all
equipment and materials supplies has been delivered to site, and
commissioning and start-up has been completed at crushing
department.
Certainly, the impact of the delay, the adoption of new
construction protocol, or any other potential measures related to
COVID-19 pandemic may provoke additional delays to the startup of
the new production line, which is now expected to be at the
beginning of 2021.
2Q20 Earnings Conference Call
When:
10:00 a.m. U.S. ET (11:00 a.m. BAT),
August 11, 2020
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 Earnings Call
Webcast:
https://services.choruscall.com/links/loma200810MHm4I5mn.html
Replay:
A telephone replay of the conference call
will be available between August 11, 2020 at 1:00 pm U.S. E.T. and
ending on August 17, 2020. 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 10145890. 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. 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 and cash
equivalents.
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. The
Company also owns a 51% equity stake in an integrated cement
production plant in Paraguay, which is one of two leading cement
producers in that country. 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 as of June 30, 2020
and December 31, 2019
(amounts expressed in millions of
pesos, unless otherwise noted)
As of June 30,
As of December 31,
2020
2019
ASSETS
Non-current assets
Property, plant and equipment
50,955
51,141
Intangible assets
120
146
Investments
3
3
Goodwill
29
29
Inventories
1,890
1,782
Other receivables
568
645
Right to use assets
419
464
Trade accounts receivable
-
3
Total non-current
assets
53,984
54,212
Current assets
Inventories
6,402
6,150
Other receivables
794
703
Trade accounts receivable
2,708
3,126
Investments
2,012
1,158
Cash and banks
1,371
1,758
Total current assets
13,287
12,896
TOTAL ASSETS
67,271
67,108
SHAREHOLDERS' EQUITY
Capital stock and other capital
related accounts
12,557
12,557
Reserves
17,849
13,487
Retained earnings
985
4,361
Accumulated other comprehensive
income
329
375
Equity attributable to the owners
of the Company
31,719
30,780
Non-controlling interests
2,543
2,534
TOTAL SHAREHOLDERS'
EQUITY
34,262
33,314
LIABILITIES
Non-current
liabilities
Borrowings
7,583
7,598
Accounts payables
81
158
Provisions
674
643
Other liabilities
51
58
Debts for leases
369
386
Deferred tax liabilities
6,229
6,228
Total non-current
liabilities
14,986
15,073
Current liabilities
Borrowings
9,923
6,289
Accounts payable
6,197
10,296
Advances from customers
306
219
Salaries and social security
payables
719
1,089
Tax liabilities
689
617
Debts for leases
117
117
Other liabilities
73
95
Total current
liabilities
18,023
18,722
TOTAL LIABILITIES
33,009
33,794
TOTAL SHAREHOLDERS' EQUITY AND
LIABILITIES
67,271
67,108
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 June
30,
Six-months ended June
30,
2020
2019
% Change
2020
2019
% Change
Net revenue
7,453
10,664
-30.1%
15,635
22,291
-29.9%
Cost of sales
(5,653)
(7,928)
-28.7%
(11,342)
(16,202)
-30.0%
Gross profit
1,800
2,737
-34.2%
4,293
6,089
-29.5%
Selling and administrative
expenses
(641)
(694)
-7.6%
(1,305)
(1,672)
-21.9%
Other gains and losses
4
(17)
n/a
51
(20)
n/a
Tax on debits and credits to bank
accounts
(69)
(58)
19.5%
(177)
(231)
-23.6%
Finance costs, net
Exchange rate differences
(560)
414
n/a
(739)
162
n/a
Financial income
40
(25)
n/a
31
14
117.5%
Financial expenses
(655)
(511)
28.0%
(1,077)
(826)
30.3%
Gain (loss) on net monetary
position
68
499
-86.4%
198
816
-75.7%
(Loss) Profit before
taxes
(12)
2,345
n/a
1,275
4,332
-70.6%
Income tax expense
Current
49
(478)
n/a
(235)
(1,013)
-76.8%
Deferred
73
(297)
n/a
(2)
(81)
-97.5%
Net profit
111
1,570
-93.0%
1,038
3,238
-67.9%
Other Comprehensive
Income
Items to be reclassified through
profit and loss:
Exchange differences on
translating foreign operations
32
(385)
n/a
(91)
(400)
-77.2%
Total other comprehensive
(loss) income
32
(385)
n/a
(91)
(400)
-77.2%
TOTAL COMPREHENSIVE (LOSS)
INCOME
142
1,185
-88.0%
947
2,839
-66.6%
Net Profit (loss) for the
period attributable to:
Owners of the Company
82
1,521
-94.6%
985
3,106
-68.3%
Non-controlling interests
29
49
-41.6%
53
133
-59.8%
NET (LOSS) PROFIT FOR THE
PERIOD
111
1,570
-93.0%
1,038
3,238
-67.9%
Total comprehensive (loss)
income attributable to:
Owners of the Company
98
1,324
-92.6%
939
2,902
-67.7%
Non-controlling interests
44
(139)
n/a
9
(63)
n/a
TOTAL COMPREHENSIVE (LOSS)
INCOME
142
1,185
-88.0%
947
2,839
-66.6%
Earnings per share (basic and
diluted):
0.1371
2.5511
-94.6%
1.6528
5.2104
-68.3%
Table 10: Condensed Interim
Consolidated Statement of Cash Flows for the Three-months and
Six-months ended June 30, 2020 and 2019
(amounts expressed in millions of
pesos, unless otherwise noted)
Three-months ended June
30,
Six-months ended June
30,
2020
2019
2020
2019
CASH FLOWS FROM OPERATING
ACTIVITIES
Net profit for the
period
111
1,570
1,038
3,238
Adjustments to reconcile net
profit to net cash provided by operating activities
Income tax expense
(123)
775
237
1,093
Depreciation and amortization
914
728
1,780
1,697
Provisions
(66)
79
(9)
105
Interest expense
565
(172)
970
278
Exchange rate differences
305
(349)
293
(281)
Others
-
16
-
4
Gain on disposal of Property,
plant and equipment
9
(0)
15
(0)
Changes in operating assets and
liabilities
Inventories
527
(201)
(424)
(1,076)
Other receivables
154
67
(45)
(17)
Trade accounts receivable
92
142
173
(758)
Advances from customers
62
(45)
94
(46)
Accounts payable
515
82
(8)
(202)
Salaries and social security
payables
(225)
24
(260)
89
Provisions
34
(51)
(25)
(119)
Tax liabilities
454
(251)
163
(416)
Other liabilities
(20)
22
(29)
287
Income tax paid
(108)
(511)
(325)
(733)
Gain on net monetary position
(68)
(499)
(198)
(816)
Net cash generated by operating
activities
3,131
1,427
3,442
2,326
CASH FLOWS FROM INVESTING
ACTIVITIES
Proceeds from disposal of
Property, plant and equipment
5
2
20
12
Payments to acquire Property,
plant and equipment
(1,018)
(3,768)
(5,287)
(6,728)
Payments to acquire Intangible
Assets
(0)
(26)
(3)
(28)
Contributions to Trust
(0)
(8)
(22)
(33)
Net cash used in investing
activities
(1,013)
(3,800)
(5,292)
(6,777)
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from borrowings
4,648
3,971
10,551
4,358
Interest paid
(650)
(578)
(1,507)
(959)
Repayment of borrowings
(5,061)
(1,417)
(6,585)
(2,030)
Debts for leases
(25)
(20)
(57)
(47)
Net cash generated (used) in by
financing activities
(1,088)
1,955
2,401
1,323
Net increase (decrease) in cash
and cash equivalents
1,031
(419)
551
(3,129)
Cash and cash equivalents at the
beginning of the period
2,352
2,394
2,916
5,071
Effect of the re-expression in
homogeneous cash currency ("Inflation-Adjusted")
(19)
(54)
(62)
(92)
Effects of the exchange rate
differences on cash and cash equivalents in foreign currency
19
(252)
(22)
(181)
Cash and cash equivalents at
the end of the period
3,383
1,670
3,383
1,670
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 June
30,
Six-months ended June
30,
2020
%
2019
%
2020
%
2019
%
Net revenue
7,334
100.0%
7,262
100.0%
14,857
100.0%
14,395
100.0%
Cement, masonry cement and
lime—Argentina
5,844
79.7%
5,453
75.1%
11,632
78.3%
10,625
73.8%
Cement—Paraguay
952
13.0%
641
8.8%
1,867
12.6%
1,343
9.3%
Concrete
109
1.5%
1,014
14.0%
577
3.9%
2,200
15.3%
Railroad
655
8.9%
708
9.8%
1,397
9.4%
1,365
9.5%
Aggregates
12
0.2%
134
1.8%
74
0.5%
259
1.8%
Others
37
0.5%
35
0.5%
85
0.6%
66
0.5%
Eliminations
(276)
-3.8%
(721)
-9.9%
(775)
-5.2%
(1,463)
-10.2%
Cost of sales
5,015
100.0%
5,151
100.0%
9,821
100.0%
9,936
100.0%
Cement, masonry cement and
lime—Argentina
3,735
74.5%
3,658
71.0%
7,031
71.6%
6,909
69.5%
Cement—Paraguay
680
13.6%
466
9.0%
1,316
13.4%
937
9.4%
Concrete
205
4.1%
981
19.0%
729
7.4%
2,043
20.6%
Railroad
609
12.1%
607
11.8%
1,348
13.7%
1,193
12.0%
Aggregates
38
0.7%
140
2.7%
116
1.2%
276
2.8%
Others
24
0.5%
23
0.4%
55
0.6%
41
0.4%
Eliminations
(276)
-5.5%
(721)
-14.0%
(775)
-7.9%
(1,463)
-14.7%
Selling, admin. expenses and
other gains & losses
584
100.0%
497
100.0%
1,104
100.0%
1,068
100.0%
Cement, masonry cement and
lime—Argentina
473
80.9%
379
76.2%
919
83.2%
834
78.1%
Cement—Paraguay
25
4.3%
15
3.1%
57
5.2%
38
3.6%
Concrete
12
2.0%
34
6.9%
8
0.7%
69
6.5%
Railroad
60
10.2%
53
10.7%
90
8.2%
98
9.2%
Aggregates
(0)
0.0%
2
0.3%
(4)
-0.3%
4
0.3%
Others
15
2.6%
13
2.7%
33
3.0%
25
2.3%
Depreciation and
amortization
398
100.0%
343
100.0%
791
100.0%
685
100.0%
Cement, masonry cement and
lime—Argentina
158
39.8%
174
50.6%
332
42.0%
353
51.5%
Cement—Paraguay
157
39.5%
106
30.8%
296
37.5%
211
30.8%
Concrete
17
4.3%
16
4.7%
34
4.3%
27
3.9%
Railroad
59
14.8%
42
12.3%
115
14.6%
84
12.2%
Aggregates
5
1.3%
5
1.4%
11
1.4%
9
1.3%
Others
1
0.3%
1
0.2%
2
0.3%
2
0.2%
Adjusted EBITDA
2,133
100.0%
1,958
100.0%
4,724
100.0%
4,076
100.0%
Cement, masonry cement and
lime—Argentina
1,795
84.1%
1,590
81.2%
4,014
85.0%
3,234
79.3%
Cement—Paraguay
404
18.9%
265
13.5%
790
16.7%
579
14.2%
Concrete
(90)
-4.2%
16
0.8%
(126)
-2.7%
114
2.8%
Railroad
45
2.1%
90
4.6%
74
1.6%
157
3.8%
Aggregates
(20)
-1.0%
(3)
-0.2%
(28)
-0.6%
(11)
-0.3%
Others
(1)
0.0%
(1)
0.0%
(1)
0.0%
3
0.1%
Reconciling items:
Effect by translation in
homogeneous cash currency ("Inflation-Adjusted")
(56)
796
95
2,017
Depreciation and amortization
(914)
(728)
(1,780)
(1,697)
Tax on debits and credits banks
accounts
(69)
(58)
(177)
(231)
Finance costs, net
(1,106)
377
(1,587)
166
Income tax
123
(775)
(237)
(1,093)
NET (LOSS) PROFIT FOR THE
PERIOD
111
1,570
1,038
3,238
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200810005772/en/
IR Contacts Marcos I. Gradin, Chief Financial Officer and
Investor Relations Gastón Pinnel, Investor Relations Manager
+54-11-4319-3050 investorrelations@lomanegra.com
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