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 December 31,
2021 (our “4Q21 Results”).
FY21 Key Highlights
- Net revenues increased 17.3% YoY to Ps. 73,668 million (US$ 655
million) driven by our main segment, Cement, followed by a recovery
in Concrete.
- Consolidated Adjusted EBITDA increased 15.4% YoY to Ps. 23,124
million (US$ 215 million) with EBITDA margin reaching 31.4%,
contracting 51 basis points from 2020.
- Net income from continuing operations was Ps. 6,344 million,
showing a decrease of 32.8% YoY, mainly due to the impact of a
change in the income tax rate during the fiscal year, partially
offset by higher operating income.
- Inauguration of the second line of L'Amalí plant, making it one
of the largest cement plants in South America.
- Loma Negra is presenting its Sustainability Report 2021, which
seeks to share with its stakeholders the practices that it has been
carrying out in environmental, social and governance matters.
4Q21 Key Highlights
- Net sales revenues decreased by 3.8% YoY to Ps. 19,257 million
(US$ 187 million), mainly explained by a decrease in Cement sales,
partially offset by improvements in Aggregates and in the Railway
segment.
- Consolidated Adjusted EBITDA reached Ps. 6,416 million (US$ 63
million), decreasing 10.0% YoY.
- The Consolidated Adjusted EBITDA margin contracted 231 basis
points YoY from 35.6% to 33.3%, expanding 693 basis points
sequentially versus the prior quarter.
- Net Profit of Ps. 2,795 million, showing a reduction of 37.4%
versus the same period of the previous year, mainly explained by
the impact on the financial result and the decrease in the
operating result.
- Net Debt /LTM Adjusted EBITDA ratio of -0.12x compared with
0.16x in FY20.
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
fourth quarter of 2021, Sergio Faifman, Loma Negra’s Chief
Executive Officer, noted: “During this year, the level of
activity in the construction industry boosted cement demand to
almost reach record levels, leaving behind the difficult times
experienced during the pandemic.
In this context, we are pleased to present a new quarter with
very good results, where we have reached an EBITDA in dollars of
US$63MM, thus allowing us to close 2021 with an EBITDA of US$215MM,
reaching a historical record for our operation in Argentina. This
has been possible thanks to our operational efficiency and the
aligned effort of all of us who are involved in LOMA, which allowed
us to obtain solid profit margins.
Likewise, this last quarter will have a special place in the
history of the Company. With great pride, in the month of December,
we had the pleasure of inaugurating, in the presence of government
authorities, customers, suppliers and shareholders, the second line
of Planta L'Amalí, transforming it into one of the largest cement
production plants in South America. This undoubtedly marks an
important milestone in our 95-year history and solidifies our
leadership in the cement market in Argentina.
Last but not least, we are also pleased to present our first
Sustainability Report, where we have reflected the practices that
we have been carrying out at LOMA in environmental, social and
governance factors, fundamental pillars on which, we are convinced,
the growth of the Company must be sustained.”
Table 1: Financial
Highlights
(amounts expressed in millions of
pesos, unless otherwise noted)
Three-months ended December
31,
Twelve-months ended December
31,
2021
2020
% Chg.
2021
2020
% Chg.
Net revenue
19,257
20,019
-3.8%
73,668
62,827
17.3%
Gross Profit
6,669
7,238
-7.9%
23,284
19,014
22.5%
Gross Profit margin
34.6%
36.2%
-152 bps
31.6%
30.3%
+134 bps
Adjusted EBITDA
6,416
7,132
-10.0%
23,124
20,041
15.4%
Adjusted EBITDA Mg.
33.3%
35.6%
-231 bps
31.4%
31.9%
-51 bps
Net Profit (Loss)
2,795
4,464
-37.4%
6,344
17,180
-63.1%
Net Profit attributable to owners
of the Company
2,924
4,537
-35.5%
6,586
17,133
-61.6%
EPS
4.9696
7.6118
-34.7%
11.1238
16.3960
-32.2%
Average outstanding shares
(*)
588
596
-1.3%
592
596
-0.7%
Net Debt
(2,760)
3,117
n/a
(2,760)
3,117
n/a
Net Debt /LTM Adjusted EBITDA
-0.12x
0.16x
n/a
-0.12x
0.16x
n/a
(*) Net of shares repurchased
Table 1b: Financial Highlights
in Ps and in U.S. dollars (figures exclude the impact of IAS
29)
In million Ps.
Three-months ended December
31,
Twelve-months ended December
31,
2021
2020
% Chg.
2021
2020
% Chg.
Net revenue
18,746
12,782
46.7%
62,347
36,259
71.9%
Adjusted EBITDA
6,379
4,651
37.2%
20,453
12,096
69.1%
Adjusted EBITDA Mg.
34.0%
36.4%
-236 bps
32.8%
33.4%
-56 bps
Net Profit (Loss)
3,466
8,258
-58.0%
11,354
9,039
25.6%
Net Debt
(2,760)
3,117
n/a
(2,760)
3,117
n/a
Net Debt /LTM Adjusted EBITDA
-0.12x
0.16x
n/a
-0.12x
0.16x
n/a
In million US$
Three-months ended December
31,
Twelve-months ended December
31,
2021
2020
% Chg.
2021
2020
% Chg.
Ps./US$, av
100.50
79.92
25.8%
95.16
70.59
34.8%
Ps./US$, eop
102.75
84.15
22.1%
102.75
84.15
22.1%
Net revenue
187
160
16.6%
655
514
27.6%
Adjusted EBITDA
63
58
9.1%
215
171
25.4%
Adjusted EBITDA Mg.
34.0%
36.4%
-236 bps
32.8%
33.4%
-56 bps
Net Profit (Loss)
34
103
-66.6%
119
128
-6.8%
Net Debt
(27)
37
n/a
(27)
37
n/a
Net Debt /LTM Adjusted EBITDA
-0.12x
0.16x
n/a
-0.12x
0.16x
n/a
Overview of Operations Sales
Volumes
Table 2: Sales
Volumes2
Three-months ended December
31,
Twelve-months ended December
31,
2021
2020
% Chg.
2021
2020
% Chg.
Cement, masonry & lime
MM Tn
1.68
1.62
3.5%
6.13
5.16
18.7%
Concrete
MM m3
0.13
0.15
-14.5%
0.52
0.30
73.4%
Railroad
MM Tn
1.13
1.17
-3.0%
4.33
3.79
14.1%
Aggregates
MM Tn
0.25
0.22
14.0%
0.84
0.57
47.1%
2 Sales volumes include
inter-segment sales
Sales volumes of cement, masonry, and lime during 4Q21 increased
by 3.5% to 1.7 million tons, mainly leveraged by the recovery of
bulk cement, a segment that was more affected by the restrictions
resulting from the pandemic in 2020. Sales of bagged cement show
solid results due to sustained demand from the retail sector,
finding its participation of sales by channel already normalized
with respect to historical values, after the strong recovery that
bagged cement had in 4Q20.
Regarding the volume of the Concrete segment, it registered a
YoY drop of 14.5%. 4Q20 was positively affected by specific
infrastructure projects. The volume of concrete maintains its
trend, still below pre-pandemic levels due to the lack of large
infrastructure projects, both private and public. On the other
hand, Aggregates had an increase of 14.0% YoY sustained mainly by
the reactivation of roadworks.
Likewise, the volumes of the Railway segment experienced a
decrease of 3.0% compared to the same quarter of 2020, mainly
explained by the prioritization of transportation of frac-sand and
stone over other items of shorter average distance.
For fiscal year 2021, our main segment, Cement, masonry and
lime, registered a year-on-year increase of 18.7%, boosted by the
recovery of construction activity after the restrictions on the
sector suffered in 2020 and the subsequent positive dynamics on the
back of a strong residential demand.
The Concrete and Aggregates segments had increases of 73.4% and
47.1% YoY, respectively. These segments were much more affected
than our core business in 2020, gradually recovering during this
year.
The volume of the Railroad segment had an increase of 14.1%,
mainly supported by a recovery in the transported volumes of
construction materials 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 December
31,
Twelve-months ended December
31,
2021
2020
% Chg.
2021
2020
% Chg.
Net revenue
19,257
20,019
-3.8%
73,668
62,827
17.3%
Cost of sales
(12,588)
(12,781)
-1.5%
(50,384)
(43,813)
15.0%
Gross profit
6,669
7,238
-7.9%
23,284
19,014
22.5%
Share of loss of associates
-
-
n/a
-
(609)
n/a
Selling and administrative
expenses
(1,905)
(1,576)
20.9%
(6,329)
(5,214)
21.4%
Other gains and losses
12
125
-90.1%
209
222
-5.7%
Impairment of property, plant and
equipment
3
-
n/a
(153)
(1,429)
-89.3%
Tax on debits and credits to bank
accounts
(193)
(196)
-1.4%
(742)
(739)
0.5%
Finance gain (cost),
net
Gain on net monetary position
80
729
-89.1%
1,867
1,267
47.4%
Exchange rate differences
195
407
-52.0%
80
2,499
-96.8%
Financial income
50
511
-90.1%
39
123
-68.2%
Financial expense
(469)
(712)
-34.2%
(1,944)
(2,277)
-14.6%
Profit (Loss) before
taxes
4,443
6,526
-31.9%
16,312
12,856
26.9%
Income tax expense
Current
(1,556)
(1,629)
-4.5%
(6,639)
(3,603)
84.2%
Deferred
(92)
(433)
-78.7%
(3,329)
186
n/a
Net profit (Loss) from
continuing operations
2,795
4,464
-37.4%
6,344
9,439
-32.8%
Income from discontinued
operations
-
-
-
-
7,741
n/a
Net profit (Loss)
2,795
4,464
-37.4%
6,344
17,180
-63.1%
Net Revenues
Net revenue decreased 3.8% to Ps. 19,257 million in 4Q21,
from Ps. 20,019 million in the comparable quarter last year, driven
by a decrease in Cement, partially offset by an improvement in
Aggregates and in the Railway segment.
Cement, masonry cement and lime segment was down 4.8% YoY, with
volumes expanding 3.5% impacted by price dynamics.
Concrete registered revenues practically in line with those
reported in 4Q20, where the decrease in volume was mostly offset by
an improvement in prices. The Aggregates segment posted a strong
revenue increase of 51.9% as higher volume coupled with good price
performance and a positive sales mix.
Railroad revenues increased 8.1% in 4Q21 compared to the same
quarter of 2020, mainly explained by an increase in prices and the
positive impact of transported goods with a greater average
transported distance, which offset the lower sales volume.
For fiscal year 2021, net income increased 17.3% to Ps. 73,668
million Ps. 62,827 in fiscal year 2020, with a sound recovery in
revenues in all segments. Our main cement business registered an
annual increase of 14.9%.
Cost of sales, and Gross profit
Cost of sales decreased 1.5% YoY, reaching Ps. 12,588
million in 4Q21, mainly as a result of a lower unit cost of sales
in cement that offset the higher volume sold and the increase in
depreciations due to the impact of the new production line in
L'Amalí.
Gross Profit decreased
7.9% YoY to Ps. 6,669 million in 4Q21, from Ps. 7,238 million in
4Q20, with a gross profit margin that contracted 152 basis points
year-on-year to 34.6%, mainly reflecting the impact of a drop in
total sales.
During fiscal year
2021, Gross Profit increased 22.5% to Ps. 23,284 million with a
gross profit margin expanding 134 basis points to 31.6%.
Selling and Administrative Expenses
Selling and administrative expenses (SG&A) in 4Q21
increased by 20.9% YoY to Ps. 1,905 million, from Ps. 1,576 million
in 4Q20, mainly due to the impact produced by a recognition of an
allowance for doubtful receivables in the Railroad segment and
higher expenses in freight and marketing compared with the previous
year. As a percentage of sales, SG&A showed an increase against
4Q20 of 202 basis points, reaching 9.9%.
During fiscal year 2021, SG&A increased by 21.4% compared
with the previous year, and as a percentage of sales stood at 8.6%,
29 basis points more than in fiscal year 2020.
Adjusted EBITDA & Margin
Table 4: Adjusted EBITDA
Reconciliation & Margin
(amounts expressed in millions of
pesos, unless otherwise noted)
Three-months ended December
31,
Twelve-months ended December
31,
2021
2020
% Chg.
2021
2020
% Chg.
Adjusted EBITDA
reconciliation:
Net profit (Loss)
2,795
4,464
-37.4%
6,344
17,180
-63.1%
(+) Depreciation and
amortization
1,639
1,344
21.9%
5,959
6,019
-1.0%
(+) Tax on debits and credits to
bank accounts
193
196
-1.4%
742
739
0.5%
(+) Income tax expense
1,648
2,062
-20.1%
9,968
3,417
191.7%
(+) Financial interest, net
289
(54)
n/a
1,552
1,297
19.6%
(+) Exchange rate differences,
net
(195)
(407)
-52.0%
(80)
(2,499)
-96.8%
(+) Other financial expenses,
net
130
255
-49.2%
353
856
-58.7%
(+) Gain on net monetary
position
(80)
(729)
-89.1%
(1,867)
(1,267)
47.4%
(+) Share of profit (loss) of
associates
-
-
n/a
-
609
n/a
(+) Impairment of property, plant
and equipment
(3)
-
n/a
153
1,429
-89.3%
(-) Income from discontinued
operations
-
-
-
-
7,741
n/a
Adjusted EBITDA
6,415
7,132
-10.0%
23,124
20,041
15.4%
Adjusted EBITDA Margin
33.3%
35.6%
-231 bps
31.4%
31.9%
-51 bps
Adjusted EBITDA decreased 10.0% YoY in the fourth quarter
of 2021 to Ps. 6,416 million from 7,132 in the same period last
year
Likewise, the Adjusted EBITDA margin contracted 231 basis points
to 33.3% compared to 35.6% in 4Q20, mainly due to cement margin
compression.
In particular, the Adjusted EBITDA margin of the Cement, Masonry
and Lime segment decreased 306 bps to 37.4%, primarily due to lower
price performance partially offset by lower cost of sales.
The Adjusted EBITDA margin for Concrete showed a significant
improvement compared to 4Q20, reaching 6.1%, reversing a negative
margin of 19.2%, supported by price recovery and higher operating
leverage.
The adjusted EBITDA margin of the Aggregates segment was
negative at 1.2% but showing an improvement of 774 basis points
compared to 4Q20, due to a strong recovery in revenues on the back
of solid price performance and a positive sales mix.
Finally, the Railroad adjusted EBITDA margin decreased to
negative 12.9%, from negative 0.6%, mainly due to the impact
produced by a recognition of an allowance for doubtful receivables
and higher operating costs, partially offset by positive price
performance.
During FY21, Adjusted EBITDA increased 15.4% reaching Ps.
23,124 million from Ps. 20,041 million in FY20, with a slightly
Adjusted EBITDA margin compression of 51 basis points, from 31.9%
in 2020 to 31.4% in 2021.
Finance Costs-Net
Table 5: Finance Gain (Cost),
net
(amounts expressed in millions of
pesos, unless otherwise noted)
Three-months ended December
31,
Twelve-months ended December
31,
2021
2020
% Chg.
2021
2020
% Chg.
Exchange rate differences
195
407
-52.0%
80
2,499
-96.8%
Financial income
50
511
-90.1%
39
123
-68.2%
Financial expense
(469)
(712)
-34.2%
(1,944)
(2,277)
-14.6%
Gain on net monetary position
80
729
-89.1%
1,867
1,267
47.4%
Total Finance Gain (Cost),
Net
(143)
935
n/a
42
1,612
-97.4%
During 4Q21, the Company reported a total net financial cost of
Ps. 143 million compared to a total net financial gain of Ps. 935
million in 4Q20, primarily explained because of a lower gain on net
monetary position and the negative impact of inflation in the
financial position.
During FY 2021, the Company recorded a total net financial
income of Ps. 42 million, compared to a net financial income of Ps.
1,612 million in 2020. The variation is mainly the product of an
extraordinary gain from foreign exchange rate differences in 2020,
partially offset by a higher gain on net monetary position and a
lower net financial cost.
Net Profit and Net Profit Attributable to Owners of the
Company
Net Profit for 4Q21 reached Ps. 2,795 million compared to
Ps. 4,464 million in the same period last year, mainly due to the
decrease in Adjusted EBITDA and the impact of total financial
costs.
Net Profit Attributable to Owners of the Company reached
Ps. 2.924 million. During the quarter, the Company reported
earnings per common share of Ps. 4,9696 and an ADR gain of Ps.
24.8479, compared to earnings per common share of Ps. 7.6118 and an
ADR gain of Ps. 38.0591 in 4Q20.
During fiscal year 2021, Net Income Attributable to Owners of
the Company decreased 61.6% YoY, to Ps. 6,586 million, from Ps.
17,133 million in fiscal year 2020, mainly as a result of the
effect of the sale of our stake in Yguazú Cementos S.A. in the
previous FY.
Capitalization
Table 6: Capitalization and
Debt Ratio
(amounts expressed in millions of
pesos, unless otherwise noted)
As of December 31,
2021
2020
Total Debt
2,511
9,722
- Short-Term Debt
2,112
6,900
- Long-Term Debt
399
2,822
Cash, Cash Equivalents, and
Investments
(5,271)
(6,605)
Total Net Debt
(2,760)
3,117
Shareholder’s Equity
72,510
68,513
Capitalization
75,021
78,235
LTM Adjusted EBITDA
23,124
20,041
Net Debt /LTM Adjusted EBITDA
-0.12x
0.16x
As of December 31, 2021, total Cash, Cash Equivalents, and
Investments were Ps. 5,271 million compared with Ps. 6,605 million
as of the December 31, 2020. Total debt at the close of the quarter
stood at Ps. 2,511 million, composed by Ps. 2,112 million in
short-term borrowings, including the current portion of long-term
borrowings (or 84.1% of total borrowings), and Ps. 399 million in
long-term borrowings (or 15.9% of total borrowings).
At the close of fiscal year 2021, 93.1% (or Ps. 2,338 million)
of Loma Negra’s total debt was denominated in U.S. dollars and 6.9%
(or Ps. 173 million) was in Argentine pesos. The average duration
of Loma Negra’s total debt was 0.4 years.
As of December 31, 2021, the total of the Company's consolidated
debt accrued interest at a variable rate. The debt in US dollars
bore interest at rates based on Libor, while the debt in Argentine
pesos bore interest at the short-term market rate.
The Net Debt to Adjusted EBITDA (LTM) ratio decreased to -0.12x
as of December 31, 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 December
31,
Twelve-months ended
December 31,
2021
2020
2021
2020
CASH FLOWS FROM OPERATING
ACTIVITIES
Net Profit (Loss)
2,795
4,464
6,344
17,180
Adjustments to reconcile net
profit (loss) to net cash provided by operating activities
3,332
3,338
16,033
1,423
Changes in operating assets and
liabilities
(899)
(1,758)
(7,327)
(1,415)
Net cash generated by
operating activities
5,228
6,044
15,050
17,189
CASH FLOWS FROM INVESTING
ACTIVITIES
Proceeds from disposal of Yguazú
Cementos S.A.
52
(0)
463
12,595
Property, plant and equipment,
Intangible Assets, net
(2,220)
(2,576)
(6,903)
(14,620)
Contributions to Trust
(19)
(48)
(92)
(133)
Investments, net
(77)
-
(2,313)
-
Net cash (used in) investing
activities
(2,265)
(2,624)
(8,845)
(2,158)
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds / Repayments from
borrowings, Interest paid
(1,753)
(4,801)
(6,372)
(15,854)
Share repurchase plan
(737)
-
(2,387)
-
Net cash generated by (used
in) by financing activities
(2,490)
(4,801)
(8,760)
(15,854)
Net increase (decrease) in
cash and cash equivalents
473
(1,380)
(2,555)
(823)
Cash and cash equivalents at the
beginning of the year
2,733
7,817
6,605
2,680
Effect of the re-expression in
homogeneous cash currency ("Inflation-Adjusted")
(64)
(69)
(220)
(237)
Effects of the exchange rate
differences on cash and cash equivalents in foreign currency
163
238
(524)
4,984
Cash and cash equivalents at
the end of the period
3,306
6,605
3,306
6,605
In 4Q21, our operating cash generation stood at Ps. 5,228
million, reflecting a lower level of profitability partially offset
by lower working capital requirements.
During 4Q21, the Company used cash in financing and investing
activities for a total of Ps. 2,490 and Ps. 2,265 million,
respectively. Cash allocations to the expansion of production
capacity of L’Amalí plant accounted for a total of Ps. 611 million,
or 27% of total capital expenditures.
During fiscal year 2021, the Company made capital investments
for a total of Ps. 6,903 million, of which 45% was allocated to
expanding the production capacity of the L'Amalí plant. For FY2021,
the cash flow generated by operating activities was Ps. 15,050
million compared to Ps. 17,189 million in FY 2020, mainly explained
by higher taxes paid, partially offset by a higher level of
profitability.
Expansion of L’Amalí Plant.
Loma Negra inaugurated the second line of its L'Amalí plant,
located in the city of Olavarría, in the province of Buenos Aires,
which allows it to increase its production capacity by 40%, making
it one of the largest plants in South America.
The incorporation of the new line implies an update of the plant
from the technological point of view, and a strong increase in its
productivity, also supported by sustainability policies that comply
with the strictest international guidelines in terms of
environmental care. The new line has high efficiency factors, low
thermal and electrical consumption, water reuse systems, and
incorporates a new clinker kiln that is prepared for the use of
alternative fuels made from co-processed waste, replacing fossil
fuels.
Share Repurchase Plan.
On December 21, 2021, the Company announced the approval of the
fourth 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 attractive value of the share with the additional
possibility of allocating part of the shares acquired to implement
specific compensation plans.
The plan became effective as from December 23, 2021, for an
amount to invest up to Ps. 900 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 the Share Repurchase Program that ended on February
18, 2022, is shown below:
Repurchase Program IV
Maximum amount for repurchase
Ps 900 million
Maximum price
Ps. 310/ordinary share or US$
7.5/ADR
Period in force
60 days since December 23,
2021
Repurchase under the program until its
completion
Ps. 643 million
Progress
71.5%
4Q21 Earnings Conference
Call
When: 10:00 a.m. U.S. ET (12:00 a.m. BAT), March 8, 2022
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/loma220311hGUAuJ5L.html
Replay:
A telephone replay of the conference call
will be available between March 9, 2022, at 1:00 pm U.S. E.T. and
ending on March 15, 2022. 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.
--- Financial Tables Follow ---
Table 8: Condensed Interim
Consolidated Statements of Financial Position
(amounts expressed in millions of
pesos, unless otherwise noted)
As of December 31,
2021
2020
ASSETS
Non-current assets
Property, plant and equipment
81,295
80,840
Right to use assets
310
675
Intangible assets
289
290
Investments
5
5
Goodwill
52
52
Inventories
3,084
3,255
Other receivables
695
726
Total non-current
assets
85,731
85,843
Current assets
Inventories
8,697
8,289
Other receivables
1,191
1,837
Trade accounts receivable
3,961
4,512
Investments
4,940
6,202
Cash and banks
331
402
Total current assets
19,120
21,243
TOTAL ASSETS
104,851
107,087
SHAREHOLDER'S EQUITY
Capital stock and other capital
related accounts
20,368
22,715
Reserves
45,389
28,255
Retained earnings
6,586
17,133
Accumulated other comprehensive
income
-
-
Equity attributable to the owners
of the Company
72,342
68,104
Non-controlling interests
168
409
TOTAL SHAREHOLDER'S
EQUITY
72,510
68,513
LIABILITIES
Non-current
liabilities
Borrowings
399
2,822
Accounts payables
-
155
Provisions
567
736
Salaries and social security
payables
51
58
Debts for leases
235
589
Other liabilities
143
169
Deferred tax liabilities
14,312
10,983
Total non-current
liabilities
15,706
15,511
Current liabilities
Borrowings
2,112
6,900
Accounts payable
7,876
8,140
Advances from customers
1,026
1,105
Salaries and social security
payables
2,034
2,146
Tax liabilities
3,345
4,353
Debts for leases
80
212
Other liabilities
160
206
Total current
liabilities
16,635
23,063
TOTAL LIABILITIES
32,341
38,574
TOTAL SHAREHOLDER'S EQUITY AND
LIABILITIES
104,851
107,087
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 December
31,
Twelve-months ended December
31,
2021
2020
% Change
2021
2020
% Change
Net revenue
19,257
20,019
-3.8%
73,668
62,827
17.3%
Cost of sales
(12,588)
(12,781)
-1.5%
(50,384)
(43,813)
15.0%
Gross Profit
6,669
7,238
-7.9%
23,284
19,014
22.5%
Share of loss of associates
-
-
n/a
-
(609)
n/a
Selling and administrative
expenses
(1,905)
(1,576)
20.9%
(6,329)
(5,214)
21.4%
Other gains and losses
12
125
-90.1%
209
222
-5.7%
Impairment of property, plant and
equipment
3
-
n/a
(153)
(1,429)
n/a
Tax on debits and credits to bank
accounts
(193)
(196)
-1.4%
(742)
(739)
0.5%
Finance gain (cost),
net
Gain on net monetary position
80
729
-89.1%
1,867
1,267
47.4%
Exchange rate differences
195
407
-52.0%
80
2,499
-96.8%
Financial income
50
511
-90.1%
39
123
-68.2%
Financial expenses
(469)
(712)
-34.2%
(1,944)
(2,277)
-14.6%
Profit (loss) before
taxes
4,443
6,526
-31.9%
16,312
12,856
26.9%
Income tax expense
Current
(1,556)
(1,629)
-4.5%
(6,639)
(3,603)
84.2%
Deferred
(92)
(433)
-78.7%
(3,329)
186
n/a
Net Profit (Loss) from
continuing operations
2,795
4,464
-37.4%
6,344
9,439
-32.8%
Income from discontinued
operations
-
-
-
-
7,741
n/a
Net Profit (Loss)
2,795
4,464
-37.4%
6,344
17,180
-63.1%
Other Comprehensive Income
(Loss)
Items to be reclassified through
profit and loss:
Exchange differences on
translating foreign operations
-
-
-
-
(432)
n/a
Total other comprehensive
income (loss)
-
-
-
-
(432)
n/a
TOTAL COMPREHENSIVE INCOME
(LOSS)
2,795
4,464
-37.4%
6,344
16,748
-62.1%
Net Profit (Loss) for the
period attributable to:
Owners of the Company
2,924
4,537
-35.5%
6,586
17,133
-61.6%
Non-controlling interests
(129)
(72)
78.2%
(242)
47
n/a
NET PROFIT (LOSS) FOR THE
PERIOD
2,795
4,464
-37.4%
6,344
17,180
-63.1%
Total comprehensive income
(loss) attributable to:
Owners of the Company
2,924
4,537
-35.5%
6,586
16,913
-61.1%
Non-controlling interests
(129)
(72)
78.2%
(242)
(165)
46.6%
TOTAL COMPREHENSIVE INCOME
(LOSS)
2,795
4,464
-37.4%
6,344
16,748
-62.1%
Earnings per share (basic and
diluted):
4.9696
7.6118
-34.7%
11.1238
16.3960
-32.2%
Table 10: Condensed Interim
Consolidated Statement of Cash Flows
(amounts expressed in millions of
pesos, unless otherwise noted)
Three-months ended December
31,
Twelve-months ended December
31,
2021
2020
2021
2020
CASH FLOWS FROM OPERATING
ACTIVITIES
Net Profit (Loss) from
continuing operations
2,795
4,464
6,344
9,439
Income from discontinued
operations
-
-
-
7,741
Net Profit (Loss)
2,795
4,464
6,344
17,180
Adjustments to reconcile net
profit to net cash provided by operating activities
Income tax expense
1,648
2,062
9,968
5,707
Depreciation and amortization
1,639
1,344
5,959
6,019
Provisions
203
(77)
183
(141)
Exchange rate differences
(353)
(262)
(958)
(4,259)
Interest expense
149
220
729
1,791
Share of loss of associates
(0)
0
(0)
609
Gain on disposal of property,
plant and equipment
23
(4)
(89)
61
Gain on disposal of shareholding
of Yguazú Cementos S.A.
-
0
-
(10,031)
Impairment of property, plant and
equipment
(3)
0
153
1,429
Impairment of trust fund
(14)
55
49
236
Share-based payment
40
-
40
-
Changes in operating assets
and liabilities
Inventories
(65)
53
288
1,190
Other receivables
68
11
(399)
139
Trade accounts receivable
2
(436)
(1,350)
(817)
Advances from customers
187
218
124
794
Accounts payable
6
(1,396)
1,465
(376)
Salaries and social security
payables
159
767
712
778
Provisions
(92)
(10)
(173)
(73)
Tax liabilities
(79)
23
219
(151)
Other liabilities
45
275
(65)
236
Gain on net monetary position
(80)
(729)
(1,867)
(1,267)
Income tax paid
(1,051)
(534)
(6,279)
(1,868)
Net cash generated by (used
in) operating activities
5,228
6,044
15,050
17,189
CASH FLOWS FROM INVESTING
ACTIVITIES
Proceeds from disposal of Yguazú
Cementos S.A.
52
(0)
463
12,595
Proceeds from disposal of
Property, plant and equipment
162
0
288
60
Payments to acquire Property,
plant and equipment
(2,302)
(2,452)
(7,088)
(14,549)
Payments to acquire Intangible
Assets
(81)
(124)
(103)
(131)
Acquire investments
(1,993)
-
(4,229)
-
Proceeds from maturity
investments
1,916
-
1,916
-
Contributions to Trust
(19)
(48)
(92)
(133)
Net cash generated by (used
in) investing activities
(2,265)
(2,624)
(8,845)
(2,158)
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from borrowings
137
70
1,251
19,157
Interest paid
(78)
(121)
(570)
(4,391)
Dividends paid
-
(4,021)
-
(4,021)
Debts for leases
(39)
(58)
(177)
(222)
Repayment of borrowings
(1,774)
(671)
(6,876)
(26,378)
Share repurchase plan
(737)
-
(2,387)
-
Net cash generated by (used
in) financing activities
(2,490)
(4,801)
(8,760)
(15,854)
Net increase (decrease) in cash
and cash equivalents
473
(1,380)
(2,555)
(823)
Cash and cash equivalents at the
beginning of the period
2,733
7,817
6,605
2,680
Effect of the re-expression in
homogeneous cash currency ("Inflation-Adjusted")
(64)
(69)
(220)
(237)
Effects of the exchange rate
differences on cash and cash equivalents in foreign currency
163
238
(524)
4,984
Cash and cash equivalents at
the end of the period
3,306
6,605
3,306
6,605
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 December
31,
Twelve-months ended December
31,
2021
%
2020
%
2021
%
2020
%
Net revenue
18,746
100.0%
12,782
100.0%
62,347
100.0%
36,259
100.0%
Cement, masonry cement and
lime
16,764
89.4%
11,695
91.5%
55,793
89.5%
33,128
91.4%
Concrete
1,317
7.0%
883
6.9%
4,464
7.2%
1,799
5.0%
Railroad
1,506
8.0%
922
7.2%
5,078
8.1%
3,089
8.5%
Aggregates
356
1.9%
155
1.2%
960
1.5%
357
1.0%
Others
136
0.7%
59
0.5%
382
0.6%
174
0.5%
Eliminations
(1,333)
-7.1%
(931)
-7.3%
(4,330)
-6.9%
(2,287)
-6.3%
Cost of sales
11,215
100.0%
7,589
100.0%
38,702
100.0%
22,782
100.0%
Cement, masonry cement and
lime
9,420
84.0%
6,362
83.8%
32,501
84.0%
19,192
84.2%
Concrete
1,236
11.0%
1,032
13.6%
4,559
11.8%
2,292
10.1%
Railroad
1,463
13.0%
930
12.3%
4,813
12.4%
3,031
13.3%
Aggregates
347
3.1%
161
2.1%
921
2.4%
439
1.9%
Others
82
0.7%
36
0.5%
238
0.6%
115
0.5%
Eliminations
(1,333)
-11.9%
(931)
-12.3%
(4,330)
-11.2%
(2,287)
-10.0%
Selling, admin. expenses and
other gains & losses
1,725
100.0%
874
100.0%
4,939
100.0%
2,649
100.0%
Cement, masonry cement and
lime
1,356
78.6%
774
88.5%
4,197
85.0%
2,380
89.9%
Concrete
4
0.2%
30
3.4%
53
1.1%
30
1.2%
Railroad
316
18.3%
48
5.5%
544
11.0%
169
6.4%
Aggregates
4
0.2%
1
0.1%
11
0.2%
(1)
0.0%
Others
45
2.6%
21
2.3%
134
2.7%
71
2.7%
Depreciation and
amortization
573
100.0%
333
100.0%
1,746
100.0%
1,267
100.0%
Cement, masonry cement and
lime
451
78.8%
232
69.7%
1,337
76.5%
802
63.3%
Concrete
19
3.3%
21
6.3%
66
3.8%
189
14.9%
Railroad
90
15.7%
72
21.8%
305
17.5%
250
19.7%
Aggregates
12
2.0%
6
1.9%
33
1.9%
23
1.8%
Others
1
0.2%
1
0.3%
5
0.3%
4
0.3%
Adjusted EBITDA
6,379
100.0%
4,651
100.0%
20,453
100.0%
12,096
100.0%
Cement, masonry cement and
lime
6,439
100.9%
4,791
103.0%
20,431
99.9%
12,357
102.2%
Concrete
95
1.5%
(158)
-3.4%
(81)
-0.4%
(334)
-2.8%
Railroad
(183)
-2.9%
16
0.3%
26
0.1%
139
1.2%
Aggregates
17
0.3%
(1)
0.0%
62
0.3%
(59)
-0.5%
Others
11
0.2%
4
0.1%
15
0.1%
(7)
-0.1%
Reconciling items:
Effect by translation in
homogeneous cash currency ("Inflation-Adjusted")
36
2,481
2,671
7,945
Depreciation and amortization
(1,639)
(1,344)
(5,959)
(6,019)
Tax on debits and credits banks
accounts
(193)
(196)
(742)
(739)
Finance gain (cost), net
(143)
935
42
1,612
Income tax
(1,648)
(2,062)
(9,968)
(3,417)
Share of profit of associates
-
-
-
(609)
Impairment of property, plant and
equipment
3
-
(153)
(1,429)
Income (loss) from discontinued
operations
-
-
-
7,741
NET PROFIT (LOSS) FOR THE
PERIOD
2,795
4,464
6,344
17,180
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220306005053/en/
IR Contacts Marcos I. Gradin, Chief Financial Officer and
Investor Relations Diego M. Jalón, Investor Relations Manager
+54-11-4319-3050 investorrelations@lomanegra.com
Grafico Azioni Loma Negra Compania Indu... (NYSE:LOMA)
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