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,
2022 (our “3Q22 Results”).
3Q22 Key Highlights
- Net sales revenues increased by 4.2% YoY to Ps. 33,942 million
(US$ 236 million), mainly explained by the increase in Cement
sales, coupled with a good performance of the Concrete and
Aggregates segments.
- Consolidated Adjusted EBITDA reached Ps. 7,508 million,
decreasing 12.7% YoY in adjusted pesos, while in dollars it reached
68 million, with an increase of 33.9% YoY.
- The Consolidated Adjusted EBITDA margin contracted 426 basis
points YoY from 26.4% to 22.1%.
- Net Loss of Ps. 12,241 million, explained by the impact on the
Financial Result generated by the cancellation of debt in foreign
currency with local funding.
- During the quarter, we granted a dividend payment of Ps. 10,300
million (US$ 81 million), Ps. 17.59 per outstanding share (Ps.
87.97 per ADR).
- Net Debt /LTM Adjusted EBITDA ratio of 0.54x compared with
-0.12x in FY21.
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 2022, Sergio Faifman, Loma Negra’s Chief Executive
Officer, noted: “The industry extends the positive trend,
showing a high level of activity and heading to close a record
year. In fact, the third quarter was the best in history in terms
of cement shipments for the industry and for LOMA.
Our production capacity and our extensive nationwide
distribution network allow us to keep up with the growing demand,
underpinning our status as leaders in the industry. The recent
investments in capacity allow us to go through this moment with
solvency and we are prepared to continue meeting future growth in
demand. Likewise, we are pleased to present another quarter of
solid results, with an EBITDA of 68 million dollars that marks a
historical record for LOMA, reaching 35 dollars per ton.
As we mentioned before, reaffirming our commitment to maximizing
value for our shareholders, in the quarter we distributed a
dividend of 81 million dollars, which added to what was distributed
in the first half of the year totals 126 million dollars, which is
equivalent to 1 dollar per outstanding ADR.
In this same sense, we have recently approved a new share
repurchase program for 1,000 million pesos, which will be active
until the end of the year.
Finally, this month we are celebrating 5 years as a listed
company on the New York and Buenos Aires stock exchanges, so I
would like to take this opportunity to thank all our people and
stakeholders who have made this journey of growth and learning as a
public company possible.”
Table 1: Financial
Highlights
(amounts expressed in millions of
pesos, unless otherwise noted)
Three-months ended September
30,
Nine-months ended September
30,
2022
2021
% Chg.
2022
2021
% Chg.
Net revenue
33,942
32,580
4.2%
92,392
90,362
2.2%
Gross Profit
7,228
8,396
-13.9%
25,098
27,593
-9.0%
Gross Profit margin
21.3%
25.8%
-448 bps
27.2%
30.5%
-337 bps
Adjusted EBITDA
7,508
8,595
-12.7%
25,724
27,748
-7.3%
Adjusted EBITDA Mg.
22.1%
26.4%
-426 bps
27.8%
30.7%
-287 bps
Net Profit (Loss)
(12,241)
2,726
n/a
(4,813)
5,893
n/a
Net Profit (Loss) attributable to
owners of the Company
(12,144)
2,779
n/a
(4,574)
6,081
n/a
EPS
(20.7442)
4.7026
n/a
(7.8113)
10.2497
n/a
Average outstanding shares
(*)
585
591
-0.9%
586
593
-1.3%
Net Debt
19,699
(604)
n/a
19,699
(604)
n/a
Net Debt /LTM Adjusted EBITDA
0.54x
-0.02x
n/a
0.54x
-0.02x
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 September
30,
Nine-months ended September
30,
2022
2021
% Chg.
2022
2021
% Chg.
Net revenue
31,983
17,137
86.6%
74,310
43,601
70.4%
Adjusted EBITDA
9,264
4,957
86.9%
23,016
14,073
63.5%
Adjusted EBITDA Mg.
29.0%
28.9%
+4 bps
31.0%
32.3%
-130 bps
Net Profit (Loss)
(7,521)
3,466
n/a
5,077
11,354
-55.3%
Net Debt
19,699
(604)
n/a
19,699
(604)
n/a
Net Debt /LTM Adjusted EBITDA
0.54x
-0.02x
n/a
0.54x
-0.02x
n/a
In million US$
Three-months ended September
30,
Nine-months ended September
30,
2022
2021
% Chg.
2022
2021
% Chg.
Ps./US$, av
135.78
97.26
39.6%
120.41
93.42
28.9%
Ps./US$, eop
147.32
98.74
49.2%
147.32
98.74
49.2%
Net revenue
236
176
33.7%
617
467
32.2%
Adjusted EBITDA
68
51
33.9%
191
151
26.9%
Adjusted EBITDA Mg.
29.0%
28.9%
+4 bps
31.0%
32.3%
-130 bps
Net Profit (Loss)
(55)
36
n/a
42
122
-65.3%
Net Debt
134
(6)
n/a
134
(6)
n/a
Net Debt /LTM Adjusted EBITDA
0.54x
-0.02x
n/a
0.54x
-0.02x
n/a
Overview of Operations
Sales Volumes
Table 2: Sales
Volumes2
Three-months ended September
30,
Nine-months ended September
30,
2022
2021
% Chg.
2022
2021
% Chg.
Cement, masonry & lime
MM Tn
1.88
1.66
12.9%
5.02
4.45
13.0%
Concrete
MM m3
0.17
0.12
35.6%
0.43
0.39
8.8%
Railroad
MM Tn
1.21
1.15
5.5%
3.44
3.20
7.7%
Aggregates
MM Tn
0.34
0.21
65.0%
0.91
0.58
55.9%
2 Sales volumes include
inter-segment sales
Sales volumes of cement, masonry, and lime during 3Q22 increased
by 12.9% to 1.9 million tons, mainly leveraged by the growth of
bulk cement. Sales of bagged cement maintain a solid evolution,
supported by the robust demand of the retail sector, while bulk
cement continues to be the dispatch modality that is exhibiting the
greatest dynamism, driven by a higher level of activity in private
infrastructure projects, residential and industrial, accompanied by
a moderate level of activity in public works, mainly at the
municipal and provincial levels.
Regarding the volume of the Concrete segment, it registered an
increase of 35.6% YoY. The volume of concrete continues with a
positive trend, with the segment being one of the drivers of growth
in bulk cement shipments. The Concrete segment closed the best
quarter of the year driven mainly by demand from the private
sector, coupled to a lesser extent by public works. On the other
hand, Aggregates had a strong increase of 65.0% YoY, driven mainly
by the concrete sector and sustained by the good production and
logistics performance, registering in September the best month in
its history in terms of volume, exceeding 120 thousand tons.
Likewise, the volumes of the railway segment experienced a
growth of 5.5% compared to the same quarter of 2021, where the
strong level of activity in the construction sector boosted the
transported volumes of stone and cement, followed by the chemical
category, offsetting the decrease in fracsand volumes.
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,
2022
2021
% Chg.
2022
2021
% Chg.
Net revenue
33,942
32,580
4.2%
92,392
90,362
2.2%
Cost of sales
(26,714)
(24,184)
10.5%
(67,294)
(62,769)
7.2%
Gross profit
7,228
8,396
-13.9%
25,098
27,593
-9.0%
Share of loss of associates
-
-
n/a
-
-
n/a
Selling and administrative
expenses
(2,631)
(2,491)
5.6%
(7,938)
(7,347)
8.0%
Other gains and losses
(124)
63
n/a
(109)
327
n/a
Impairment of property, plant and
equipment
-
(259)
n/a
-
(259)
n/a
Tax on debits and credits to bank
accounts
(330)
(318)
4.0%
(916)
(912)
0.4%
Finance gain (cost),
net
Gain on net monetary position
3,687
38
9723.6%
6,504
2,726
138.6%
Exchange rate differences
(885)
(276)
220.9%
(3,763)
(2,159)
74.3%
Financial income
106
160
-33.8%
1,226
1,390
-11.8%
Financial expense
(18,183)
(510)
3462.1%
(19,304)
(1,649)
1070.9%
Profit (Loss) before
taxes
(11,134)
4,803
n/a
798
19,711
-95.9%
Income tax expense
Current
(267)
(1,917)
-86.1%
(3,011)
(8,441)
-64.3%
Deferred
(840)
(160)
426.6%
(2,600)
(5,376)
-51.6%
Net profit (Loss)
(12,241)
2,726
n/a
(4,813)
5,893
n/a
Net Revenues
Net revenue increased 4.2% to Ps. 33,942 million in 3Q22,
from Ps. 32,580 million in the comparable quarter last year, driven
by an increase in Cement, coupled with the good performance in
Concrete and Aggregates that offset the drop in the Railway
segment
Cement, masonry cement and lime segment was up 4.8% YoY, with
volumes expanding 12.9% partially offset by price dynamics.
Concrete registered an increase in its topline of 40.7% compared
with 3Q21, sustained by a 35.6% increase in volume, also
accompanied by an improvement in prices. The Aggregates segment
recorded a strong increase in revenues of 54.7%, supported by a
volume increase of 65.0% YoY while prices were affected by product
mix variations.
Railroad revenues decreased 7.0% in 3Q22 compared to the same
quarter of 2021, mainly explained by the decrease in the average
transported distance that impacted on the average price due to the
variations in the mix of transported products, where the increase
in construction materials was observed to the detriment of the
transported volume of fracsand.
Cost of sales, and Gross profit
Cost of sales increased 10.5% YoY, reaching Ps. 26,714
million in 3Q22, mainly because of higher volume sold, higher
energy costs linked to the winter period and the growing
inflationary pressure. Likewise, the increase in depreciation due
to the new production line in L'Amalí affected the cost of sales.
Said effects saw their impact softened by operating efficiencies,
greater availability of natural gas and greater productive
flexibility as a result of the latest investments in capacity.
Gross Profit registered a decline of 13.9% YoY to Ps.
7,228 million in 3Q22, from Ps. 8,396 million in 3Q21, with a gross
profit margin that contracted 448 basis points YoY to 21.3%.
Selling and Administrative Expenses
Selling and administrative expenses (SG&A) in 3Q22
increased by 5.6% YoY to Ps. 2,631 million, from Ps. 2,491 million
in 3Q21, mainly as a result of higher expenses in salaries compared
to the previous year. As a percentage of sales, SG&A showed a
slight increase against 3Q21 of 11 basis points, reaching 7.8%.
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,
2022
2021
% Chg.
2022
2021
% Chg.
Adjusted EBITDA
reconciliation:
Net profit (Loss)
(12,241)
2,726
n/a
(4,813)
5,893
n/a
(+) Depreciation and
amortization
3,035
2,627
15.6%
8,672
7,175
20.9%
(+) Tax on debits and credits to
bank accounts
330
318
4.0%
916
912
0.4%
(+) Income tax expense
1,107
2,076
-46.7%
5,612
13,817
-59.4%
(+) Financial interest, net
2,631
43
6001.4%
1,946
(562)
n/a
(+) Exchange rate differences,
net
885
276
220.9%
3,763
2,159
74.3%
(+) Other financial expenses,
net
15,446
308
4918.2%
16,132
820
1866.9%
(+) Gain on net monetary
position
(3,687)
(38)
9723.6%
(6,504)
(2,726)
138.6%
(+) Share of profit (loss) of
associates
-
-
n/a
-
-
n/a
(+) Impairment of property, plant
and equipment
-
259
n/a
-
259
n/a
Adjusted EBITDA
7,508
8,595
-12.7%
25,724
27,748
-7.3%
Adjusted EBITDA Margin
22.1%
26.4%
-426 bps
27.8%
30.7%
-287 bps
Adjusted EBITDA decreased 12.7% YoY in the third quarter
of 2022 to Ps. 7,508 million from 8,595 in the same period of the
previous year, mainly affected by lower adjusted EBITDA generated
by our cement business and slightly offset by better results in
Concrete and Aggregates.
Likewise, the Adjusted EBITDA margin contracted 426 basis points
to 22.1% compared to 26.4% in 3Q21, mainly due to the compression
of the cement margin and the higher incidence of other businesses
with lower margins, due to the increase in their activity
levels.
In particular, the Adjusted EBITDA margin of the Cement, Masonry
and Lime segment contracted 516 bps to 24.3%, mainly due to a lower
price performance partially offset by a favorable costs management
in a context of high inflation, and also being the third quarter
the period where the higher costs of thermal and electrical energy
compress the margins.
Concrete Adjusted EBITDA margin showed a significant improvement
of 637 bps, reversing the negative values of previous periods,
reaching 2.4%, from a negative margin of 4.0% in 3Q21, supported by
a recovery in volume and good price performance, coupled by higher
operating efficiencies.
The Adjusted EBITDA margin of Aggregates stood at 12.2%, showing
a substantial improvement of 1,192 basis points compared to 3Q21,
mainly leveraged on the strong increase in volume that allowed a
better dilution of fixed costs.
Finally, the Adjusted EBITDA margin of the Railroad segment
decreased 740 bps to negative 0.1% in the third quarter, from 7.3%,
where the improvement in the transported volumes did not manage to
compensate the negative performance of the price, mainly affected
by the reduction in the average transported distance due to
variations in the mix of transported products.
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,
2022
2021
% Chg.
2022
2021
% Chg.
Exchange rate differences
(885)
(276)
220.9%
(3,763)
(2,159)
74.3%
Financial income
106
160
-33.8%
1,226
1,390
-11.8%
Financial expense
(18,183)
(510)
3462.1%
(19,304)
(1,649)
1070.9%
Gain on net monetary position
3,687
38
9723.6%
6,504
2,726
138.6%
Total Finance Gain (Cost),
Net
(15,276)
(589)
2492.0%
(15,337)
308
n/a
During 3Q22, the Company reported a total net financial cost of
Ps. 15,276 million compared to a total net financial cost of Ps.
589 million in 3Q21, explained mainly by the increase in the
financial expense generated by the cancellation of debt in foreign
currency with local funding coupled by the increase in the total
debt position. This increase in the net financial expense was
partially offset by a positive effect of the result on the monetary
position.
Net Profit and Net Profit Attributable to Owners of the
Company
Net Loss of Ps. 12,241 million in 3Q22 compared to a Net
Gain of Ps. 2,726 million in the same period of the previous year,
mainly due to the impact on the Financial Result generated by the
cancellation of debt in foreign currency with local funding.
Net Loss Attributable to Owners of the Company stood at
Ps. 12,144 million. During the quarter, the Company reported a loss
per common share of Ps. 20.7442 and an ADR loss of Ps. 103.7212,
compared to earnings per common share of Ps. 4.7026 and earnings
per ADR of Ps. 23.5128 in 3Q21.
Capitalization
As of September 30, 2022, total Cash, Cash Equivalents, and
Investments were Ps. 3,465 million compared with Ps. 7,851 million
as of the September 30, 2021. Total debt at the close of the
quarter stood at Ps. 23,164 million, composed by Ps. 14,795 million
in short-term borrowings, including the current portion of
long-term borrowings (or 63.9% of total borrowings), and Ps. 8,369
million in long-term borrowings (or 36.1% of total borrowings).
Table 6: Capitalization and
Debt Ratio
(amounts expressed in millions of
pesos, unless otherwise noted)
As of September 30,
As of December 31,
2022
2021
2021
Total Debt
23,164
7,247
4,170
- Short-Term Debt
14,795
6,370
3,508
- Long-Term Debt
8,369
877
662
Cash, Cash Equivalents and
Investments
(3,465)
(7,851)
8,754
Total Net Debt
19,699
(604)
(4,583)
Shareholder's Equity
96,139
116,935
120,420
Capitalization
119,303
124,182
124,590
LTM Adjusted EBITDA
36,379
39,592
38,403
Net Debt /LTM Adjusted EBITDA
0.54x
-0.02x
-0.12x
At the end of the third quarter of 2022, 60.0% (or Ps. 13,899
million) of Loma Negra's total debt was in Argentine pesos, while
40.0% (or Ps. 9,265 million) was denominated in US dollars. The
average duration of Loma Negra's total debt was 0.7 years.
As of September 30, 2022, 61.8% of the Company's consolidated
loans accrued interest at a variable rate. The debt denominated in
dollars with rates based on Libor, while the portion in Argentine
pesos accrued interest at the short-term market rate. The remaining
38.2% accrues interest at a fixed rate in pesos.
The Net Debt to Adjusted EBITDA (LTM) ratio increased to 0.54x
as of September 30, 2022, from -0.12x as of December 31, 2021, as a
result of an increase in the debt, partially compensated by our
strong cash generation.
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,
2022
2021
2022
2021
CASH FLOWS FROM OPERATING
ACTIVITIES
Net Profit (Loss)
(12,241)
2,726
(4,813)
5,893
Adjustments to reconcile net
profit (loss) to net cash provided by operating activities
24,671
8,204
35,251
24,009
Changes in operating assets and
liabilities
(987)
(617)
(13,292)
(13,144)
Net cash generated by
operating activities
11,443
10,314
17,146
16,759
CASH FLOWS FROM INVESTING
ACTIVITIES
Proceeds from disposal of Yguazú
Cementos S.A.
0
182
79
682
Property, plant and equipment,
Intangible Assets, net
(1,563)
(2,825)
(3,806)
(7,776)
Contributions to Trust
(57)
(37)
(146)
(121)
Investments, net
2,395
0
2,395
(3,713)
Net cash (used in) investing
activities
774
(2,679)
(1,478)
(10,928)
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds / Repayments from
borrowings, Interest paid
7,245
(3,199)
19,673
(7,672)
Dividends paid
(11,661)
0
(18,591)
0
Loss on transactions with
securities
(15,036)
-
(15,036)
-
Share repurchase plan
0
(1,152)
(871)
(2,741)
Net cash generated by (used
in) by financing activities
(19,452)
(4,351)
(14,825)
(10,413)
Net increase (decrease) in
cash and cash equivalents
(7,235)
3,284
844
(4,582)
Cash and cash equivalents at the
beginning of the year
13,293
2,321
5,490
10,968
Effect of the re-expression in
homogeneous cash currency ("Inflation-Adjusted")
(2,700)
(2,895)
(2,973)
(3,084)
Effects of the exchange rate
differences on cash and cash equivalents in foreign currency
107
596
104
3
Cash and cash equivalents at
the end of the period
3,465
3,305
3,465
3,305
In 3Q22, our operating cash generation stood at Ps. 11,443
million, compared to Ps. 10,314 million in the same period of the
previous year, mainly due to the positive effect in the variation
of the income tax paid that offset higher needs of working
capital.
During 3Q22, the Company used cash in financing activities for
Ps. 19,452 million, product of the cancellation of debt in foreign
currency with local funding. Also, in the month of July, the
Company approved a distribution of dividends for Ps. 10.3 billion.
Regarding cash used in investing activities, the Company generated
a total of Ps. 774 million, as a result of the liquidation of
investments, while the completion of the L'Amalí expansion project
significantly reduced the need for capital expenditure.
Recent Events
Share Repurchase Plan.
On October 3, 2022, the Company announced the approval of the
fifth share repurchase plan, 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 October 3, 2022, the amount to
invest will be up to Ps. 1,000 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 V
Maximum amount for repurchase
Ps. 1,000 million
Maximum price
Ps. 495/ordinary share or US$
8/ADR
Period in force
until December 31, 2022
Repurchase under the program until
November 7, 2022
Ps. 317 million
Progress
31.7%
3Q22 Earnings Conference Call
When:
10:00 a.m. U.S. ET (12:00 p.m.
BAT), November 9, 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://event.choruscall.com/mediaframe/webcast.html?webcastid=jOvcwIJo
Replay:
A telephone replay of the
conference call will be available between November 10, 2022, at
1:00 pm U.S. E.T. and ending on November 16, 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
7065542. 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 September 30,
As of December 31,
2022
2021
ASSETS
Non-current assets
Property, plant and equipment
130,530
135,010
Right to use assets
421
515
Intangible assets
381
480
Investments
9
9
Goodwill
87
87
Inventories
5,173
5,122
Other receivables
824
1,154
Total non-current
assets
137,425
142,376
Current assets
Inventories
15,840
14,444
Other receivables
4,063
1,978
Trade accounts receivable
7,608
6,578
Investments
2,406
8,205
Cash and banks
1,059
549
Total current assets
30,975
31,753
TOTAL ASSETS
168,400
174,130
SHAREHOLDER'S EQUITY
Capital stock and other capital
related accounts
33,003
33,825
Reserves
67,670
75,379
Retained earnings
(4,574)
10,937
Accumulated other comprehensive
income
-
-
Equity attributable to the owners
of the Company
96,099
120,142
Non-controlling interests
40
278
TOTAL SHAREHOLDER'S
EQUITY
96,139
120,420
LIABILITIES
Non-current
liabilities
Borrowings
8,369
662
Accounts payables
-
-
Provisions
961
942
Salaries and social security
payables
78
84
Debts for leases
292
391
Other liabilities
114
237
Deferred tax liabilities
26,368
23,768
Total non-current
liabilities
36,183
26,084
Current liabilities
Borrowings
14,795
3,508
Accounts payable
13,544
13,080
Advances from customers
1,594
1,705
Salaries and social security
payables
3,079
3,379
Tax liabilities
2,750
5,556
Debts for leases
95
132
Other liabilities
223
266
Total current
liabilities
36,078
27,626
TOTAL LIABILITIES
72,262
53,710
TOTAL SHAREHOLDER'S EQUITY AND
LIABILITIES
168,400
174,130
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,
2022
2021
% Change
2022
2021
% Change
Net revenue
33,942
32,580
4.2%
92,392
90,362
2.2%
Cost of sales
(26,714)
(24,184)
10.5%
(67,294)
(62,769)
7.2%
Gross Profit
7,228
8,396
-13.9%
25,098
27,593
-9.0%
Share of loss of associates
-
-
n/a
-
-
n/a
Selling and administrative
expenses
(2,631)
(2,491)
5.6%
(7,938)
(7,347)
8.0%
Other gains and losses
(124)
63
n/a
(109)
327
n/a
Impairment of property, plant and
equipment
-
(259)
n/a
-
(259)
n/a
Tax on debits and credits to bank
accounts
(330)
(318)
4.0%
(916)
(912)
0.4%
Finance gain (cost),
net
Gain on net monetary position
3,687
38
9723.6%
6,504
2,726
138.6%
Exchange rate differences
(885)
(276)
220.9%
(3,763)
(2,159)
74.3%
Financial income
106
160
-33.8%
1,226
1,390
-11.8%
Financial expenses
(18,183)
(510)
3462.1%
(19,304)
(1,649)
1070.9%
Profit (loss) before
taxes
(11,134)
4,803
n/a
798
19,711
-95.9%
Income tax expense
Current
(267)
(1,917)
-86.1%
(3,011)
(8,441)
-64.3%
Deferred
(840)
(160)
426.6%
(2,600)
(5,376)
-51.6%
Net Profit (Loss)
(12,241)
2,726
n/a
(4,813)
5,893
n/a
Net Profit (Loss) for the
period attributable to:
Owners of the Company
(12,144)
2,779
n/a
(4,574)
6,081
n/a
Non-controlling interests
(97)
(52)
85.8%
(239)
(187)
27.4%
NET PROFIT (LOSS) FOR THE
PERIOD
(12,241)
2,726
n/a
(4,813)
5,893
n/a
Earnings per share (basic and
diluted):
(20.7442)
4.7026
n/a
(7.8113)
10.2497
n/a
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,
2022
2021
2022
2021
CASH FLOWS FROM OPERATING
ACTIVITIES
Net Profit (Loss)
(12,241)
2,726
(4,813)
5,893
Adjustments to reconcile net
profit to net cash provided by operating activities
Income tax expense
1,107
2,076
5,612
13,817
Depreciation and amortization
3,035
2,627
8,672
7,175
Provisions
694
347
825
304
Exchange rate differences
2,818
3,177
2,467
2,163
Interest expense
1,916
(273)
2,474
372
Loss on transactions with
securities
15,036
-
15,036
-
Gain on disposal of property,
plant and equipment
15
(37)
(2)
(187)
Impairment of property, plant and
equipment
-
259
-
259
Impairment of trust fund
41
29
119
105
Share-based payment
8
-
49
-
Changes in operating assets
and liabilities
Inventories
2,334
1,935
(1,400)
585
Other receivables
(1,068)
(2,049)
(1,686)
(2,723)
Trade accounts receivable
(2,135)
(722)
(4,593)
(2,418)
Advances from customers
544
284
175
(104)
Accounts payable
2,287
1,083
3,596
1,714
Salaries and social security
payables
560
314
1,172
919
Provisions
(162)
(85)
(231)
(134)
Tax liabilities
2,543
636
3,549
493
Other liabilities
140
142
(19)
(69)
Gain on net monetary position
(4,522)
(383)
(6,504)
(2,726)
Income tax paid
(1,509)
(1,770)
(7,349)
(8,683)
Net cash generated by (used
in) operating activities
11,443
10,314
17,146
16,759
CASH FLOWS FROM INVESTING
ACTIVITIES
Proceeds from disposal of Yguazú
Cementos S.A.
0
182
79
682
Proceeds from disposal of
Property, plant and equipment
(7)
68
24
210
Payments to acquire Property,
plant and equipment
(1,531)
(2,856)
(3,801)
(7,949)
Payments to acquire Intangible
Assets
(26)
(37)
(29)
(37)
Acquire investments
0
0
-
(3,713)
Proceeds from maturity
investments
2,395
-
2,395
-
Contributions to Trust
(57)
(37)
(146)
(121)
Net cash generated by (used
in) investing activities
774
(2,679)
(1,478)
(10,928)
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from borrowings
26,356
909
43,529
1,849
Interest paid
(2,041)
(287)
(2,341)
(817)
Dividends paid
(11,661)
0
(18,591)
0
Loss on transactions with
securities
(15,036)
-
(15,036)
-
Debts for leases
(28)
(71)
(124)
(229)
Repayment of borrowings
(17,042)
(3,750)
(21,391)
(8,474)
Share repurchase plan
0
(1,152)
(871)
(2,741)
Net cash generated by (used
in) financing activities
(19,452)
(4,351)
(14,825)
(10,413)
Net increase (decrease) in cash
and cash equivalents
(7,235)
3,284
844
(4,582)
Cash and cash equivalents at the
beginning of the period
13,293
2,321
5,490
10,968
Effect of the re-expression in
homogeneous cash currency ("Inflation-Adjusted")
(2,700)
(2,895)
(2,973)
(3,084)
Effects of the exchange rate
differences on cash and cash equivalents in foreign currency
107
596
104
3
Cash and cash equivalents at
the end of the period
3,465
3,305
3,465
3,305
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,
2022
%
2021
%
2022
%
2021
%
Net revenue
31,983
100.0%
17,137
100.0%
74,310
100.0%
43,601
100.0%
Cement, masonry cement and
lime
28,377
88.7%
15,320
89.4%
65,760
88.5%
39,029
89.5%
Concrete
2,799
8.8%
1,115
6.5%
6,127
8.2%
3,147
7.2%
Railroad
2,418
7.6%
1,465
8.5%
5,994
8.1%
3,572
8.2%
Aggregates
784
2.5%
285
1.7%
1,787
2.4%
604
1.4%
Others
168
0.5%
106
0.6%
476
0.6%
246
0.6%
Eliminations
(2,562)
-8.0%
(1,153)
-6.7%
(5,832)
-7.8%
(2,997)
-6.9%
Cost of sales
21,069
100.0%
11,416
100.0%
47,348
100.0%
27,487
100.0%
Cement, masonry cement and
lime
17,948
85.2%
9,770
85.6%
39,747
83.9%
23,081
84.0%
Concrete
2,637
12.5%
1,136
9.9%
5,859
12.4%
3,322
12.1%
Railroad
2,309
11.0%
1,328
11.6%
5,739
12.1%
3,350
12.2%
Aggregates
642
3.0%
272
2.4%
1,549
3.3%
574
2.1%
Others
94
0.4%
64
0.6%
287
0.6%
157
0.6%
Eliminations
(2,562)
-12.2%
(1,153)
-10.1%
(5,832)
-12.3%
(2,997)
-10.9%
Selling, admin. expenses and
other gains & losses
2,487
100.0%
1,223
100.0%
6,098
100.0%
3,214
100.0%
Cement, masonry cement and
lime
2,175
87.4%
1,052
86.1%
5,351
87.7%
2,841
88.4%
Concrete
103
4.2%
27
2.2%
249
4.1%
49
1.5%
Railroad
138
5.6%
101
8.2%
335
5.5%
228
7.1%
Aggregates
14
0.6%
3
0.3%
24
0.4%
7
0.2%
Others
56
2.3%
39
3.2%
140
2.3%
88
2.7%
Depreciation and
amortization
837
100.0%
459
100.0%
2,152
100.0%
1,173
100.0%
Cement, masonry cement and
lime
644
76.9%
356
77.4%
1,645
76.4%
885
75.4%
Concrete
11
1.3%
16
3.4%
45
2.1%
47
4.0%
Railroad
170
20.4%
78
17.0%
434
20.1%
215
18.3%
Aggregates
10
1.2%
9
1.9%
25
1.2%
22
1.9%
Others
1
0.1%
1
0.3%
4
0.2%
4
0.3%
Adjusted EBITDA
9,264
100.0%
4,957
100.0%
23,016
100.0%
14,073
100.0%
Cement, masonry cement and
lime
8,898
96.0%
4,853
97.9%
22,307
96.9%
13,992
99.4%
Concrete
69
0.7%
(32)
-0.7%
64
0.3%
(177)
-1.3%
Railroad
141
1.5%
114
2.3%
354
1.5%
209
1.5%
Aggregates
138
1.5%
18
0.4%
239
1.0%
45
0.3%
Others
18
0.2%
4
0.1%
53
0.2%
4
0.0%
Reconciling items:
Effect by translation in
homogeneous cash currency ("Inflation-Adjusted")
(1,756)
3,638
2,708
13,675
Depreciation and amortization
(3,035)
(2,627)
(8,672)
(7,175)
Tax on debits and credits banks
accounts
(330)
(318)
(916)
(912)
Finance gain (cost), net
(15,276)
(589)
(15,337)
308
Income tax
(1,107)
(2,076)
(5,612)
(13,817)
Share of profit of associates
-
-
-
-
Impairment of property, plant and
equipment
-
(259)
-
(259)
NET PROFIT (LOSS) FOR THE
PERIOD
(12,241)
2,726
(4,813)
5,893
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221108006215/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
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