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,
2022 (our “4Q22 Results”).
FY22 Key Highlights
- Net revenues increased 1.1% YoY to Ps. 145,133 million (US$ 835
million) mainly driven by the top line performance of Concrete and
Aggregates that compensated the flattish result of Cement
segment.
- Consolidated Adjusted EBITDA reached Ps. 43,345 million,
decreasing 3.8% YoY in adjusted pesos, while in dollars it reached
289 million, with an increase of 34.3% YoY.
- Consolidated Adjusted EBITDA margin reaching 29.9%, contracting
152 basis points from 2021.
- Net income was Ps. 1,807 million, showing a decrease of 85.4%
YoY.
- During FY22, we distributed dividends for Ps. 15,450 million
(US$ 126 million), Ps. 26.39 per outstanding share (Ps. 131.96 per
ADR).
- In 2022, we repurchased shares for Ps. 1,263 million (US$ 9.7
million), currently holding 12.4 million ordinary shares (2% of the
total shares).
- Loma Negra is presenting its second Sustainability Report for
the fiscal year 2022, which seeks to share with its stakeholders
the practices that it has been carrying out in environmental,
social and governance matters.
4Q22 Key Highlights
- Net sales revenues decreased by 2.0% YoY to Ps. 36,763 million
(US$ 215 million), mainly explained by the decrease in Cement
sales, partially compensated by the good performance of the
Concrete and Aggregates segments.
- Consolidated Adjusted EBITDA reached Ps. 13,173 million,
increasing 5.4% YoY in adjusted pesos, while in dollars it reached
91 million, with an increase of 42.7% YoY.
- The Consolidated Adjusted EBITDA margin expanded 252 basis
points YoY from 33.3% to 35.8%.
- Sale of a non-strategic property in Olavarría positively
impacted Other Gains and Losses for Ps. 3,357 million, representing
913 basis points of the Consolidated Adjusted EBITDA margin.
Without this effect, Consolidated Adjusted EBITDA would have stood
at Ps.9,816 million.
- Net Profit of Ps. 7,452 million, where the sale of the
non-strategic property contributed to the good operating
performance.
- During the quarter, the Company approved a dividend payment of
Ps. 3,500 million (US$ 19.5 million), Ps. 6.00 per outstanding
share (Ps. 29.92 per ADR).
- Net Debt /LTM Adjusted EBITDA ratio of 0.37x 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
fourth quarter of 2022, Sergio Faifman, Loma Negra’s Chief
Executive Officer, noted: “2022 was a year of many challenges
and opportunities. The favorable evolution of the GDP during the
year and the great performance of the construction activity gave a
strong boost to the cement demand, with shipments that were very
close to exceeding 13 million tons per year, allowing the industry
to widely surpass the record reached in 2015.
Within this framework, leveraged on our productive capacity and
our focus on always pursuing improvements in our results, LOMA
closed the year with extraordinary results, achieving not only a
record in tons shipped but also in EBITDA generation, reaching US$
289 million.
These results would have not been possible without the strong
commitment to investing in greater capacity and efficiency that the
Company has carried out in recent years, keeping its long-term
vision unchanged, overpassing the difficulties that we went through
in recent years and the structural challenges that remain to be
resolved in the country.
Last but not least, we are proud to present our second
Sustainability Report, maintaining our commitment to inform and
disseminate the impacts of our organization's management on people,
the environment and the economy. Because we are convinced that
together we can build a sustainable future.”
Table 1: Financial
Highlights
(amounts expressed in millions of
pesos, unless otherwise noted)
Three-months ended December
31,
Twelve-months ended December
31,
2022
2021
% Chg.
2022
2021
% Chg.
Net revenue
36,763
37,512
-2.0%
145,133
143,501
1.1%
Gross Profit
9,754
12,991
-24.9%
39,193
45,356
-13.6%
Gross Profit margin
26.5%
34.6%
-810 bps
27.0%
31.6%
-460 bps
Adjusted EBITDA
13,173
12,497
5.4%
43,345
45,044
-3.8%
Adjusted EBITDA Mg.
35.8%
33.3%
+252 bps
29.9%
31.4%
-152 bps
Net Profit (Loss)
7,452
5,445
36.9%
1,807
12,358
-85.4%
Net Profit (Loss) attributable to
owners of the Company
7,513
5,696
31.9%
2,147
12,829
-83.3%
EPS
12.8537
9.6216
33.6%
3.6684
21.6685
-83.1%
Average outstanding shares
(*)
584
592
-1.3%
585
592
-1.1%
Net Debt
15,859
(5,376)
n/a
15,859
(5,376)
n/a
Net Debt /LTM Adjusted EBITDA
0.37x
-0.12x
n/a
0.37x
-0.12x
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,
2022
2021
% Chg.
2022
2021
% Chg.
Net revenue
34,933
18,746
86.3%
109,243
62,347
75.2%
Adjusted EBITDA
14,742
6,379
131.1%
37,758
20,453
84.6%
Adjusted EBITDA Mg.
42.2%
34.0%
+817 bps
34.6%
32.8%
+176 bps
Net Profit (Loss)
8,962
4,868
84.1%
14,009
16,222
-13.6%
Net Debt
15,859
(5,376)
n/a
15,859
(5,376)
n/a
Net Debt /LTM Adjusted EBITDA
0.37x
-0.12x
n/a
0.37x
-0.12x
n/a
In million US$
Three-months ended December
31,
Twelve-months ended December
31,
2022
2021
% Chg.
2022
2021
% Chg.
Ps./US$, av
162.70
100.50
61.9%
130.81
95.16
37.5%
Ps./US$, eop
177.13
102.75
72.4%
177.13
102.75
72.4%
Net revenue
215
187
15.1%
835
655
27.5%
Adjusted EBITDA
91
63
42.7%
289
215
34.3%
Adjusted EBITDA Mg.
42.2%
34.0%
+817 bps
34.6%
32.8%
+176 bps
Net Profit (Loss)
55
48
13.7%
107
170
-37.2%
Net Debt
90
(52)
n/a
90
(52)
n/a
Net Debt /LTM Adjusted EBITDA
0.37x
-0.12x
n/a
0.37x
-0.12x
n/a
Overview of Operations
Sales Volumes
Table 2: Sales
Volumes2
Three-months ended December
31,
Twelve-months ended December
31,
2022
2021
% Chg.
2022
2021
% Chg.
Cement, masonry & lime
MM Tn
1.69
1.68
0.9%
6.72
6.13
9.7%
Concrete
MM m3
0.15
0.13
17.5%
0.58
0.52
11.0%
Railroad
MM Tn
1.09
1.13
-3.2%
4.54
4.33
4.8%
Aggregates
MM Tn
0.33
0.25
30.1%
1.24
0.84
48.1%
2 Sales volumes include
inter-segment sales
Sales volumes of cement, masonry, and lime during 4Q22 increased
by 0.9% to 1.7 million tons, mainly leveraged by the growth of bulk
cement on the back of Concrete and Distributors growth supported by
private construction and public works at municipal and provincial
level. Sales of bagged cement showed a contraction YoY in the
quarter, although maintaining a solid level, principally affected
by a decrease in the level of activity of the construction sector
in December.
Regarding the volume of the Concrete segment, it registered an
increase of 17.5% YoY. The volume of concrete continues with a
positive trend, with the segment being one of the principal drivers
of the growth in bulk cement shipments. The Concrete segment growth
was mainly supported by demand from the private sector, coupled by
public works. On the other hand, Aggregates had a strong increase
of 30.1% YoY, driven mainly by the Concrete sector and sustained by
the good production and logistics performance.
On the other hand, the volumes of the railway segment
experienced a contraction of 3.2% compared to the same quarter of
2021, where the strong transported volumes of aggregates partially
offset the decrease in cement and fracsand.
For fiscal year 2022, our main segment, Cement, masonry and
lime, registered a year-on-year increase of 9.7%, setting a record
of shipments, boosted by the significant growth showed by the bulk
sector and the strong dynamics of the residential demand.
The Concrete and Aggregates segments had increases of 11.0% and
48.1% YoY, respectively. Concrete demand was one of the principal
drivers of the growth in bulk cement shipments, while Aggregates
successfully followed this momentum.
The volume of the Railroad segment had an increase of 4.8%,
mainly supported by a recovery in the transported volumes of
construction materials, boosted by the increase of granite stone,
partially offset by the decrease in 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,
2022
2021
% Chg.
2022
2021
% Chg.
Net revenue
36,763
37,512
-2.0%
145,133
143,501
1.1%
Cost of sales
(27,009)
(24,521)
10.1%
(105,940)
(98,145)
7.9%
Gross profit
9,754
12,991
-24.9%
39,193
45,356
-13.6%
Share of loss of associates
-
-
n/a
-
-
n/a
Selling and administrative
expenses
(3,200)
(3,710)
-13.8%
(12,511)
(12,328)
1.5%
Other gains and losses
3,513
24
14459.7%
3,385
408
729.8%
Impairment of property, plant and
equipment
-
6
n/a
-
(298)
n/a
Tax on debits and credits to bank
accounts
(381)
(376)
1.3%
(1,455)
(1,446)
0.6%
Finance gain (cost),
net
Gain on net monetary position
6,119
715
756.2%
13,747
3,912
251.4%
Exchange rate differences
(3,005)
(675)
345.3%
(7,419)
(3,208)
131.3%
Financial income
229
360
-36.3%
1,626
1,991
-18.3%
Financial expense
(2,962)
(679)
336.5%
(25,564)
(2,612)
878.6%
Profit (Loss) before
taxes
10,066
8,655
16.3%
11,003
31,775
-65.4%
Income tax expense
Current
(685)
(3,030)
-77.4%
(4,217)
(12,931)
-67.4%
Deferred
(1,929)
(180)
973.9%
(4,979)
(6,485)
-23.2%
Net profit (Loss)
7,452
5,445
36.9%
1,807
12,358
-85.4%
Net Revenues
Net revenue decreased 2.0% to Ps. 36,763 million in 4Q22,
from Ps. 37,512 million in the comparable quarter last year, mainly
due to the decline in Cement and Railroad, partially offset by the
good top line performance of Concrete and Aggregates.
Cement, masonry cement and lime segment was down 4.8% YoY, with
volumes expanding 0.9% that partially offset the softer price
dynamics.
Concrete registered an increase in its topline of 29.4% compared
with 4Q21, sustained by a 17.5% increase in volume, coupled with an
improvement in prices. The Aggregates segment recorded a strong
increase in revenues of 44.5%, supported by a volume increase of
30.1% YoY and positive prices performance.
Railroad revenues decreased 5.5% in 4Q22 compared to the same
quarter of 2021, affected by the decrease in transported volumes of
fracsand and cement, partially compensated by the better
performance of aggregates. The decrease in transported volumes of
fracsand also affects the price performance due to its impact on
the average transported distance.
For fiscal year 2022, net revenue increased 1.1% to Ps. 145,133
million from Ps. 143,501 in fiscal year 2021, with a sound top line
performance of Concrete and Aggregates. Our main cement business
remained almost flat, showing a slight decrease of 0.1%.
Cost of sales, and Gross profit
Cost of sales increased 10.1% YoY, reaching Ps. 27,009
million in 4Q22, mainly because of higher thermal energy costs
driven by the stimulus plans to increase natural gas production,
higher maintenance costs and the growing inflationary pressure.
These effects saw their impact softened by lower electrical energy
inputs.
Gross Profit registered a decline of 24.9% YoY to Ps.
9,754 million in 4Q22, from Ps. 12,991 million in 4Q21, with a
gross profit margin that contracted 810 basis points YoY to
26.5%.
During fiscal year 2022, Gross Profit decreased 13.6% to
Ps. 39,193 million with a gross profit margin contracting 460 basis
points to 27.0%.
Selling and Administrative Expenses
Selling and administrative expenses (SG&A) in 4Q22
decreased by 13.8% YoY to Ps. 3,200 million, from Ps. 3,710 million
in 4Q21, mainly due to the impact produced by a recognition of an
allowance for doubtful receivables in the Railroad segment in 4Q21
that affected the comparison. In 4Q22 higher expenses in salaries
were compensated with a decrease in freights. As a percentage of
sales, SG&A showed a decrease against 4Q21 of 119 basis points,
reaching 8.7%.
During fiscal year 2022, SG&A increased by 1.5% compared
with the previous year, and as a percentage of sales stood at 8.6%,
remaining flat from fiscal year 2021.
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,
2022
2021
% Chg.
2022
2021
% Chg.
Adjusted EBITDA
reconciliation:
Net profit (Loss)
7,452
5,445
36.9%
1,807
12,358
-85.4%
(+) Depreciation and
amortization
3,106
3,192
-2.7%
13,278
11,608
14.4%
(+) Tax on debits and credits to
bank accounts
381
376
1.3%
1,455
1,446
0.6%
(+) Income tax expense
2,614
3,210
-18.6%
9,196
19,417
-52.6%
(+) Financial interest, net
2,259
(129)
n/a
4,542
(788)
n/a
(+) Exchange rate differences,
net
3,005
675
345.3%
7,419
3,208
131.3%
(+) Other financial expenses,
net
474
447
6.0%
19,396
1,409
1276.5%
(+) Gain on net monetary
position
(6,119)
(715)
756.2%
(13,747)
(3,912)
251.4%
(+) Share of profit (loss) of
associates
-
-
n/a
-
-
n/a
(+) Impairment of property, plant
and equipment
-
(6)
n/a
-
298
n/a
Adjusted EBITDA
13,173
12,497
5.4%
43,345
45,044
-3.8%
Adjusted EBITDA Margin
35.8%
33.3%
+252 bps
29.9%
31.4%
-152 bps
Adjusted EBITDA increased 5.4% YoY in the fourth quarter
of 2022 to Ps. 13,173 million from 12,497 million in the same
period of the previous year, positively affected by the sale of a
non-strategic property in Olavarría. Without considering the sale
transaction, Adjusted EBITDA would have stood at Ps. 9,816 million
decreasing 21% YoY, mainly affected by lower adjusted EBITDA
generated by our cement business, and slightly offset by better
results in Railroad and Aggregates segments.
Likewise, the Adjusted EBITDA margin expanded 252 basis points
to 35.8% compared to 33.3% in 4Q21. The property sale accounts for
913 basis points, so the Adjusted EBITDA margin without this effect
would have stood at 26.7%, 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 expanded 170 bps to 39.1%. Without the property
sale, Adjusted EBITDA margin for the quarter would have contracted
868 bps to 28.7%, mainly due to a lower price performance and an
increase in costs driven by higher thermal energy inputs, higher
maintenance costs and high inflation scenario, partially
compensated by lower electrical energy inputs.
Concrete Adjusted EBITDA margin contracted 334 bps, reaching
2.7%, from 6.1% in 4Q21, were the good performance in price and
volumes couldn’t compensate the increase in costs.
The Adjusted EBITDA margin of Aggregates jumped to 25.9%,
showing a substantial improvement of 2,717 basis points compared to
4Q21, mainly leveraged on the strong increase in volume that
allowed a better dilution of fixed costs and a good price
performance.
Finally, the Adjusted EBITDA margin of the Railroad segment
significantly recovered 1,794 bps to 5.1% in the third quarter,
from negative 12.9%. 4Q21 was affected by a recognition of an
allowance for doubtful receivables that hit the results.
During FY22, Adjusted EBITDA decreased 3.8% reaching Ps.
43,345 million from Ps. 45,044 million in FY21, with an Adjusted
EBITDA margin compression of 152 basis points, from 31.4% in 2021
to 29.9% in 2022.
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,
2022
2021
% Chg.
2022
2021
% Chg.
Exchange rate differences
(3,005)
(675)
345.3%
(7,419)
(3,208)
131.3%
Financial income
229
360
-36.3%
1,626
1,991
-18.3%
Financial expense
(2,962)
(679)
336.5%
(25,564)
(2,612)
878.6%
Gain on net monetary position
6,119
715
756.2%
13,747
3,912
251.4%
Total Finance Gain (Cost),
Net
380
(279)
n/a
(17,609)
83
n/a
During 4Q22, the Company reported a total net financial gain of
Ps. 378 million compared to a total net financial cost of Ps. 279
million in 4Q21, where the positive effect of the result on the
monetary position compensated the increase of the net financial
expense and the higher negative effect of the exchange rate.
During FY 2022, the Company recorded a total net financial cost
of Ps. 17,612 million, compared to a net financial income of Ps. 83
million in 2021. The variation is mainly explained by the increase
in the financial expense generated by the cancellation of debt in
foreign currency with local funding coupled with 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 Gain of Ps. 7,452 million in 4Q22 compared to a Net
Gain of Ps. 5,445 million in the same period of the previous year,
where the operational result was boosted by the sale of a
non-strategic property coupled with positive financial results and
positive income tax effect.
Net Gain Attributable to Owners of the Company stood at
Ps. 7,304 million. During the quarter, the Company reported a gain
per common share of Ps. 12.4970 and an ADR gain of Ps. 64.4850,
compared to earnings per common share of Ps. 9.6216 and earnings
per ADR of Ps. 48.1079 in 4Q21.
During fiscal year 2022, Net Income Attributable to Owners of
the Company decreased 83.3% YoY, to Ps. 2,147 million, from Ps.
12,829 million in fiscal year 2021, mainly as a result of the
effect in the financial expense generated by the cancellation of
debt in foreign currency with local funding coupled with the
increase in the total debt position.
Capitalization
Table 6: Capitalization and
Debt Ratio
(amounts expressed in millions of
pesos, unless otherwise noted)
As of December 31,
2022
2021
Total Debt
20,770
4,892
- Short-Term Debt
10,891
4,115
- Long-Term Debt
9,880
777
Cash, Cash Equivalents and
Investments
(4,911)
(10,268)
Total Net Debt
15,859
(5,376)
Shareholder's Equity
115,947
141,245
Capitalization
136,718
146,136
LTM Adjusted EBITDA
43,345
45,044
Net Debt /LTM Adjusted EBITDA
0.37x
-0.12x
As of December 31, 2022, total Cash, Cash Equivalents, and
Investments were Ps. 4,911 million compared with Ps. 10,268 million
as of December 31, 2021. Total debt at the close of the quarter
stood at Ps. 20,770 million, composed by Ps. 10,891 million in
short-term borrowings, including the current portion of long-term
borrowings (or 52.4% of total borrowings), and Ps. 9,880 million in
long-term borrowings (or 47.6% of total borrowings).
At the close of fiscal year 2022, 52.2% (or Ps. 10,846 million)
of Loma Negra’s total debt was denominated in U.S. dollars and
47.8% (or Ps. 9,925 million) was in Argentine pesos. The average
duration of Loma Negra’s total debt was 0.7 years.
As of December 31, 2022, 85.1% 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
14.9% accrues interest at a fixed rate in pesos.
The Net Debt to Adjusted EBITDA (LTM) ratio increased to 0.37x
as of December 31, 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, and also showing a sequential decline from
0.54x as of the end of the 3Q22.
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,
2022
2021
2022
2021
CASH FLOWS FROM OPERATING
ACTIVITIES
Net Profit (Loss)
7,452
5,445
1,807
12,358
Adjustments to reconcile net
profit (loss) to net cash provided by operating activities
6,890
5,306
48,237
33,468
Changes in operating assets and
liabilities
(3,092)
(1,093)
(18,682)
(16,510)
Net cash generated by
operating activities
11,250
9,659
31,362
29,316
CASH FLOWS FROM INVESTING
ACTIVITIES
Proceeds from disposal of Yguazú
Cementos S.A.
(0)
101
93
901
Property, plant and equipment,
Intangible Assets, net
(2,547)
(4,325)
(7,012)
(13,446)
Contributions to Trust
(23)
(37)
(194)
(179)
Investments, net
(414)
(150)
2,395
(4,506)
Net cash (used in) investing
activities
(2,984)
(4,412)
(4,717)
(17,230)
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds / Repayments from
borrowings, Interest paid
(6,618)
(3,414)
(1,179)
(12,413)
Dividends paid
0
(0)
(21,806)
0
Share repurchase plan
(775)
(1,435)
(1,797)
(4,650)
Net cash generated by (used
in) by financing activities
(7,393)
(4,850)
(24,782)
(17,063)
Net increase (decrease) in
cash and cash equivalents
873
397
1,863
(4,977)
Cash and cash equivalents at the
beginning of the year
4,064
3,877
6,439
12,865
Effect of the re-expression in
homogeneous cash currency ("Inflation-Adjusted")
(133)
(15)
(3,620)
(3,633)
Effects of the exchange rate
differences on cash and cash equivalents in foreign currency
106
2,180
228
2,184
Cash and cash equivalents at
the end of the period
4,911
6,439
4,911
6,439
In 4Q22, our operating cash generation stood at Ps. 11,250
million, compared to Ps. 9,659 million in the same period of the
previous year, where the performance of operational results was
boosted by a positive effect of working capital.
During 4Q22, the Company used cash in financing activities for
Ps. 7,393 million, mainly due to the cancellation of debt.
Regarding cash used in investing activities, the Company used a
total of Ps. 2,984 million, mainly in maintenance capex partially
compensated by the property sale.
During fiscal year 2022, the Company made capital investments
for a total of Ps. 10,203 million. For FY2022, the cash flow
generated by operating activities was Ps. 31,362 million compared
to Ps. 29,316 million in FY 2021, and net cash used in financial
activities for Ps. 24.782 million compared to Ps. 17,063 million
the previous year, mainly explained by the dividends paid during
the fiscal year.
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 the 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
Ps. 735 million
Current status
terminated
Dividends Distribution
On December 27, 2022, the board of directors approved the
payment of dividends for a total amount of Ps. 3,500 million
equivalents to Ps. 5.99 per outstanding share (Ps. 29.98 per ADS),
through the partial allocation of funds from the Reserve for Future
Dividends. As of the date of the presentation of this earnings
release, the total amount of dividends was distributed.
Recent Events
Domestic Bond Issuance
On February 22, 2023, the Company issued its Class 1 of domestic
bonds in the total principal amount of Ps. 25.6 billion. Terms of
the issue are as outlined below.
Amount of Issue
Ps. 25,636 million
Issue Price
100% of principal amount
Interest rate
BADLAR +2% per annum
Interest payments
quarterly
Maturity
Bullet - 18 months
Sustainability Report
We are very pleased to present the second edition of the Loma
Negra Sustainability Report, maintaining our commitment to inform
and disseminate the impacts of our organization's management on
people, the environment, and the economy.
As a leading company in the construction industry, we seek
during 2022 to continue deepening our cultural transformation, with
the focus of being an increasingly diverse and inclusive company,
modern, innovative, agile, close and focused on our clients.
We invite all to find more detail information on this matter in
our Sustainability Report for 2022 that can be found in our
website.
4Q22 Earnings Conference Call
When:
10:00 a.m. U.S. ET (12:00 a.m.
BAT), March 9, 2023
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=esg3GSv5
Replay:
A telephone replay of the
conference call will be available between March 10, 2023, at 1:00
pm U.S. E.T. and ending on March 16, 2023. 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
3926023. 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,
2022
2021
ASSETS
Non-current assets
Property, plant and equipment
153,471
158,357
Right to use assets
1,051
604
Intangible assets
470
563
Investments
10
10
Goodwill
102
102
Inventories
6,380
6,007
Other receivables
1,121
1,354
Total non-current
assets
162,605
166,998
Current assets
Inventories
20,404
16,942
Other receivables
5,850
2,320
Trade accounts receivable
9,123
7,715
Investments
4,246
9,623
Cash and banks
665
644
Total current assets
40,288
37,245
TOTAL ASSETS
202,893
204,243
SHAREHOLDER'S EQUITY
Capital stock and other capital
related accounts
37,941
39,675
Reserves
75,873
88,414
Retained earnings
1,939
12,829
Accumulated other comprehensive
income
-
-
Equity attributable to the owners
of the Company
115,752
140,918
Non-controlling interests
195
327
TOTAL SHAREHOLDER'S
EQUITY
115,947
141,245
LIABILITIES
Non-current
liabilities
Borrowings
9,880
777
Accounts payables
-
-
Provisions
1,307
1,105
Salaries and social security
payables
95
98
Debts for leases
783
458
Other liabilities
164
278
Deferred tax liabilities
32,970
27,879
Total non-current
liabilities
45,199
30,595
Current liabilities
Borrowings
10,891
4,115
Accounts payable
17,699
15,342
Advances from customers
1,761
2,000
Salaries and social security
payables
4,446
3,963
Tax liabilities
2,915
6,517
Debts for leases
282
155
Other liabilities
3,752
312
Total current
liabilities
41,747
32,403
TOTAL LIABILITIES
86,946
62,998
TOTAL SHAREHOLDER'S EQUITY AND
LIABILITIES
202,893
204,243
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,
2022
2021
% Change
2022
2021
% Change
Net revenue
36,763
37,512
-2.0%
145,133
143,501
1.1%
Cost of sales
(27,009)
(24,521)
10.1%
(105,940)
(98,145)
7.9%
Gross Profit
9,754
12,991
-24.9%
39,193
45,356
-13.6%
Share of loss of associates
-
-
n/a
-
-
n/a
Selling and administrative
expenses
(3,200)
(3,710)
-13.8%
(12,511)
(12,328)
1.5%
Other gains and losses
3,513
24
14459.7%
3,385
408
729.8%
Impairment of property, plant and
equipment
-
6
n/a
-
(298)
n/a
Tax on debits and credits to bank
accounts
(381)
(376)
1.3%
(1,455)
(1,446)
0.6%
Finance gain (cost),
net
Gain on net monetary position
6,119
715
756.2%
13,747
3,912
251.4%
Exchange rate differences
(3,005)
(675)
345.3%
(7,419)
(3,208)
131.3%
Financial income
229
360
-36.3%
1,626
1,991
-18.3%
Financial expenses
(2,962)
(679)
336.5%
(25,564)
(2,612)
878.6%
Profit (loss) before
taxes
10,066
8,655
16.3%
11,003
31,775
-65.4%
Income tax expense
Current
(573)
(3,030)
-81.1%
(4,105)
(12,931)
-68.3%
Deferred
(2,042)
(180)
1036.4%
(5,091)
(6,485)
-21.5%
Net Profit (Loss)
7,452
5,445
36.9%
1,807
12,358
-85.4%
Net Profit (Loss) for the
period attributable to:
Owners of the Company
7,304
5,696
28.2%
1,939
12,829
-84.9%
Non-controlling interests
148
(251)
n/a
(132)
(471)
-72.0%
NET PROFIT (LOSS) FOR THE
PERIOD
7,452
5,445
36.9%
1,807
12,358
-85.4%
Earnings per share (basic and
diluted):
12.4970
9.6216
29.9%
3.3122
21.6685
-84.7%
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,
2022
2021
2022
2021
CASH FLOWS FROM OPERATING
ACTIVITIES
Net Profit (Loss)
7,452
5,445
1,807
12,358
Adjustments to reconcile net
profit to net cash provided by operating activities
Income tax expense
2,614
3,210
9,196
19,417
Depreciation and amortization
3,106
3,192
13,278
11,608
Provisions
334
531
1,302
888
Exchange rate differences
1,937
(1,942)
4,830
595
Interest expense
2,204
226
5,106
662
Loss on transactions with
securities
(0)
-
17,636
-
Gain on disposal of property,
plant and equipment
(3,365)
45
(3,367)
(174)
Impairment of property, plant and
equipment
-
(6)
-
298
Impairment of trust fund
54
(28)
194
96
Share-based payment
6
78
63
78
Changes in operating assets
and liabilities
Inventories
(1,523)
(126)
(3,166)
560
Other receivables
(1,199)
1,818
(3,177)
(1,375)
Trade accounts receivable
(1,759)
(69)
(7,147)
(2,906)
Advances from customers
36
370
241
248
Accounts payable
6,946
(438)
11,164
1,573
Salaries and social security
payables
1,442
309
2,816
1,387
Provisions
(132)
(180)
(403)
(337)
Tax liabilities
1,153
(153)
5,315
426
Other liabilities
79
138
56
57
Gain on net monetary position
(6,119)
(715)
(13,747)
(3,912)
Income tax paid
(2,015)
(2,047)
(10,634)
(12,231)
Net cash generated by (used
in) operating activities
11,250
9,659
31,362
29,316
CASH FLOWS FROM INVESTING
ACTIVITIES
Proceeds from disposal of Yguazú
Cementos S.A.
(0)
101
93
901
Proceeds from disposal of
Property, plant and equipment
3,268
315
3,296
561
Payments to acquire Property,
plant and equipment
(5,745)
(4,483)
(10,203)
(13,807)
Payments to acquire Intangible
Assets
(70)
(157)
(104)
(200)
Acquire investments
-
(3,882)
-
(8,238)
Proceeds from maturity
investments
(414)
3,732
2,395
3,732
Contributions to Trust
(23)
(37)
(194)
(179)
Net cash generated by (used
in) investing activities
(2,984)
(4,412)
(4,717)
(17,230)
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from borrowings
650
268
51,706
2,436
Interest paid
(2,010)
(152)
(4,756)
(1,111)
Dividends paid
0
(0)
(21,806)
0
Debts for leases
(138)
(75)
(283)
(344)
Repayment of borrowings
(5,120)
(3,455)
(47,846)
(13,394)
Share repurchase plan
(775)
(1,435)
(1,797)
(4,650)
Net cash generated by (used
in) financing activities
(7,393)
(4,850)
(24,782)
(17,063)
Net increase (decrease) in cash
and cash equivalents
873
397
1,863
(4,977)
Cash and cash equivalents at the
beginning of the period
4,064
3,877
6,439
12,865
Effect of the re-expression in
homogeneous cash currency ("Inflation-Adjusted")
(133)
(15)
(3,620)
(3,633)
Effects of the exchange rate
differences on cash and cash equivalents in foreign currency
106
2,180
228
2,184
Cash and cash equivalents at
the end of the period
4,911
6,439
4,911
6,439
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,
2022
%
2021
%
2022
%
2021
%
Net revenue
34,933
100.0%
18,746
100.0%
109,243
100.0%
62,347
100.0%
Cement, masonry cement and
lime
30,739
88.0%
16,764
89.4%
96,499
88.3%
55,793
89.5%
Concrete
3,263
9.3%
1,317
7.0%
9,390
8.6%
4,464
7.2%
Railroad
2,727
7.8%
1,506
8.0%
8,720
8.0%
5,078
8.1%
Aggregates
988
2.8%
356
1.9%
2,775
2.5%
960
1.5%
Others
189
0.5%
136
0.7%
664
0.6%
382
0.6%
Eliminations
(2,973)
-8.5%
(1,333)
-7.1%
(8,805)
-8.1%
(4,330)
-6.9%
Cost of sales
21,877
100.0%
11,215
100.0%
69,225
100.0%
38,702
100.0%
Cement, masonry cement and
lime
18,378
84.0%
9,420
84.0%
58,125
84.0%
32,501
84.0%
Concrete
3,065
14.0%
1,236
11.0%
8,925
12.9%
4,559
11.8%
Railroad
2,569
11.7%
1,463
13.0%
8,308
12.0%
4,813
12.4%
Aggregates
734
3.4%
347
3.1%
2,283
3.3%
921
2.4%
Others
103
0.5%
82
0.7%
390
0.6%
238
0.6%
Eliminations
(2,973)
-13.6%
(1,333)
-11.9%
(8,805)
-12.7%
(4,330)
-11.2%
Selling, admin. expenses and
other gains & losses
(702)
100.0%
1,725
100.0%
5,397
100.0%
4,939
100.0%
Cement, masonry cement and
lime
(1,005)
143.3%
1,356
78.6%
4,345
80.5%
4,197
85.0%
Concrete
89
-12.7%
4
0.2%
337
6.3%
53
1.1%
Railroad
135
-19.2%
316
18.3%
469
8.7%
544
11.0%
Aggregates
9
-1.3%
4
0.2%
33
0.6%
11
0.2%
Others
71
-10.1%
45
2.6%
211
3.9%
134
2.7%
Depreciation and
amortization
985
100.0%
573
100.0%
3,137
100.0%
1,746
100.0%
Cement, masonry cement and
lime
767
77.9%
451
78.8%
2,411
76.9%
1,337
76.5%
Concrete
12
1.2%
19
3.3%
57
1.8%
66
3.8%
Railroad
174
17.7%
90
15.7%
608
19.4%
305
17.5%
Aggregates
30
3.1%
12
2.0%
56
1.8%
33
1.9%
Others
1
0.1%
1
0.2%
5
0.2%
5
0.3%
Adjusted EBITDA
14,742
100.0%
6,379
100.0%
37,758
100.0%
20,453
100.0%
Cement, masonry cement and
lime
14,133
95.9%
6,439
100.9%
36,440
96.5%
20,431
99.9%
Concrete
121
0.8%
95
1.5%
185
0.5%
(81)
-0.4%
Railroad
197
1.3%
(183)
-2.9%
550
1.5%
26
0.1%
Aggregates
276
1.9%
17
0.3%
515
1.4%
62
0.3%
Others
16
0.1%
11
0.2%
68
0.2%
15
0.1%
Reconciling items:
Effect by translation in
homogeneous cash currency ("Inflation-Adjusted")
(1,569)
6,118
5,587
24,591
Depreciation and amortization
(3,106)
(3,192)
(13,278)
(11,608)
Tax on debits and credits banks
accounts
(381)
(376)
(1,455)
(1,446)
Finance gain (cost), net
380
(279)
(17,609)
83
Income tax
(2,614)
(3,210)
(9,196)
(19,417)
Share of profit of associates
-
-
-
-
Impairment of property, plant and
equipment
-
6
-
(298)
NET PROFIT (LOSS) FOR THE
PERIOD
7,452
5,445
1,807
12,358
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230308005815/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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