Cementos Argos’ net profit surges 59%
Colombia’s leading cement producer, Cementos Argos, said net profit jumped 58.8 per cent YoY in 2014, closing the year with record figures.
Profit was up to COP291bn (US$145m), compared with the COP183bn registered in 2013. Operating income was up 16.8 per cent to COP5.8trn (US$2.9bn), EBITDA rose up 8.4 per cent to COP1.06trn (US$534m).
Cement sales increased by eight per cent YoY to 12.5Mt, while concrete sales jumped 18 per cent to 11Mm3.
Argos CEO, Jorge Mario Velásquez, commented: “2014 was a pivotal year for Argos from many different perspectives: it allowed us to incorporate acquisitions of new assets in the amount of US$785m, to successfully issue bonds for which demand was 2.5 times the offered amount, to invest more than US$230m in the expansion of our business in different countries, to strengthen innovation within the company, and to generate historically high results.”
In the US, after the incorporation of assets acquired in Florida in 2014, the company generated EBITDA of close to US$68m. The increase in cement consumption in the markets where Argos is present was 13 per cent, much higher than the nationwide average of eight per cent, the company noted. Cement sales were up by 23 per cent during the year.
In the Caribbean and Central American region, cement sales rose by 26 per cent. The consolidation of businesses in Honduras and French Guiana resulted in gains in operational efficiency. The company recorded sales of US$543m in the region, an increase of 21 per cent.
Argos achieved record cement sales in its domestic market of Colombia, rising by 44 per cent. Argos plans to invest close to US$585m over the next three years in expansion projects.
Cementos Argos is the market leader in Colombia, the fifth biggest producer in Latin America, and the second biggest in the southeast of the United States. Its total installed capacity is 19.26Mta.
