US performance gives Cementos Argos strong 1Q16

In the 1Q16 Cementos Argos reported an income of COP2.2trn (US$720.1bn), up 334 per cent compared to the same period in 2015. EBITDA ascended to COP425bn, a 38 per cent increase, while the EBITDA margin increased 60 basic points to close at 19.2 per cent.

In March the company paid two loans acquired in 2015 with Banco de Crédito del Perú, totalling COP100bn. With this transaction, Grupo Argos' debt was COP1.55trn.

The US regional division had outstanding performance thanks to better weather conditions, which enabled to the company to release backed up orders from previous quarters. Cement shipments reported a 47 per cent increase for the period, while concrete volumes grew by 17 per cent. In financial terms, the US division reported revenue for US$335m, up 27 per cent, while EBITDA stood at US$34m, which represents a 143 per cent increase compared to 2015.

In Colombia Argos reported a 17 per cent drop in cement volume, due to the different competitive dynamics in the country. With regard to concrete, increased demand for residential construction was offset by a smaller volume of civil works, which was reflected in a 0.7 per cent growth in shipments. The revenue of the domestic regional division stood at US$666bn, growing 1.2 per cent. EBITDA grew seven per cent, closing at COP205bn.

In the Caribbean and Central American regions, the performance of the operations stood out in the eastern Caribbean (Suriname, French Guyana and the islands). Cement shipments grew by 14 per cent while concrete volumes dropped nine per cent due to delays in the start of infrastructure works in Panama. Revenue in Panama as of March grew to US$139m, four per cent growth, while the EBITDA grew 11 per cent, closing at US$49m.

Consolidated sales by Cementos Argos were 3.45Mt of cement and 2.8Mm³ of concrete, translating a growth of 6.4 and 10.5 per cent, respectively.

As for financial matters, the company reported a 34 per cent growth in revenue, closing at COP2.2trn.  EBITDA for the quarter was COP425bn, up 38 per cent.

During the 1Q16 Jorge Mario Velásquez assumed the holding’s presidency and was succeeded by Juan Esteban Calle in Cementos Argos’ presidency. Mauricio Ossa started working as the new president of the Odinsa affiliate.