Loma Negra 4Q17 net revenue rises by 57%

Loma Negra (InterCement group) announced its results for the three- and 12-month periods ended 31 December 2017 with net revenue for 4Q17 increasing 57.1 per cent to ARS4452m (US$218.9m), from ARS2834m (US$139.3m) in 4Q16, mainly driven by higher volumes sold across all segments along with increased prices.

Total cement, masonry and lime sales volumes in Argentina increased 14 per cent YoY in 4Q17 to 1.76Mt, driven by increased construction activity both in infrastructure and private consumption. This, along with the 0.13Mt contribution from Yguazú Cementos, in Paraguay, resulted in a 22.5 per cent increase in total volume for the quarter. Revenues from Argentina grew 47.1 per cent, or ARS1335m, while Yguazú Cementos contributed with ARS284m.

In Argentina, concrete volumes were up 53.8 per cent to 0.24 Mm³ reflecting the strong pick-up in public infrastructure projects.

Commenting on 2017, Sergio Faifman, Loma Negra's Chief Executive Officer, said: "2017 was a pivotal year for Loma Negra marked by achieving significant milestones. Key events for the Company last year included; volume and sales expansion benefitting from the economic momentum in Argentina, record EBITDA, commenced expansion of the L'Amalí plant and ending the year with the successful Initial Public Offering (IPO) - the largest Argentine IPO in almost 25 years and the largest ever for a cement company."

For FY17, net revenues rose 54.8 per cent to ARS15,287m. Revenues in Argentina grew 43.1 per cent, or ARS4,259m, while revenues at Yguazú Cementos reached ARS1153m in revenues from during the year.

Cost of sales increased 57.2 per cent YoY to ARS3157 m in 4Q17, reflecting the greater sales volume, cost inflation, particularly wages and maintenance costs, together with thermal energy cost, and the contribution of ARS201m in costs from Yguazú Cementos. Cost of sales in the Argentinean business grew by 38.3 per cent, mainly due to higher thermal along with increased wages and maintenance costs, said Loma Negra.

Company gross profit rose 56.8 per cent to ARS1295m from ARS826m in 4Q16, with gross margin relatively flat YoY at 29.1 per cent. Gross profit in Argentina increased 46.7 per cent to ARS1212m in 4Q17, with gross profit margin stable at 29.1 per cent.