Loma Negra reports 1Q YoY results growth
Argentina-based producer Loma Negra reported a 41.6 per cent rise in net revenues in the first quarter of 2018 to ARS4534m (US$230m) as the company’s combined cement, masonry and lime sales volumes in Argentina increased 9.5 per cent YoY and prices were favourable.
Adjusted EBITDA advanced 40.6 per cent YoY to ARS1166m although the EBITDA margin remained flat at 25.7 per cent.
In addition, Loma Negra’s concrete volumes in Argentina jumped 44.8 per cent to 0.25Mm3 as public infrastructure drove sales. Concrete revenues in Argentina, rose 96.5 per cent YoY to ARS707m, reflecting volume growth and increased prices. Aggregate volumes increased 22.9 per cent to 0.29Mt and revenues were up 31.3 per cent to ARP68m as demand was strong.
In Paraguay the company’s performance was more modest as cement, lime and masonry sales volumes fell by 5.2 per cent YoY to 0.14Mt. However, this performance was above the country’s average fall in sales of eight per cent following a slow start to the year.
"We reported solid results in the first quarter, with volume and revenue growth principally driven by continued momentum in public infrastructure and private construction in Argentina reflecting ongoing economic growth,” said Loma Negra’s CEO, Sergio Faifman.
“For the remainder of the year, we are confident that we will continue to see healthy dynamics in our markets with increasing demand for cement and concrete, although at slower rates following the significant recovery experienced in the prior year, supporting our expansion plans. We are also making headway in the expansion of our L’Amali plant that will add to capacity as well as drive profitability gains,” he added.
Basic engineering of the new 5800tpd line at the company’s L’Amali plant and the study of the soil was completed in 4Q17. In 1Q18 detailed engineering started and a civil works subcontractor was selected. On-site civil works have been initiated and main equipment is on order. On-site activities are progressing in line with schedule. The US$350m project aims to expand capacity at the plant by 2.7Mta by early 2020.
