Argentina-based Loma Negra has posted a net revenue of ARS6.131m (US$192m), up 47.2 per cent YoY in the third quarter of 2018. The company has attributed the increase to growth in its cement, masonry and lime business in Paraguay and its concrete operations in Argentina.
In Argentina the company’s cement, masonry and lime reported a 41.5 per cent increase in net revenues due to a favourable pricing environment.
In terms of consolidated adjusted EBITDA, gains of 69 per cent were made YoY to ARS1.699m, mainly due to a 69.3 per cent rise in adjusted EBITDA in the Argentine cement, masonry and lime business with further supported from the similar division in Paraguay and concrete operations in Argentina.
The consolidated adjusted EBITDA margin expanded by 357 basis points YoY to 27.7 per cent while for the Argentine cement, masonry and lime segment EBITDA margin growth reached 492 basis points to 30 per cent.
Commenting on the financial and operating performance for the third quarter of 2018, Loma Negra’s CEO, Sergio Faifman, noted: "The Company reported a solid performance in the quarter. Specifically, our core Argentine Cement business, delivered both revenue growth and Adjusted EBITDA margin expansion notwithstanding the challenging macro backdrop in the country in which our volume declined at a mid single-digit pace year-on-year in line with overall industry performance. Our concrete operations also showed strong results, reaching record high levels for a quarter."
"Supported by the good performance in our core Cement businesses in Argentina and Paraguay, as well as in our Concrete business, consolidated Adjusted EBITDA margin increased by nearly 360 basis points year-on-year and approximately 350 basis points compared to 2Q18."
