Cementos Argos sees 11% rise in revenue for 2019
Colombia’s Cementos Argos saw a 11.4 per cent YoY rise in consolidated revenue to COP9.3trn (US$2.71bn) in 2019. EBITDA increased 14.3 per cent YoY to COP1.75trn, while its operating income advanced 1.7 per cent to over COP838bn.
However, the company's net profit declined 31.7 per cent to COP122bn from COP179bn in 2018. The fall was attributed to a US$9m US tax provision relating to its successful asset divestment plan, according to a press release.
Cementos Argos dispatched 16Mt of cement and 10Mm3 of concrete in 2019, up 0.6 per cent and down 1.5 per cent, respectively. The volumes reflect a positive growth in demand in the United States, the challenging market conditions in Honduras and Panama, and the short-term effect of the strategy for price recovery in Colombia.
In the US cement shipments grew 9.5 per cent to 6.3Mt in 2019. Revenues also increased 7.8 per cent YoY to US$1.6bn and EBITDA was up 12 per cent to US$268m.
Elsewhere, Colombian cement volumes dipped three per cent to 5Mt for the year. Despite this, revenue climbed 3.8 per cent YoY to COP2.3trn and EBITDA surged 20 per cent to COP522bn.
The company’s Caribbean and Central America region saw cement volumes down 5.4 per cent to 4.9Mt last year. Consolidated revenues also fell 9.7 per cent to US$535m, while EBITDA slipped 17.6 per cent YoY to US$147m. However, the region remains the most profitable for the company in terms of EBITDA margin and return on capital employed.
