Loma Negra posts 35% revenue surge

Argentina’s Loma Negra has seen its net revenue surge 35.4 per cent YoY to ARS13,175m (US$143m) in the first quarter of 2021, against ARS9734m in the year-ago period, mainly on the back of strong results from its cement segment.

Consolidated EBITDA advanced 49.6 per cent YoY to ARS4730m, while its margin climbed to 35.7 per cent from 32.3 per cent. Net profit was up 104.4 per cent from ARS1256m to ARS2568m.

"We started the year in a very good shape, with a solid operating cashflow generation together with a very robust financial position. Furthermore, given the higher operational leverage and our strong focus in cost management is that we have achieved world-class profitability levels," said Sergio Faifman, CEO.

Overall cement, masonry and lime sales volumes rose 38 per cent YoY to 1.38Mt from 1Mt in the first quarter of 2020. The company’s L'Amalí plant expansion is also expected to fully commission within the next few months, while the clinker line will start up in the coming days.

"With cement demand stabilising around pre-pandemic levels, we expect a moderate growth perspective for the remainder of the year, as the macroeconomic context together with COVID-19 second wave could increase the uncertainty and affect large construction projects resumption," said the CEO.