Argentina-based Loma Negra, owned by Intercement do Brazil SA, reported a 37.4 per cent fall in net profit to ARS2795m (US$25.8m) in the fourth quarter of 2021.
Revenues from sales in the 4Q21 declined 3.8 per cent YoY to ARS19,257m, driven by a decrease in cement sales and only partially offset by improved sales in aggregates and the company’s railway business. However, bagged sales remained robust on the back of solid demand from the retail market.
Retail demand kept its strong pace, benefitted from the consumer perception of real estate as a safe harbour for savings in hard currency, in addition to appealing construction costs in US$ terms. Additionally, the recovery of bulk cement also contributed to Loma Negra’s performance. Volumes were up 3.5 per cent in the 4Q21 versus the 4Q20.
Adjusted EBITDA rose 74.4 per cent to US$79.1m in the quarter, driven by operational leverage, as result of the strong top line performance, up 88 per cent YoY. On the other hand, costs pressure, especially fuel, derived from global inflation remained in place, pressuring margins to 34 per cent, down 2.7 percentage points versus the 4Q20.
