Argos reports record 1Q23 operating EBITDA

Argos recorded an operating EBITDA of US$127m in the 1Q23, the highest achieved in a first quarter in its history and 41.3 per cent higher than in the 1Q22. Regarding consolidated revenues, it earned US$721m, representing a growth of 11.9 per cent compared to the previous year. Net profit closed at US$25m, while the leverage index stood at a level of 3.1 times, with a slight increase compared to December, mainly caused by the accelerated revaluation of the Colombian peso at the end of March.  

In consolidated terms, the cement company dispatched 3.9Mt of cement, 0.6 per cent less than in the 1Q22, a loss largely caused by the slight falls that occurred in the Colombian market. Concrete volumes stood at 1.7Mm³, with a slight decrease of 2.3 per cent that was mainly due to unfavourable weather conditions in the USA.

USA
During the year, cement volumes increased by 7.1 per cent and reached 1.5Mt leveraged by the import of the product incentivised by the organisation’s extensive logistics network of ports and terminals. Concrete dispatches decreased by 2.5 per cent and were located at 1.1Mm³, which were largely affected by harmful climatic conditions in the region, specifically in Georgia.

The US arm saw revenues of US$416m in the 1Q23, which represents an increase of 22 per cent over the same period last year and EBITDA was US$65m, 77 per cent more than the 1Q22.

Colombia 
Cement volumes stood at 1.4Mt, with a decrease of 4.6 per cent, mainly impacted by the fall of the local market and the closure of the main road between Popayán and Pasto, which altered the logistics efficiency of supply in the southwest of the country, where the company has a relevant presence. Of the total cement dispatches, 345Mt were sold abroad, an increase of 16 per cent. Exports to the USA grew by 81 per cent, which strengthens the organisation’s presence in the North American market. Concrete volumes reached 621Mm³, a reduction of 4.3 per cent.

In a challenging environment, revenues reached US$150m, 7.4 per cent lower than in the 1Q22. In addition, EBITDA stood at US$38m, 15 per cent higher than last year.

Central America 
Cement dispatches were 1Mt, with a reduction of 5.2 per cent compared to the first three months of the previous year, this slight impact is the result of Argos' strategy of replacing trading volumes with exports from its Cartagena plant, in Colombia, to supply its markets in the region. Those of concrete stood at 71Mm3, 22 per cent higher. 

The company reported revenues of US$145m, an increase of five per cent, and an EBITDA of US$30m, which grew two per cent. These results were largely leveraged by the successful recovery of cement volumes in Panama and the Dominican Republic, which increased by 21 and 14 per cent respectively, and the commitment to new products that diversify Argos' value proposition in Panama.