Loma Negra 1Q net profit sees 19% drop

Loma Negra, part of InterCement do Brasil, posted net sales revenues of ARS40,590m (US$197m) in the 1Q23, up 2.9 per cent YoY, on the back of good top line performance of concrete and aggregate segments that offset a drop in cement revenues.

Consolidated adjusted EBITDA reached ARS10,636m, down 19.7 per cent YoY in adjusted pesos, while in US dollars it reached US$63m, up 5.8 per cent YoY. The consolidated adjusted EBITDA margin contracted 738 basis points you to 26.2 per cent in the 1Q23 from 33.6 per cent in the 1Q22.

The company’s net profit for the 1Q23 reached ARS5208m, representing a 18.7 per cent drop YoY. The company attributed the decline in net profit mainly to the decrease in operating results and higher financial costs.

Commenting on the financial and operating performance for the 1Q23, Sergio Faifman, Loma Negra’s CEO, noted: “We started the year in a very good shape, with solid operating result and cash flow generation together with a very robust financial position.

“Despite the challenging macro scenario and the economic disorders, the cement demand remains strong, posting a 3.1 per cent growth in spite of the high base of comparison, and LOMA showed even higher growth figures.

“During the quarter, we continued optimising value for our shareholders, with a dividend payment of US$19.5m. Moreover, we recently approved a second dividend payment, to be distributed in kind for the equivalent of Ps.22.2bn. We also completed our first issuance of corporate bonds with high success and with great support from the market, which demonstrates the confidence that investors place in our company. This gave us the possibility of refinancing our short-term debt in Pesos and further strengthening our balance sheet.

“For the remainder of the year, we are cautiously optimistic that we will continue to see healthy dynamics in our markets although at slower rates as we approach the presidential elections.”