Argos reported that for the 3Q23 adjusted EBITDA stood at COP742bn (US$180.35m), increasing 25.4 per cent on a comparable basis versus 3Q22. The company's revenue in the 3Q23 slipped one per cent YoY to COP3087bn from COP3118bn in the year-ago period. The results were driven by strong pricing dynamics across all regions, combined with cost efficiencies. The adjusted EBITDA margin stood at 24 per cent for the quarter up from 19 per cent YoY.
Cement dispatches reached 3.98Mt, with a contraction of 4.5 per cent, caused by operational issues in Argos' Newberry plant in USA, slightly weaker local market demand in Colombia, and the social and political context in Haiti. Ready-mix volumes stood at 1.7Mm3, decreasing 10.8 per cent LfL versus 2022, mainly due some continued softening in demand in parts of the US, additional to prioritising profitability over volume across Argos' footprint.
USA
Cement volumes decreased four per cent mainly explained by operational issues in the Newberry plant in Florida, which had a 36 per cent reduction in shipments during the quarter. Ready-mix dispatches decreased 11.5 per cent LfL, when compared to the third quarter of 2022, mostly due to a careful selection of the business to prioritse profitability, and some continued softening in demand in Florida and Texas.
Colombia
Cement export volumes from Cartagena increased 19.2 per cent, reaching 380,000t during the quarter and 1Mt year to date. Domestic volumes decreased 4.8 per cent during the 3Q23 when compared to the same period of the previous year. Nevertheless Argos exceeded industry performance as volumes declined 1.4 per cent less than the benchmark indicator for grey cement. Argos' ready-mix volumes decreased 10.8 per cent YoY.
Total EBITDA reached COP209bn for the 3Q23 and increased 32.6 per cent when compared to the same quarter of last year, the result of a comprehensive strategy carried out throughout the value chain.
Caribbean and Central America
Local market cement dispatches during the 3Q23 increased 3.7 per cent in Central America due to the positive dynamics in Panama, while in the Caribbean volumes were 2.8 per cent lower due to the strong performance in the Dominican Republic market, which was offset by the deterioration of the political and social situation in Haiti. Trading volumes saw a 44 per cent YoY decline, mainly due to a higher utilisation of the company's export capacity from Colombia. In terms of cement pricing dynamics, in local markets average prices increased 2.5 per cent YoY.
The financial performance of the region maintained a positive evolution during the 3Q23, with EBITDA of US$33m, expanding of 5.3 per cent and a growing EBITDA margin that reached 24.6 per cent.
