Loma Negra, the leading cement producer in Argentina, has announced its results for the three-month period ending 30 June 2024.
Net sales revenue for the period was ARS136.1m (US$147m), marking a decrease of 28 per cent YoY. This can be explained by a 32.5 per cent decrease in the cement segment sales volume, a trend that is consistent with that of comparable companies.
Consolidated adjusted EBITDA fell to ARS38.3m, down 11.7 per cent YoY in adjusted Argentine Pesos, while in US Dollars EBITDA stood at US$51m, which marked a 19.2 per cent reduction from 2Q23. The consolidated adjusted EBITDA margin stood at 28.1 per cent, expanding 250 basis points YoY from 22.9 per cent.
Loma Negra’s net profit reached ARS29.6m, up 225.9 per cent from ARS9.1m in the same period of 2023, primarily due to the positive operational results in spite of a volume decrease and the improvement in the net finance gain.
Net debt reached ARS197.9m (US$217m), showing a net debt/LTM Adjusted EBITDA ratio of 1.26x, compared with 1.4x in FY23.
Sergio Faifman, Loma Negra’s chief executive officer, stated, “We are glad to report another set of solid results. Despite the year-on-year volume decline our business delivered an expansion of the Adjusted EBITDA margin that demonstrates our strong capability for efficiency and flexibility in adapting to challenging scenarios and our constant focus on profitability.
"As the stabilisation programme implemented by the Milei administration begins to show positive results in reducing inflation and consolidating a fiscal surplus, construction activity is beginning to show signs of recovery. Cement volumes have been displaying a positive trend of continuous sequential growth since reaching a low in March.
"Although economic challenges remain, we believe that we are in a transition period. As macroeconomic variables stabilise and the economic environment improves, we expect to see a much stronger recovery.
"Meanwhile, our focus is on efficiency and cost control while maintaining our leadership position and commitment to our clients and suppliers. In this regard, in the second quarter, we delivered an Adjusted EBITDA of US$51 million, achieving an impressive EBITDA per ton of US$45, posting an improvement of 23 per cent year-on-year and 16 per cent on a sequential basis.
"We are optimistic that this positive trend in the industry will consolidate, as July's dispatch figures already show significant improvement. Therefore, we have strong indications to expect further recovery in the second half of the year.”
