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Loma Negra shares Q3 results

Published by , Deputy Editor
World Cement,

Loma Negra, a leading cement producer in Argentina, has announced its results for the three-month and nine-month period ended 30 September 2020.

3Q20 Key Highlights

  • Net revenue decreased by 4.5% YoY to Ps.10 756 million (US$143 million), with robust rebound in the company’s core segment, but negatively impacted by other segments
  • Consolidated Adjusted EBITDA up 11.6% YoY to Ps.3389 million (US$48 million)
  • Consolidated Adjusted EBITDA margin expanded by 454 basis points YoY from 27.0% to 31.5%, driven by higher cement, masonry and lime sales and strong focus on cost control
  • Net profit was Ps.6449 million including the divestment in Paraguay Income from discontinued operations in Paraguay was Ps.4204 million for the three-months period
  • Railway segment impacted by of Ps.1068 million, due to non-cash losses an impairment of property, plant and equipment and other non-recurrent losses
  • Net Debt /LTM Adjusted EBITDA ratio of 0.12x from 1.17x in 2Q20 and 0.86x in FY19

Commenting on the financial and operating performance for the third quarter of 2020, Sergio Faifman, Loma Negra’s Chief Executive Officer, noted: “We feel very satisfied with the robust position with which we concluded this third quarter. We have improved our operational results with margins expansion, in the back of a continuing sales volume improvement coupled with effective cost and price management.”

“Additionally, we executed seamlessly the sale of our Paraguayan operation, an excellent deal in terms of value generation and timing. We optimised the proceeds from the transaction, creating value for our shareholders at the time we strengthen our already robust financial situation.”

“In the quarter, cement demand in Argentina continues to operate at two speeds. On one side, the bag segment has confirmed the strong recovery path, 18% year-over-year, mostly explained by household and retail demand. By contrast, the bulk segment, as well as concrete and aggregates, are still affected by the very low levels of larger private and public works which are still hampered by lockdowns and its effects.”

“The L’Amalí expansion project, a key element of our long-term strategy, is on track. Certainly, the COVID-19 pandemic is still a source of uncertainty, and may provoke additional delays to the start up of the new production line, which is expected to be at the beginning of 2021.”

“Once again, I would like to thank all our people, and stakeholders, without whom these above mentioned results would have been very difficult, particularly during this unprecedented times. Let’s keep moving forward, with the same responsibility and resourcefulness we have shown to overcome any challenge and to grasp every opportunity on our way.”

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