Grupo Argos obtain historic results

"Grupo Argos' net controlling income for the first quarter was 2.5 times higher than that of the same period of the previous year, which is equivalent to about COP470 per share and anticipates the generation of profits for the year to continue distributing more dividends and value for our shareholders in the future”. – Jorge Mario Velásquez, President of Grupo Argos

Cementos Argos reported a first quarter with income of COP3.4 trillion, growing 31% compared to the same period of the previous year, the ebitda closed at COP594 000 million, increasing 65%, and it expanded its ebitda margin by more than 350 basic points. The behavior of the operation in the United States stands out, where cement volumes increased 7% compared to the previous year, given the positive dynamics in the non-residential and infrastructure segments. The positive behavior of cement exports from Colombia, which rose 81% to the United States, is also highlighted.

celsia registered consolidated revenues of COP1.5 trillion during the first quarter of the year, growing 16% compared to the same period in 2022, while ebitda closed at COP514 000 million, growing 13%. Adding the performance of the different platforms, the ebitda closed at COP620 000 million, with an increase of 25%. As a relevant fact, the Grupo Argos energy company recently reported the sale of part of its assets in Central America for a value of US$194 million, which will allow it to strengthen its liquidity position, improve profitability on invested capital, reduce its consolidated debt and have the resources and financial flexibility to continue deploying its strategy.

Odinsa closed the first quarter of the year with an outstanding performance in airport concessions with 10.4 million passengers, a growth of 18% compared to the same period of 2022, in a quarter in which the situation of the national air market affected the dynamics of domestic traffic. During the quarter, Fitch Ratings confirmed Opain's BB+ rating and improved its outlook to stable given the recovery in traffic that the El Dorado Airport has been showing. In roads, Odinsa registered a growth of 3% compared to the same quarter of the previous year, where the performance of the Oriente Tunnel stands out, which registered a growth of 8% in traffic.

Grupo Argos' Urban Development Business recorded extraordinary results with a cash flow that was almost 500% higher than the same period of the previous year. This business has guaranteed income of COP400 000 million in the next five years. Since 2019, the Urban Development Business has provided Grupo Argos with income in its separate states of close to COP1 trillion, but it is also positively transforming the growth of Barranquilla and Barú with the best planning standards, and the development of urban infrastructure and first class hotel.

During the first quarter, Grupo Argos continued advancing in initiatives to transfer value to its shareholders: in the ordinary meeting of its Assembly, a 15% increase in the distribution of dividends was decreed, which represents more than COP499 000 million in capital. Along the same lines, in May the organisation will be able to start executing a share repurchase plan for up to COP500 000 million over a three-year period, giving continuity to the reacquisition process that began in March 2023, through the transactional mechanism of the Colombian Stock Exchange. Finally, during the first months of the year, Grupo Argos bought 13.5 million shares of Cementos Argos, increasing its stake in its construction materials company by 1.2%.

During the quarter, Grupo Argos continued working on initiatives related to the social and environmental agenda in Colombia, in line with its business vision of comprehensive value: (i) energy transition, (ii) climate change, and (iii) equity and inclusion. On the energy transition front, Celsia articulated the creation of the first energy community in Valle del Cauca in a pilot project that includes the development of an agrovoltaic solar system that will supply electricity to the inhabitants of Bocas del Palo, in Jamundí. In climate change, the company established four agreements with the National University of Colombia to develop adaptation and mitigation solutions with a view to reducing the intensity of emissions by 2030 by at least 46%. Finally, in equity and inclusion, Grupo Argos began a process to strengthen the contracting of products and services with a gender perspective through the Sourcing2Equal initiative, an IFC program to connect women entrepreneurs with new markets. This project allows the Argos Business Group to extend its diversity and inclusion policy and broaden its impact, in line with the efforts that it has articulated internally and that today make it a benchmark for gender equality at a global level.

Read the article online at: https://www.worldcement.com/the-americas/11052023/grupo-argos-obtain-historic-results/