Cementos Argos announces 3Q18 results
Published by Lucy Stewardson,
Cementos Argos has announced its financial results for 3Q18, reporting net profit of COP126.9 billion and revenues exceeding COP6.3 trillion.
The company has also noted that its cement volumes grew by 2.2% in the quarter and its concrete volumes also grew by 1.3%. EBITDA has been recorded at COP1.1 billion, with an EBITDA margin on 17.8%. This was a growth of 6.1% on the previous year. Net income was recorded as COP126 900 million, an increase of 87.7% on 3Q17. The company has noted that Argos One is positioning the company at the forefront of the industry for digitalisation.
The company has stated that this balance sheet reflects its efforts in operational improvement, competitiveness, and financial flexibility.
Argos has also reported that cement and concrete shipments during the quarter grew in the US, Colombia, the Caribbean, and Central America markets. This was alongside an improvement in the company’s debt profile, with the acquisition of a US$600 million syndicated loan, extending 5 years with payments initially scheduled for 2019 and 2020.
Argos was also ratified for the sixth consecutive year in the Dow Jones Global Sustainability Index during 3Q18. This marked the company as one of the three most sustainable cement companies in the world, resulting from a conscious decision to put at the centre of its organisational strategy the economic, social, and environmental dimensions of sustainability and the generation of long-term value. Argos was also recently ranked fifth in the Merco 2018 ranking, which is awarded to the companies with the best reputations in Colombia.
In terms of digitalisation, Argos One is positioning the company at the forefront of the industry. This platform allows customers to follow the delivery of their orders in real time, generate quality reports, view historical transactions, and make online payments. Currently 59% of cement orders and 42% of concrete orders in Colombia are being made through Argos One. Adoption levels of 70% in the Dominican Republic and 27% in the US have been reached in terms of cement dispatches.
In the US, Hurricane Florence affected volumes and results. Shipments of cement for 3Q18 reached 1.5 million t (a growth of 3.2% compared to 3Q17) and concrete volumes reached 1.8 million m3 (a growth of 0.2% compared to 3Q17). Accumulated revenues in the region were US$1.1 trillion, with EBITDA reaching US$181 million, an increase of 5.4% compared to 3Q17. The EBITDA margin was 15.8%, 100 basis points higher than that registered in 3Q17.
Cement volumes for the quarter in Colombia reached 1.3 million t, a growth of 1.7%. Concrete shipments for 3Q18 were 765 000 m3 based on Argos infrastructure projects and civil works, which was an increase of 3.2% compared to 3Q17. Accumulated cement shipments for the year so far total 3.8 million t (a decrease of 4.9%), with concrete shipments reaching 2.1 million m3 (a decrease of 5.3% from 2017). Consolidated revenues exceeded COP1.7 billion, a reduction of 2.6% compared to 2017, and EBITDA was reported to be COP309 million, an increase of 17.5% on 3Q17.
In the Caribbean and Central America region, positive performance was highlighted in operations in Puerto Rico, Eastern Caribbean, and the Dominican Republic. 3Q18 cement shipments were 1.3 million t, a growth of 1.4% compared to 3Q17. Concrete shipments were reported to increase by 5.4% to reach 115 000 m3. A growth of 4.2%, accumulated volumes of cement was recorded at 3.9 million t, where concrete volumes reached 316 000 m3, a decrease of 6.9%.
Consolidated revenues were reported to be US$455 million, an increase of 4.4% compared to 3Q17, and EBITDA was US$142 million, an increase of 3.8% compared to 3Q17.
“It has been a year full of challenges and opportunities in which we have focused on strengthening the value proposition for our clients, in order to continue to be the best strategic partner of the projects they undertake, and to improve the competitiveness of our operations,” said Juan Esteban Calle, President of Cementos Argos. “This has been done through the execution of the efficiency and sustainability programme for the future best, while ensuring that we have the financial flexibility to mitigate market risks, take advantage of growth options, and be an increasingly agile and innovative company.”
Cementos Argos is the fifth largest producer of cement in Latin America and the second largest in the US. In the concrete business, Argos is the leader in Colombia and the third largest producer in the US.
Read the article online at: https://www.worldcement.com/the-americas/14112018/cementos-argos-announces-3q18-results/
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