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Argos shares 2021 financial results

Published by , Deputy Editor
World Cement,

Argos, Grupo Argos' cement company, reported a consolidated EBITDA of 2.16 billion Colombian pesos at the end of 2021, representing an increase of 34%* compared to 2020 and the highest in the company's history. The annual EBITDA margin* stood at 22 %, the highest since 2005, when the cement company began its internationalisation process. Accumulated revenues as of 31 December reached 9.8 billion Colombian pesos, an increase of 9.1%.

As a result of the demand dynamics in most of the countries where it has operations, the progress in economic recovery and the commercial strategies implemented, Argos showed a solid performance in volumes by shipping 17.1 million t of cement and 7.8 million cubic metres of ready-mix on a consolidated basis, which correspond to growth of 18.3 % and 2.7 %** compared to 2020, respectively.

The net debt to EBITDA ratio closed at 2.87 times, achieving the target of reaching a leverage ratio below 3 times by the end of 2021.

Due to these results, the implementation of operational efficiency strategies that have leveraged debt reduction, and the expectation that operating cash flow generation will continue to trend upward in the coming years, the cement company recently received an upgrade of its credit rating outlook from ‘Stable’ to ‘Positive’ from Fitch Ratings.

"The historical figures reflect the effort and commitment of more than our 7000 employees to the materialisation of innovative and competitive initiatives that are committed to the economic reactivation of the territories where we operate. They also reflect our disciplined strategy of growth, efficiency, and customer focus, based on a long-term vision that seeks to generate profitability for our investors and value for our stakeholders by contributing to the consolidation of a more sustainable, prosperous and inclusive society,” Juan Esteban Calle, Argos CEO.

Regional performance

United States

At year-end 2021, the region shipped 6.1 million tons of cement and 5.2 million cubic metres of ready-mix, with year-over-year variations of 5.7% and -4.2%, respectively, compared to year-end 2020.

The region's annual operating EBITDA reached US$274 million***, with an EBITDA margin of 18.9 %***. This is the highest result achieved by the company in the United States and reinforces the importance of the strategy Argos has deployed in the country since 2005, including acquisitions and the recent optimisation of the premix operation.


The region achieved volumes of 5 million t of cement and 2.4 million cubic metres of ready-mix, representing increases of 23.1 % and 18.3%, respectively, largely associated with the deployment of commercial initiatives throughout the year, the solid performance of the mass segment and the recovery of formal construction, against a backdrop of stable prices.

Colombia's total EBITDA stood at 524 billion pesos, up 30.8 % compared to 2020, and an EBITDA margin of 21.7 %, a result supported by significant growth in volumes sold and initiatives implemented to offset inflationary cost pressures that impacted the industry globally in 2021.

Caribbean and Central America

In this region, cement volumes reached an all-time high in 2021 with 6 million t shipped and growth of 26.6 %. This figure highlights the positive performance of the trading business, which reported 1.6 million t sold, 107.3 % higher than the previous year. Ready-mix volumes ended the year at 192 000 cubic metres, up 46.2% versus 2020.

EBITDA as of 31 December was US$146 million, a year-over-year increase of 25.3 %, with an EBITDA margin of 27.8%. Higher volumes and good price dynamics in relevant markets helped to mitigate cost inflation, especially those related to fuel and freight.

*Consolidated EBITDA and EBITDA margin include the gain from the divestiture in Dallas.
**Year-over-year change in ready-mix volumes exclude, in 2020, production corresponding to the divested operations in Dallas and, in cement, the product purchased from third parties to supply ready-mix operations in the United States.
*** EBITDA and EBITDA margin for the United States Regional exclude the Dallas divestiture.

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