Argos Shareholders' Assembly approves profit allocation project for 2019 term

The Argos Shareholders' Meeting approved the profit allocation project for the 2019 term. A dividend of 251.20 pesos per year per ordinary and preferred share was determined. These dividends will be paid in cash in three instalments at a rate of 83.73 pesos in this way:

• August 2020: between the 16th and 26th.
• October 2020: between the 7th and 16th.
• February 2021: between the 15th and 24th.

Altogether, the dividends represent a 3.8% increase (CPI) compared to what the shareholders received last year, a figure that allows them to maintain a return on their investment, as it has historically been. The company expresses its greatest gratitude for the trust and support of their shareholders to a human team that ratifies every day its commitment to construction that helps to improve lives.

Likewise, during the Assembly, Rafael Olivella was approved as a new member of the Board of Directors of the company, replacing Camilo Abello. Rafael currently works as Vice President of Talent and Corporate Affairs at Grupo Argos, the business group.

Corporate results

The year ended satisfactorily with increases of 11.4% in revenues and 14.3% in Ebitda; with significant volume growth in the United States, significant recovery in prices in Colombia; and the Caribbean and Central America region maintains conjunctural difficulties in Honduras and Panama, which was offset to some extent by the growth of exports and the performance of operations in the Dominican Republic and Haiti.

Argos highlights the continuity of the financial flexibility strategy through the optimisation of working capital, the savings on investments in capex and the compliance in disinvestments of non-operational or non-strategic assets.

During the year, the company shipped 16 million t of cement and 10 million m³ of concrete on a consolidated basis, with variations of 0.7% and –1.3% compared to the end of 2018, respectively.

Furthermore, operating profit exceeded 838 000 million pesos, equal to an increase of 1.7%, and net profit approached 122 000 billion pesos, impacted by a higher provision of taxes of US$9 million in United States, associated to the successful execution of the asset divestment plan.

“Amid the challenging context of economic uncertainty that we are experiencing in the world and the current volatility of the market, we reassure our shareholders of the commitment of the entire Argos team to (i) the health care of our employees, families, clients, suppliers and communities, supporting the prevention measures of the governments in all the countries where we are present, (ii) implement contingency and continuity plans to mitigate possible interruptions in our operations and/or temporary demand shocks in the markets, (iii) optimise the execution of capex, opex, the management of expenses and work capital and (iv) continue with the divestment plans to achieve the 2020 goals of value creation which we have set for ourselves”, said Juan Esteban Calle, Argos’ CEO.

Sustainability leadership in the industry:

• In 2019, Argos completed the assembly of the clay thermal activation line at its Rioclaro Plant for the production of Green Cement, which reduces the use of traditional clinker and achieves 38% reductions in CO₂ emissions and 30% in energy consumption.
• Argos achieved a 45% increase in revenues from sales of products with sustainability characteristics, reaching around US$270 million.
• Hand in hand with its clients, the company has recycled more than 5 million bags under the Green Sacks programme. With this programme, Argos has contributed to preserving more than 7 200 trees and saving more than 58 200 m³ of water equal to 23 Olympic swimming pools.
• Argos exceeded US$5 million in social investment, distributed in 380 projects in the areas of influence in the three regions, with the support of almost 300 strategic allies. Thus, it positively impacted almost 500 000 beneficiaries in quality educational and community infrastructure projects, social strengthening, housing, among others.
• The company was included, for the seventh consecutive year, in the Dow Jones Global Sustainability Index (DJSI) as one of the most sustainable companies in the world and leader in the Construction Materials industry.
• In addition, it obtained the Gold Class distinction in the 2020 Sustainability Yearbook of the RobecoSAM firm.

Read the article online at: https://www.worldcement.com/the-americas/24032020/argos-shareholders-assembly-approves-profit-allocation-project-for-2019-term/