During the first quarter of 2014, Argos grew in a profitable way in all its regional divisions. The growth was attributed to the company’s expansion strategy, as well as its programme of operational excellence.
- Net income totalled US$39 million, a 52%y/y increase compared to the same period a year earlier.
- EBITDA increased by 12% y/y to US$130 million in the first quarter of 2014.
- Operating profit stood at US$81 million, an increase of 17% y/y from the corresponding period in 2013.
- Revenue rose by 18% y/y to US$645 million in the first quarter of 2014.
In the US, Argos’ acquisition in Florida and the recovering economy are reflected in the increase in first quarter revenue. The US division reported a 27% increase in revenue, compared to the same period in 2013, as a result of the higher volumes of cement that were sold during the quarter. Sales of ready-mix concrete rose by 16% y/y.
In Colombia, the positive trend in terms of housing construction and the progress made in respect to the development of civil infrastructure projects contributed to the company’s increased dispatched volumes. Dispatches increased by some 4% y/y compared to the same period in 2013. The company additionally reported a solid 13.3% y/y growth in concrete volumes.
Caribbean and Central America
In the Caribbean and Central American division, the company grew by 27% in terms of revenue in 1Q14. For this quarter, the results of the recently acquired operation in Honduras were included for the first time, which had a very positive effect on Argos’ operating results. Positive trends can be seen in the Caribbean and Central American division, with operations such as the one in Panama, which recorded an increase of 11% y/y in dispatched cement volumes (excluding sales to the Panama Canal).
“The significant increase of our profitability across all of the company’s three regional divisions, the still important potential for improvement in the US and the effective integration of the operations in Honduras and in Florida all contributed to us closing a very solid first quarter, with positive perspectives for the rest of 2014 as well,” commented Jorge Velásquez, Chief Execuitve Officer of Argos.
Adapted from press release by Rosalie Starling
Read the article online at: https://www.worldcement.com/the-americas/28042014/argos_reports_on_profitable_first_quarter_83/