Cementos Argos’ 2Q EBITDA advances 45% YoY

Cementos Argos’ 2Q EBITDA advances 45% YoY
Published: 28 August 2015

Tagged Under: Results Cementos Argos Colombia 

Cementos Argos’ consolidated EBITDA increased by 45 per cent in the second quarter of 2015, reaching COP371bn. Consolidated revenues grew 26 per cent YoY to COP1.8trn,

The US regional devision recorded an EBITDA of US$35m, up 44 per cent YoY.  Net income for the quarter jumped 211 per cent to COP142bn.

Year-to-date cement dispatches increased by 14 per cent to 6.8Mt while ready-mix concrete volumes rose by four per cent to 5.5Mm3.

Colombia
In Argos’ domestic market of Colombia, cement dispatches rose by 10 per cent in the second quarter to 1.4Mt and were 2.9Mt during the first half, up 14 per cent YoY. The increase was above national growth of 5.6 per cent in 2Q15 and 6.6 per cent 1H15, according to DANE . The National Administrative Department of Statistics.

Ready-mix volumes exceeded 1.7Mm3 during the first half of the year, but were down one per cent compared to 1H14. Five per cent volume growth was achieved through the second half (909,000m3).

Revenues for the Colombia regional division totalled COP678bn in 2Q15, a rise of 14 perp cent YoY. During the first six month, there was a 13 per cent to COP1.3trn. First half EBITDA fell seven per cent to CoP389bn, but was up nine per cent in the second quarter.

The results also reflect expenses related to the stabilisation and stoppage for the kiln at the company’s Rioclaro plant in Antioquia due to its ongoing expansion, plus 26 days of maintenance undertaken at the dry-process line at Cartegena.

USA
Cement dispatches in the US increased by 12 per cent over the three month period to reach 910,000t. In the ready-mix division, volumes rose one per cent to 1.9Mm3 in 2Q15, and were eight per cent ahead in 1H15 to 3.5Mm3.

Revenues rose 18 per cent in the first half to US$585m while EBITD advanced 89 per cent YoY to US$49m.

Caribbean and Central America
The Caribbean and Central America division sold more than 1.1Mt of cement in 2Q15 (+24 per cent YoY), driven mainly by Honduran operations and the consolidation of Cementos Argos’ most recent acquisition in Puerto Rico.

First-half  cement sales climbed 20 per cent YoY, with volumes sold above 2Mt. Ready-mix concrete volumes fell by 17 per cent in the 2Q15, largely due to a decline in volumes in Panama on the back of delays to ongoing projects and to revisions in infrastructure contracts during the year.

The Caribbean and Central American division registered revenues of US$138m in 2Q15, and of US$273m in the first half of 2015, representing declines of two and one per cent, respectively.