Colombia: Argos 3Q15 profits jump 63% YoY

Colombia: Argos 3Q15 profits jump 63% YoY
Published: 23 November 2015


Cementos Argos has announced a 63 per cent hike in profits for 3Q15. Revenues are up 35 per cent while EBITDA saw a 41 per cent advance. Dispatches were up to a record 3.8Mt, a 15 per cent rise. For the nine-month period ended September, total cement sales reach 10.7Mt, reflecting an increase of 14 per cent when compared with 9M14. Argos concrete sales, which were particularly successful in the US and Colombia, advanced seven per cent to 9Mm3 in the quarter and five per cent in the first nine months.

The company attributes the positive results to market growth as well as the start-up of housing, commercial and infrastructure projects. The recovery in the US and improvements in the Colombian market as well as the company’s drive for operational efficiency have been cited as key reasons.

“Cementos Argos is a company that has based its strategy on geographical diversification, [turning] into a powerful business model and efficient operation of its assets which have been crucial to achieving results. We are optimistic about the performance of our industry towards the end of this year, " said Jorge Mario Velasquez, president of Cementos Argos.

In Colombia the promise of value and proximity to customers have enabled the company to continue growing in the market and increase its dispatch volumes of cement and concrete by 14 and 18 per cent, respectively, compared to the same period last year. From July to September, domestic revenue totalled COP838,000m (27.2m) with the total for the first nine months at COP2.2bn, a 22 per cent increase YoY. EBITDA advanced 25 per cent when compared to the same quarter last year.

Despite the severity of the weather recorded in the United States market during the quarter, recovery remains positive. Argos achieved a cumulative nine-month EBITDA of more than US$86m, up 65 per cent YoY. Some 2.5Mt of cement and 5.6Mm3 of concrete were delivered, representing an improvement of 21 and seven per cent YoY, respectively.

In the Caribbean and Central American region Cementos Argos shipped 3Mt of cement over the nine-month period, an advance of 19 per cent when compared with the same period in 2014. The positive result was mainly driven by the good performance of the Honduran market, infrastructure projects in Panama and the consolidation of the operation in Puerto Rico.