Cementos Argos - May 2019

In the 1Q19 Cementos Argos sold 3.8Mt of cement, up 4.7 per cent YoY. Revenue over the same period advanced by 14 per cent to COP21.trn (US$628.5m), while operating EBITDA was up 3.7 per cent to COP311bn. However, energy costs increased by 11 per cent YoY over the quarter, mainly due to higher coal prices in Colombia and increasing electricity tariffs in Puerto Rico.

In the US region Argos’ cement volumes advanced by 13 per cent YoY to 1.4Mt on the back of a double-digit increase in the Deep South District, Florida, Arkansas and the Carolinas due to favourable weather. Revenue was up 10.6 per cent YoY to US$373m and EBITDA advanced by 12.6 per cent to US$37m.

In Colombia Argos sold 1.2Mt of cement in 1Q19, up 3.9 per cent YoY. Revenues advanced by 7.2 per cent to COP557bn, while operating EBITDA fell 10.7 per cent to COP91bn. The cement volume growth was driven by an 11.3 per cent increase in the retail sector and 11.8 per cent growth in dispatches to ready-mixed concrete operations.

In the Caribbean and Central America region, cement volumes fell by 2.7 per cent YoY to 1.2Mt, driven by a decrease in Panama and Haiti, although this was partially offset by improvements in Dominican Republic, Puerto Rico and the eastern Caribbean islands. Revenue declined 3.3 per cent YoY to US$143m, while EBITDA fell 14 per cent YoY to US$43m.