Argos consolidated EBITDA jumps 31% in 1Q18
Argos has announced revenues of COP1.9trn (US$670m) and a net profit of COP54.bn in the first three months of 2018. EBITDA increased 31 per cent YoY to COP371bn.
However, cement sales fell by 4.1 per cent to 3.7Mt while concrete sales volumes fell 7.5 per cent to 2.4Mm3. The lower volumes have been attributed mainly to the winter season that affects some US states to a greater extent as well as a large number of holidays in Colombia and the Caribbean. Demand from the housing segment was also down in Colombia.
“The growth of EBITDA throughout all our regions is proof that the strategy we established is beginning to reap the benefits of the Best efficiency program and to focus our initiatives in continuing to provide the best experiences to our clients. That commitment offers us the privilege of contributing to building dreams of homes and infrastructure in all the territories where we operate”, said Juan Esteban Calle, president of Cementos Argos.
In the US Argos reached revenues of US$337m, which is 6.6 per cent below 1Q17 revenues. EBITDA in this region reached US$32.9m, up 1.6 per cent YoY although cement and concrete sales fell by 6.8 and 4.1 per cent, respectively.
An increase in indicators, such as the beginning of housing construction and the sale of new homes, added to the allocation of US$10.8bn for the execution of a robust infrastructure plan in Florida, predicted a sustained growth in this country.
The Caribbean and Central American regions reported increases of 2.5 per cent in revenues and 3.6 per cent in EBITDA, reaching US$148m and US$50m, respectively. Stable volumes in Honduras and Panama were the main drive of an 11 per cent increase in cement sales, which was also supported by a positive trend in the Dominican Republic and Haiti. Concrete sales were affected to a large extent by non-working days in Panama.
The ambitious infrastructure plans that are moving forward in different countries strengthen Argos’s position in a region with positive prospects.
Colombian revenues of COP520bn were reported, representing a 13.1 per cent contraction when compared with the year-ago period. EBITDA totalled COP173bn, an increase of 110.6 per cent. The latter can be explained mainly through the sale of electrical assets and increased efficiency. Cement sales in the country totalled 1.2Mt, which demonstrates a decrease of 14.1 per cent. Likewise, concrete sales decreased 15.6 per cent totalling 660,000m3.
