Loma Negra sees 2% drop in 2Q revenue but EBITDA up

Argentina-based Loma Negra reported a 2.2 per cent YoY drop in 2Q net revenue to ARS7.47bn (US$165m) while consolidated adjusted EBITDA increased 7.1 per cent YoY to ARS1.929bn, according to Wall Street Online.

The rise in EBITDA was attributed mainly to the cement, masonry and lime segment in Argentina but was also supported by growth across the company’s other key segment. Moreover, it was partially offset by non-recurrent production footprint adequacy cost of around ARS188m, without which the consolidated adjusted EBITDA would have been ARS2.117bn.

The company’s consolidated EBITDA margin advanced 225 basis points YoY from 23.6 to 25.8 per cent (excluding non-recurrent production footprint adequacy costs).

“We are pleased to announce another set of solid results, our business continues to deliver adjusted EBITDA margin expansion based on our constant focus in profitability and cost enhancement initiatives. In this sense, during this quarter we adjusted our production-footprint by reconverting Barker facility to a grinding and distribution centre, this initiative will let us be a more efficient and agile company. Considering the Argentine context, our business continues to deliver both adjusted EBITDA margin expansion and net income growth,” said Sergio Faifman, Loma Negra’s CEO.

“Throughout the second quarter cement demand in Argentina declined, although in a sequential basis it remained flat. Recently, cement demand showed a couple of months with growth in a year on year basis. We are optimistic and expect this trend to continue. Our expansion project in L´Amalí continues as schedule to kick in 2Q20,” he added.