Loma Negra reports surge in net profit for the 3Q20

Argentina’s Loma Negra has seen its net revenue decrease 4.5 per cent YoY to ARS10.756bn (US$143m) in the third quarter of 2020, compared with ARS11.26bn in the year-ago period. However, adjusted EBITDA advanced 11.6 per cent to ARS3.389bn from ARS3.037bn in the 3Q19.

The company’s net profit surged to ARS6.449bn from ARS83m in the corresponding period of 2019.

Sales volumes of cement, masonry and lime in Argentina increased 2.9 per cent to 1.53Mt during the quarter, reflecting a sustained recovery for bagged cement, mostly supported by a stronger household and retail demand. Although, the bulk segment is still heavily impacted by the slow execution of larger private and public construction works, hampered by COVID-19 lockdowns and economic restrictions.

"We feel very satisfied with the robust position with which we concluded this third quarter. We have improved our operational results with a margin expansion, on the back of a continuing sales volume improvement coupled with effective cost and price management," said Sergio Faifman, CEO.

In the first nine months of 2019, revenue fell 22.8 per cent YoY to ARS25.475bn from ARS33.012bn in the 9M19. Despite this, the company’s net profit climbed 112 per cent to ARS7.567bn from ARS3.569bn.