Loma Negra reports 4% revenue growth in 3Q22
Argentina-based Loma Negra has posted a 4.2 per cent YoY rise in revenue to ARS33,942m (US$212m) in the 3Q22. This is mainly attributed to an increase in cement sales along with s strong performance by the company’s concrete and aggregates segments.
Consolidated adjusted EBITDA over the same period fell 12.7 per cent YoY in adjusted pesos to ARS7508m but advanced 33.9 per cent YoY to US$68m in dollars. The consolidated adjusted EBITDA margin contracted from 26.4 per cent to 22.1 per cent. A net loss of ARS12,241m was attributed to the impact of the cancellation of debt in foreign currency with local funding, according to the company.
Commenting on the 3Q22 results, Sergio Faifman, Loma Negra’s chief executive officer, said, “The industry extends the positive trend, showing a high level of activity and heading to close a record year. In fact, the third quarter was the best in history in terms of cement shipments for the industry and for Loma. Our production capacity and our extensive nationwide distribution network allow us to keep up with the growing demand, underpinning our status as leaders in the industry. The recent investments in capacity allow us to go through this moment with solvency and we are prepared to continue meeting future growth in demand. Likewise, we are pleased to present another quarter of solid results, with an EBITDA of US$68m that marks a historical record for Loma, reaching US$35 dollars/t.”
Sales volumes of cement, masonry, and lime during 3Q22 increased by 12.9 per cent to 1.9Mt, mainly driven by the growth in bulk cement. Sales of bagged cement maintain a solid evolution, supported by the robust demand of the retail sector, while bulk cement continues to show strong growth on the back of a higher level of activity in private infrastructure projects, residential and industrial, accompanied by a moderate level of activity in public works, mainly at the municipal and provincial levels.
In terms of volumes in the concrete segment, an increase of 35.6 per cent YoY was seen. The volume of concrete continues with a positive trend, being one of the drivers of growth in bulk cement shipments, according to the company. The concrete segment closed the best quarter of the year driven mainly by demand from the private sector, coupled to a lesser extent by public works.
Aggregates saw a strong increase of 65 per cent YoY, driven mainly by the concrete sector and sustained by the good production and logistics performance, registering in September the best month in its history in terms of volume, exceeding 120,000t.
Cost of sales increased 10.5 per cent YoY, reaching ARS26,714m in the 3Q22, primarily due to higher volumes sold, higher energy costs linked to the winter period, and growing inflationary pressure. Likewise, the increase in depreciation due to the new production line in L'Amalí affected the cost of sales, although these impacts were softened by operating efficiencies, greater availability of natural gas, and greater productive flexibility as a result of the latest investments in capacity.
