Loma Negra, (NYSE: LOMA) (BYMA: LOMA), (“Loma
Negra” or the “Company”), the leading cement producer in Argentina,
today announced results for the three-month and twelve-month period
ended December 31, 2020 (our “4Q20 and FY20 Results”).
4Q20 Key Highlights
- Net revenue increased by 20.6% YoY to Ps. 13,263 million
(US$160 million), driven by our core cement segment
- Strong increase in our Consolidated Adjusted EBITDA of 40.8%
YoY to Ps. 4,725 million (US$58 million)
- Consolidated Adjusted EBITDA margin expanded by 513 basis
points YoY from 30.5% to 35.6%, explained by higher sales of
cement, masonry, and lime together with strong control over
costs
- Dividend payment of Ps. 2,664 million related to the
extraordinary income from the sale of our stake in Yguazú Cementos
S.A. in Paraguay
- Net profit from continuing operations was Ps. 2,958 million
representing a 136.1% YoY increase
- Net Debt /LTM Adjusted EBITDA ratio of 0.16x from 0.12x in 3Q20
and 0.83x in FY19
FY20 Key Highlights
- Net revenue down 12.8% YoY to Ps. 41,623 million (US$514
million) mainly affected by a lower activity level
- Consolidated Adjusted EBITDA up 2.5% YoY to Ps. 13,277 million
(US$171 million) and EBITDA margin expanding 476 bps up to
31.9%
- During 2020, the sale of our operation in Paraguay represented
an income from discontinued operations of Ps. 5,129 million
- Net profit from continuing operations was Ps. 6,254 million
representing a 39.4% YoY increase
The Company has presented certain financial figures, Table 1b
and Table 11, in U.S. dollars and Pesos without giving effect to
IAS 29. The Company has prepared all other financial information
herein by applying IAS 29.
Commenting on the financial and operating performance for the
fourth quarter of 2020, Sergio Faifman, Loma Negra’s Chief
Executive Officer, noted: “We finished the year in a very good
way, when considering the unprecedented scenario that was presented
since the beginning of the year. At that point in time, the fragile
macroeconomic environment in the country was impacted by the
emergence of the COVID-19 pandemic, making the future uncertain and
blurred. More than ever, it was in that challenging context that we
lean on our competitive strengths.
At the beginning of the crisis, we focused on managing our cash
position and cash generation, and we sought to optimize our
productive structure. As the market began to pull in demand, we
relied on our value chain to speed up sales, especially of bagged
cement. All of this allowed us to expand our profitability, and
enhanced our already solid balance sheet.
Additionally, we accomplished the seamless sale of our
Paraguayan operation, an excellent deal in terms of value
generation and timing, and continue executing our strategic
expansion project in L´Amalí plant.
In the fourth quarter, our cement business continued to drive
our solid results. Bag segment has confirmed the strong recovery,
on the back of household and retail demand. Bulk cement posted a
volume increase, as previous COVID-19 restrictions began to be
lifted.
Looking into 2021, we believe the construction activity will be
one of the key sectors to drive the expected economic turnaround.
We remain focused on balancing growth and profitability.
We must feel proud of the results obtained in 2020, especially
during this unprecedented times, which reflect the responsibility
and values of our people, and stakeholders. Let´s keep moving
forward together!”
Table 1: Financial
Highlights
(amounts expressed in millions of
pesos, unless otherwise noted)
Three-months ended December
31,
Twelve-months ended December
31,
2020
2019
% Chg.
2020
2019
% Chg.
Net revenue
13,263
11,002
20.6
%
41,623
47,753
-12.8
%
Gross Profit
4,795
3,282
46.1
%
12,597
13,047
-3.4
%
Gross Profit margin
36.2
%
29.8
%
+632 bps
30.3
%
27.3
%
+294 bps
Adjusted EBITDA
4,725
3,355
40.8
%
13,277
12,958
2.5
%
Adjusted EBITDA Mg.
35.6
%
30.5
%
+513 bps
31.9
%
27.1
%
+476 bps
Net Profit
2,958
1,532
93.0
%
11,382
5,505
106.8
%
Net Profit attributable to owners
of the Company
3,006
1,429
110.3
%
11,351
5,227
117.2
%
EPS
5.0429
2.3976
110.3
%
19.0445
8.7692
117.2
%
Shares outstanding at eop
596
596
0.0
%
596
596
0.0
%
Net Debt
2,065
10,762
-80.8
%
2,065
10,762
-80.8
%
Net Debt /LTM Adjusted EBITDA
0.16x
0.83x
-0.67x
0.16x
0.83x
-0.67x
Table 1b: Financial Highlights
in Ps and in U.S. dollars (figures exclude the impact of IAS
29)
In million Ps.
Three-months ended December
31,
Twelve-months ended December
31,
2020
2019
% Chg.
2020
2019
% Chg.
Net revenue
12,782
7,757
64.8
%
36,259
28,638
26.6
%
Adjusted EBITDA
4,651
2,501
86.0
%
12,096
8,211
47.3
%
Adjusted EBITDA Mg.
36.4
%
32.2
%
+415 bps
33.4
%
28.7
%
+469 bps
Net Profit
3,694
972
279.9
%
12,733
2,378
435.5
%
Net Debt
2,065
10,762
-80.8
%
2,065
10,762
-80.8
%
Net Debt /LTM Adjusted EBITDA
0.16x
0.83x
-0.67x
0.16x
0.83x
-0.67x
In million US$
Three-months ended
December31,
Twelve-months ended
December31,
2020
2019
%Chg.
2020
2019
%Chg.
Ps./US$, av
79.92
57.24
39.6
%
70.59
47.72
47.9
%
Ps./US$, eop
84.15
60.22
39.7
%
84.15
60.22
39.7
%
Net revenue
160
136
18.0
%
514
600
-14.4
%
Adjusted EBITDA
58
44
33.2
%
171
172
-0.4
%
Adjusted EBITDA Mg.
36.4
%
32.2
%
+415 bps
33.4
%
28.7
%
+469 bps
Net Profit
46
17
172.1
%
180
50
262.0
%
Net Debt
25
179
-86.3
%
25
179
-86.3
%
Net Debt /LTM Adjusted EBITDA
0.16x
0.83x
-0.67x
0.16x
0.83x
-0.67x
Overview of Operations
Sales Volumes
Table 2: Sales
Volumes2
Three-months ended December
31,
Twelve-months ended December
31,
2020
2019
% Chg.
2020
2019
% Chg.
Cement, masonry & lime
MM Tn
1.62
1.28
26.9
%
5.16
5.47
-5.6
%
Concrete
MM m3
0.15
0.13
12.8
%
0.30
0.80
-62.5
%
Railroad
MM Tn
1.17
1.12
4.5
%
3.79
4.47
-15.2
%
Aggregates
MM Tn
0.22
0.25
-9.5
%
0.57
1.09
-47.8
%
2 Sales volumes include
inter-segment sales
Sales volumes of cement, masonry, and lime in Argentina during
4Q20 increased 26.9% to 1.62 million tons as the strong household
and retail demand continues to drive the robust bagged cement
sales. Bulk cement posted a volume increase of approximately 7%
YoY, as previous COVID-19 restrictions in private works began to be
lifted.
Likewise, Concrete segment was also positively impacted by some
specific infrastructure projects, with sales volumes increasing
12.8% YoY, the first positive figure since the 1Q19.
Railroad segment volumes experienced a 4.5% increase versus the
comparable quarter in 2019, with a positive effect of the recovery
in building materials transported volumes, and negatively affected
by frac-sand volumes which are still affected by lower demand from
Vaca Muerta.
Aggregates during the quarter declined by 9.5% YoY impacted by
low execution of private and public projects.
For FY20, our core segment, Cement, masonry, and lime reported a
5.6% YoY decline in sales volumes, mostly explained by the impact
of the strict lockdown in 2Q20, and the slow recovery path in bulk
cement, and very much supported by a very robust come-back in
bagged cement, as household and retail demand remained very
strong.
Concrete and Aggregates segments, declined by 62.5% and 47.8%
YoY, respectively. They were much heavily affected than our core
business, as the lock-down and economic uncertainty impacted
directly in the execution of major private and public projects.
Railroad segment volumes fell 15.2% in 2020 principally
reflecting the overall economic contraction, particularly hit by
lower building materials and frac-sand volumes, and partially
offset by other transported products.
Review of Financial Results
Table 3: Condensed Interim
Consolidated Statements of Profit or Loss and Other Comprehensive
Income
(amounts expressed in millions of
pesos, unless otherwise noted)
Three-months ended December
31,
Twelve-months ended December
31,
2020
2019
% Chg.
2020
2019
% Chg.
Net revenue
13,263
11,002
20.6
%
41,623
47,753
-12.8
%
Cost of sales
(8,468
)
(7,720
)
9.7
%
(29,026
)
(34,706
)
-16.4
%
Gross Profit
4,795
3,282
46.1
%
12,597
13,047
-3.4
%
Share of loss of associates
-
-
n/a
(404
)
-
n/a
Selling and administrative
expenses
(1,044
)
(992
)
5.2
%
(3,455
)
(3,805
)
-9.2
%
Other gains and losses
83
42
96.4
%
147
61
140.4
%
Impairment of property, plant and
equipment
-
-
n/a
(947
)
-
n/a
Tax on debits and credits to bank
accounts
(130
)
(136
)
-4.4
%
(489
)
(550
)
-11.0
%
Finance gain (cost),
net
Gain on net monetary position
483
120
300.7
%
839
1,518
-44.7
%
Exchange rate differences
270
480
-43.8
%
1,655
(1,625
)
n/a
Financial income
351
-
n/a
82
82
-0.7
%
Financial expense
(484
)
(789
)
-38.6
%
(1,508
)
(2,043
)
-26.2
%
Profit before taxes
4,324
2,007
115.4
%
8,517
6,685
27.4
%
Income tax expense
Current
(1,079
)
(472
)
128.6
%
(2,387
)
(1,424
)
67.6
%
Deferred
(287
)
(283
)
1.5
%
124
(776
)
n/a
Net profit from continuing
operations
2,958
1,253
136.1
%
6,254
4,485
39.4
%
Income from discontinued
operations
-
280
n/a
5,129
1,020
402.7
%
Net profit
2,958
1,532
93.0
%
11,382
5,505
106.8
%
Net Revenues
Net revenue increased 20.6% to Ps. 13,263 million in
4Q20, from Ps. 11,002 million in the comparable quarter last year,
reflecting the solid momentum in our core cement business which was
up 26.9%, on the back of a similar volumes’ expansion of 26.9%.
Railroad revenues decreased 19.1% in 4Q20 versus the same
quarter in 2019, as the higher transported volumes were more than
offset by lower pricing mix.
Concrete revenues declined by 17.0% when compared to the 4Q in
the year ago period, as softer pricing affected the higher sales
volumes. Aggregates decreased by 4.7%, as pricing performance
partially compensated the 9.5% volume decline.
For FY20, net revenues decreased 12.8% to Ps. 41,623 million
from Ps. 47,753 in the FY19, with revenues declines across all
segments. Our core cement business suffer a softer annual decline
of 4.7%.
Cost of sales, and Gross profit
Cost of sales increased 9.7% YoY reaching Ps. 8,468
million in 4Q20 mainly as a result of the higher volume sold but
contained by higher efficiencies and lower unitary energy costs
measured in US dollars and partially offset by higher labor
costs.
Gross profit increased 46.1% YoY to Ps. 4,795 million in
4Q20 from Ps. 3,282 million in 4Q19, with gross profit margin
expanding 632 basis points YoY to 36.2%, reflecting the recovery in
cement sales volumes coupled with good cost performance.
During FY20, gross profit decreased 3.4% to Ps. 12,597 million
with gross profit margin expanding 294 basis points to 30.3%.
Selling and Administrative Expenses
Selling and administrative expenses (SG&A) in 4Q20
increased 5.2% YoY to Ps. 1,044 million, from Ps. 992 million in
4Q19, mainly as a consequence of higher cement sales. As a
percentage of revenues, SG&A decreased 115 basis points to 7.9%
in 4Q20, from 9.0% in 4Q19 mostly explained by higher sales
volumes.
During FY20, SG&A fell by 9.2% from the previous year
levels, and as a percentage of sales stood at 8.3%, 33 bps higher
than FY19.
Adjusted EBITDA & Margin
Table 4: Adjusted EBITDA
Reconciliation & Margin
(amounts expressed in millions of
pesos, unless otherwise noted)
Three-months ended December
31,
Twelve-months ended December
31,
2020
2019
% Chg.
2020
2019
% Chg.
Adjusted EBITDA
reconciliation:
Net profit
2,958
1,532
93.0
%
11,382
5,505
106.8
%
(+) Depreciation and
amortization
891
1,023
-12.9
%
3,988
3,655
9.1
%
(+) Tax on debits and credits to
bank accounts
130
136
-4.4
%
489
550
-11.0
%
(+) Income tax expense
1,366
755
81.0
%
2,264
2,200
2.9
%
(+) Financial interest, net
(36
)
582
n/a
859
1,563
-45.0
%
(+) Exchange rate differences,
net
(270
)
(480
)
-43.8
%
(1,655
)
1,625
n/a
(+) Other financial expenses,
net
169
207
-18.5
%
567
397
42.7
%
(+) Gain on net monetary
position
(483
)
(120
)
300.7
%
(839
)
(1,518
)
-44.7
%
(+) Share of loss of
associates
-
-
n/a
404
-
n/a
(+) Impairment of property, plant
and equipment
-
-
n/a
947
-
n/a
(-) Income from discontinued
operations
-
280
n/a
5,129
1,020
402.7
%
Adjusted EBITDA
4,725
3,355
40.8
%
13,277
12,958
2.5
%
Adjusted EBITDA Margin
35.6
%
30.5
%
+513 bps
31.9
%
27.1
%
+476 bps
Adjusted EBITDA increased 40.8% YoY in the fourth quarter
of 2020 to Ps. 4,725 million, mostly explained by bagged cement.
Likewise, Adjusted EBITDA margin expanded by 513 basis points to
35.6% compared to 30.5% in 4Q19 on the back of cement margins
expansion.
In particular, Cement, masonry cement and lime segment Adjusted
EBITDA margin expanded by 604 bps to 40.4%, mainly due to the
increase in sales volume and the improved energy inputs.
Railroad Adjusted EBITDA margin deteriorated to -0.6%, mainly
impacted by pricing mix, and partially offset by higher transported
volume.
Concrete Adjusted EBITDA declined compared to 4Q19, with margin
worsening to -19.2%,as softer pricing and higher costs outweighed
the increase in sales volumes.
Finally, Aggregates Adjusted EBITDA margin decreased to -9.0%
from -4.6%, with better pricing being outweighed by lower sales
volume and higher costs.
During FY20, Adjusted EBITDA increased 2.5% reaching Ps. 13,277
million from Ps. 12,958 million in FY19, with an Adjusted EBITDA
margin expansion of 476 basis points, from 27.1% in 2019 to 31.9%
in 2020.
Finance Costs-Net
Table 5: Finance Gain (Cost),
net
(amounts expressed in millions of
pesos, unless otherwise noted)
Three-months ended December
31,
Twelve-months ended December
31,
2020
2019
% Chg.
2020
2019
% Chg.
Exchange rate differences
270
480
-43.8
%
1,655
(1,625
)
n/a
Financial income
351
-
n/a
82
82
-0.7
%
Financial expense
(484
)
(789
)
-38.6
%
(1,508
)
(2,043
)
-26.2
%
Gain on net monetary position
483
120
300.7
%
839
1,518
-44.7
%
Total Finance Gain (Cost),
Net
619
(189
)
n/a
1,068
(2,068
)
n/a
During 4Q20, the Company reported a total finance gain, net of
Ps. 619 million compared to a total finance cost, net of Ps. 189
million in 4Q19, mainly due to lower Net Financial expenses, net
which decreased by Ps. 656 million to negative Ps. 133 million
resulting from a lower financial debt position.
During FY20, total finance gain, net was Ps. 1,068 million
compared to a total finance cost, net of Ps. 2,068 million in FY19,
mainly as a result of a foreign exchange gain, a lower Financial
expenses due to a lower debt position, and partially compensated by
a lower gain on net monetary position.
Net Profit and Net Profit Attributable to Owners of the
Company
Net Profit for 4Q20 increased by Ps. 1,425 million to Ps.
2,958 million, mostly explained by a higher gross profit, which was
further enhanced by a higher finance gain, net.
During FY20, Net Profit stood at Ps. 11,382 million, increasing
106.8% YoY, mostly explained by Ps. 5,129 million of income from
discontinued operations in Paraguay, reflecting the sale of our
stake in Yguazú Cementos S.A., and by the total finance gain, net
of Ps. 1,068 million. Net profit from continuing operations
increased by 39.4%.
Net Profit Attributable to Owners of the Company
increased by Ps. 1,577 million YoY, to Ps. 3,006 million in 4Q20.
During the quarter, the Company reported earnings per common share
of Ps. 5.0429 and earnings per ADR of Ps. 25.2144, compared with
earnings per common share of Ps. 2.3976 and earnings per ADR of Ps.
11.9878 in 4Q19.
During FY20, Net Profit attributable to owners of the Company
increased 117.2% YoY, to Ps. 11,351 million, from Ps. 5,227 million
in FY19, mostly as a consequence of the sale of our stake in Yguazú
Cementos S.A., and further improved by a total finance gain during
the period.
Capitalization
Table 6: Capitalization and
Debt Ratio
(amounts expressed in millions of
pesos, unless otherwise noted)
As of December 31,
2020
2019
Total Debt
6,441
12,538
- Short-Term Debt
4,571
6,971
- Long-Term Debt
1,870
5,567
Cash and Cash Equivalents
4,376
1,776
Total Net Debt
2,065
10,762
Shareholders' Equity
45,391
39,927
Capitalization
51,831
52,465
LTM Adjusted EBITDA
13,277
12,958
Net Debt /LTM Adjusted EBITDA
0.16x
0.83x
As of December 31, 2020, total cash and cash equivalents were
Ps. 4,376 million compared with Ps. 1,776 million as of the
December 31, 2019. Total debt at the close of the quarter stood at
Ps. 6,441 million, composed by Ps. 4,571 million in short-term
borrowings, including the current portion of long-term borrowings
(or 71.0% of total borrowings), and Ps. 1,870 million in long-term
borrowings (or 29.0% of total borrowings).
As of December 31, 2020, 81.8% (or Ps. 5,268 million) Loma
Negra’s total debt was denominated in U.S. dollars, 17.7% (or Ps.
1,141 million) in Euros, and 0.5% (or Ps. 32 million) in argentine
pesos. The average duration of Loma Negra’s total debt was 0.8
years.
As of December 31, 2020, Ps. 5,268 million, or 81.8%, of the
Company’s total consolidated borrowings bore interest at rates
based on Libor, and Ps. 1,141 million of borrowings bore interest
at a fixed rate.
The Net Debt to Adjusted EBITDA (LTM) ratio decreased to 0.16x
as of December 31, 2020 from 0.83x as of December 31,2019 as the
cashflow from operating activities and the proceeds from the sale
our stake in Yguazú Cementos S.A. outweighed the cash used in our
expansion project and the dividend paid out in October.
Cash Flows
Table 7: Condensed Interim
Consolidated Statement of Cash Flows
(amounts expressed in millions of
pesos, unless otherwise noted)
Three-months ended December
31,
Twelve-months ended December
31,
2020
2019
2020
2019
CASH FLOWS FROM OPERATING
ACTIVITIES
Net profit (loss) from
continuing operations
2,958
1,253
6,254
4,485
Income from discontinued
operations
-
280
5,129
1,020
Net profit
2,958
1,532
11,382
5,505
Adjustments to reconcile net
profit to net cash provided by operating activities
2,212
202
943
5,833
Changes in operating assets and
liabilities
(1,165
)
876
(937
)
(2,012
)
Net cash generated by / used in
by operating activities
4,005
2,611
11,388
9,326
CASH FLOWS FROM INVESTING
ACTIVITIES
Proceeds from disposal of Yguazú
Cementos S.A.
-
-
8,344
-
Property, plant and equipment,
Intangible Assets, net
(1,706
)
(3,161
)
(9,686
)
(15,933
)
Contributions to Trust
(32
)
28
(88
)
(40
)
Net cash generated by / used in
investing activities
(1,739
)
(3,133
)
(1,429
)
(15,973
)
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds / Repayments from
borrowings, Interest paid
(517
)
1,066
(7,840
)
3,498
Dividends paid
(2,664
)
-
(2,664
)
-
Net cash generated by / used in
by financing activities
(3,180
)
1,066
(10,503
)
3,498
Net increase (decrease) in
cash and cash equivalents
(914
)
544
(545
)
(3,149
)
Cash and cash equivalents at the
beginning of the year
5,179
925
1,776
4,882
Effect of the re-expression in
homogeneous cash currency ("Inflation-Adjusted")
(46
)
(54
)
(157
)
(221
)
Effects of the exchange rate
differences on cash and cash equivalents in foreign currency
157
361
3,302
263
Cash and cash equivalents at
the end of the period
4,376
1,776
4,376
1,776
In the 4Q20, our cash flow generated by operating activities was
Ps. 4,005 million compared to Ps. 2,611 million in 4Q19 as higher
Adjusted EBITDA growth more than offset the working capital needs.
During 4Q20, the Company made capital expenditures for a total of
Ps. 1,706 million, mostly allocated to the expansion of production
capacity of L’Amalí plant.
During FY20, the Company made capital expenditures for a total
of Ps. 9,686 million, of which 83% was allocated to the expansion
of production capacity of L’Amalí plant. In the FY20, cash flow
generated by operating activities was Ps. 11,388 million compared
to Ps. 9,326 million in FY19 explained mainly by a higher
profitability level and lower working capital needs.
Expansion of L’Amalí Plant.
Loma Negra is moving ahead with the capital expenditure at its
L’Amalí plant, which will add 2.7 million tons annually and drive
higher profitability. This expansion involves a total capital
expenditure, originally estimated at approximately US$350
million.
As of the end of 2020, the project presents an overall Progress
of 96%. All detailed engineering is completed, all equipment and
materials supplies has been delivered to site. While commissioning
and start-up has been completed at crushing department and new
primary crusher is fully operational, commissioning and start-up at
raw mill department and clinker line are in progress.
Construction works executed 95% progress, has been slow down due
to COVID-19 crisis, the works in progress are electromechanical
erection works at clinker line, cement mill and dispatch areas.
Inauguration date is expected to be by mid-2021.
Share Repurchase Plan.
On February 12, 2021, the Company announced the approval of a
share repurchase plan, in accordance with Section 64 of Law No.
26.831 (“LMC”) and the CNV Regulations. The purpose is to
efficiently apply a portion of the Company´s cash position which
may result in a greater return of value for its shareholders
considering the current attractive value of the share, with the
additional possibility of allocating part of the acquired shares to
implement specific compensation programs or plans.
The plan became effective as from February 18, 2021, the amount
to invest will be up to AR$ 750.000.000 (Argentine Pesos Seven
Hundred Fifty Million) or such lower amount that derives from the
repurchase of up to 10% of Company’s capital stock. The maximum
amount of shares or maximum percentage of the Company’s capital
stock to be repurchased shall never surpass the limit of 10% of the
capital stock in accordance with Section 64 of LMC.
The source of funding shall be carried out with realized and
liquid earnings as per the Financial Statements as of September 30,
2020 which were approved by Board’s Resolution of November 10,
2020. The Company has the liquidity needed to carry out the
aforementioned acquisitions without affecting its solvency. The
Company will carry out the share repurchase for a 90 (ninety) day
period which will be counted since February 18, and will be subject
to any period renewal or extension approved by the Board of
Directors, which will be duly informed.
4Q20 Earnings Conference Call
When: 10:00 a.m. U.S. ET (12:00 a.m. BAT), March 11, 2021
Dial-in: 0800-444-2930 (Argentina), 1-833-255-2824 (U.S.),
1-866-605-3852 (Canada), 1-412-902-6701 (International)
Password: Loma Negra Earnings Call Webcast:
https://services.choruscall.com/links/loma210311nyV2G3X1.html
Replay: A telephone replay of the conference call will be
available between March 11, 2021 at 1:00 pm U.S. E.T. and ending on
March 17, 2021. The replay can be accessed by dialing
1-877-344-7529 (U.S. toll free), or 1-412-317-0088 (International).
The passcode for the replay is 10152387. The audio of the
conference call will also be archived on the Company’s website at
www.lomanegra.com
Definitions
Adjusted EBITDA is calculated as net profit plus
financial interest, net plus income tax expense plus depreciation
and amortization plus exchange rate differences plus other
financial expenses, net plus tax on debits and credits to bank
accounts, plus share of loss of associates, plus net Impairment of
Property, plant and equipment, and less income from discontinued
operation. Loma Negra believes that excluding tax on debits and
credits to bank accounts from its calculation of Adjusted EBITDA is
a better measure of operating performance when compared to other
international players.
Net Debt is calculated as borrowings less cash and cash
equivalents.
About Loma Negra
Founded in 1926, Loma Negra is the leading cement company in
Argentina, producing and distributing cement, masonry cement,
aggregates, concrete and lime, products primarily used in private
and public construction. Loma Negra is a vertically-integrated
cement and concrete company, with nationwide operations, supported
by vast limestone reserves, strategically located plants,
top-of-mind brands and established distribution channels. Loma
Negra is listed both on BYMA and on NYSE in the U.S., where it
trades under the symbol “LOMA”. One ADS represents five (5) common
shares. For more information, visit www.lomanegra.com.
Note
The Company presented some figures converted from Pesos to U.S.
dollars for comparison purposes. The exchange rate used to convert
Pesos to U.S. dollars was the reference exchange rate
(Communication “A” 3500) reported by the Central Bank for U.S.
dollars. The information presented in U.S. dollars is for the
convenience of the reader only. Certain figures included in this
report have been subject to rounding adjustments. Accordingly,
figures shown as totals in certain tables may not be arithmetic
aggregations of the figures presented in previous quarters.
Rounding: We have made rounding adjustments to reach some of the
figures included in this annual report. As a result, numerical
figures shown as totals in some tables may not be an arithmetic
aggregation of the figures that preceded them.
Disclaimer
This release contains
forward-looking statements within the meaning of federal securities
law that are subject to risks and uncertainties. These statements
are only predictions based upon our current expectations and
projections about possible or assumed future results of our
business, financial condition, results of operations, liquidity,
plans and objectives. In some cases, you can identify
forward-looking statements by terminology such as “believe,” “may,”
“estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,”
“expect,” “predict,” “potential,” “seek,” “forecast,” or the
negative of these terms or other similar expressions. The
forward-looking statements are based on the information currently
available to us. There are important factors that could cause our
actual results, level of activity, performance or achievements to
differ materially from the results, level of activity, performance
or achievements expressed or implied by the forward-looking
statements, including, among others things: changes in general
economic, political, governmental and business conditions globally
and in Argentina, changes in inflation rates, fluctuations in the
exchange rate of the peso, the level of construction generally,
changes in cement demand and prices, changes in raw material and
energy prices, changes in business strategy and various other
factors. You should not rely upon forward-looking statements as
predictions of future events. Although we believe in good faith
that the expectations reflected in the forward-looking statements
are reasonable, we cannot guarantee that future results, levels of
activity, performance and events and circumstances reflected in the
forward-looking statements will be achieved or will occur. Any or
all of Loma Negra’s forward-looking statements in this release may
turn out to be wrong. You should consider these forward-looking
statements in light of other factors discussed under the heading
“Risk Factors” in the prospectus filed with the Securities and
Exchange Commission on October 31, 2017 in connection with Loma
Negra’s initial public offering. Therefore, readers are cautioned
not to place undue reliance on these forward-looking statements.
Except as required by law, we undertake no obligation to update
publicly any forward-looking statements for any reason after the
date of this release to conform these statements to actual results
or to changes in our expectations.
Table 8: Condensed Interim
Consolidated Statements of Financial Position
(amounts expressed in millions of
pesos, unless otherwise noted)
As of December 31,
2020
2019
ASSETS
Non-current assets
Property, plant and equipment
53,557
53,775
Right to use assets
447
555
Intangible assets
192
171
Investments
3
6,021
Goodwill
35
35
Inventories
2,156
2,038
Other receivables
481
765
Total non-current
assets
56,872
63,361
Current assets
Inventories
5,492
6,593
Other receivables
1,217
765
Trade accounts receivable
2,989
3,232
Investments
4,109
1,388
Cash and banks
267
387
Total current assets
14,074
12,365
TOTAL ASSETS
70,946
75,726
SHAREHOLDERS' EQUITY
Capital stock and other capital
related accounts
15,049
15,049
Reserves
18,719
16,165
Retained earnings
11,351
5,227
Accumulated other comprehensive
income
-
450
Equity attributable to the owners
of the Company
45,119
36,890
Non-controlling interests
271
3,037
TOTAL SHAREHOLDERS'
EQUITY
45,391
39,927
LIABILITIES
Non-current
liabilities
Borrowings
1,870
5,567
Accounts payables
102
190
Provisions
487
759
Salaries and social security
payables
38
-
Debts for leases
390
463
Other liabilities
112
70
Deferred tax liabilities
7,276
7,400
Total non-current
liabilities
10,276
14,448
Current liabilities
Borrowings
4,571
6,971
Accounts payable
5,393
11,891
Advances from customers
732
260
Salaries and social security
payables
1,422
1,278
Tax liabilities
2,884
699
Debts for leases
140
139
Other liabilities
137
113
Total current
liabilities
15,279
21,351
TOTAL LIABILITIES
25,555
35,799
TOTAL SHAREHOLDERS' EQUITY AND
LIABILITIES
70,946
75,726
Table 9: Condensed Interim
Consolidated Statements of Profit or Loss and Other Comprehensive
Income (unaudited)
(amounts expressed in millions of
pesos, unless otherwise noted)
Three-months ended December
31,
Twelve-months ended December
31,
2020
2019
% Change
2020
2019
% Change
Net revenue
13,263
11,002
20.6
%
41,623
47,753
-12.8
%
Cost of sales
(8,468
)
(7,720
)
9.7
%
(29,026
)
(34,706
)
-16.4
%
Gross profit
4,795
3,282
46.1
%
12,597
13,047
-3.4
%
Share of loss of associates
-
-
n/a
(404
)
-
n/a
Selling and administrative
expenses
(1,044
)
(992
)
5.2
%
(3,455
)
(3,805
)
-9.2
%
Other gains and losses
83
42
96.4
%
147
61
140.4
%
Impairment of property, plant and
equipment
-
-
n/a
(947
)
-
n/a
Tax on debits and credits to bank
accounts
(130
)
(136
)
-4.4
%
(489
)
(550
)
-11.0
%
Finance gain (cost),
net
Gain on net monetary position
483
120
300.7
%
839
1,518
-44.7
%
Exchange rate differences
270
480
-43.8
%
1,655
(1,625
)
n/a
Financial income
351
-
n/a
82
82
-0.7
%
Financial expenses
(484
)
(789
)
-38.6
%
(1,508
)
(2,043
)
-26.2
%
Profit before taxes
4,324
2,007
115.4
%
8,517
6,685
27.4
%
Income tax expense
Current
(1,079
)
(472
)
128.6
%
(2,387
)
(1,424
)
67.6
%
Deferred
(287
)
(283
)
1.5
%
124
(776
)
n/a
Net profit from continuing
operations
2,958
1,253
136.1
%
6,254
4,485
39.4
%
Income from discontinued
operations
-
280
n/a
5,129
1,020
402.7
%
Net profit
2,958
1,532
93.0
%
11,382
5,505
106.8
%
Other Comprehensive
Income
Items to be reclassified through
profit and loss:
Exchange differences on
translating foreign operations
-
(512
)
n/a
(286
)
(246
)
16.6
%
Total other comprehensive
(loss)
-
(512
)
n/a
(286
)
(246
)
16.6
%
TOTAL COMPREHENSIVE
INCOME
2,958
1,020
189.9
%
11,096
5,260
111.0
%
Net Profit (loss) for the
period attributable to:
Owners of the Company
3,006
1,429
110.3
%
11,351
5,227
117.2
%
Non-controlling interests
(48
)
103
n/a
31
279
-88.8
%
NET PROFIT FOR THE
PERIOD
2,958
1,532
93.0
%
11,382
5,505
106.8
%
Total comprehensive (loss)
income attributable to:
Owners of the Company
3,006
1,168
157.4
%
11,205
5,101
119.6
%
Non-controlling interests
(48
)
(148
)
-67.5
%
(109
)
158
n/a
TOTAL COMPREHENSIVE
INCOME
2,958
1,020
189.9
%
11,096
5,260
111.0
%
Earnings per share (basic and
diluted):
5.0429
2.3976
100.3
%
19.0445
8.7692
117.2
%
Table 10: Condensed Interim
Consolidated Statement of Cash Flows
(amounts expressed in millions of
pesos, unless otherwise noted)
Three-months ended December
31,
Twelve-months ended December
31,
2020
2019
2020
2019
CASH FLOWS FROM OPERATING
ACTIVITIES
Net profit from continuing
operations
2,958
1,253
6,254
4,485
Income from discontinued
operations
-
280
5,129
1,020
Net profit
2,958
1,532
11,382
5,505
Adjustments to reconcile net
profit to net cash provided by operating activities
Income tax expense
1,366
776
3,781
2,296
Depreciation and amortization
891
1,023
3,988
3,655
Provisions
(51
)
(57
)
(93
)
68
Interest expense
146
428
1,187
1,349
Exchange rate differences
(174
)
(1,677
)
(2,821
)
(415
)
Share of loss of associates
-
-
404
-
Gain on disposal of property,
plant and equipment
(3
)
9
41
(5
)
Gain on disposal of shareholding
of Yguazú Cementos S.A.
-
(301
)
(6,646
)
(1,116
)
Impairment of property, plant and
equipment
-
-
947
-
Depreciation value of trust
37
-
157
-
Changes in operating assets and
liabilities
Inventories
35
316
789
88
Other receivables
7
784
92
603
Trade accounts receivable
(289
)
(35
)
(541
)
(906
)
Advances from customers
145
12
526
(36
)
Accounts payable
(925
)
332
(249
)
1,372
Salaries and social security
payables
508
246
515
482
Provisions
(7
)
(64
)
(48
)
(148
)
Tax liabilities
15
(25
)
(100
)
343
Other liabilities
182
(6
)
156
86
Gain on net monetary position
(483
)
(120
)
(839
)
(1,518
)
Income tax paid
(354
)
(563
)
(1,237
)
(2,378
)
Net cash generated by / used in
by operating activities
4,005
2,611
11,388
9,326
CASH FLOWS FROM INVESTING
ACTIVITIES
Proceeds from disposal of Yguazú
Cementos S.A.
-
-
8,344
-
Proceeds from disposal of
Property, plant and equipment
0
40
40
89
Payments to acquire Property,
plant and equipment
(1,625
)
(3,166
)
(9,639
)
(15,946
)
Payments to acquire Intangible
Assets
(82
)
(36
)
(87
)
(76
)
Contributions to Trust
(32
)
28
(88
)
(40
)
Net cash generated by / used in
investing activities
(1,739
)
(3,133
)
(1,429
)
(15,973
)
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from borrowings
46
3,924
12,692
12,928
Interest paid
(80
)
(756
)
(2,909
)
(2,638
)
Debts for leases
(38
)
(39
)
(147
)
(137
)
Repayment of borrowings
(445
)
(2,064
)
(17,476
)
(6,654
)
Dividends paid
(2,664
)
-
(2,664
)
-
Net cash generated by / used in
by financing activities
(3,180
)
1,066
(10,503
)
3,498
Net increase (decrease) in cash
and cash equivalents
(914
)
544
(545
)
(3,149
)
Cash and cash equivalents at the
beginning of the period
5,179
925
1,776
4,882
Effect of the re-expression in
homogeneous cash currency ("Inflation-Adjusted")
(46
)
(54
)
(157
)
(221
)
Effects of the exchange rate
differences on cash and cash equivalents in foreign currency
157
361
3,302
263
Cash and cash equivalents at
the end of the period
4,376
1,776
4,376
1,776
Table 11: Financial Data by
Segment (figures exclude the impact of IAS 29)
(amounts expressed in millions of
pesos, unless otherwise noted)
Three-months ended December
31,
Twelve-months ended December
31,
2020
%
2019
%
2020
%
2019
%
Net revenue
12,782
100.0
%
7,757
100.0
%
36,259
100.0
%
28,638
100.0
%
Cement, masonry cement and
lime
11,695
91.5
%
6,744
86.9
%
33,128
91.4
%
24,007
83.8
%
Concrete
883
6.9
%
767
9.9
%
1,799
5.0
%
3,954
13.8
%
Railroad
922
7.2
%
834
10.8
%
3,089
8.5
%
2,982
10.4
%
Aggregates
155
1.2
%
119
1.5
%
357
1.0
%
498
1.7
%
Others
59
0.5
%
47
0.6
%
174
0.5
%
157
0.5
%
Eliminations
(931
)
-7.3
%
(754
)
-9.7
%
(2,287
)
-6.3
%
(2,960
)
-10.3
%
Cost of sales
7,589
100.0
%
4,931
100.0
%
22,782
100.0
%
19,291
100.0
%
Cement, masonry cement and
lime
6,362
83.8
%
4,001
81.1
%
19,192
84.2
%
15,250
79.1
%
Concrete
1,032
13.6
%
782
15.9
%
2,292
10.1
%
3,761
19.5
%
Railroad
930
12.3
%
741
15.0
%
3,031
13.3
%
2,610
13.5
%
Aggregates
161
2.1
%
130
2.6
%
439
1.9
%
526
2.7
%
Others
36
0.5
%
31
0.6
%
115
0.5
%
103
0.5
%
Eliminations
(931
)
-12.3
%
(754
)
-15.3
%
(2,287
)
-10.0
%
(2,960
)
-15.3
%
Selling, admin. expenses and
other gains & losses
874
100.0
%
580
100.0
%
2,649
100.0
%
2,123
100.0
%
Cement, masonry cement and
lime
774
88.5
%
501
86.4
%
2,380
89.9
%
1,771
83.4
%
Concrete
30
3.4
%
29
5.0
%
30
1.2
%
120
5.6
%
Railroad
48
5.5
%
42
7.3
%
169
6.4
%
182
8.6
%
Aggregates
1
0.1
%
(11
)
-1.9
%
(1
)
0.0
%
(8
)
-0.4
%
Others
21
2.3
%
19
3.3
%
71
2.7
%
59
2.8
%
Depreciation and
amortization
333
100.0
%
255
100.0
%
1,267
100.0
%
986
100.0
%
Cement, masonry cement and
lime
232
69.7
%
184
72.0
%
802
63.3
%
722
73.2
%
Concrete
21
6.3
%
17
6.6
%
189
14.9
%
62
6.3
%
Railroad
72
21.8
%
52
20.3
%
250
19.7
%
183
18.6
%
Aggregates
6
1.9
%
5
1.9
%
23
1.8
%
19
1.9
%
Others
1
0.3
%
(2
)
-0.9
%
4
0.3
%
0
0.0
%
Adjusted EBITDA
4,651
100.0
%
2,501
100.0
%
12,096
100.0
%
8,211
100.0
%
Cement, masonry cement and
lime
4,791
103.0
%
2,425
97.0
%
12,357
102.2
%
7,708
93.9
%
Concrete
(158
)
-3.4
%
(27
)
-1.1
%
(334
)
-2.8
%
135
1.6
%
Railroad
16
0.3
%
103
4.1
%
139
1.2
%
373
4.5
%
Aggregates
(1
)
0.0
%
5
0.2
%
(59
)
-0.5
%
(1
)
0.0
%
Others
4
0.1
%
(5
)
-0.2
%
(7
)
-0.1
%
(4
)
-0.1
%
Reconciling items:
Effect by translation in homogeneous cash
currency ("Inflation-Adjusted")
74
855
1,181
4,747
Depreciation and amortization
(891
)
(1,023
)
(3,988
)
(3,655
)
Tax on debits and credits banks
accounts
(130
)
(136
)
(489
)
(550
)
Finance gain (cost), net
619
(189
)
1,068
(2,068
)
Income tax
(1,366
)
(755
)
(2,264
)
(2,200
)
Share of profit of associates
-
-
(404
)
-
Impairment of property, plant and
equipment
-
-
(947
)
-
Income from discontinued operations
-
280
5,129
1,020
NET (LOSS) PROFIT FOR THE
PERIOD
2,958
1,532
11,382
5,505
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210310005902/en/
IR Contacts Marcos I. Gradin, Chief Financial Officer and
Investor Relations Gastón Pinnel, Investor Relations Manager
+54-11-4319-3050 investorrelations@lomanegra.com
Loma Negra Compania Indu... (NYSE:LOMA)
Gráfica de Acción Histórica
De Ene 2025 a Feb 2025
Loma Negra Compania Indu... (NYSE:LOMA)
Gráfica de Acción Histórica
De Feb 2024 a Feb 2025
