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 nine-month period ended
September 30, 2019 (our “3Q19”).
3Q19 Key Highlights
- Net revenue decreased 7.6% YoY to Ps.9,178 million (US$172
million)
- Consolidated Adjusted EBITDA up 2.7% YoY to Ps.2,645 million
(US$52 million), principally driven by the Cement and Railroad
segment, and partially offset by non-recurrent production-footprint
adequacy costs of approximately Ps.61 million (US$1.2
million).
- Excluding this non-recurrent charge, Adjusted EBITDA would have
been Ps.2,707 million (US$53 million)
- Consolidated Adjusted EBITDA margin expanded by 289 basis
points YoY from 25.9% to 28.8%, excluding non-recurrent
production-footprint adequacy costs, Consolidated Adjusted EBITDA
would have been 29.5%, expanding 356 basis points
- Net Debt/LTM Adjusted EBITDA ratio of 0.87x from 0.43x in
FY18
The Company is reporting results of its subsidiaries by applying
International Accounting Standards 29 – IAS 29 (Financial Reporting
in Hyperinflationary Economies) (“IAS 29”), and certain financial
figures1 Table 1b and Table 11 below were prepared in U.S. dollars
and Pesos without giving effect to IAS 29.
Commenting on the financial and operating performance for the
third quarter of 2019, Sergio Faifman, Loma Negra’s Chief Executive
Officer, noted: ”The unexpected result in the August primary
elections lead to a high financial and economic volatility that
eroded the incipient recovery previously observed in some of the
macroeconomic variables.
In this context, Cement demand was softer than expected, thus we
remained focused on executing cost-control initiatives oriented
towards optimizing our production footprint, as our project in
L´Amalí continues as scheduled to kick in 2Q20.
Given this situation, our business kept delivering both Adjusted
EBITDA margin expansion and Adjusted EBITDA growth.
Looking ahead, an important factor will be the policies adopted
by the new administration in order to reestablish financial
stability and economic growth.”
- Table 1b and Table 11—Figures in US dollars result from the
calculation of figures expressed in Argentine pesos and the average
exchange rate for each reporting period (2019 figures exclude the
impact of IAS 29 and 2018 figures are as previously reported)
Table 1: Financial
Highlights
(amounts expressed in millions of
pesos, unless otherwise noted)
Three-months ended September
30,
Nine-months ended September
30,
2019
2018
% Chg.
2019
2018
% Chg.
Net revenue
9,178
9,931
-7.6%
26,744
27,362
-2.3%
Gross Profit
2,439
2,273
7.3%
7,237
6,594
9.8%
Gross Profit margin
26.6%
22.9%
+368bps
27.1%
24.1%
+296bps
Adjusted EBITDA
2,645
2,575
2.7%
7,447
6,832
9.0%
Adjusted EBITDA Mg.
28.8%
25.9%
+289bps
27.8%
25.0%
+287bps
Net Profit
60
(144)
n/a
2,612
944
176.8%
Net Profit attributable to owners
of the Company
50
(182)
n/a
2,497
836
198.8%
EPS
0.0836
(0.3060)
n/a
4.1893
1.4020
198.8%
Shares outstanding at eop
596
596
0.0%
596
596
0.0%
Net Debt
9,062
7,022
29.1%
9,062
7,022
29.1%
Net Debt /LTM Adjusted EBITDA
0.87x
0.74x
0.13x
0.87x
0.74x
0.13x
Table 1b: Financial Highlights
in Ps and in U.S. dollars (2019 figures exclude the impact of IAS
29 and 2018 figures are as previously reported)
In million Ps.
Three-months ended September
30,
Nine-months ended September
30,
2019
2018
% Chg.
2019
2018
% Chg.
Net revenue
8,720
6,131
42.2%
23,115
15,422
49.9%
Adjusted EBITDA
2,615
1,699
54.0%
6,691
4,018
66.5%
Adjusted EBITDA Mg.
30.0%
27.7%
+229bps
28.9%
26.1%
+289bps
Net Profit
(400)
118
n/a
1,405
845
66.4%
Net Debt
9,062
4,573
98.2%
9,062
4,573
98.2%
Net Debt /LTM Adjusted EBITDA
0.87x
0.74x
0.13x
0.87x
0.74x
0.13x
In million US$
Three-months ended
September 30,
Nine-months ended
September 30,
2019
2018
%Chg.
2019
2018
%Chg.
Ps./US$, av
50.59
31.98
58.2%
44.60
25.18
77.2%
Ps./US$, eop
57.56
40.90
40.7%
57.56
40.90
40.7%
Net revenue
172
192
-10.1%
518
613
-15.4%
Adjusted EBITDA
52
53
-2.7%
150
160
-6.0%
Adjusted EBITDA Mg.
30.0%
27.7%
+229bps
28.9%
26.1%
+289bps
Net Profit
(8)
4
n/a
32
34
-6.1%
Net Debt
157
112
40.8%
157
112
40.8%
Net Debt /LTM Adjusted EBITDA
0.87x
0.74x
0.13x
0.87x
0.74x
0.13x
Overview of Operations
Sales Volumes
Table 2: Sales Volumes2
Three-months ended September
30,
Nine-months ended September
30,
2019
2018
% Chg.
2019
2018
% Chg.
Cement, masonry & lime
Argentina
MM Tn
1.49
1.61
-7.5%
4.19
4.68
-10.4%
Paraguay
MM Tn
0.15
0.15
-1.1%
0.43
0.42
1.8%
Cement, masonry & lime
total
1.64
1.76
-7.0%
4.62
5.10
-9.4%
Argentina:
Concrete
MM m3
0.19
0.29
-33.9%
0.67
0.80
-16.0%
Railroad
MM Tn
1.13
1.23
-7.9%
3.36
3.55
-5.3%
Aggregates
MM Tn
0.26
0.25
4.7%
0.85
0.79
7.2%
2 Sales volumes include inter-segment
sales
Sales volumes of cement, masonry and lime in Argentina during
3Q19 declined by 7.5% YoY to 1.49 million tons, as demand was
affected amid of a higher macroeconomic volatility. In contrast
with previous quarters, the bag segment experienced a softer
decline than the bulk segment.
In Paraguay, sales volumes decreased by 1.1% YoY in the third
quarter to 0.15 million tons, mostly underpinned by the private
sector and affected by a slower than expected public works
execution. As a result, consolidated total sales volumes of cement,
masonry and lime for the quarter decreased 7.0% YoY to 1.64 million
tons.
Sales volumes in the Concrete segment in Argentina were down
almost 34% YoY to 0.19 million m3, as the major infrastructure
public works and private projects slowed down or put on hold.
Despite the strong increase in the volume of transported
frac-sand, the volumes of the railway segment decrease around 8%
compared to the same quarter in 2018, affected by a lower volume
transported in most of the other segments. By contrast, Aggregate
volumes in 3Q19 increased by almost 5% YoY to 0.26 million
tons.
Review of Financial Results
Table 3: Consolidated
Statement of Financial Position
(amounts expressed in millions of
pesos, unless otherwise noted)
Three-months ended September
30,
Nine-months ended September
30,
2019
2018
% Chg.
2019
2018
% Chg.
Net revenue
9,178
9,931
-7.6%
26,744
27,362
-2.3%
Cost of sales
(6,740)
(7,658)
-12.0%
(19,507)
(20,768)
-6.1%
Gross Profit
2,439
2,273
7.3%
7,237
6,594
9.8%
Selling and administrative
expenses
(605)
(676)
-10.5%
(1,923)
(2,006)
-4.2%
Other gains and losses
21
32
-33.7%
5
25
-79.8%
Tax on debits and credits to bank
accounts
(90)
(90)
-0.4%
(272)
(273)
-0.2%
Finance costs, net
Exchange rate differences
(1,510)
(1,310)
15.3%
(1,382)
(2,147)
-35.6%
Financial income
77
-
n/a
88
1
n/a
Financial expenses
(409)
(298)
37.2%
(1,060)
(694)
52.8%
Gain (loss) on net monetary
position
276
168
64.4%
919
237
287.8%
Profit before taxes
198
98
101.7%
3,611
1,736
108.0%
Income tax expense
Current
133
(340)
n/a
(665)
(728)
-8.6%
Deferred
(270)
97
n/a
(334)
(65)
415.0%
Net profit
60
(144)
n/a
2,612
944
176.8%
Net majority income
50
(182)
n/a
2,497
836
198.8%
Net Revenues
Net revenue decreased 7.6% to Ps. 9,178 million in 3Q19,
from Ps. 9,931 million in the comparable quarter last year, mostly
due to the impact of lower revenues in Concrete and Cement, masonry
and lime in Argentina.
Revenues in Cement, masonry and lime in Argentina were down 4.0%
YoY, mainly as a result of the volume drop, partially offset by
higher prices. Cement revenues in Paraguay decreased by 1.7% YoY,
mostly as a consequence of the lower volume sold.
Concrete segment presented a decline in both sales volumes and
prices when compared to the strong third quarter last year,
resulting in revenues dropping 37.7% YoY. Railroad revenues
decreased 9.4% YoY, as price decreased in real term and sales
volume declined 7.9%. By contrast, Aggregate revenues were up 2.0%
YoY during the period, driven by improving sales volume.
Cost of sales, and Gross profit
Cost of sales declined 12.0% YoY reaching Ps. 6,740
million in 3Q19 mainly reflecting a lower volume of sales and the
production-footprint adequacy efforts achieved in the second
quarter this year.
In the search to further improve our production-footprint,
during the quarter, San Juan facility was reconverted to a grinding
and distribution center, incurring in approximately Ps. 61 million
of non-recurrent costs.
Gross profit increased 7.3% YoY to Ps. 2,439 million in
3Q19 from Ps. 2,273 million in 3Q18, with gross profit margin
expanding 368 basis points YoY to 26.6%. If non-recurrent costs
associated to the production-footprint adequacy are excluded, gross
profit margin would have expanded by 435 basis points to 27.2%.
Selling and Administrative Expenses
Selling and administrative expenses (SG&A) in 3Q19
decreased 10.5% YoY to Ps. 605 million, from Ps. 676 million in
3Q18. As a percentage of revenues, SG&A decreased 22 basis
points to 6.6% in 3Q19, from 6.8% in 3Q18 positively impacted by
structure adequacy measures adopted earlier this year in addition
to a further reduction in the effective sales tax rate.
Adjusted EBITDA & Margin
Table 4: Adjusted EBITDA
Reconciliation & Margin
(amounts expressed in millions of
pesos, unless otherwise noted)
Three-months ended September
30,
Nine-months ended September
30,
2019
2018
% Chg.
2019
2018
% Chg.
Adjusted EBITDA
reconciliation:
Net profit
60
(144)
n/a
2,612
944
176.8%
(+) Depreciation and
amortization
791
946
-16.4%
2,128
2,220
-4.2%
(+) Tax on debits and credits to
bank accounts
90
90
-0.4%
272
273
-0.2%
(+) Income tax expense
138
242
-43.2%
999
793
26.1%
(+) Financial interest, net
301
247
21.6%
849
564
50.6%
(+) Exchange rate differences,
net
1,510
1,310
15.3%
1,382
2,147
-35.6%
(+) Other financial expenses,
net
32
51
-37.9%
123
129
-4.6%
(+) Gain (loss) on net monetary
position
(276)
(168)
64.4%
(919)
(237)
287.8%
Adjusted EBITDA
2,645
2,575
2.7%
7,447
6,832
9.0%
Adjusted EBITDA Margin
28.8%
25.9%
+289 bps
27.8%
25.0%
+287 bps
Adjusted EBITDA increased 2.7% YoY in the third quarter
of 2019 to Ps. 2,645 million, with Adjusted EBITDA margin expanding
289 basis points to 28.8% compared to 25.9% in 3Q18.
Excluding the application of IAS 29, as shown on Tables 1b,
Adjusted EBITDA increased 54.0% YoY in the third quarter of 2019,
reaching Ps. 2,615 million, mainly driven by the Cement and
Railroad segments, with Adjusted EBITDA margin expanding 229 basis
points to 30.0% compared to 27.7% in 3Q18. Excluding non-recurrent
costs from production-footprint adequacy, Adjusted EBITDA would
have reached Ps. 2,677 million, with an EBITDA margin of 30.7%.
Table 11, presenting financial Data by Segment (Excluding IAS
29), shows that Adjusted EBITDA for the Cement segment in Argentina
increased during the third quarter 51.9% YoY and the margin
expanded by 90 basis points to 30.9%. The Cement segment in
Paraguay, reported a 56.9% YoY increase in Adjusted EBITDA while
Adjusted EBITDA margin was 45.1%, expanding 156 basis points
compared to the same period one year ago.
In addition, the Concrete segment reported an increase in
Adjusted EBITDA reaching Ps. 47.8 million, with the margin
expansion of 73 basis points, from 4.1% to 4.8%, mainly as a result
of a cost structure adequacy. Moreover, Railroad segment improved
almost Ps. 52.3 million in the third quarter of 2019, and the
Adjusted EBITDA margin expanded to 14.5% from 11.0% in the
comparable period in 2018, as a result of cost adequacy efforts.
Aggregates Adjusted EBITDA margin for the 3Q19 recover to 4.1%
mostly explained by higher costs dilution.
Finance Costs-Net
Table 5: Finance Costs,
net
(amounts expressed in millions of
pesos, unless otherwise noted)
Three-months ended September
30,
Nine-months ended September
30,
2019
2018
% Chg.
2019
2018
% Chg.
Exchange rate differences
(1,510)
(1,310)
15.3%
(1,382)
(2,147)
-35.6%
Financial income
77
-
n/a
88
1
n/a
Financial expenses
(409)
(298)
37.2%
(1,060)
(694)
52.8%
Gain (loss) on net monetary
position
276
168
64.4%
919
237
287.8%
Total Finance Costs,
Net
(1,567)
(1,440)
8.8%
(1,435)
(2,603)
-44.9%
During 3Q19, the company reported a loss of Ps. 1,567 million in
total finance costs-net compared to a loss of Ps. 1,440 million in
the previous year third quarter, mainly due to a higher loss in
foreign exchange differences as a result of the exchange rate
depreciation during the quarter, partly compensated by a higher
gain on net monetary position.
Net Profit and Net Profit Attributable to Owners of the
Company
Net Profit for 3Q19, recovered to Ps. 60 million from a
loss of Ps.144 million in the corresponding quarter of the previous
year.
Net Profit Attributable to Owners of the Company improved
232 million, to Ps. 50 million in 3Q19. During the quarter, the
Company reported earnings per common share of Ps. 0.0836 and
earnings per ADR of Ps. 0.4179, compared with a loss per common
share of Ps. 0.3060 and a loss per ADR of Ps. 1.5299 in 3Q18.
Capitalization
Table 6: Capitalization and
Debt Ratio
(amounts expressed in millions of
pesos, unless otherwise noted)
As of September 30,
As of December, 31
2019
2018
2018
Total Debt
10,415
11,260
8,210
- Short-Term Debt
4,991
6,011
4,620
- Long-Term Debt
5,424
5,249
3,590
Cash and Cash Equivalents
1,353
4,238
3,996
Total Net Debt
9,062
7,022
4,215
Shareholders' Equity
25,580
21,830
22,793
Capitalization
35,995
33,091
31,003
LTM Adjusted EBITDA
10,419
9,475
9,805
Net Debt /LTM Adjusted EBITDA
0.87x
0.74x
0.43x
As of September 30, 2019, total cash and cash equivalents were
Ps. 1,353 million compared with Ps. 4,238 million as of the
December 31, 2018 mainly due to increased capex investments. Total
debt at the close of the quarter stood at Ps. 10,415 million,
composed by Ps.4,991 million in short-term borrowings, including
the current portion of long-term borrowings (or 48% of total
borrowings), and Ps.5,424 million in long-term borrowings (or 52%
of total borrowings).
As of September 30, 2019, 42% (or Ps.4,351 million) Loma Negra’s
total debt was denominated in U.S. dollars, 28% (or Ps. 2,873
million) in Guaraníes, 26% (or Ps.2,682 million) in Argentine
pesos, and 5% (or Ps.509 million) in Euros. The average duration of
Loma Negra’s total debt was 1.4 years.
As of September 30, 2019, Ps.6,421 million, or 62%, of the
Company’s total consolidated borrowings bore interest at floating
rates, including Ps.3,738 million of foreign currency-denominated
borrowings that bore interest at rates based on Libor, and Ps.2,682
million of borrowings with other floating interest rate.
The Net Debt to Adjusted EBITDA (LTM) ratio increased to 0.87x
as of September 30, 2019 from 0.43x as of December 31, 2018
reflecting the use of funds in investing activities.
Cash Flows
Table 7: Condensed Interim
Consolidated Statement of Cash Flows for the Nine-months and
Three-months ended September 30, 2019 and 2018
(amounts expressed in millions of
pesos, unless otherwise noted)
Three-months ended September
30,
Nine-months ended September
30,
2019
2018
2019
2018
CASH FLOWS FROM OPERATING
ACTIVITIES
Net profit for the
period
60
(144)
2,612
944
Adjustments to reconcile net
profit to net cash provided by operating activities
2,318
3,162
4,600
5,697
Changes in operating assets and
liabilities
1,199
8
(1,802)
(3,903)
Net cash generated / used in by
operating activities
3,577
3,026
5,410
2,738
CASH FLOWS FROM INVESTING
ACTIVITIES
Property, plant and equipment,
Intangible Assets, net
(3,115)
(597)
(8,429)
(3,105)
Others
(19)
(7)
(45)
(42)
Net cash used in investing
activities
(3,134)
(604)
(8,474)
(3,147)
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds / Repayments from
borrowings, Interest paid
(477)
(440)
566
(1,889)
Net cash generated / used in by
financing activities
(477)
(440)
566
(1,889)
Net decrease in cash and cash
equivalents
(34)
1,981
(2,499)
(2,298)
Cash and cash equivalents at the
beginning of the year
1,316
2,835
3,996
6,464
Effect of the re-expression in
homogeneous cash currency ("Inflation-Adjusted")
(37)
(51)
(109)
(99)
Effects of the exchange rate
differences on cash and cash equivalents in foreign currency
108
(526)
(34)
172
Cash and cash equivalents at
the end of the period
1,353
4,238
1,353
4,238
In the 3Q19, cash flow generated by operating activities was
Ps.3,577 million compared to Ps.3,026 million in 3Q18, explained
mainly by a higher profitability during the period and lower
working capital needs. During 3Q19, the Company made capital
expenditures for a total of Ps.3,134 million, mostly allocated to
the expansion of production capacity of L’Amalí plant.
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.
Start-up date is projected for the second quarter of next year.
The Company continued with the overall project execution during
the quarter. Main equipment and materials were already manufactured
in China and Europe and almost fully delivered to site. In
addition, the supply of local steel structures is in progress, and
deliveries are in line with installation requirements.
Electromechanical of kiln erection is completed, final welding is
in progress, and works of preassembly and erection are progressing.
Civil works for main foundations, silos and buildings structures
are close to be finished. Additions to Property, Plant and
Equipment related to this project during 3Q19 amounted to
approximately Ps.2,336 million.
3Q19 Earnings Conference Call
When:
10:00 a.m. U.S. ET (12:00 p.m.
BAT), November 8, 2019
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/loma1911087LLMVjQj.html
Replay:
A telephone replay of the
conference call will be available between November 8, 2019 at 1:00
pm U.S. E.T. and ending on November 15, 2019. 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
10136375. 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. 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. The
Company also owns a 51% equity stake in an integrated cement
production plant in Paraguay, which is one of two leading cement
producers in that country. 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 as of September 30,
2019 and December 31, 2018
(amounts expressed in millions of
pesos, unless otherwise noted)
As of September 30,
As of December 31,
2019
2018
ASSETS
Non-current assets
Property, plant and equipment
38,985
30,125
Intangible assets
312
301
Investments
2
2
Goodwill
23
23
Inventories
916
933
Other receivables
822
1,297
Right to use assets
358
-
Trade accounts receivable
4
6
Total non-current
assets
41,422
32,686
Current assets
Inventories
5,412
5,202
Other receivables
860
528
Trade accounts receivable
2,799
2,843
Investments
406
2,885
Cash and banks
947
1,111
Total current assets
10,423
12,568
TOTAL ASSETS
51,845
45,255
SHAREHOLDERS' EQUITY
Capital stock and other capital
related accounts
9,894
9,894
Reserves
10,628
3,140
Retained earnings
2,497
7,488
Accumulated other comprehensive
income
467
378
Equity attributable to the owners
of the Company
23,486
20,900
Non-controlling interests
2,094
1,893
TOTAL SHAREHOLDERS'
EQUITY
25,580
22,793
LIABILITIES
Non-current
liabilities
Borrowings
5,424
3,590
Accounts payables
133
533
Provisions
421
403
Other liabilities
46
11
Debts for leases
333
-
Deferred tax liabilities
4,723
4,387
Total non-current
liabilities
11,081
8,924
Current liabilities
Borrowings
4,991
4,620
Accounts payable
8,518
6,683
Advances from customers
167
232
Salaries and social security
payables
794
873
Tax liabilities
554
1,073
Debts for leases
82
-
Other liabilities
78
56
Total current
liabilities
15,184
13,537
TOTAL LIABILITIES
26,265
22,462
TOTAL SHAREHOLDERS' EQUITY AND
LIABILITIES
51,845
45,255
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 September
30,
Nine-months ended September
30,
2019
2018
% Change
2019
2018
% Change
Net revenue
9,178
9,931
-7.6%
26,744
27,362
-2.3%
Cost of sales
(6,740)
(7,658)
-12.0%
(19,507)
(20,768)
-6.1%
Gross profit
2,439
2,273
7.3%
7,237
6,594
9.8%
Selling and administrative
expenses
(605)
(676)
-10.5%
(1,923)
(2,006)
-4.2%
Other gains and losses
21
32
-33.7%
5
25
-79.8%
Tax on debits and credits to bank
accounts
(90)
(90)
-0.4%
(272)
(273)
-0.2%
Finance costs, net
Exchange rate differences
(1,510)
(1,310)
15.3%
(1,382)
(2,147)
-35.6%
Financial income
77
-
n/a
88
1
n/a
Financial expenses
(409)
(298)
37.2%
(1,060)
(694)
52.8%
Gain (loss) on net monetary
position
276
168
64.4%
919
237
287.8%
Profit before taxes
198
98
101.7%
3,611
1,736
108.0%
Income tax expense
Current
133
(340)
n/a
(665)
(728)
-8.6%
Deferred
(270)
97
n/a
(334)
(65)
415.0%
Net profit
60
(144)
n/a
2,612
944
176.8%
Other Comprehensive
Income
Items to be reclassified through
profit and loss:
Exchange differences on
translating foreign operations
490
802
-38.9%
175
1,429
-87.7%
Total other comprehensive
(loss) income
490
802
-38.9%
175
1,429
-87.7%
TOTAL COMPREHENSIVE
INCOME
550
658
-16.3%
2,787
2,373
17.5%
Net Profit (loss) for the
period attributable to:
Owners of the Company
50
(182)
n/a
2,497
836
198.8%
Non-controlling interests
11
38
-72.3%
115
108
6.6%
NET PROFIT FOR THE
PERIOD
60
(144)
n/a
2,612
944
176.8%
Total comprehensive income
(loss) attributable to:
Owners of the Company
227
32.2%
2,586
1,565
65.3%
Non-controlling interests
431
-41.9%
201
808
-75.1%
TOTAL COMPREHENSIVE
INCOME
550
658
-16.3%
2,787
2,373
17.5%
Earnings per share (basic and
diluted):
0.0836
(0.3060)
n/a
4.1893
1.4020
198.8%
Table 10: Condensed Interim
Consolidated Statement of Cash Flows for the Nine-months and
Three-months ended September 30, 2019 and 2018
(amounts expressed in millions of
pesos, unless otherwise noted)
Three-months ended September
30,
Nine-months ended September
30,
2019
2018
2019
2018
CASH FLOWS FROM OPERATING
ACTIVITIES
Net profit for the
period
60
(144)
2,612
944
Adjustments to reconcile net
profit to net cash provided by operating activities
Income tax expense
138
242
999
793
Depreciation and amortization
791
946
2,128
2,220
Provisions
(0)
31
82
91
Interest expense
621
66
819
338
Exchange rate differences
792
1,884
571
2,265
Others
(14)
(8)
9
(9)
Gain on disposal of Property,
plant and equipment
(9)
-
(9)
-
Changes in operating assets and
liabilities
Inventories
690
593
(158)
(541)
Other receivables
(115)
(150)
(128)
(364)
Trade accounts receivable
(68)
(434)
(666)
(1,019)
Advances from customers
5
9
(31)
(109)
Accounts payable
908
140
749
(434)
Salaries and social security
payables
83
170
153
(33)
Provisions
38
(76)
(56)
(121)
Tax liabilities
554
271
226
270
Other liabilities
7
5
234
(31)
Income tax paid
(564)
(1,060)
(1,207)
(1,283)
Gain on net monetary position
(341)
539
(918)
(237)
Net cash generated / used in by
operating activities
3,577
3,026
5,410
2,738
CASH FLOWS FROM INVESTING
ACTIVITIES
Proceeds from disposal of
Property, plant and equipment
22
(1)
32
6
Payments to acquire Property,
plant and equipment
(3,131)
(591)
(8,433)
(3,099)
Payments to acquire Intangible
Assets
(6)
(6)
(28)
(12)
Contributions to Trust
(19)
(7)
(45)
(42)
Net cash used in investing
activities
(3,134)
(604)
(8,474)
(3,147)
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from borrowings
2,485
951
5,919
1,733
Interest paid
(760)
(421)
(1,516)
(989)
Repayment of borrowings
(2,173)
(971)
(3,773)
(2,633)
Debts for leases
(29)
-
(65)
-
Net cash generated / used in by
financing activities
(477)
(440)
566
(1,889)
Net decrease in cash and cash
equivalents
(34)
1,981
(2,499)
(2,298)
Cash and cash equivalents at the
beginning of the period
1,316
2,835
3,996
6,464
Effect of the re-expression in
homogeneous cash currency ("Inflation-Adjusted")
(37)
(51)
(109)
(99)
Effects of the exchange rate
differences on cash and cash equivalents in foreign currency
108
(526)
(34)
172
Cash and cash equivalents at
the end of the period
1,353
4,238
1,353
4,238
Table 11: Financial Data by
Segment (2019 figures exclude the impact of IAS 29 and 2018 figures
are as previously reported)
(amounts expressed in millions of
pesos, unless otherwise noted)
Three-months ended September
30,
Nine-months ended September
30,
2019
%
2018
%
2019
%
2018
%
Net revenue
8,720
100.0%
6,131
100.0%
23,115
100.0%
15,422
100.0%
Cement, masonry cement and
lime—Argentina
6,638
76.1%
4,501
73.4%
17,263
74.7%
11,403
73.9%
Cement—Paraguay
891
10.2%
588
9.6%
2,234
9.7%
1,303
8.4%
Concrete
987
11.3%
1,027
16.8%
3,187
13.8%
2,524
16.4%
Railroad
783
9.0%
561
9.1%
2,147
9.3%
1,486
9.6%
Aggregates
120
1.4%
77
1.3%
379
1.6%
214
1.4%
Others
44
0.5%
31
0.5%
110
0.5%
84
0.5%
Eliminations
(742)
-8.5%
(653)
-10.7%
(2,205)
-9.5%
(1,593)
-10.3%
Cost of sales
5,950
100.0%
4,278
100.0%
15,886
100.0%
10,937
100.0%
Cement, masonry cement and
lime—Argentina
4,340
72.9%
2,965
69.3%
11,249
70.8%
7,575
69.3%
Cement—Paraguay
589
9.9%
402
9.4%
1,526
9.6%
923
8.4%
Concrete
936
15.7%
956
22.3%
2,979
18.8%
2,376
21.7%
Railroad
676
11.4%
497
11.6%
1,869
11.8%
1,377
12.6%
Aggregates
120
2.0%
93
2.2%
396
2.5%
232
2.1%
Others
31
0.5%
18
0.4%
72
0.5%
47
0.4%
Eliminations
(742)
-12.5%
(653)
-15.3%
(2,205)
-13.9%
(1,593)
-14.6%
Selling, admin. expenses and
other gains & losses
545
100.0%
391
100.0%
1,613
100.0%
1,087
100.0%
Cement, masonry cement and
lime—Argentina
435
79.9%
294
75.1%
1,269
78.7%
820
75.5%
Cement—Paraguay
32
5.9%
10
2.5%
70
4.4%
39
3.6%
Concrete
21
3.9%
37
9.4%
91
5.6%
87
8.0%
Railroad
41
7.5%
39
10.1%
139
8.6%
108
9.9%
Aggregates
(0)
0.0%
1
0.4%
3
0.2%
4
0.4%
Others
15
2.8%
10
2.6%
40
2.5%
28
2.6%
Depreciation and
amortization
390
100.0%
236
100.0%
1,075
100.0%
620
100.0%
Cement, masonry cement and
lime—Argentina
185
47.6%
106
44.9%
538
50.1%
297
48.0%
Cement—Paraguay
132
33.9%
80
33.8%
343
31.9%
190
30.7%
Concrete
18
4.7%
8
3.2%
45
4.2%
23
3.7%
Railroad
48
12.3%
38
15.9%
132
12.3%
98
15.8%
Aggregates
5
1.2%
5
1.9%
14
1.3%
9
1.5%
Others
1
0.2%
1
0.3%
2
0.2%
2
0.3%
Adjusted EBITDA
2,615
100.0%
1,699
100.0%
6,691
100.0%
4,018
100.0%
Cement, masonry cement and
lime—Argentina
2,048
78.3%
1,348
79.4%
5,283
78.9%
3,306
82.3%
Cement—Paraguay
402
15.4%
256
15.1%
981
14.7%
532
13.2%
Concrete
48
1.8%
42
2.5%
162
2.4%
84
2.1%
Railroad
114
4.3%
61
3.6%
270
4.0%
99
2.5%
Aggregates
5
0.2%
(13)
-0.8%
(6)
-0.1%
(13)
-0.3%
Others
(1)
-0.1%
4
0.2%
1
0.0%
11
0.3%
Reconciling items:
Effect by translation in
homogeneous cash currency ("Inflation-Adjusted")
30
876
755
2,814
Depreciation and amortization
(791)
(946)
(2,128)
(2,220)
Tax on debits and credits banks
accounts
(90)
(90)
(272)
(273)
Finance costs, net
(1,567)
(1,440)
(1,435)
(2,603)
Income tax
(138)
(242)
(999)
(793)
NET PROFIT FOR THE
PERIOD
60
(144)
2,612
944
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191107006049/en/
IR Contacts Marcos I. Gradin, Chief Financial Officer and
Investor Relations Gastón Pinnel, Investor Relations Manager
+54-11-4319-3050 investorrelations@lomanegra.com
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