Loma Negra 3Q23

BUENOS AIRES / ACCESSWIRE / November 8, 2023 / Loma Negra, (NYSE:LOMA)(BYMA), ("Loma Negra" or the "Company"), the leading cement producer in Argentina, today announced results for the three-month period ended September 30, 2023 (our "3Q23 Results").

3Q23 Key Highlights

• Net sales revenues decreased by 8.3% YoY to Ps. 74,182 million (US$ 212 million), mainly explained by a top line decrease in our core business, Cement, followed by Concrete and Railroad segments, partially compensated by a strong performance of Aggregates.

• Consolidated Adjusted EBITDA reached Ps. 17,189 million, decreasing 3.9% YoY in adjusted pesos, while in dollars it reached 66 million, down 3.1% from 3Q22.

• The Consolidated Adjusted EBITDA margin stood at 23.2%, expanding 105 basis points YoY from 22.1%.

• Net Profit of Ps. 7,501 million, up from a loss of Ps. 29,168 in the same period of the previous year, mainly explained by a lower financial cost.

• During the quarter, the Company paid the dividend announced in June for the total amount of Ps. 13,700 million, Ps. 23.48 per outstanding share (Ps. 117.40 per ADR).

• The Company issued its Class 3 of domestic bonds in the total principal amount of US$ 55.0 million with maturity in March 2026 to refinance existing debt with lowering the financial cost and extending the duration.

• Net Debt /LTM Adjusted EBITDA ratio of 0.97x compared with 0.37x in FY22.

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 third quarter of 2023, Sergio Faifman, Loma Negra's Chief Executive Officer, noted : "I'm pleased to share the results of our third quarter with you today. The tendency for the volumes of the industry persists amid the election period and the subsequent uncertainty. As we mentioned the last quarter, cement volumes, although at a lower notch from last year, remain in strong figures of shipments. The volume reached in this period is the second best of history for the industry and the recent figures of October compare almost flat with the same period of 2022.

As we dive into the numbers, we see another robust quarter for LOMA, with EBITDA reaching 66 million dollars with margin expansion despite the decrease in volume, leverage in our effective cost control and operational efficiency.

On the financial side, we issued our Class 3 domestic bonds, receiving an outstanding response from the market. This issuance enabled us to refinance existent cross-border debt, thereby reducing our financial costs and extending the maturity."

Table 1: Financial Highlights
(amounts expressed in millions of pesos, unless otherwise noted)

	Three-months ended September 30,						Nine-months ended September 30,
	2023		2022		% Chg.		2023		2022		% Chg.
Net revenue	74,182		80,878		-8.3%		210,559		220,154			-4.4%
Gross Profit	17,251		17,222		0.2%		52,117		59,805			-12.9%
Gross Profit margin	23.3%		21.3%		+196 bps		24.8%		27.2%		-241 bps
Adjusted EBITDA	17,189		17,890		-3.9%		50,671		61,296			-17.3%
Adjusted EBITDA Mg.	23.2%		22.1%		+105 bps		24.1%		27.8%		-378 bps
Net Profit (Loss)	7,501		(29,168)		n/a		19,485		(11,469)			n/a
Net Profit (Loss) attributable to owners of the Company	7,398		(28,936)		n/a		19,627		(10,900)			n/a
EPS	12.6818		(49.4299)		n/a		33.6374		(18.6130)			n/a
Average outstanding shares (*)	583		585		-0.3%		583		586			-0.4%
Net Debt	75,146		46,940		60.1%		75,146		46,940			60.1%
Net Debt /LTM Adjusted EBITDA	0.97x		0.54x		0.79x		0.97x		0.54x			0.79x
(*) Net of shares repurchased

Table 1b: Financial Highlights in Ps and in U.S. dollars (figures exclude the impact of IAS 29)

In million Ps.	Three-months ended September 30,						Nine-months ended September 30,
	2023		2022		% Chg.		2023		2022		% Chg.
Net revenue	66,249		31,983		107.1%		152,118		74,310		104.7%
Adjusted EBITDA	20,687		9,264		123.3%		47,386		23,016		105.9%
Adjusted EBITDA Mg.	31.2%		29.0%		+226 bps		31.2%		31.0%		+18 bps
Net Profit (Loss)	2,548		(7,550		n/a		15,558		5,047		208.2%
Net Debt	75,146		46,940		60.1%		75,146		46,940		60.1%
Net Debt /LTM Adjusted EBITDA	0.97x		0.54x		0.79x		0.97x		0.54x		0.79x
In million US$	Three-months ended September 30,						Nine-months ended September 30,
	2023		2022		% Chg.		2023		2022		% Chg.
Ps./US$, av	313.01		135.78		130.5%		247.07		120.41		105.2%
Ps./US$, eop	350.01		147.32		137.6%		350.01		147.32		137.6%
Net revenue	212		236		-10.1%		616		617		-0.2%
Adjusted EBITDA	66		68		-3.1%		192		191		0.3%
Adjusted EBITDA Mg.	31.2%		29.0%		+226 bps		31.2%		31.0%		+18 bps
Net Profit (Loss)	8		(56		n/a		63		42		50.2%
Net Debt	215		319		-32.6%		215		319		-32.6%
Net Debt /LTM Adjusted EBITDA	0.97x		0.54x		0.79x		0.97x		0.54x		0.79x

Overview of Operations

Sales Volumes

Table 2: Sales Volumes ²

		Three-months ended September 30,				Nine-months ended September 30,
		2023	2022	% Chg.		2023	2022	% Chg.
Cement, masonry & lime	MM Tn	1.74	1.88	-7.1%		4.89	5.02	-2.6%
Concrete	MM m3	0.15	0.17	-9.4%		0.46	0.43	6.5%
Railroad	MM Tn	1.16	1.21	-4.2%		3.20	3.44	-7.0%
Aggregates	MM Tn	0.34	0.34	0.2%		1.00	0.91	9.7%
2 Sales volumes include inter-segment sales

Sales volumes of Cement, masonry, and lime during 3Q23 decreased by 7.1% to 1.7 million tons. The main factors behind this can be attributed to a decline in demand for bagged cement within the retail sector, which was partially offset by growth in bulk dispatches. This growth was driven by increased demand from concrete producers, on the back of private construction projects and small-scale public works, maintaining the tendency from previous quarters. Regarding the volume of the Concrete segment, it showed a decrease of 9.4% YoY, where some major projects found their pace affected by the macroeconomic volatility. Despite this, concrete consumption continues to be a fundamental driver of growth in bulk cement shipments. On the other side, volumes for the Aggregates segment remained flat, with robust demand supported by a stable production.

The volumes of the Railway segment experienced a contraction of 4.2% compared to the same quarter of 2022. We continued to face a sluggish transportation market significantly impacted by drought, that increases the availability of trucks coupled with a reduced construction activity, resulting in lower transported volumes of aggregates, grains, and fracsand.

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 September 30,									Nine-months ended September 30,
	2023			2022			% Chg.			2023			2022			% Chg.
Net revenue	74,182			80,878			-8.3	%		210,559			220,154			-4.4	%
Cost of sales	(56,931	)		(63,656	)		-10.6	%		(158,442	)		(160,349	)		-1.2	%
Gross profit	17,251			17,222			0.2	%		52,117			59,805			-12.9	%
Share of loss of associates	-			-			n/a			-			-			n/a
Selling and administrative expenses	(6,157	)		(6,270	)		-1.8	%		(18,727	)		(18,915	)		-1.0	%
Other gains and losses	262			(294	)		n/a			650			(259	)		n/a
Tax on debits and credits to bank accounts	(795	)		(787	)		0.9	%		(2,345	)		(2,182	)		7.5	%
Finance gain (cost), net
Gain on net monetary position	28,991			8,785			230.0	%		54,914			15,497			254.4	%
Exchange rate differences	(16,538	)		(2,110	)		683.8	%		(28,743	)		(8,966	)		220.6	%
Financial income	530			252			110.8	%		3,617			2,922			23.8	%
Financial expense	(14,564	)		(43,326	)		-66.4	%		(35,489	)		(45,999	)		-22.8	%
Profit (Loss) before taxes	8,980			(26,530	)		n/a			25,994			1,903			1266.2	%
Income tax expense
Current	1,775			(637	)		n/a			(2,509	)		(7,176	)		-65.0	%
Deferred	(3,254	)		(2,001	)		62.6	%		(4,000	)		(6,196	)		-35.4	%
Net profit (Loss)	7,501			(29,168	)		n/a			19,485			(11,469	)		n/a

Net Revenues

Net revenue decreased 8.3% to Ps. 74,182 million in 3Q23, from Ps. 80,878 million in the comparable quarter last year, with a decline across all segments except for Aggregates.

Cement, masonry cement and lime segment was down 12.8% YoY, with volumes contracting 7.1% mainly due to a decline in the bagged cement sales, following the tendency of previous quarters, also affected by softer price dynamics that, even moving with inflation, showed a decrease due to higher monthly inflation figures and the price adjustments timing.

Concrete registered a decrease in its topline of 4.2% compared with 3Q22, primarily because of lower volumes, that were down 9.4%. This effect was partially offset by the good price performance in the segment. The Aggregates segment posted an increase in revenues of 17.5%, supported by a positive price performance as the volume remained flattish.

Railroad revenues decreased 4.5% in 3Q23 compared to the same quarter of 2022, where the transported volume decreased 4.2% in the quarter, affected by the decrease in transported volumes of aggregates and fracsand, while the price remained almost flat. A higher price performance was offset by product mix, as the lower volumes of fracsand affected the average price per ton, as is by far the product with longer average transported distance.

Cost of sales, and Gross profit

Cost of sales decreased 10.6% YoY, reaching Ps. 56,931 million in 3Q23, mainly due to the decrease in sales volumes of the Cement segment and the lower impact of depreciations in the Cement and Railroad segments, partially offset by higher sales volumes in Aggregates. Regarding Cement cost of sales, the segment posted a decrease of 9% in per ton basis, the main reason for this was the reduction in energy inputs, primarily driven by a higher use of natural gas in our thermal energy matrix, couple with a lower price of this input. In the same sense, the cost of electrical energy is significantly decreasing as electrical generation is taking advantage of lower liquefied natural gas prices. Additionally, by the end of the quarter, the new pipeline began injecting natural gas from Vaca Muerta into the transportation system, gradually reducing the need for liquid fuels and imported liquefied natural gas. Furthermore, there were lower depreciation and freight costs.

Although the decrease in revenue, Gross Profit remained almost flat, slightly up 0.2% YoY to Ps. 17,251 million in 3Q23, from Ps. 17,222 million in 3Q22, with a gross profit margin expansion of 196 basis points YoY to 23.3%.

Selling and Administrative Expenses

Selling and administrative expenses (SG&A) in 3Q23 decreased 1.8% YoY to Ps. 6,157 million, from Ps. 6,270 million in 3Q22, mainly due to a decrease in freights and taxes. As a percentage of sales, SG&A showed an increase against 3Q22 of 55 basis points, reaching 8.3% mainly due to the decrease in the top line.

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,
	2023			2022			% Chg.			2023			2022			% Chg.
Adjusted EBITDA reconciliation:
Net profit (Loss)	7,501			(29,168	)		n/a			19,485			(11,469	)		n/a
(+) Depreciation and amortization	5,833			7,233			-19.3	%		16,631			20,665			-19.5	%
(+) Tax on debits and credits to bank accounts	795			787			0.9	%		2,345			2,182			7.5	%
(+) Income tax expense	1,480			2,638			-43.9	%		6,508			13,371			-51.3	%
(+) Financial interest, net	12,852			6,269			105.0	%		28,119			4,637			506.3	%
(+) Exchange rate differences, net	16,538			2,110			683.8	%		28,743			8,966			220.6	%
(+) Other financial expenses, net	1,181			36,805			-96.8	%		3,753			38,439			-90.2	%
(+) Gain on net monetary position	(28,991	)		(8,785	)		230.0	%		(54,914	)		(15,497	)		254.4	%
Adjusted EBITDA	17,189			17,890			-3.9	%		50,671			61,296			-17.3	%
Adjusted EBITDA Margin	23.2	%		22.1	%		+105 bps			24.1	%		27.8	%		-378 bps

Adjusted EBITDA decreased 3.9% YoY in the third quarter of 2023 to Ps. 17,189 million from Ps. 17,890 million in the same period of the previous year, mainly affected by lower adjusted EBITDA generated by our cement business. Regarding the other businesses, the better performance of the Railroad segment partially compensated the decrease in the EBITDA generation of the Concrete and Aggregates segments.

Likewise, the Adjusted EBITDA margin expanded 105 basis points to 23.2% compared to 22.1% in 3Q22, mainly due to the expansion of the Cement and Railroad margins partially offset by a decrease in Concrete and Aggregates. Third quarter's margin is typically the lowest margin of the year due to the impact of winter energy costs.

In particular, the Adjusted EBITDA margin of the Cement, Masonry and Lime segment expanded 252 bps to 26.8%, mainly, this was achieved through efficient cost management driven by improved energy inputs, which offset a lower top line performance. Prices, despite being adjusted by inflation, decreased when compared with 3Q22 due to high monthly inflation figures and the timing of the price adjustments. This effect was coupled with lower sales volume, primarily in bagged cement.

Concrete Adjusted EBITDA margin contracted 179 bps, and stood at 0.6%, from 2.4% in 3Q22. Despite a strong price performance, it couldn't fully offset the lower volume and increased sales costs, mainly impacted by aggregates and freights.

The Adjusted EBITDA margin of Aggregates contracted to 4.8%, from 12.2% in 3Q22, mainly due to higher sales costs, partially compensated by a positive price performance.

Finally, the Adjusted EBITDA margin of the Railroad segment expanded 428 bps to 4.2% in the third quarter, from negative 0.1% in 3Q22, principally due to positive costs effects and lower SG&A, while the price performance remained almost flat, despite the negatively impacted of the mix of transported volumes, where the decrease in fracsand impacted the average transported distance, affecting the average price.

Finance Costs-Net

Table 5: Finance Gain (Cost), net
(amounts expressed in millions of pesos, unless otherwise noted)

	Three-months ended September 30,				Nine-months ended September 30,
	2023	2022	% Chg.		2023	2022	% Chg.
Exchange rate differences	(16,538)	(2,110)	683.8%		(28,743)	(8,966)	220.6%
Financial income	530	252	110.8%		3,617	2,922	23.8%
Financial expense	(14,564)	(43,326)	-66.4%		(35,489)	(45,999)	-22.8%
Gain on net monetary position	28,991	8,785	230.0%		54,914	15,497	254.4%
Total Finance Gain (Cost), Net	(1,581)	(36,400)	-95.7%		(5,701)	(36,546)	-84.4%

During 3Q23, the Company reported a total net financial cost of Ps. 1.6 billion compared to a total net financial cost of Ps. 36.4 billion in 3Q22, mainly due to the impact in the financial expense in 3Q22 generated by the cancellation of debt in foreign currency with local funding. On the other hand, the gain on the monetary position more than compensated the negative impact of the exchange rate differences.

Net Profit and Net Profit Attributable to Owners of the Company

Net Gain of Ps. 7,501 million in 3Q23 compared to a Net Loss of Ps. 29,168 million in the same period of the previous year. The improvement in the financial cost explains most of the variation, as the operational result remained stable.

Net Gain Attributable to Owners of the Company stood at Ps. 7,398 million. During the quarter, the Company reported a gain per common share of Ps. 12.6818 and an ADR gain of Ps. 63.4088, compared to a loss per common share of Ps. 49.4299 and a loss per ADR of Ps. 247.1493 in 3Q22.

Capitalization

Table 6: Capitalization and Debt Ratio
(amounts expressed in millions of pesos, unless otherwise noted)

		As of September 30,								As of December, 31
		2023				2022				2022
Total Debt			96,055				55,196				42,195
- Short-Term Debt			51,867				35,254				22,124
- Long-Term Debt			44,189				19,943				20,071
Cash, Cash Equivalents and Investments			(20,909	)			(8,257	)			(9,977	)
Total Net Debt			75,146				46,940				32,219
Shareholder's Equity			204,958				229,082				235,548
Capitalization			301,013				284,278				277,743
LTM Adjusted EBITDA			77,432				86,684				88,057
Net Debt /LTM Adjusted EBITDA			0.97	x			0.54	x			0.37	x

As of September 30, 2023, total Cash, Cash Equivalents, and Investments were Ps. 20,909 million compared with Ps. 8,257 million as of September 30, 2022. Total debt at the close of the quarter stood at Ps. 96,055 million, composed by Ps. 51,867 million in short-term borrowings, including the current portion of long-term borrowings (or 54% of total borrowings), and Ps. 44,189 million in long-term borrowings (or 46% of total borrowings). In the quarter the company issued a domestic bond in the total principal amount of US$ 55.0 million with maturity in 1Q26.

At the close of the third quarter of 2023, 64% (or Ps. 61,943 million) of Loma Negra's total debt was denominated in U.S. dollars, and 36% (or Ps. 34,112 million) was in Pesos. The average duration of Loma Negra's total debt was 1.5 years.

As of September 30, 2023, 50% of the Company's consolidated loans accrued interest at a variable rate. The debt denominated in dollars with rates based on SOFR, while the portion in Argentine pesos principally accrued interest based on BADLAR. The remaining 50% accrues interest at a fixed rate in foreign currency.

The Net Debt to Adjusted EBITDA (LTM) ratio increased to 0.97x as of September 30, 2023, from 0.37x as of December 31, 2022, as a result of an increase in the debt position with the goal of achieving a more efficient capital structure.

Cash Flows

Table 7: Condensed Interim Consolidated Statement of Cash Flows
(amounts expressed in millions of pesos, unless otherwise noted)

		Three-months ended September 30,								Nine-months ended September 30,
		2023				2022				2023				2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net Profit (Loss)			7,501				(29,168	)			19,485				(11,469	)
Adjustments to reconcile net profit (loss) to net cash provided by operating activities			6,109				48,006				23,247				68,500
Changes in operating assets and liabilities			1,003				8,428				(4,350	)			(16,175	)
Net cash generated by operating activities			14,613				27,265				38,383				40,857
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from disposal of Yguaz?? Cementos S.A.			100				0				424				189
Property, plant and equipment, Intangible Assets, net			(4,361	)			(3,726	)			(11,545	)			(9,070	)
Contributions to Trust			(50	)			(137	)			(310	)			(347	)
Investments, net			-				5,707				-				5,707
Net cash (used in) investing activities			(4,311	)			1,845				(11,431	)			(3,521	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds / Repayments from borrowings, Interest paid			(2,268	)			(18,564	)			50,397				11,051
Dividends paid			(17,540	)			(27,786	)			(56,647	)			(44,298	)
Share repurchase plan			-				0				-				(2,077	)
Net cash generated by (used in) by financing activities			(19,808	)			(46,350	)			(6,250	)			(35,324	)
Net increase (decrease) in cash and cash equivalents			(9,506	)			(17,240	)			20,702				2,012
Cash and cash equivalents at the beginning of the year			32,482				31,676				9,977				13,081
Effect of the re-expression in homogeneous cash currency ("Inflation-Adjusted")			(2,855	)			(5,782	)			(11,510	)			(7,084	)
Effects of the exchange rate differences on cash and cash equivalents in foreign currency			787				(397	)			1,741				248
Cash and cash equivalents at the end of the period			20,909				8,257				20,909				8,257

In 3Q23, our operating cash generation stood at Ps. 14,613 million, compared to Ps. 27,265 million in the same period of the previous year, where the decrease in the net profit adjusted to reconcile to net cash provided by operating activities coupled with a lower positive effect of the working capital, mainly due to a lower utilization of inventories and higher income tax advances.

During 3Q23, the Company used cash in financing activities for Ps. 19,808 million, mainly in the payment of dividends, interests, and the repayment of borrowings, partially compensated by the issuance of the Class 3 bond and the net proceeds from borrowings. Regarding cash used in investing activities, the Company used a total of Ps. 4,311 million, mainly due to maintenance capex, partially offset by proceeds from disposal of property, plant and equipment.

Dividends Distribution

On June 23, 2023, the Board of Directors approved the payment of dividends for a total amount of Ps. 13,700 million, equivalent to Ps. 23.47968399176 per outstanding share (Ps. 117.3984199588 per ADS), through the partially withdraw of funds from the Reserve for Future Dividends. The total amount was distributed in cash in July 2023.

Domestic Bond Issuance

On September 11, 2023, the Company issued its Class 3 of domestic bonds in the total principal amount of US$ 55.0 million. Terms of the issue are as outlined below.

Amount of Issue	US$ 55 million
Issue Price	100% of principal amount
Interest rate	7.49% per annum
Interest payments	semiannually
Maturity	Bullet - 30 months

Recent Events

Stipulation of Settlement Agreement

On October 11th, the Company announced a stipulation of settlement with respect to the shareholder class action lawsuit captioned "Dan Kohl v. Loma Negra CIASA, et al. - Index No. 653114/2018 (District Court for the Southern District of New York)" (the "Class Action").

The settlement is subject to the approval of the New York State Court, which will take several months. All material payment obligations under the settlement are covered by D&O insurance policies.

The settlement contains no admission of concession of any liability of wrongdoing by Loma Negra or other defendant in the Class Action and provides a full release of all the claims.

Domestic Bond Issuance

On November 2, 2023, the Company issued its Class 4 of domestic bonds in the total principal amount of US$ 10.0 million. Terms of the issue are as outlined below.

Amount of Issue	US$ 10 million
Issue Price	100% of principal amount
Interest rate	6% per annum
Interest payments	semiannually
Maturity	Bullet - 30 months

3Q23 Earnings Conference Call

When: 10:00 a.m. U.S. ET (12:00 p.m. BAT), November 9, 2023
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 Call
Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=Ar80iQjP
Replay: A telephone replay of the conference call will be available until November 16, 2023. 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 9040275. 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, cash equivalents and marketable securities.

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.

IR Contacts

Marcos I. Gradin, Chief Financial Officer and Investor Relations
Diego M. Jalón, Investor Relations Manager
+54-11-4319-3050
investorrelations@lomanegra.com

--- Financial Tables Follow -

Table 8: Condensed Interim Consolidated Statements of Financial Position
(amounts expressed in millions of pesos, unless otherwise noted)

		As of September 30,				As of December 31,
		2023				2022
ASSETS
Non-current assets
Property, plant and equipment			307,508				311,778
Right to use assets			1,781				2,134
Intangible assets			985				955
Investments			21				21
Goodwill			207				207
Inventories			13,817				12,961
Other receivables			2,203				2,278
Total non-current assets			326,522				330,334
Current assets
Inventories			44,403				41,451
Other receivables			9,917				11,884
Trade accounts receivable			18,981				18,534
Investments			9,152				8,626
Cash and banks			11,757				1,350
Total current assets			94,210				81,846
TOTAL ASSETS			420,732				412,180
SHAREHOLDER'S EQUITY
Capital stock and other capital related accounts			79,421				77,077
Reserves			107,893				154,136
Retained earnings			17,389				3,938
Accumulated other comprehensive income			-				-
Equity attributable to the owners of the Company			204,703				235,152
Non-controlling interests			254				396
TOTAL SHAREHOLDER'S EQUITY			204,958				235,548
LIABILITIES
Non-current liabilities
Borrowings			44,189				20,071
Accounts payables			-				-
Provisions			2,736				2,655
Salaries and social security payables			225				192
Debts for leases			1,293				1,591
Other liabilities			189				334
Deferred tax liabilities			70,979				66,979
Total non-current liabilities			119,611				91,822
Current liabilities
Borrowings			51,867				22,124
Accounts payable			29,441				35,956
Advances from customers			2,755				3,578
Salaries and social security payables			6,568				9,033
Other liabilities - Related companies			-				-
Tax liabilities			4,485				5,922
Debts for leases			544				574
Other liabilities			504				7,622
Total current liabilities			96,164				84,810
TOTAL LIABILITIES			215,774				176,632
TOTAL SHAREHOLDER'S EQUITY AND LIABILITIES			420,732				412,180

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,
	2023			2022			% Change		2023			2022			% Change
Net revenue	74,182			80,878			-8.3%		210,559			220,154			-4.4%
Cost of sales	(56,931	)		(63,656	)		-10.6%		(158,442	)		(160,349	)		-1.2%
Gross Profit	17,251			17,222			0.2%		52,117			59,805			-12.9%
Share of loss of associates	-			-			n/a		-			-			n/a
Selling and administrative expenses	(6,157	)		(6,270	)		-1.8%		(18,727	)		(18,915	)		-1.0%
Other gains and losses	262			(294	)		n/a		650			(259	)		n/a
Tax on debits and credits to bank accounts	(795	)		(787	)		0.9%		(2,345	)		(2,182	)		7.5%
Finance gain (cost), net
Gain on net monetary position	28,991			8,785			230.0%		54,914			15,497			254.4%
Exchange rate differences	(16,538	)		(2,110	)		683.8%		(28,743	)		(8,966	)		220.6%
Financial income	530			252			110.8%		3,617			2,922			23.8%
Financial expenses	(14,564	)		(43,326	)		-66.4%		(35,489	)		(45,999	)		-22.8%
Profit (loss) before taxes	8,980			(26,530	)		n/a		25,994			1,903			1266.2%
Income tax expense
Current	1,775			(637	)		n/a		(2,509	)		(7,176	)		-65.0%
Deferred	(3,254	)		(2,001	)		62.6%		(4,000	)		(6,196	)		-35.4%
Net Profit (Loss)	7,501			(29,168	)		n/a		19,485			(11,469	)		n/a
Net Profit (Loss) for the period attributable to:
Owners of the Company	7,398			(28,936	)		n/a		19,627			(10,900	)		n/a
Non-controlling interests	102			(232	)		n/a		(141	)		(569	)		-75.1%
NET PROFIT (LOSS) FOR THE PERIOD	7,501			(29,168	)		n/a		19,485			(11,469	)		n/a
Earnings per share (basic and diluted):	12.6818			(49.4299	)		n/a		33.6374			(18.6130	)		n/a

Table 10: Condensed Interim Consolidated Statement of Cash Flows
(amounts expressed in millions of pesos, unless otherwise noted)

		Three-months ended September 30,								Nine-months ended September 30,
		2023				2022				2023				2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net Profit (Loss)			7,501				(29,168	)			19,485				(11,469	)
Adjustments to reconcile net profit to net cash provided by operating activities
Income tax expense			1,480				2,638				6,508				13,371
Depreciation and amortization			5,833				7,233				16,631				20,665
Provisions			1,151				727				2,751				1,965
Exchange rate differences			13,125				3,929				21,123				5,878
Interest expense			12,942				6,282				30,925				5,895
Loss on transactions with securities			729				35,827				729				35,827
Gain on disposal of property, plant and equipment			(191	)			36				(410	)			(4	)
Gain on net monetary position			(28,991	)			(8,785	)			(54,914	)			(15,497	)
Impairment of trust fund			17				99				(205	)			284
Share-based payment			15				20				107				116
Changes in operating assets and liabilities
Inventories			2,130				5,562				(4,394	)			(3,337	)
Other receivables			(4,367	)			(2,546	)			713				(4,018	)
Trade accounts receivable			(6,459	)			(5,088	)			(14,346	)			(10,945	)
Advances from customers			61				1,297				253				416
Accounts payable			5,568				5,454				13,722				8,569
Salaries and social security payables			1,369				1,335				2,298				2,792
Provisions			(256	)			(385	)			(459	)			(551	)
Tax liabilities			5,062				6,061				2,780				8,456
Other liabilities			284				333				1,187				(45	)
Income tax paid			(2,388	)			(3,596	)			(6,102	)			(17,511	)
Net cash generated by (used in) operating activities			14,613				27,265				38,383				40,857
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from disposal of Yguazu Cementos S.A.			100				0				424				189
Proceeds from disposal of Property, plant and equipment			688				(17	)			700				57
Payments to acquire Property, plant and equipment			(4,993	)			(3,648	)			(11,950	)			(9,057	)
Payments to acquire Intangible Assets			(57	)			(61	)			(295	)			(70	)
Acquire investments			-				-				-				-
Proceeds from maturity investments			-				5,707				-				5,707
Contributions to Trust			(50	)			(137	)			(310	)			(347	)
Net cash generated by (used in) investing activities			(4,311	)			1,845				(11,431	)			(3,521	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from non-convertible negotiable obligations			19,231				-				90,091				-
Proceeds from borrowings			7,852				62,801				36,835				103,722
Loss on transactions with securities			(729	)			(35,827	)			(729	)			(35,827	)
Interest paid			(10,544	)			(4,864	)			(25,299	)			(5,578	)
Dividends paid			(17,540	)			(27,786	)			(56,647	)			(44,298	)
Debts for leases			(171	)			(66	)			(471	)			(296	)
Repayment of borrowings			(17,906	)			(40,608	)			(50,031	)			(50,971	)
Share repurchase plan			-				0				-				(2,077	)
Net cash generated by (used in) financing activities			(19,808	)			(46,350	)			(6,250	)			(35,324	)
Net increase (decrease) in cash and cash equivalents			(9,506	)			(17,240	)			20,702				2,012
Cash and cash equivalents at the beginning of the period			32,482				31,676				9,977				13,081
Effect of the re-expression in homogeneous cash currency ("Inflation-Adjusted")			(2,855	)			(5,782	)			(11,510	)			(7,084	)
Effects of the exchange rate differences on cash and cash equivalents in foreign currency			787				(397	)			1,741				248
Cash and cash equivalents at the end of the period			20,909				8,257				20,909				8,257

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 September 30,												Nine-months ended September 30,
	2023			%			2022			%			2023			%			2022			%
Net revenue	66,249			100.0	%		31,983			100.0	%		152,118			100.0	%		74,310			100.0	%
Cement, masonry cement and lime	58,431			88.2	%		28,377			88.7	%		133,033			87.5	%		65,760			88.5	%
Concrete	6,012			9.1	%		2,799			8.8	%		14,967			9.8	%		6,127			8.2	%
Railroad	5,240			7.9	%		2,418			7.6	%		11,934			7.8	%		5,994			8.1	%
Aggregates	2,090			3.2	%		784			2.5	%		4,690			3.1	%		1,787			2.4	%
Others	384			0.6	%		168			0.5	%		831			0.5	%		476			0.6	%
Eliminations	(5,908	)		-8.9	%		(2,562	)		-8.0	%		(13,338	)		-8.8	%		(5,832	)		-7.8	%
Cost of sales	41,856			100.0	%		21,069			100.0	%		95,750			100.0	%		47,348			100.0	%
Cement, masonry cement and lime	35,172			84.0	%		17,948			85.2	%		79,350			82.9	%		39,747			83.9	%
Concrete	5,667			13.5	%		2,637			12.5	%		14,101			14.7	%		5,859			12.4	%
Railroad	4,745			11.3	%		2,309			11.0	%		10,934			11.4	%		5,739			12.1	%
Aggregates	1,919			4.6	%		642			3.0	%		4,129			4.3	%		1,549			3.3	%
Others	261			0.6	%		94			0.4	%		573			0.6	%		287			0.6	%
Eliminations	(5,908	)		-14.1	%		(2,562	)		-12.2	%		(13,338	)		-13.9	%		(5,832	)		-12.3	%
Selling, admin. expenses and other gains & losses	4,764			100.0	%		2,487			100.0	%		11,757			100.0	%		6,098			100.0	%
Cement, masonry cement and lime	4,183			87.8	%		2,175			87.4	%		10,249			87.2	%		5,351			87.7	%
Concrete	244			5.1	%		103			4.2	%		594			5.0	%		249			4.1	%
Railroad	205			4.3	%		138			5.6	%		600			5.1	%		335			5.5	%
Aggregates	22			0.5	%		14			0.6	%		47			0.4	%		24			0.4	%
Others	110			2.3	%		56			2.3	%		267			2.3	%		140			2.3	%
Depreciation and amortization	1,059			100.0	%		837			100.0	%		2,775			100.0	%		2,152			100.0	%
Cement, masonry cement and lime	828			78.2	%		644			76.9	%		2,187			78.8	%		1,645			76.4	%
Concrete	31			2.9	%		11			1.3	%		71			2.6	%		45			2.1	%
Railroad	148			14.0	%		170			20.4	%		380			13.7	%		434			20.1	%
Aggregates	51			4.8	%		10			1.2	%		132			4.8	%		25			1.2	%
Others	1			0.1	%		1			0.1	%		4			0.1	%		4			0.2	%
Adjusted EBITDA	20,687			100.0	%		9,264			100.0	%		47,386			100.0	%		23,016			100.0	%
Cement, masonry cement and lime	19,904			96.2	%		8,898			96.0	%		45,621			96.3	%		22,307			96.9	%
Concrete	131			0.6	%		69			0.7	%		343			0.7	%		64			0.3	%
Railroad	438			2.1	%		141			1.5	%		780			1.6	%		354			1.5	%
Aggregates	199			1.0	%		138			1.5	%		647			1.4	%		239			1.0	%
Others	15			0.1	%		18			0.2	%		(6	)		0.0	%		53			0.2	%
Reconciling items:
Effect by translation in homogeneous cash currency ("Inflation-Adjusted")	(3,499	)					8,626						3,285						38,280
Depreciation and amortization	(5,833	)					(7,233	)					(16,631	)					(20,665	)
Tax on debits and credits banks accounts	(795	)					(787	)					(2,345	)					(2,182	)
Finance gain (cost), net	(1,581	)					(36,400	)					(5,701	)					(36,546	)
Income tax	(1,480	)					(2,638	)					(6,508	)					(13,371	)
Share of profit of associates	-						-						-						-
Impairment of property, plant and equipment	-						-						-						-
NET PROFIT (LOSS) FOR THE PERIOD	7,501						(29,168	)					9,485						(11,469	)

SOURCE: Loma Negra

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