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Loma Negra Reports 2Q21 results

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BUENOS AIRES, Argentina, August 11, 2021--(BUSINESS WIRE)--Loma Negra, (NYSE: LOMA; BYMA: LOMA), ("Loma Negra" or the "Company"), the leading cement producer in Argentina, today announced results for the three-month period ended June 30, 2021 (our "2Q21 Results").

2Q21 Key Highlights

  • Net revenue increased by 46.6% YoY to Ps. 14,269 million (US$147 million), mostly explained by our core cement segment

  • Strong increase in our Consolidated Adjusted EBITDA of 74.1% YoY to Ps. 4,354 million (US$48 million)

  • Consolidated Adjusted EBITDA margin expanded by 483 basis points YoY from 25.7% to 30.5%, driven by higher sales of cement, masonry, and lime together with higher operational leverage

  • Net loss of Ps. 1,265 million as a consequence of a one-off effect in deferred taxes as a result of the recent tax reform

  • Net Debt /LTM Adjusted EBITDA ratio of 0.13x from 1.30x in 2Q20 and 0.16x in FY20

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 second quarter of 2021, Sergio Faifman, Loma Negra’s Chief Executive Officer, noted: "We are pleased to announce another quarter with an excellent performance. Demand continues with a strong momentum, and after several quarters of recovery is now exceeding pre-pandemic levels.

On the back of our revenues growth and a higher operational leverage is that we increased our EBITDA by 74%YoY and expanded our margin by 483 bps, reaching one of the best second quarters in recent years with Adjusted EBITDA in the quarter of US$ 48 million.

Additionally, during the quarter, we posted a net loss impacted by one-off income tax effect derived from the recent tax reform. Still, for the first half of the year, Net profit stood at Ps. 1,583 million.

Regarding our expansion project, last June we inaugurated the new kiln and is now producing clinker and contributing to our world-class operation. Additionally, the new Cement mill and dispatch center are close to commissioning.

For the second half, we expect strong recovery to continue and an expansion vis-à-vis pre-pandemic levels, as seasonality and public works should begin to contribute positively. Yet we remain cautious as macroeconomic context could affect the recovery and some degree of uncertainty remains in relation to the pandemic.

Last but not least, I would like to thank all our people, and stakeholders, for their commitment to Loma´s operational excellence, without whom this set of solid results would have been much harder to achieve. Supported by a robust and efficient productive footprint, a solid capital structure, and a dedicated team, Loma has the base to continue thriving in the years to come."

Table 1: Financial Highlights

(amounts expressed in millions of pesos, unless otherwise noted)

Three-months ended
June 30,

Six-months ended
June 30,

2021

2020

% Chg.

2021

2020

% Chg.

Net revenue

14,269

9,735

46.6%

28,888

20,536

40.7%

Gross Profit

4,299

2,286

88.0%

9,598

5,578

72.1%

Gross Profit margin

30.1%

23.5%

+664bps

33.2%

27.2%

+606bps

Adjusted EBITDA

4,354

2,501

74.1%

9,576

5,990

59.9%

Adjusted EBITDA Mg.

30.5%

25.7%

+483bps

33.1%

29.2%

+398bps

Net Profit

(1,265)

166

n/a

1,583

1,560

1.5%

Net Profit attributable to owners of the Company

(1,235)

123

n/a

1,651

1,480

11.6%

EPS

(2.0747)

0.2060

n/a

2.7770

2.0022

38.7%

Shares outstanding at eop

596

596

-0.1%

596

596

-0.1%

Net Debt

2,484

18,853

-86.8%

2,484

18,853

-86.8%

Net Debt /LTM Adjusted EBITDA

0.13x

1.30x

-1.17x

0.13x

1.30x

-1.17x

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

In million Ps.

Three-months ended
June 30,

Six-months ended
June 30,

2021

2020

% Chg.

2021

2020

% Chg.

Net revenue

13,829

6,382

116.7%

26,464

12,990

103.7%

Adjusted EBITDA

4,484

1,729

159.3%

9,116

3,934

131.7%

Adjusted EBITDA Mg.

32.4%

27.1%

+528bps

34.4%

30.3%

+414bps

Net Profit

4,628

137

3276.2%

7,888

781

909.3%

Net Debt

2,484

18,853

-86.8%

2,484

18,853

-86.8%

Net Debt /LTM Adjusted EBITDA

0.13x

1.30x

-1.17x

0.13x

1.30x

-1.17x

In million US$

Three-months ended
June 30,

Six-months ended
June 30,

2021

2020

% Chg.

2021

2020

% Chg.

Ps./US$, av

94.09

67.71

39.0%

91.37

64.59

41.5%

Ps./US$, eop

95.73

70.46

35.9%

95.73

70.46

35.9%

Net revenue

147

94

55.9%

290

201

44.0%

Adjusted EBITDA

48

26

86.3%

100

61

63.7%

Adjusted EBITDA Mg.

32.4%

27.1%

+528bps

34.4%

30.3%

+414bps

Net Profit

49

2

2329.4%

86

12

613.5%

Net Debt

26

268

-90.3%

26

268

-90.3%

Net Debt /LTM Adjusted EBITDA

0.13x

1.30x

-1.17x

0.13x

1.30x

-1.17x

Overview of Operations

Sales Volumes

Table 2: Sales Volumes2

Three-months ended
June 30,

Six-months ended
June 30,

2021

2020

% Chg.

2021

2020

% Chg.

Cement, masonry & lime

MM Tn

1.40

1.01

39.5%

2.79

2.01

38.7%

Concrete

MM m3

0.12

0.02

583.6%

0.27

0.09

191.5%

Railroad

MM Tn

1.06

0.63

69.2%

2.05

1.57

30.8%

Aggregates

MM Tn

0.20

0.03

620.1%

0.38

0.15

145.4%

2 Sales volumes include inter-segment sales

Sales volumes of cement, masonry, and lime in Argentina during 2Q21 increased 39.5% to 1.40 million tons, with the robust bagged cement sales driven by strong household and retail demand growing above pre-pandemic levels of 2Q19. Bulk cement is still falling behind pre-pandemic levels, yet volume dispatched in this format have recovered vigorously in a year over year basis, as COVID-19 second wave restrictions have been less severe than in the same period last year.

Likewise, Concrete and Aggregates volumes presented a strong YoY recovery of 583.6% and 620.1%, respectively, yet absolute figures are still far from pre-pandemic levels.

Railroad segment volumes experienced a 69.2% increase versus the comparable quarter in 2020, with a positive effect of the recovery in building materials and frac-sand transported volumes.

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
June 30,

Six-months ended
June 30,

2021

2020

% Chg.

2021

2020

% Chg.

Net revenue

14,269

9,735

46.6%

28,888

20,536

40.7%

Cost of sales

(9,971)

(7,449)

33.8%

(19,290)

(14,958)

29.0%

Gross Profit

4,299

2,286

88.0%

9,598

5,578

72.1%

Selling and administrative expenses

(1,231)

(920)

33.7%

(2,428)

(1,866)

30.1%

Other gains and losses

85

3

2440.9%

132

73

81.6%

Impairment of property, plant and equipment

-

-

n/a

-

-

n/a

Tax on debits and credits to bank accounts

(158)

(103)

53.1%

(297)

(265)

12.0%

Finance gain (cost), net

Gain on net monetary position

552

102

442.1%

1,171

297

293.7%

Exchange rate differences

193

(864)

n/a

217

(1,129)

n/a

Financial income

414

15

2661.4%

135

41

232.7%

Financial expense

(868)

(850)

2.1%

(1,074)

(1,439)

-25.3%

Profit before taxes

3,286

(331)

n/a

7,453

1,289

478.1%

Income tax expense

Current

(1,537)

111

n/a

(3,262)

(293)

1013.3%

Deferred

(3,015)

109

n/a

(2,608)

2

n/a

Net profit from continuing operations

(1,265)

(111)

1042.5%

1,583

998

58.6%

Income from discontinued operations

-

277

n/a

-

561

n/a

Net profit

(1,265)

166

n/a

1,583

1,560

1.5%

Net Revenues

Net revenue increased 46.6% to Ps. 14,269 million in 2Q21, from Ps. 9,735 million in the comparable quarter last year, reflecting the COVID-19 pandemic restriction of 2Q20 and the positive momentum experienced by our core cement business, together with sales recovery across all segments.

Cement, masonry cement and lime segment was up 43.4%, with volumes expanding 39.5% and good pricing performance.

Concrete posted a revenues increase of 491.7% as strong volume recovery more than offset soft prices. Aggregates posted a revenue surge of 1000.1% as higher volume sales were coupled with a positive sales mix.

Railroad revenues increased 23.5% in 2Q21 versus the same quarter in 2020, as the higher transported volumes more than offset the effect of the transported product mix.

Cost of sales, and Gross profit

Cost of sales increased 33.8% YoY reaching Ps. 9,971 million in 2Q21 largely explained by the increase in volume sold, impacting in higher thermal and electrical input charges, and higher freight cost.

Gross profit increased 88.0% YoY to Ps. 4,299 million in 2Q21 from Ps. 2,286 million in 2Q20, with gross profit margin expanding 664 basis points YoY to 30.1%, reflecting the recovery of cement sales volumes coupled with good cost performance and higher operational leverage.

Selling and Administrative Expenses

Selling and administrative expenses (SG&A) in 2Q21 increased by 33.7% YoY to Ps. 1,231 million, from Ps. 920 million in 2Q20, mainly as a consequence of higher cement sales and higher labor cost compare to last year´s level, affected by COVID-19 restriction. As a percentage of revenues, SG&A decreased 83 basis points to 8.6% in 2Q21, from 9.5% in 2Q20 mostly explained by higher sales volumes.

Adjusted EBITDA & Margin

Table 4: Adjusted EBITDA Reconciliation & Margin

(amounts expressed in millions of pesos, unless otherwise noted)

Three-months ended
June 30,

Six-months ended
June 30,

2021

2020

% Chg.

2021

2020

% Chg.

Adjusted EBITDA reconciliation:

Net profit

(1,265)

166

n/a

1,583

1,560

1.5%

(+) Depreciation and amortization

1,201

1,132

6.2%

2,274

2,206

3.1%

(+) Tax on debits and credits to bank accounts

158

103

53.1%

297

265

12.0%

(+) Income tax expense

4,551

(220)

n/a

5,870

291

1917.8%

(+) Financial interest, net

420

711

-40.9%

837

1,134

-26.2%

(+) Exchange rate differences, net

(193)

864

n/a

(217)

1,129

n/a

(+) Other financial expenses, net

34

124

-72.9%

102

264

-61.6%

(+) Gain on net monetary position

(552)

(102)

442.1%

(1,171)

(297)

293.7%

(-) Income from discontinued operations

-

277

n/a

-

561

n/a

Adjusted EBITDA

4,354

2,501

74.1%

9,576

5,990

59.9%

Adjusted EBITDA Margin

30.5%

25.7%

+483bps

33.1%

29.2%

+398bps

Adjusted EBITDA increased 74.1% YoY in the second quarter of 2021 to Ps. 4,354 million, mostly explained by our cement business. Likewise, Adjusted EBITDA margin expanded by 483 basis points to 30.5% compared to 25.7% in 2Q20 largely on the back of cement margins expansion.

In particular, Cement, masonry cement and lime segment Adjusted EBITDA margin expanded by 472 bps to 34.0%, mainly due to the increase in sales volume and higher operational leverage.

Concrete Adjusted EBITDA recovered by 4.4% compared to 2Q20, yet posted a negative margin of 6.8%, as softer pricing outweighed the increase in sales volumes and the reduction in unitary costs of sales.

Railroad Adjusted EBITDA margin deteriorated to 4.9%, mainly impacted by product mix with costs reduction less than proportional to revenues partially offset by higher transported volume and SG&A expenses as a percentage of revenues.

Finally, Aggregates Adjusted EBITDA margin improved to 7.7%, as strong volume recovery coupled with better pricing mix and higher operational leverage.

Finance Costs-Net

Table 5: Finance Gain (Cost), net

(amounts expressed in millions of pesos, unless otherwise noted)

Three-months ended
June 30,

Six-months ended
June 30,

2021

2020

% Chg.

2021

2020

% Chg.

Exchange rate differences

193

(864)

n/a

217

(1,129)

n/a

Financial income

414

15

2661.4%

135

41

232.7%

Financial expense

(868)

(850)

2.1%

(1,074)

(1,439)

-25.3%

Gain on net monetary position

552

102

442.1%

1,171

297

293.7%

Total Finance Gain (Cost), Net

292

(1,597)

n/a

449

(2,230)

n/a

During 2Q21, the Company reported a total finance gain, net of Ps. 292 million compared to a total finance cost, net of Ps. 1,597 million in 2Q20, mainly due to higher exchange rate difference gain of Ps. 193 million due to a lower net debt denominated in foreign currency and a real appreciation of the Peso during the period.

Net Profit and Net Profit Attributable to Owners of the Company

Net Profit for 2Q21 was severely impacted with an extraordinary charge equivalent to Ps. 3.0 billion of additional deferred tax charges, related to the recent tax reform resulting in a Net loss of Ps. 1.3 billion. The accumulated net profit for the year was Ps. 1.6 billion.

Net Profit Attributable to Owners of the Company decreased to negative Ps. 1,2 billion. During the quarter, the Company reported a loss per common share of Ps. 2.0747 and loss per ADR of Ps. 10.3736, compared with earnings per common share of Ps. 0.2060 and earnings per ADR of Ps. 1.0299 in 2Q20.

Capitalization

Table 6: Capitalization and Debt Ratio

(amounts expressed in millions of pesos, unless otherwise noted)

As of June 30,

As of
December, 31

2021

2020

2020

Total Debt

5,398

22,245

8,072

- Short-Term Debt

4,841

14,766

5,729

- Long-Term Debt

557

7,478

2,343

Cash, Cash Equivalents, and Investments

2,915

3,392

5,484

Total Net Debt

2,484

18,853

2,588

Shareholders' Equity

57,675

51,461

56,886

Capitalization

63,073

73,706

64,957

LTM Adjusted EBITDA

18,493

14,495

16,640

Net Debt /LTM Adjusted EBITDA

0.13x

1.30x

0.16x

As of June 30, 2021, total cash and cash equivalents were Ps. 2,915 million compared with Ps. 3,392 million as of the June 30, 2020. Total debt at the close of the quarter stood at Ps. 5,398 million, composed by Ps. 4,841 million in short-term borrowings, including the current portion of long-term borrowings (or 89.7% of total borrowings), and Ps. 557 million in long-term borrowings (or 10.3% of total borrowings).

As of June 30, 2021, 82.5% (or Ps. 4,452 million) Loma Negra’s total debt was denominated in U.S. dollars, 17.1% (or Ps. 926 million) in Euros, and 0.4% (or Ps. 21 million) in argentine pesos. The average duration of Loma Negra’s total debt was 0.5 years.

As of June 30, 2021, Ps. 4,473 million, or 82.9%, of the Company’s total consolidated borrowings bore interest at rates based on Libor, and Ps. 926 million of borrowings bore interest at a fixed rate.

The Net Debt to Adjusted EBITDA (LTM) ratio decreased to 0.13x as of June 30, 2021 from 0.16x as of December 31, 2020 as the cash used in investing and financing activities outweighed the cash generated by operating activities.

Cash Flows

Table 7: Condensed Interim Consolidated Statement of Cash Flows

(amounts expressed in millions of pesos, unless otherwise noted)

Three-months ended
June 30,

Six-months ended
June 30,

2021

2020

2021

2020

CASH FLOWS FROM OPERATING ACTIVITIES

Net profit

(1,265)

166

1,583

1,560

Adjustments to reconcile net profit to net cash provided by operating activities

5,577

1,766

7,902

3,666

Changes in operating assets and liabilities

(4,339)

2,212

(6,263)

(905)

Net cash generated by operating activities

(28)

4,144

3,222

4,322

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from disposal of Yguazú Cementos S.A.

156

-

250

-

Property, plant and equipment, Intangible Assets, net

(1.341)

(1.464)

(2.475)

(7.820)

Contributions to Trust

(20)

(0)

(42)

(33)

Investments

(0)

-

(1.856)

-

Net cash (used in) investing activities

(1,205)

(1,464)

(4,124)

(7,853)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds / Repayments from borrowings, Interest paid

(1,745)

(1,632)

(2,236)

4,766

Share repurchase plan

(511)

-

(794)

-

Net cash generated by (used in) by financing activities

(2,256)

(1,632)

(3,031)

4,766

Net increase (decrease) in cash and cash equivalents

(3,488)

1,049

(3,932)

1,234

Cash and cash equivalents at the beginning of the year

4,829

2,347

5,484

2,225

Effect of the re-expression in homogeneous cash currency ("Inflation-Adjusted")

(55)

(29)

(95)

(94)

Effects of the exchange rate differences on cash and cash equivalents in foreign currency

(126)

25

(297)

26

Cash and cash equivalents at the end of the period

1,160

3,392

1,160

3,392

In the 2Q21, our operating cash generation was largely dedicated to income tax payments and to seasonal working capital requirements. Typically, in the second quarter previous year´s income tax payment are scheduled, in particular, 2Q21 payment of 3.0 billion pesos included 1.5 billion pesos charge related to last year´s divestment in Paraguay.

By contrast, last year´s second quarter working capital levels were very low as several initiatives aiming to preserve liquidity under the pandemic uncertainty were taken.

During 2Q21, the Company had used cash in financing and investing activities for a total of Ps. 2,256 and Ps. 1,205 million, respectively. Cash allocations to the expansion of production capacity of L’Amalí plant accounted for a total of Ps. 292 million, or 22% of total capital expenditures.

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 June 2021, the project presents an overall Progress of 99%. All detailed engineering is completed, all equipment and materials supplies has been delivered to site. In previous quarters, commissioning and start-up had been completed at crushing department and raw mill department. Last June it was inaugurated the new kiln, which is now operational and producing clinker.

Additionally, new Cement mill and dispatch center are planned to start up by end of September.

Share Repurchase Plan.

On July 2, 2021, the Company announced the approval of the second share repurchase program, 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.

The plan became effective as from July 6, 2021, the amount to invest will be up to AR$ 975.000.000 (Argentine Pesos Nine Hundred Seventy Five 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.

A summary of current Share Repurchase Programs is shown below:

Repurchase Program II

Maximum amount for repurchase

AR$ 975 million

Maximum price

AR$ 310/ordinary share or US$ 9/ADR

Period in force

60 days since July 6, 2021

Repurchase under the program until August 11, 2021

AR$ 320 million

Progress

32.8%

2Q21 Earnings Conference Call

When:

10:00 a.m. U.S. ET (11:00 a.m. BAT), August 12, 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/loma210812gcV4Odjo.html

Replay:

A telephone replay of the conference call will be available between August 13, 2021 at 1:00 pm U.S. E.T. and ending on August 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 10158956. 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.

Table 8: Condensed Interim Consolidated Statements of Financial Position

(amounts expressed in millions of pesos, unless otherwise noted)

As of June 30,

As of December 31,

2021

2020

ASSETS

Non-current assets

Property, plant and equipment

66,464

67,120

Right to use assets

314

561

Intangible assets

198

241

Investments

4

4

Goodwill

44

44

Inventories

2,587

2,702

Other receivables

609

603

Total non-current assets

70,220

71,274

Current assets

Inventories

7,909

6,883

Other receivables

1,195

1,525

Trade accounts receivable

3,819

3,746

Investments

2,576

5,149

Cash and banks

338

334

Total current assets

15,838

17,638

TOTAL ASSETS

86,059

88,912

SHAREHOLDERS' EQUITY

Capital stock and other capital related accounts

18,066

18,860

Reserves

37,686

23,460

Retained earnings

1,651

14,226

Equity attributable to the owners of the Company

57,402

56,546

Non-controlling interests

272

340

TOTAL SHAREHOLDERS' EQUITY

57,675

56,886

LIABILITIES

Non-current liabilities

Borrowings

557

2,343

Accounts payables

-

128

Provisions

562

611

Salaries and social security payables

68

48

Debts for leases

242

489

Other liabilities

67

140

Deferred tax liabilities

11,727

9,119

Total non-current liabilities

13,223

12,878

Current liabilities

Borrowings

4,841

5,729

Accounts payable

5,261

6,759

Advances from customers

615

917

Salaries and social security payables

1,694

1,782

Tax liabilities

2,523

3,614

Debts for leases

91

176

Other liabilities

136

171

Total current liabilities

15,160

19,149

TOTAL LIABILITIES

28,384

32,027

TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES

86,059

88,912

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
June 30,

Six-months ended
June 30,

2021

2020

% Change

2021

2020

% Change

Net revenue

14,269

9,735

46.6%

28,888

20,536

40.7%

Cost of sales

(9,971)

(7,449)

33.8%

(19,290)

(14,958)

29.0%

Gross profit

4,299

2,286

88.0%

9,598

5,578

72.1%

Selling and administrative expenses

(1,231)

(920)

33.7%

(2,428)

(1,866)

30.1%

Other gains and losses

85

3

2440.9%

132

73

81.6%

Tax on debits and credits to bank accounts

(158)

(103)

53.1%

(297)

(265)

12.0%

Finance gain (cost), net

Gain on net monetary position

552

102

442.1%

1,171

297

293.7%

Exchange rate differences

193

(864)

n/a

217

(1,129)

n/a

Financial income

414

15

2661.4%

135

41

232.7%

Financial expenses

(868)

(850)

2.1%

(1,074)

(1,439)

-25.3%

Profit (loss) before taxes

3,286

(331)

n/a

7,453

1,289

478.1%

Income tax expense

Current

(1,537)

111

n/a

(3,262)

(293)

1013.3%

Deferred

(3,015)

109

n/a

(2,608)

2

n/a

Net profit (loss) from continuing operations

(1,265)

(111)

1042.5%

1,583

998

58.6%

Income from discontinued operations

-

277

n/a

-

561

n/a

Net profit (loss)

(1,265)

166

n/a

1,583

1,560

1.5%

Other Comprehensive Income (Loss)

Items to be reclassified through profit and loss:

Exchange differences on translating foreign operations

-

48

n/a

-

(137)

n/a

Total other comprehensive income (loss)

-

48

n/a

-

(137)

n/a

TOTAL COMPREHENSIVE INCOME (LOSS)

(1,265)

214

n/a

1,583

1,423

11.3%

Net Profit (loss) for the period attributable to:

Owners of the Company

(1,235)

123

n/a

1,651

1,480

11.6%

Non-controlling interests

(31)

43

n/a

(67)

80

n/a

NET PROFIT (LOSS) FOR THE PERIOD

(1,265)

166

n/a

1,583

1,560

1.5%

Total comprehensive income (loss) attributable to:

Owners of the Company

(1,235)

147

n/a

1,651

1,410

17.1%

Non-controlling interests

(31)

67

n/a

(67)

13

n/a

TOTAL COMPREHENSIVE INCOME (LOSS)

(1,265)

214

n/a

1,583

1,423

11.3%

Earnings per share (basic and diluted):

(2.0747)

0.2060

n/a

2.7770

2.0022

38.7%

Table 10: Condensed Interim Consolidated Statement of Cash Flows

(amounts expressed in millions of pesos, unless otherwise noted)

Three-months ended
June 30,

Six-months ended
June 30,

2021

2020

2021

2020

CASH FLOWS FROM OPERATING ACTIVITIES

Net profit (loss) from continuing operations

(1,265)

(111)

1,583

998

Income from discontinued operations

-

277

-

561

Net profit (loss)

(1,265)

166

1,583

1,560

Adjustments to reconcile net profit to net cash provided by operating activities

Income tax expense

4,551

(184)

5,870

356

Depreciation and amortization

1,201

1,132

2,274

2,206

Provisions

(20)

(99)

(21)

(14)

Interest expense

96

760

220

1,282

Exchange rate differences

(339)

458

(507)

440

Interest income

116

-

102

-

Gain on disposal of property, plant and equipment

(53)

13

(75)

23

Gain on disposal of shareholding of Yguazú Cementos S.A.

-

(313)

-

(626)

Depreciation value of trust

24

-

38

-

Changes in operating assets and liabilities

Inventories

(94)

699

(675)

(429)

Other receivables

(34)

205

(337)

(110)

Trade accounts receivable

(402)

242

(848)

450

Advances from customers

(170)

91

(194)

142

Accounts payable

129

825

315

31

Salaries and social security payables

120

(317)

302

(398)

Provisions

(14)

51

(24)

(37)

Tax liabilities

(198)

676

(71)

240

Other liabilities

(45)

(29)

(105)

(43)

Gain on net monetary position

(552)

(102)

(1,171)

(297)

Income tax paid

(3,080)

(128)

(3,456)

(453)

Net cash generated by (used in) operating activities

(28)

4,144

3,222

4,322

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from disposal of Yguazú Cementos S.A.

156

-

250

-

Proceeds from disposal of Property, plant and equipment

30

8

71

30

Payments to acquire Property, plant and equipment

(1,371)

(1,471)

(2,546)

(7,845)

Payments to acquire Intangible Assets

-

(1)

-

(4)

Investments

(0)

-

(1,856)

-

Contributions to Trust

(20)

(0)

(42)

(33)

Net cash generated by (used in) investing activities

(1,205)

(1,464)

(4,124)

(7,853)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from borrowings

372

6,981

470

15,848

Interest paid

(69)

(974)

(265)

(2,054)

Debts for leases

(36)

(37)

(79)

(85)

Repayment of borrowings

(2,011)

(7,601)

(2,362)

(8,943)

Share repurchase plan

(511)

-

(794)

-

Net cash generated by (used in) financing activities

(2,256)

(1,632)

(3,031)

4,766

Net increase (decrease) in cash and cash equivalents

(3,488)

1,049

(3,932)

1,234

Cash and cash equivalents at the beginning of the period

4,829

2,347

5,484

2,225

Effect of the re-expression in homogeneous cash currency ("Inflation-Adjusted")

(55)

(29)

(95)

(94)

Effects of the exchange rate differences on cash and cash equivalents in foreign currency

(126)

25

(297)

26

Cash and cash equivalents at the end of the period

1,160

3,392

1,160

3,392

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 June 30,

Six-months ended June 30,

2021

%

2020

%

2021

%

2020

%

Net revenue

13,829

100.0%

6,382

100.0%

26,464

100.0%

12,990

100.0%

Cement, masonry cement and lime

12,392

89.6%

5,844

91.6%

23,709

89.6%

11,632

89.5%

Concrete

947

6.8%

109

1.7%

2,033

7.7%

577

4.4%

Railroad

1,194

8.6%

655

10.3%

2,108

8.0%

1,397

10.8%

Aggregates

190

1.4%

12

0.2%

318

1.2%

74

0.6%

Others

68

0.5%

37

0.6%

140

0.5%

85

0.7%

Eliminations

(961)

-6.9%

(276)

-4.3%

(1,844)

-7.0%

(775)

-6.0%

Cost of sales

8,668

100.0%

4,335

100.0%

16,071

100.0%

8,504

100.0%

Cement, masonry cement and lime

7,268

83.8%

3,735

86.2%

13,311

82.8%

7,031

82.7%

Concrete

1,026

11.8%

205

4.7%

2,186

13.6%

729

8.6%

Railroad

1,117

12.9%

609

14.1%

2,022

12.6%

1,348

15.9%

Aggregates

169

2.0%

38

0.9%

302

1.9%

116

1.4%

Others

49

0.6%

24

0.6%

93

0.6%

55

0.6%

Eliminations

(961)

-11.1%

(276)

-6.4%

(1,844)

-11.5%

(775)

-9.1%

Selling, admin. expenses and other gains & losses

1,048

100.0%

559

100.0%

1,992

100.0%

1,047

100.0%

Cement, masonry cement and lime

949

90.5%

473

84.6%

1,789

89.8%

919

87.8%

Concrete

0

0.0%

12

2.1%

22

1.1%

8

0.8%

Railroad

72

6.9%

60

10.7%

127

6.4%

90

8.6%

Aggregates

2

0.2%

(0)

0.0%

4

0.2%

(4)

-0.4%

Others

25

2.4%

15

2.7%

49

2.5%

33

3.2%

Depreciation and amortization

371

100.0%

241

100.0%

714

100.0%

495

100.0%

Cement, masonry cement and lime

277

74.7%

158

65.7%

530

74.2%

332

67.2%

Concrete

15

3.9%

17

7.1%

31

4.4%

34

6.8%

Railroad

70

19.0%

59

24.5%

137

19.2%

115

23.3%

Aggregates

7

2.0%

5

2.2%

13

1.8%

11

2.2%

Others

1

0.4%

1

0.5%

3

0.4%

2

0.4%

Adjusted EBITDA

4,484

100.0%

1,729

100.0%

9,116

100.0%

3,934

100.0%

Cement, masonry cement and lime

4,452

99.3%

1,795

103.8%

9,139

100.3%

4,014

102.0%

Concrete

(65)

-1.4%

(90)

-5.2%

(145)

-1.6%

(126)

-3.2%

Railroad

75

1.7%

45

2.6%

95

1.0%

74

1.9%

Aggregates

26

0.6%

(20)

-1.2%

26

0.3%

(28)

-0.7%

Others

(5)

-0.1%

(1)

0.0%

0

0.0%

(1)

0.0%

Reconciling items:

Effect by translation in homogeneous cash currency ("Inflation-Adjusted")

(130)

772

459

2,057

Depreciation and amortization

(1,201)

(1,132)

(2,274)

(2,206)

Tax on debits and credits banks accounts

(158)

(103)

(297)

(265)

Finance gain (cost), net

292

(1,597)

449

(2,230)

Income tax

(4,551)

220

(5,870)

(291)

Income (loss) from discontinued operations

-

277

-

561

NET PROFIT (LOSS) FOR THE PERIOD

(1,265)

166

1,583

1,560

View source version on businesswire.com: https://www.businesswire.com/news/home/20210811005861/en/

Contacts

IR Contacts
Marcos I. Gradin, Chief Financial Officer and Investor Relations
Gastón Pinnel, Investor Relations Manager
+54-11-4319-3050
investorrelations@lomanegra.com