Le Lézard
Classified in: Business
Subjects: EARNINGS, Conference Call, Webcast

Loma Negra Reports 3Q22 results


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 September 30, 2022 (our "3Q22 Results").

3Q22 Key Highlights

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 2022, Sergio Faifman, Loma Negra's Chief Executive Officer, noted: "The industry extends the positive trend, showing a high level of activity and heading to close a record year. In fact, the third quarter was the best in history in terms of cement shipments for the industry and for LOMA.

Our production capacity and our extensive nationwide distribution network allow us to keep up with the growing demand, underpinning our status as leaders in the industry. The recent investments in capacity allow us to go through this moment with solvency and we are prepared to continue meeting future growth in demand. Likewise, we are pleased to present another quarter of solid results, with an EBITDA of 68 million dollars that marks a historical record for LOMA, reaching 35 dollars per ton.

As we mentioned before, reaffirming our commitment to maximizing value for our shareholders, in the quarter we distributed a dividend of 81 million dollars, which added to what was distributed in the first half of the year totals 126 million dollars, which is equivalent to 1 dollar per outstanding ADR.

In this same sense, we have recently approved a new share repurchase program for 1,000 million pesos, which will be active until the end of the year.

Finally, this month we are celebrating 5 years as a listed company on the New York and Buenos Aires stock exchanges, so I would like to take this opportunity to thank all our people and stakeholders who have made this journey of growth and learning as a public company possible."

Table 1: Financial Highlights

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

 

Three-months ended
September 30,

Nine-months ended
September 30,

 

2022

2021

% Chg.

2022

2021

% Chg.

Net revenue

33,942

32,580

4.2%

92,392

90,362

2.2%

Gross Profit

7,228

8,396

-13.9%

25,098

27,593

-9.0%

Gross Profit margin

21.3%

25.8%

-448 bps

27.2%

30.5%

-337 bps

Adjusted EBITDA

7,508

8,595

-12.7%

25,724

27,748

-7.3%

Adjusted EBITDA Mg.

22.1%

26.4%

-426 bps

27.8%

30.7%

-287 bps

Net Profit (Loss)

(12,241)

2,726

n/a

(4,813)

5,893

n/a

Net Profit (Loss) attributable to owners of the Company

(12,144)

2,779

n/a

(4,574)

6,081

n/a

EPS

(20.7442)

4.7026

n/a

(7.8113)

10.2497

n/a

Average outstanding shares (*)

585

591

-0.9%

586

593

-1.3%

Net Debt

19,699

(604)

n/a

19,699

(604)

n/a

Net Debt /LTM Adjusted EBITDA

0.54x

-0.02x

n/a

0.54x

-0.02x

n/a

(*) 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,

 

2022

 

2021

 

% Chg.

 

2022

 

2021

 

% Chg.

Net revenue

31,983

17,137

86.6%

74,310

43,601

70.4%

Adjusted EBITDA

9,264

4,957

86.9%

23,016

14,073

63.5%

Adjusted EBITDA Mg.

29.0%

28.9%

+4 bps

31.0%

32.3%

-130 bps

Net Profit (Loss)

(7,521)

3,466

n/a

5,077

11,354

-55.3%

Net Debt

19,699

(604)

n/a

19,699

(604)

n/a

Net Debt /LTM Adjusted EBITDA

0.54x

-0.02x

n/a

0.54x

-0.02x

n/a

 

In million US$

Three-months ended
September 30,

 

Nine-months ended
September 30,

 

2022

 

2021

 

% Chg.

 

2022

 

2021

 

% Chg.

Ps./US$, av

135.78

97.26

39.6%

120.41

93.42

28.9%

Ps./US$, eop

147.32

98.74

49.2%

147.32

98.74

49.2%

Net revenue

236

176

33.7%

617

467

32.2%

Adjusted EBITDA

68

51

33.9%

191

151

26.9%

Adjusted EBITDA Mg.

29.0%

28.9%

+4 bps

31.0%

32.3%

-130 bps

Net Profit (Loss)

(55)

36

n/a

42

122

-65.3%

Net Debt

134

(6)

n/a

134

(6)

n/a

Net Debt /LTM Adjusted EBITDA

0.54x

-0.02x

n/a

0.54x

-0.02x

n/a

Overview of Operations

Sales Volumes

Table 2: Sales Volumes2

 

 

 

Three-months ended
September 30,

Nine-months ended
September 30,

 

 

2022

2021

% Chg.

2022

2021

% Chg.

Cement, masonry & lime

MM Tn

1.88

1.66

12.9%

5.02

4.45

13.0%

Concrete

MM m3

0.17

0.12

35.6%

0.43

0.39

8.8%

Railroad

MM Tn

1.21

1.15

5.5%

3.44

3.20

7.7%

Aggregates

MM Tn

0.34

0.21

65.0%

0.91

0.58

55.9%

2 Sales volumes include inter-segment sales

Sales volumes of cement, masonry, and lime during 3Q22 increased by 12.9% to 1.9 million tons, mainly leveraged by the growth of bulk cement. Sales of bagged cement maintain a solid evolution, supported by the robust demand of the retail sector, while bulk cement continues to be the dispatch modality that is exhibiting the greatest dynamism, driven by a higher level of activity in private infrastructure projects, residential and industrial, accompanied by a moderate level of activity in public works, mainly at the municipal and provincial levels.

Regarding the volume of the Concrete segment, it registered an increase of 35.6% YoY. The volume of concrete continues with a positive trend, with the segment being one of the drivers of growth in bulk cement shipments. The Concrete segment closed the best quarter of the year driven mainly by demand from the private sector, coupled to a lesser extent by public works. On the other hand, Aggregates had a strong increase of 65.0% YoY, driven mainly by the concrete sector and sustained by the good production and logistics performance, registering in September the best month in its history in terms of volume, exceeding 120 thousand tons.

Likewise, the volumes of the railway segment experienced a growth of 5.5% compared to the same quarter of 2021, where the strong level of activity in the construction sector boosted the transported volumes of stone and cement, followed by the chemical category, offsetting the decrease in fracsand 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
September 30,

 

Nine-months ended
September 30,

 

2022

2021

% Chg.

 

2022

2021

% Chg.

Net revenue

33,942

32,580

4.2%

92,392

90,362

2.2%

Cost of sales

(26,714)

(24,184)

10.5%

(67,294)

(62,769)

7.2%

Gross profit

7,228

8,396

-13.9%

25,098

27,593

-9.0%

Share of loss of associates

-

-

n/a

-

-

n/a

Selling and administrative expenses

(2,631)

(2,491)

5.6%

(7,938)

(7,347)

8.0%

Other gains and losses

(124)

63

n/a

(109)

327

n/a

Impairment of property, plant and equipment

-

(259)

n/a

-

(259)

n/a

Tax on debits and credits to bank accounts

(330)

(318)

4.0%

(916)

(912)

0.4%

Finance gain (cost), net

Gain on net monetary position

3,687

38

9723.6%

6,504

2,726

138.6%

Exchange rate differences

(885)

(276)

220.9%

(3,763)

(2,159)

74.3%

Financial income

106

160

-33.8%

1,226

1,390

-11.8%

Financial expense

(18,183)

(510)

3462.1%

(19,304)

(1,649)

1070.9%

Profit (Loss) before taxes

(11,134)

4,803

n/a

798

19,711

-95.9%

Income tax expense

Current

(267)

(1,917)

-86.1%

(3,011)

(8,441)

-64.3%

Deferred

(840)

(160)

426.6%

(2,600)

(5,376)

-51.6%

Net profit (Loss)

(12,241)

2,726

n/a

(4,813)

5,893

n/a

Net Revenues

Net revenue increased 4.2% to Ps. 33,942 million in 3Q22, from Ps. 32,580 million in the comparable quarter last year, driven by an increase in Cement, coupled with the good performance in Concrete and Aggregates that offset the drop in the Railway segment

Cement, masonry cement and lime segment was up 4.8% YoY, with volumes expanding 12.9% partially offset by price dynamics.

Concrete registered an increase in its topline of 40.7% compared with 3Q21, sustained by a 35.6% increase in volume, also accompanied by an improvement in prices. The Aggregates segment recorded a strong increase in revenues of 54.7%, supported by a volume increase of 65.0% YoY while prices were affected by product mix variations.

Railroad revenues decreased 7.0% in 3Q22 compared to the same quarter of 2021, mainly explained by the decrease in the average transported distance that impacted on the average price due to the variations in the mix of transported products, where the increase in construction materials was observed to the detriment of the transported volume of fracsand.

Cost of sales, and Gross profit

Cost of sales increased 10.5% YoY, reaching Ps. 26,714 million in 3Q22, mainly because of higher volume sold, higher energy costs linked to the winter period and the growing inflationary pressure. Likewise, the increase in depreciation due to the new production line in L'Amalí affected the cost of sales. Said effects saw their impact softened by operating efficiencies, greater availability of natural gas and greater productive flexibility as a result of the latest investments in capacity.

Gross Profit registered a decline of 13.9% YoY to Ps. 7,228 million in 3Q22, from Ps. 8,396 million in 3Q21, with a gross profit margin that contracted 448 basis points YoY to 21.3%.

Selling and Administrative Expenses

Selling and administrative expenses (SG&A) in 3Q22 increased by 5.6% YoY to Ps. 2,631 million, from Ps. 2,491 million in 3Q21, mainly as a result of higher expenses in salaries compared to the previous year. As a percentage of sales, SG&A showed a slight increase against 3Q21 of 11 basis points, reaching 7.8%.

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,

 

2022

 

2021

 

% Chg.

 

 

2022

 

2021

 

% Chg.

Adjusted EBITDA reconciliation:

Net profit (Loss)

(12,241)

2,726

n/a

(4,813)

5,893

n/a

(+) Depreciation and amortization

3,035

2,627

15.6%

8,672

7,175

20.9%

(+) Tax on debits and credits to bank accounts

330

318

4.0%

916

912

0.4%

(+) Income tax expense

1,107

2,076

-46.7%

5,612

13,817

-59.4%

(+) Financial interest, net

2,631

43

6001.4%

1,946

(562)

n/a

(+) Exchange rate differences, net

885

276

220.9%

3,763

2,159

74.3%

(+) Other financial expenses, net

15,446

308

4918.2%

16,132

820

1866.9%

(+) Gain on net monetary position

(3,687)

(38)

9723.6%

(6,504)

(2,726)

138.6%

(+) Share of profit (loss) of associates

-

-

n/a

-

-

n/a

(+) Impairment of property, plant and equipment

-

259

n/a

-

259

n/a

Adjusted EBITDA

7,508

8,595

-12.7%

25,724

27,748

-7.3%

Adjusted EBITDA Margin

22.1%

26.4%

-426 bps

27.8%

30.7%

-287 bps

Adjusted EBITDA decreased 12.7% YoY in the third quarter of 2022 to Ps. 7,508 million from 8,595 in the same period of the previous year, mainly affected by lower adjusted EBITDA generated by our cement business and slightly offset by better results in Concrete and Aggregates.

Likewise, the Adjusted EBITDA margin contracted 426 basis points to 22.1% compared to 26.4% in 3Q21, mainly due to the compression of the cement margin and the higher incidence of other businesses with lower margins, due to the increase in their activity levels.

In particular, the Adjusted EBITDA margin of the Cement, Masonry and Lime segment contracted 516 bps to 24.3%, mainly due to a lower price performance partially offset by a favorable costs management in a context of high inflation, and also being the third quarter the period where the higher costs of thermal and electrical energy compress the margins.

Concrete Adjusted EBITDA margin showed a significant improvement of 637 bps, reversing the negative values of previous periods, reaching 2.4%, from a negative margin of 4.0% in 3Q21, supported by a recovery in volume and good price performance, coupled by higher operating efficiencies.

The Adjusted EBITDA margin of Aggregates stood at 12.2%, showing a substantial improvement of 1,192 basis points compared to 3Q21, mainly leveraged on the strong increase in volume that allowed a better dilution of fixed costs.

Finally, the Adjusted EBITDA margin of the Railroad segment decreased 740 bps to negative 0.1% in the third quarter, from 7.3%, where the improvement in the transported volumes did not manage to compensate the negative performance of the price, mainly affected by the reduction in the average transported distance due to variations in the mix of transported products.

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,

 

 

2022

 

2021

 

% Chg.

 

 

 

2022

 

2021

 

% Chg.

Exchange rate differences

(885)

(276)

220.9%

(3,763)

(2,159)

74.3%

Financial income

106

160

-33.8%

1,226

1,390

-11.8%

Financial expense

(18,183)

(510)

3462.1%

(19,304)

(1,649)

1070.9%

Gain on net monetary position

3,687

38

9723.6%

6,504

2,726

138.6%

Total Finance Gain (Cost), Net

 

(15,276)

(589)

2492.0%

(15,337)

308

n/a

During 3Q22, the Company reported a total net financial cost of Ps. 15,276 million compared to a total net financial cost of Ps. 589 million in 3Q21, explained mainly by the increase in the financial expense generated by the cancellation of debt in foreign currency with local funding coupled by the increase in the total debt position. This increase in the net financial expense was partially offset by a positive effect of the result on the monetary position.

Net Profit and Net Profit Attributable to Owners of the Company

Net Loss of Ps. 12,241 million in 3Q22 compared to a Net Gain of Ps. 2,726 million in the same period of the previous year, mainly due to the impact on the Financial Result generated by the cancellation of debt in foreign currency with local funding.

Net Loss Attributable to Owners of the Company stood at Ps. 12,144 million. During the quarter, the Company reported a loss per common share of Ps. 20.7442 and an ADR loss of Ps. 103.7212, compared to earnings per common share of Ps. 4.7026 and earnings per ADR of Ps. 23.5128 in 3Q21.

Capitalization

As of September 30, 2022, total Cash, Cash Equivalents, and Investments were Ps. 3,465 million compared with Ps. 7,851 million as of the September 30, 2021. Total debt at the close of the quarter stood at Ps. 23,164 million, composed by Ps. 14,795 million in short-term borrowings, including the current portion of long-term borrowings (or 63.9% of total borrowings), and Ps. 8,369 million in long-term borrowings (or 36.1% of total borrowings).

Table 6: Capitalization and Debt Ratio

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

 

As of September 30,

 

As of
December 31,

 

2022

 

2021

 

2021

 

Total Debt

23,164

7,247

4,170

- Short-Term Debt

14,795

6,370

3,508

- Long-Term Debt

8,369

877

662

Cash, Cash Equivalents and Investments

(3,465)

(7,851)

8,754

Total Net Debt

19,699

(604)

(4,583)

Shareholder's Equity

96,139

116,935

120,420

Capitalization

119,303

124,182

124,590

LTM Adjusted EBITDA

36,379

39,592

38,403

Net Debt /LTM Adjusted EBITDA

0.54x

-0.02x

-0.12x

At the end of the third quarter of 2022, 60.0% (or Ps. 13,899 million) of Loma Negra's total debt was in Argentine pesos, while 40.0% (or Ps. 9,265 million) was denominated in US dollars. The average duration of Loma Negra's total debt was 0.7 years.

As of September 30, 2022, 61.8% of the Company's consolidated loans accrued interest at a variable rate. The debt denominated in dollars with rates based on Libor, while the portion in Argentine pesos accrued interest at the short-term market rate. The remaining 38.2% accrues interest at a fixed rate in pesos.

The Net Debt to Adjusted EBITDA (LTM) ratio increased to 0.54x as of September 30, 2022, from -0.12x as of December 31, 2021, as a result of an increase in the debt, partially compensated by our strong cash generation.

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,

 

 

2022

 

2021

 

2022

 

2021

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

Net Profit (Loss)

 

(12,241)

2,726

(4,813)

5,893

Adjustments to reconcile net profit (loss) to net cash provided by operating activities

 

24,671

8,204

35,251

24,009

 

Changes in operating assets and liabilities

 

(987)

(617)

(13,292)

(13,144)

Net cash generated by operating activities

 

11,443

10,314

17,146

16,759

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

Proceeds from disposal of Yguazú Cementos S.A.

 

0

182

79

682

Property, plant and equipment, Intangible Assets, net

 

(1,563)

(2,825)

(3,806)

(7,776)

Contributions to Trust

 

(57)

(37)

(146)

(121)

Investments, net

2,395

0

2,395

(3,713)

Net cash (used in) investing activities

 

774

(2,679)

(1,478)

(10,928)

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

Proceeds / Repayments from borrowings, Interest paid

 

7,245

(3,199)

19,673

(7,672)

Dividends paid

(11,661)

0

(18,591)

0

Loss on transactions with securities

(15,036)

-

(15,036)

-

Share repurchase plan

0

(1,152)

(871)

(2,741)

Net cash generated by (used in) by financing activities

 

(19,452)

(4,351)

(14,825)

(10,413)

 

Net increase (decrease) in cash and cash equivalents

 

(7,235)

3,284

844

(4,582)

Cash and cash equivalents at the beginning of the year

 

13,293

2,321

5,490

10,968

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

(2,700)

(2,895)

(2,973)

(3,084)

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

 

107

596

104

3

Cash and cash equivalents at the end of the period

 

3,465

3,305

3,465

3,305

In 3Q22, our operating cash generation stood at Ps. 11,443 million, compared to Ps. 10,314 million in the same period of the previous year, mainly due to the positive effect in the variation of the income tax paid that offset higher needs of working capital.

During 3Q22, the Company used cash in financing activities for Ps. 19,452 million, product of the cancellation of debt in foreign currency with local funding. Also, in the month of July, the Company approved a distribution of dividends for Ps. 10.3 billion. Regarding cash used in investing activities, the Company generated a total of Ps. 774 million, as a result of the liquidation of investments, while the completion of the L'Amalí expansion project significantly reduced the need for capital expenditure.

Recent Events

Share Repurchase Plan.

On October 3, 2022, the Company announced the approval of the fifth share repurchase plan, in accordance with Section 64 of Law No. 26.831 ("LMC") and the CNV Regulations. The purpose is to efficiently apply a portion of the Company´s cash position which may result in a greater return of value for its shareholders considering the current attractive value of the share.

The plan became effective as from October 3, 2022, the amount to invest will be up to Ps. 1,000 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 V

Maximum amount for repurchase

Ps. 1,000 million

Maximum price

Ps. 495/ordinary share or US$ 8/ADR

Period in force

until December 31, 2022

Repurchase under the program until November 7, 2022

Ps. 317 million

Progress

31.7%

3Q22 Earnings Conference Call

When:

10:00 a.m. U.S. ET (12:00 p.m. BAT), November 9, 2022

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=jOvcwIJo

Replay:

A telephone replay of the conference call will be available between November 10, 2022, at 1:00 pm U.S. E.T. and ending on November 16, 2022. 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 7065542. 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.

--- 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,

 

 

 

2022

 

 

2021

ASSETS

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

Property, plant and equipment

 

130,530

135,010

Right to use assets

 

421

515

Intangible assets

 

381

480

Investments

 

9

9

Goodwill

 

87

87

Inventories

 

5,173

5,122

Other receivables

 

824

1,154

Total non-current assets

 

 

137,425

142,376

Current assets

 

 

Inventories

 

15,840

14,444

Other receivables

 

4,063

1,978

Trade accounts receivable

 

7,608

6,578

Investments

 

2,406

8,205

Cash and banks

1,059

549

Total current assets

 

 

30,975

31,753

TOTAL ASSETS

168,400

174,130

SHAREHOLDER'S EQUITY

 

 

Capital stock and other capital related accounts

 

33,003

33,825

Reserves

 

67,670

75,379

Retained earnings

 

(4,574)

10,937

Accumulated other comprehensive income

 

-

-

Equity attributable to the owners of the Company

 

96,099

120,142

Non-controlling interests

40

278

TOTAL SHAREHOLDER'S EQUITY

 

 

96,139

120,420

LIABILITIES

 

 

Non-current liabilities

 

Borrowings

 

8,369

662

Accounts payables

 

-

-

Provisions

 

961

942

Salaries and social security payables

 

78

84

Debts for leases

292

391

Other liabilities

 

114

237

Deferred tax liabilities

26,368

23,768

Total non-current liabilities

 

 

36,183

26,084

Current liabilities

Borrowings

 

14,795

3,508

Accounts payable

 

13,544

13,080

Advances from customers

 

1,594

1,705

Salaries and social security payables

 

3,079

3,379

Tax liabilities

 

2,750

5,556

Debts for leases

95

132

Other liabilities

223

266

Total current liabilities

 

 

36,078

27,626

TOTAL LIABILITIES

 

 

72,262

53,710

TOTAL SHAREHOLDER'S EQUITY AND LIABILITIES

 

 

168,400

174,130

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,

 

 

2022

 

2021

 

% Change

 

2022

 

2021

 

% Change

Net revenue

33,942

32,580

4.2%

92,392

90,362

2.2%

Cost of sales

(26,714)

(24,184)

10.5%

(67,294)

(62,769)

7.2%

Gross Profit

 

7,228

8,396

-13.9%

25,098

27,593

-9.0%

Share of loss of associates

-

-

n/a

-

-

n/a

Selling and administrative expenses

(2,631)

(2,491)

5.6%

(7,938)

(7,347)

8.0%

Other gains and losses

(124)

63

n/a

(109)

327

n/a

Impairment of property, plant and equipment

-

(259)

n/a

-

(259)

n/a

Tax on debits and credits to bank accounts

(330)

(318)

4.0%

(916)

(912)

0.4%

Finance gain (cost), net

Gain on net monetary position

3,687

38

9723.6%

6,504

2,726

138.6%

Exchange rate differences

(885)

(276)

220.9%

(3,763)

(2,159)

74.3%

Financial income

106

160

-33.8%

1,226

1,390

-11.8%

Financial expenses

(18,183)

(510)

3462.1%

(19,304)

(1,649)

1070.9%

Profit (loss) before taxes

 

(11,134)

4,803

n/a

798

19,711

-95.9%

Income tax expense

Current

(267)

(1,917)

-86.1%

(3,011)

(8,441)

-64.3%

Deferred

(840)

(160)

426.6%

(2,600)

(5,376)

-51.6%

Net Profit (Loss)

 

(12,241)

2,726

n/a

(4,813)

5,893

n/a

Net Profit (Loss) for the period attributable to:

Owners of the Company

(12,144)

2,779

n/a

(4,574)

6,081

n/a

Non-controlling interests

(97)

(52)

85.8%

(239)

(187)

27.4%

NET PROFIT (LOSS) FOR THE PERIOD

 

(12,241)

2,726

n/a

(4,813)

5,893

n/a

Earnings per share (basic and diluted):

 

(20.7442)

4.7026

n/a

(7.8113)

10.2497

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,

 

 

2022

 

2021

 

2022

 

2021

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

Net Profit (Loss)

(12,241)

2,726

(4,813)

5,893

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

 

Income tax expense

 

1,107

2,076

5,612

13,817

Depreciation and amortization

 

3,035

2,627

8,672

7,175

Provisions

 

694

347

825

304

Exchange rate differences

2,818

3,177

2,467

2,163

Interest expense

 

1,916

(273)

2,474

372

Loss on transactions with securities

15,036

-

15,036

-

Gain on disposal of property, plant and equipment

15

(37)

(2)

(187)

Impairment of property, plant and equipment

-

259

-

259

Impairment of trust fund

41

29

119

105

Share-based payment

8

-

49

-

Changes in operating assets and liabilities

 

Inventories

 

2,334

1,935

(1,400)

585

Other receivables

(1,068)

(2,049)

(1,686)

(2,723)

Trade accounts receivable

(2,135)

(722)

(4,593)

(2,418)

Advances from customers

544

284

175

(104)

Accounts payable

2,287

1,083

3,596

1,714

Salaries and social security payables

 

560

314

1,172

919

Provisions

 

(162)

(85)

(231)

(134)

Tax liabilities

 

2,543

636

3,549

493

Other liabilities

 

140

142

(19)

(69)

Gain on net monetary position

(4,522)

(383)

(6,504)

(2,726)

Income tax paid

 

(1,509)

(1,770)

(7,349)

(8,683)

Net cash generated by (used in) operating activities

 

11,443

10,314

17,146

16,759

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

Proceeds from disposal of Yguazú Cementos S.A.

0

182

79

682

Proceeds from disposal of Property, plant and equipment

 

(7)

68

24

210

Payments to acquire Property, plant and equipment

(1,531)

(2,856)

(3,801)

(7,949)

Payments to acquire Intangible Assets

 

(26)

(37)

(29)

(37)

Acquire investments

0

0

-

(3,713)

Proceeds from maturity investments

2,395

-

2,395

-

Contributions to Trust

 

(57)

(37)

(146)

(121)

Net cash generated by (used in) investing activities

 

774

(2,679)

(1,478)

(10,928)

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

Proceeds from borrowings

 

26,356

909

43,529

1,849

Interest paid

 

(2,041)

(287)

(2,341)

(817)

Dividends paid

(11,661)

0

(18,591)

0

Loss on transactions with securities

(15,036)

-

(15,036)

-

Debts for leases

(28)

(71)

(124)

(229)

Repayment of borrowings

(17,042)

(3,750)

(21,391)

(8,474)

Share repurchase plan

0

(1,152)

(871)

(2,741)

Net cash generated by (used in) financing activities

 

(19,452)

(4,351)

(14,825)

(10,413)

Net increase (decrease) in cash and cash equivalents

 

(7,235)

3,284

844

(4,582)

Cash and cash equivalents at the beginning of the period

 

13,293

2,321

5,490

10,968

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

(2,700)

(2,895)

(2,973)

(3,084)

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

 

107

596

104

3

 

Cash and cash equivalents at the end of the period

 

3,465

3,305

3,465

3,305

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,

 

 

2022

 

%

 

2021

 

%

 

 

 

2022

 

%

 

2021

 

%

Net revenue

 

31,983

100.0%

17,137

100.0%

74,310

100.0%

43,601

100.0%

Cement, masonry cement and lime

28,377

88.7%

15,320

89.4%

65,760

88.5%

39,029

89.5%

Concrete

2,799

8.8%

1,115

6.5%

6,127

8.2%

3,147

7.2%

Railroad

2,418

7.6%

1,465

8.5%

5,994

8.1%

3,572

8.2%

Aggregates

784

2.5%

285

1.7%

1,787

2.4%

604

1.4%

Others

168

0.5%

106

0.6%

476

0.6%

246

0.6%

Eliminations

(2,562)

-8.0%

(1,153)

-6.7%

(5,832)

-7.8%

(2,997)

-6.9%

Cost of sales

 

21,069

100.0%

11,416

100.0%

47,348

100.0%

27,487

100.0%

Cement, masonry cement and lime

17,948

85.2%

9,770

85.6%

39,747

83.9%

23,081

84.0%

Concrete

2,637

12.5%

1,136

9.9%

5,859

12.4%

3,322

12.1%

Railroad

2,309

11.0%

1,328

11.6%

5,739

12.1%

3,350

12.2%

Aggregates

642

3.0%

272

2.4%

1,549

3.3%

574

2.1%

Others

94

0.4%

64

0.6%

287

0.6%

157

0.6%

Eliminations

 

(2,562)

-12.2%

(1,153)

-10.1%

(5,832)

-12.3%

(2,997)

-10.9%

Selling, admin. expenses and other gains & losses

 

2,487

100.0%

1,223

100.0%

6,098

100.0%

3,214

100.0%

Cement, masonry cement and lime

2,175

87.4%

1,052

86.1%

5,351

87.7%

2,841

88.4%

Concrete

103

4.2%

27

2.2%

249

4.1%

49

1.5%

Railroad

138

5.6%

101

8.2%

335

5.5%

228

7.1%

Aggregates

14

0.6%

3

0.3%

24

0.4%

7

0.2%

Others

 

56

2.3%

39

3.2%

140

2.3%

88

2.7%

Depreciation and amortization

 

837

100.0%

459

100.0%

2,152

100.0%

1,173

100.0%

Cement, masonry cement and lime

644

76.9%

356

77.4%

1,645

76.4%

885

75.4%

Concrete

11

1.3%

16

3.4%

45

2.1%

47

4.0%

Railroad

170

20.4%

78

17.0%

434

20.1%

215

18.3%

Aggregates

10

1.2%

9

1.9%

25

1.2%

22

1.9%

Others

 

1

0.1%

1

0.3%

4

0.2%

4

0.3%

Adjusted EBITDA

 

9,264

100.0%

4,957

100.0%

23,016

100.0%

14,073

100.0%

Cement, masonry cement and lime

8,898

96.0%

4,853

97.9%

22,307

96.9%

13,992

99.4%

Concrete

69

0.7%

(32)

-0.7%

64

0.3%

(177)

-1.3%

Railroad

141

1.5%

114

2.3%

354

1.5%

209

1.5%

Aggregates

138

1.5%

18

0.4%

239

1.0%

45

0.3%

Others

 

18

0.2%

4

0.1%

53

0.2%

4

0.0%

Reconciling items:

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

(1,756)

3,638

2,708

13,675

Depreciation and amortization

(3,035)

(2,627)

(8,672)

(7,175)

Tax on debits and credits banks accounts

(330)

(318)

(916)

(912)

Finance gain (cost), net

(15,276)

(589)

(15,337)

308

Income tax

(1,107)

(2,076)

(5,612)

(13,817)

Share of profit of associates

-

-

-

-

Impairment of property, plant and equipment

-

(259)

-

(259)

NET PROFIT (LOSS) FOR THE PERIOD

 

(12,241)

2,726

(4,813)

5,893

 

 


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