Q2 2024 Cementos Argos SA Earnings Call Transcript
Key Points
- Cementos Argos SA (CMTOY) has successfully executed COP126 billion of its new share repurchase program, contributing to a total of COP251 billion in share repurchases since the program's inception.
- The company achieved a total quarterly EBITDA of COP280 billion, equivalent to $71 million, which is 11% above the previous year, driven by positive volume execution and efficiencies in Colombia.
- Cementos Argos SA (CMTOY) has seen a substantial increase in the price and liquidity of its common shares, with a share price increase of over 20% since February.
- The integration with Summit Materials is progressing well, with $17.5 million in synergies captured during the first semester and an expected $40 million in synergies for the year.
- The company has maintained stable pricing in both Colombia and Central America and the Caribbean, with strong volume growth in regions like Honduras and the Dominican Republic.
- Cementos Argos SA (CMTOY) reported a 6% decrease in net profit for the quarter compared to 2023, attributed to high seasonality in Summit's legacy operations and one-time premiums associated with hedging operations.
- The Colombian market has experienced a 6.5% decrease in total cement dispatches year-to-date, primarily due to lower activity in the residential segment.
- The company faces challenging market conditions in Colombia, with demand expected to remain challenging for the rest of the year.
- In Panama, cement dispatches decreased by 11% due to a government transition, which is expected to impact industrial activity until the new government is positioned.
- Despite positive results in some regions, Cementos Argos SA (CMTOY) continues to face competition challenges, particularly from new players like Cementos Progreso in the Dominican Republic.
Good morning, everyone. Thank you for being here with us today to discuss our second quarter results. My name is Indira Diaz. I am Cementos Argos IRO, and I will be hosting today's call. On the call today are Esteban Calle, our CEO; Felipe Aristizabal, our CFO; Maria Isabel Echeverri, VP of Legal Affairs; Gustavo Uribe, the Leader of Central America; and Carlos Yusty, the VP of the Colombia division. First, I would like to ask you to carefully read the legal disclaimer that is currently being projected on the screen, which is also available on the presentation that is posted on our website.
Please take into account that all the discussions of the financial and operational results during the call will be based on the adjusted figures, excluding non-recurring and non-core operations. For a detailed reconciliation of the adjustments, please refer to the annexes of our presentation. Then after the initial remarks there will be a Q&A session. If you have a question, please raise your hand by pressing the icon at the bottom of your screen
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