Q2 2024 Loma Negra Compania Industrial Argentina SA Earnings Call Transcript
Key Points
- Loma Negra Cia Industria Argentina SA (LOMA) reported a solid set of results despite challenging market conditions, demonstrating resilience and operational strength.
- The company achieved an EBITDA margin expansion to 28.1%, an increase of 520 basis points year-on-year, showcasing effective cost management and pricing strategies.
- There is a gradual and consistent recovery in cement volumes, indicating a positive trend in the construction sector.
- The company has maintained a strong balance sheet with a net debt of $270 million, allowing for financial flexibility.
- Loma Negra increased the proportion of renewable energy in its energy mix to 61%, up from 46% in the previous year, reducing energy costs and enhancing sustainability.
- Loma Negra experienced a 28% decrease in top-line revenue, primarily due to a significant 32.5% decline in cement volumes.
- The construction sector remains challenging, with bulk cement dispatches down 41% year-on-year, indicating ongoing market difficulties.
- Concrete and aggregates segments posted significant contractions, with concrete revenues decreasing by 47% and aggregates by 46%, reflecting weak demand.
- SG&A expenses increased by 28.5%, impacting overall profitability despite a decrease in turnover tax and freight costs.
- The company's net debt-to-EBITDA ratio increased to 1.6 times from 1.4 times at the end of 2023, indicating a slight increase in leverage.
Good morning and welcome to the Loma Negra second-quarter 2024 conference call and webcast. (Operator instructions) Please note this event is being recorded. I will now turn the conference over to Mr. Diego Jalon, Head of Investor Relations. Please Diego go ahead.
Thank you. Good morning and welcome to Loma Negra's earnings conference calls. By now everyone should have access to our earnings press release and the presentation for today's call, both of which were distributed yesterday after market close.
Joining me on the call this morning, will be Sergio Damian, our CEO and Vice President of the Board of Directors; and our CFO, Marcos Isabelino. Both of them will be available for the Q&A session.
Before we proceed, I would like to make the following Safe Harbor statements. Today's call will contain forward-looking statements, and I refer you to the forward-looking statements section of our earnings release and recent filings with the SEC. We assume no
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
