COVER PAGE
COVER PAGE | 12 Months Ended |
Dec. 31, 2023 shares | |
Document information [line items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2023 |
Current Fiscal Year End Date | --12-31 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-38262 |
Entity Registrant Name | LOMA NEGRA COMPAÑÍA INDUSTRIALARGENTINA SOCIEDAD ANÓNIMA |
Entity Incorporation, State or Country Code | C1 |
Entity Address, Address Line One | Cecilia Grierson 355 |
Entity Address, Address Line Two | 4th Floor |
Entity Address, Postal Zip Code | C1107CPG |
Entity Address, City or Town | Ciudad Autónoma de Buenos Aires |
Entity Address, Country | AR |
Entity Common Stock, Shares Outstanding | 583,483,151 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Document Financial Statement Error Correction [Flag] | false |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Entity Central Index Key | 0001711375 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
American Depository Shares | |
Document information [line items] | |
Title of 12(b) Security | American Depositary Shares, each representing 5 Ordinary Shares of Loma Negra C.I.A.S.A. |
Trading Symbol | LOMA |
Security Exchange Name | NYSE |
Ordinary shares | |
Document information [line items] | |
Title of 12(b) Security | Ordinary Shares of Loma Negra C.I.A.S.A. |
Trading Symbol | LOMA |
Security Exchange Name | NYSE |
Business Contact | |
Document information [line items] | |
Entity Address, Address Line One | Cecilia Grierson 355 |
Entity Address, Address Line Two | 4th Floor |
Entity Address, Postal Zip Code | C1107CPG |
Entity Address, City or Town | Ciudad Autónoma de Buenos Aires |
Entity Address, Country | AR |
Contact Personnel Name | Marcos Isabelino Gradin |
City Area Code | 54-11 |
Local Phone Number | 4319-3048 |
Contact Personnel Email Address | mgradin@lomanegra.com |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 1449 |
Auditor Name | PISTRELLI, HENRY MARTIN Y ASOCIADOS S.R.L. |
Auditor Location | City of Buenos Aires, Argentina |
CONSOLIDATED STATEMENTS OF PROF
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME - ARS ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Profit or loss [abstract] | |||
Revenues | $ 422,160,817 | $ 451,954,054 | $ 446,871,607 |
Cost of sales | (316,253,576) | (329,905,094) | (305,630,509) |
Gross profit | 105,907,241 | 122,048,960 | 141,241,098 |
Selling and administrative expenses | (38,665,716) | (38,958,912) | (38,390,085) |
Impairment of property, plant and equipment | 0 | 0 | (927,176) |
Other gains and losses | 918,069 | 10,542,480 | 1,270,462 |
Tax on debits and credits to bank accounts | (4,676,516) | (4,531,752) | (4,503,693) |
FINANCIAL RESULTS, NET | |||
Exchange rate differences | (117,211,866) | (23,103,527) | (9,988,880) |
Gain on net monetary position | 138,760,271 | 42,809,717 | 12,181,672 |
Financial income | 5,709,934 | 5,064,518 | 6,200,123 |
Financial expenses | (73,323,164) | (79,607,300) | (8,135,216) |
Profit before tax | 17,418,253 | 34,264,184 | 98,948,305 |
INCOME TAX EXPENSE | |||
Current | (3,809,918) | (12,782,304) | (40,269,309) |
Deferred | (3,927,812) | (15,855,125) | (20,195,489) |
Net losses for the year | 9,680,523 | 5,626,755 | 38,483,507 |
Net income attributable to: | |||
Owners of the parent company | 10,305,179 | 6,037,186 | 39,949,661 |
Non-controlling interest | (624,656) | (410,431) | (1,466,154) |
Net losses for the year | 9,680,523 | 5,626,755 | 38,483,507 |
Total comprehensive income attributable to: | |||
Owners of the parent company | 10,305,179 | 6,037,186 | 39,949,661 |
Non-controlling interest | (624,656) | (410,431) | (1,466,154) |
Total comprehensive income | $ 9,680,523 | $ 5,626,755 | $ 38,483,507 |
Earnings per share, basic from continued operations (in pesos per share) | $ 17.6599 | $ 10.3144 | $ 67.4772 |
Earnings per share, diluted from continued operations (in pesos per share) | $ 17.6599 | $ 10.3144 | $ 67.4772 |
CONSOLIDATED STATEMENT OF FINAN
CONSOLIDATED STATEMENT OF FINANCIAL POSITION - ARS ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Non-current assets | ||
Property, plant and equipment | $ 482,127,908 | $ 477,921,441 |
Right of use assets | 2,546,342 | 3,271,458 |
Intangible assets | 1,585,465 | 1,463,250 |
Investments | 31,869 | 31,869 |
Goodwill | 317,878 | 317,878 |
Inventories | 22,670,508 | 19,868,134 |
Other receivables | 1,848,118 | 3,491,282 |
Total non-current assets | 511,128,088 | 506,365,312 |
Current assets | ||
Inventories | 76,485,713 | 63,539,614 |
Other receivables | 21,747,770 | 18,217,466 |
Trade accounts receivable | 22,749,158 | 28,410,255 |
Investments | 1,710,368 | 13,223,330 |
Cash and banks | 5,023,797 | 2,069,630 |
Total current assets | 127,716,806 | 125,460,295 |
Total assets | 638,844,894 | 631,825,607 |
SHAREHOLDERS’ EQUITY AND LIABILITIES | ||
Capital stock and other capital related accounts | 121,975,858 | 118,150,647 |
Reserves | 165,387,745 | 236,274,028 |
Retained earnings | 6,875,895 | 6,037,186 |
Equity attributable to owners of the parent company | 294,239,498 | 360,461,861 |
Non-controlling interest | (17,963) | 606,693 |
Total shareholders’ equity | 294,221,535 | 361,068,554 |
Non-current liabilities | ||
Borrowings | 110,145,543 | 30,766,107 |
Lease liabilities | 2,772,804 | 2,439,055 |
Provisions | 6,741,516 | 4,070,567 |
Salaries and social security contributions | 526,679 | 294,296 |
Other liabilities | 477,915 | 511,487 |
Deferred tax liabilities | 106,599,410 | 102,671,598 |
Total non-current liabilities | 227,263,867 | 140,753,110 |
Current liabilities | ||
Borrowings | 37,224,733 | 33,914,391 |
Lease liabilities | 1,214,560 | 879,181 |
Accounts payable | 57,255,242 | 55,117,283 |
Advances from customers | 4,382,101 | 5,484,815 |
Salaries and social security contributions | 8,874,040 | 13,846,323 |
Tax liabilities | 2,951,041 | 9,077,763 |
Other liabilities | 5,457,775 | 11,684,187 |
Total current liabilities | 117,359,492 | 130,003,943 |
Total liabilities | 344,623,359 | 270,757,053 |
Total shareholders’ equity and liabilities | $ 638,844,894 | $ 631,825,607 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY - ARS ($) $ in Thousands | Total | Appropriation as per Board of Directors’ Resolution of May 2, 2023: | Appropriation as per Board of Directors’ Resolution of June 23, 2023: | Appropriation as per Board of Directors’ Resolution of December 27, 2022: | Shareholders’ equity attributable to owners of the parent company | Shareholders’ equity attributable to owners of the parent company Appropriation as per Board of Directors’ Resolution of May 2, 2023: | Shareholders’ equity attributable to owners of the parent company Appropriation as per Board of Directors’ Resolution of June 23, 2023: | Shareholders’ equity attributable to owners of the parent company Appropriation as per Board of Directors’ Resolution of December 27, 2022: | Capital stock | Treasury shares | Capital adjustments | Treasury shares adjustments | Share premium | Treasury shares premium | Treasury shares trading premium | Merger premium | Cost of treasury shares | Share-based payment plans | Legal reserve | Environmental reserve | Optional Reserve for Future Dividends | Optional Reserve for Future Dividends Appropriation as per Board of Directors’ Resolution of May 2, 2023: | Optional Reserve for Future Dividends Appropriation as per Board of Directors’ Resolution of June 23, 2023: | Optional Reserve for Future Dividends Appropriation as per Board of Directors’ Resolution of December 27, 2022: | Retained earnings | Non-controlling interest |
Beginning balance at Dec. 31, 2020 | $ 415,602,543 | $ 413,119,265 | $ 59,603 | $ 0 | $ 43,936,999 | $ 0 | $ 79,442,907 | $ 0 | $ 14,350,655 | $ 0 | $ 0 | $ 8,799,320 | $ 68,686 | $ 162,529,603 | $ 103,931,492 | $ 2,483,278 | ||||||||||
Appropriation as per Annual Shareholders’ Meeting held | ||||||||||||||||||||||||||
Acquisition of treasury stock | (14,481,082) | (14,481,082) | (860) | 860 | (633,677) | 633,677 | (10,702,610) | 10,702,611 | (14,481,083) | |||||||||||||||||
Share-based payment plans | 241,856 | 241,856 | 241,856 | |||||||||||||||||||||||
Optional reserve | 103,931,491 | (103,931,491) | ||||||||||||||||||||||||
Net income for the year | 38,483,507 | 39,949,661 | 39,949,661 | (1,466,154) | ||||||||||||||||||||||
Ending balance at Dec. 31, 2021 | 439,846,824 | 438,829,700 | 58,743 | 860 | 43,303,322 | 633,677 | 68,740,297 | 10,702,611 | $ 0 | 14,350,655 | (14,481,083) | 241,856 | 8,799,320 | 68,686 | 266,461,094 | 39,949,662 | 1,017,124 | |||||||||
Appropriation as per Annual Shareholders’ Meeting held | ||||||||||||||||||||||||||
Acquisition of treasury stock | (5,597,532) | (5,597,532) | (389) | 389 | (287,043) | 287,043 | (4,847,997) | 4,847,997 | (5,597,532) | |||||||||||||||||
Share-based payment plans | 197,241 | 197,241 | 197,241 | |||||||||||||||||||||||
Granting of share-based payment plans | 0 | 5 | (5) | 3,710 | (3,710) | 62,680 | (62,680) | 43,080 | 39,841 | (82,921) | ||||||||||||||||
Optional reserve | 0 | 39,949,662 | (39,949,662) | |||||||||||||||||||||||
Payment of dividends | $ (25,380,007) | $ (42,725,459) | $ (10,899,268) | $ (25,380,007) | $ (42,725,459) | $ (10,899,268) | $ (25,380,007) | $ (42,725,459) | $ (10,899,268) | |||||||||||||||||
Net income for the year | 5,626,755 | 6,037,186 | 6,037,186 | (410,431) | ||||||||||||||||||||||
Ending balance at Dec. 31, 2022 | 361,068,554 | 360,461,861 | 58,359 | 1,244 | 43,019,989 | 917,010 | 63,954,980 | 15,487,928 | 43,080 | 14,350,655 | (20,038,774) | 356,176 | 8,799,320 | 68,686 | 227,406,022 | 6,037,186 | 606,693 | |||||||||
Appropriation as per Annual Shareholders’ Meeting held | ||||||||||||||||||||||||||
Share-based payment plans | 395,927 | 395,927 | 395,927 | |||||||||||||||||||||||
Granting of share-based payment plans | 0 | 9 | (9) | 6,440 | (6,440) | 108,773 | (108,773) | 115,757 | 66,615 | (182,372) | ||||||||||||||||
Optional reserve | 0 | 6,037,186 | (6,037,186) | |||||||||||||||||||||||
Capital reduction | 0 | (19) | (1,235) | (14,081) | (910,570) | (237,815) | (15,379,155) | 19,972,159 | (3,429,284) | |||||||||||||||||
Payment of dividends | $ (48,610,174) | $ (28,313,295) | $ (48,610,174) | $ (28,313,295) | $ (48,610,174) | $ (28,313,295) | ||||||||||||||||||||
Net income for the year | 9,680,523 | 10,305,179 | 10,305,179 | (624,656) | ||||||||||||||||||||||
Ending balance at Dec. 31, 2023 | $ 294,221,535 | $ 294,239,498 | $ 58,349 | $ 0 | $ 43,012,348 | $ 0 | $ 63,825,938 | $ 0 | $ 158,837 | $ 14,350,655 | $ 0 | $ 569,731 | $ 8,799,320 | $ 68,686 | $ 156,519,739 | $ 6,875,895 | $ (17,963) |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - ARS ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net losses for the year | $ 9,680,523 | $ 5,626,755 | $ 38,483,507 |
Adjustments to reconcile net profit to net cash generated by operating activities | |||
Income tax expense | 7,737,730 | 28,637,429 | 60,464,798 |
Depreciation and amortization | 32,191,480 | 41,348,599 | 36,149,158 |
Provisions | 6,994,024 | 4,053,260 | 2,764,867 |
Exchange rate differences | 95,094,749 | 15,041,776 | 1,854,015 |
Interest expense | 62,211,635 | 15,899,479 | 2,062,609 |
Share-based payments | 395,927 | 197,241 | 241,855 |
Gain on disposal of property, plant and equipment | (450,860) | (10,486,093) | (540,541) |
(Recovery) charge of allowance for other doubtful receivables | (212,407) | 602,730 | 297,902 |
Loss from securities transactions | 1,836,132 | 54,919,417 | 0 |
Impairment of property, plant and equipment | 0 | 0 | 927,176 |
Gain on net monetary position | (138,760,271) | (42,809,717) | (12,181,672) |
Changes in operating assets and liabilities | |||
Inventories | (14,575,409) | (9,858,881) | 1,745,191 |
Other receivables | (4,792,880) | (9,893,753) | (4,282,708) |
Trade accounts receivable | (25,045,352) | (22,254,891) | (9,048,503) |
Advances from customers | 1,503,830 | 749,930 | 773,009 |
Accounts payable | 45,212,240 | 34,765,134 | 4,897,069 |
Salaries and social security contributions | 6,742,030 | 8,768,681 | 4,318,237 |
Provisions | (672,274) | (1,255,625) | (1,048,784) |
Tax liabilities | (1,596,016) | 16,552,552 | 1,325,703 |
Other liabilities | 7,067,994 | 175,500 | 178,343 |
Income tax paid | (5,532,616) | (33,115,769) | (38,088,680) |
Net cash generated by operating activities | 85,030,209 | 97,663,754 | 91,292,551 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Proceeds from sale of interest in Yguazú Cementos S.A. | 649,496 | 289,699 | 2,806,078 |
Proceeds from disposal of property, plant and equipment | 824,916 | 10,264,091 | 1,747,265 |
Payments to acquire property, plant and equipment | (36,053,162) | (31,774,070) | (42,995,891) |
Payments to acquire intangibles assets | (669,825) | (324,567) | (623,563) |
Payments to acquire investments | 0 | 0 | (25,652,214) |
Redemption of investments | 0 | 7,458,665 | 11,621,534 |
Contributions to FFFSFI | (576,786) | (602,730) | (557,547) |
Net cash used in investing activities | (35,825,361) | (14,688,912) | (53,654,338) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from borrowings | 69,468,936 | 161,017,112 | 7,585,725 |
Issuance of corporate bonds | 142,486,878 | 0 | 0 |
Interest paid | (54,374,304) | (14,810,324) | (3,458,721) |
Dividends paid | (86,844,758) | (67,904,557) | 0 |
Payments | (960,757) | (881,969) | (1,072,089) |
Repayment of borrowings | (110,861,564) | (148,995,136) | (41,709,560) |
Repurchase of common stock | 0 | (5,597,532) | (14,481,084) |
Net cash used in financing activities | (41,085,569) | (77,172,406) | (53,135,729) |
Net increase (decrease) in cash and cash equivalents | 8,119,279 | 5,802,436 | (15,497,516) |
Cash and cash equivalents at the beginning of the year (Note 29) | 15,292,960 | 20,052,396 | 40,063,098 |
Effect of restating in constant currency of cash and cash equivalents | (23,218,875) | (11,272,209) | (11,312,922) |
Effects of exchange rate differences on cash and cash equivalents in foreign currency | 6,540,801 | 710,337 | 6,799,736 |
Cash and cash equivalents at the end of the year (Note 29) | $ 6,734,165 | $ 15,292,960 | $ 20,052,396 |
LEGAL INFORMATION
LEGAL INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of General Information About Financial Statements [abstract] | |
LEGAL INFORMATION | LEGAL INFORMATION Legal address: Loma Negra Compañía Industrial Argentina S.A. (hereinafter “Loma Negra”, “the Company” or “the Group”) is a corporation organized under the laws of the Argentine Republic with legal address in Boulevard Cecilia Grierson 355, 4th. Floor, City of Buenos Aires, Argentina . Fiscal year number: Fiscal year No. 99 beginning on January 1, 2023. Principal business of the Company: The Company and its subsidiaries, mentioned below, are referred to in these financial statements as “the Group”. The main activity of the Group is the manufacturing and selling of cement and its derivatives, as well as the extraction of mineral resources that are used in the production process. At present, the Group has 8 cement factories in Argentina, in the provinces of Buenos Aires, Neuquén, San Juan and Catamarca. The Company also has mobile concrete plants adaptable to customer construction projects at all times. The Group, through its subsidiary Cofesur S.A.U., has a controlling interest in Ferrosur Roca S.A., a company whose capital is owned by Cofesur S.A.U. with 80% interest, the National State with a 16% interest, and 4% has been transferred by the latter to the employees through a trust created for such purpose. Ferrosur Roca S.A. operates the railway cargo network of Ferrocarril Roca under a concession granted by the Argentine government in 1993 for a term of 30 years, which allows access of several of Loma Negra’s cement production plants to the railway network. As a result of the National Government’s decision to terminate to the existing railway concession system in Argentina and shift to an open access model with the participation of private rail operators, the above concession ended in March 2023. However, on December 22, 2022, the Ministry of Transport published Resolution No. 960/2022 in the Official Gazette, provisionally extending for 18 months the concessions of FerroExpreso Pampeano S.A., Nuevo Central Argentino S.A. and Ferrosur Roca S.A. as from the expiration date of their respective concessions; therefore, the concession of Ferrosur Roca S.A. will end in September 2024. The Group has assessed potential business scenarios based on its intention to continue delivering services as a rail network operator, as described in Note 38. The Group also controls Recycomb S.A.U., a company engaged in the treatment and recycling of industrial waste for use as fuel or raw material. Date of registration with the Argentinian General Inspection of Justice (local regulatory agency): • Registration of the bylaws: August 5, 1926, under No 38, Book 46. • Last amendment registered to the bylaws: September 26, 2023, under No 16,416, book 114, Corporations Volume. • Correlative Number of Registration with Inspección General de Justicia (local regulatory agency): 1,914,357. • Tax identification number (CUIT): 30-50053085-1. • Date of expiration: July 3, 2116. Parent company: InterCement Trading e Inversiones Argentina S.L. with 52.1409% of the Company’s capital stock and votes. Capital structure : The Ordinary and Extraordinary General Shareholders' Meeting, held on April 25, 2023, approved, among other issues, the voluntary reduction of the Company's capital stock for a total of 12,543,339 ordinary shares, which includes 12,352,329 shares in portfolio. and 191,010 unnamed shares. Considering the aforementioned, as of December 31, 2023, the subscribed for and paid in capital amounts to $58,348,315.10, represented by 583,483,151 book-entry common shares with a nominal value of $0.10 each, and each entitling to one vote. |
BASIS OF PREPARATION OF THE CON
BASIS OF PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Basis Of Preparation Of Financial Statements [Abstract] | |
BASIS OF PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTS | BASIS OF PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTS 2.1 Statement of compliance with the International Financial Reporting Standards (IFRS) and bases of preparation of these consolidated financial statements The consolidated financial statements of the Group as of December 31, 2023 and 2022 and for the fiscal years ended December 31, 2023, 2022 and 2021 have been prepared and presented in accordance with the IFRS as issued by the International Accounting Standards Board (“IASB”). These consolidated financial statements comprehensively recognize the effects of variations in the purchasing power of currency through the application of the method to restate the consolidated financial statements in constant currency, as established by the International Accounting Standard 29 (IAS 29). For comparative purposes, these consolidated financial statements include figures and other details corresponding to the fiscal years ended on December 31, 2022 and 2021, which are an integral part of the above-mentioned consolidated financial statements and are presented in order for them to be solely interpreted in accordance with the figures and other information for this current fiscal year. These figures have been restated in the current fiscal year’s end-of-period currency in the manner described in the following section in order to allow comparability. These consolidated financial statements were approved by the Board of Directors on April 29, 2024, the date when they were available for issuance. 2.2. Financial information presented in constant currency The consolidated financial statements as of December 31, 2023, and the corresponding figures for prior fiscal years have been restated to consider changes in the general purchasing power of the Group’s functional currency (the Argentine Peso) in accordance with the provisions included in IAS 29. As a result, the consolidated financial statements are stated in constant currency as at the end of the current fiscal year. According to IAS 29, the restatement of the financial statements is necessary when the functional currency of an entity is that of a hyperinflationary economy. IAS 29 provides certain guidelines for illustrative purposes to define a situation in which hyperinflation is deemed to arise, including (i) analysis of general population behavior, prices, interest rate, and salaries in the face of changes in price indexes and the loss of the currency purchasing power and (ii) as a quantitative feature, which is the condition more frequently considered in practice, the existence of a cumulative three-year inflation rate that approximates or exceeds 100%. In order to assess the above-mentioned quantitative condition and also to restate financial statements, the series of indices to be used in the application of IAS 29 is determined by FACPCE. These series combines the Consumer Price Index (CPI) at the national level and as published by Instituto Nacional de Estadística y Censos (Official Statistics Bureau, “INDEC” as per the initials in Spanish) as from January 2017 (baseline month: December 2016) with the Wholesale Domestic Price Index (IPIM, for its acronym in Spanish) as published by INDEC until that date, computing for the months of November and December 2015, for which INDEC has no information with respect to changes in the IPIM, the variation in the CPI of the City of Buenos Aires. Taking such index into account, inflation was 211.40%, 94.79% and 50.94% in the years ended December 31, 2023, 2022 and 2021, respectively, and more than 100% accumulated in three years during each of the years presented was reached. Below is a summary of the methods of applying IAS 29. Restatement of the statement of financial position: (i) Monetary items (those with a fixed nominal value in local currency) are not restated because they are already stated at the current unit of measurement as of the end of the reporting period. In an inflationary period, holding monetary assets causes losses in the purchasing power and holding monetary liabilities generates gains in the purchasing power, provided that such items are not subject to an adjustment mechanism that may otherwise offset these effects. Monetary gains or losses are included in the statement of profit or loss and other comprehensive income for every fiscal year. (ii) The assets and liabilities that are subject to changes based on specific agreements are adjusted on the basis of such agreements. (iii) Non-monetary assets and liabilities measured at fair values as of the balance sheet date are not inflation-restated for presentation purposes in the statement of financial position, however, their restated amounts are used to measure the gains or losses caused by holdings of such non-monetary items. For the fiscal years ended December 31, 2023, 2022 and 2021, the Group did not have non-monetary items measured at fair value. (iv) Non-monetary items measured at historical cost or at the current value of a date prior to the end of the reporting fiscal year are restated by coefficients that reflect the variations in the general price level since the date of acquisition or revaluation through the end of the reporting period. Subsequently, the restated amounts of such assets are compared to the corresponding recoverable values at the end of the reporting period. The amounts charged to against the statement of profit or loss and other comprehensive income due to depreciation of property, plant and equipment and amortization of intangible assets, as well as any other consumption of non-monetary assets shall be determined based on the restated amounts. As of December 31, 2023, 2022 and 2021, the items subject to this restatement process have been those included in inventories, other receivables, property, plant and equipment, right of use assets, goodwill, and non-current investments. (v) When borrowing costs are capitalized in non-monetary assets pursuant to IAS 23, the components of those costs compensating the creditor for the effects of inflation are not capitalized. (vi) The restatement of non-monetary assets in terms of current units of measurement as of the end of the year with no equivalent adjustment for tax purposes gives rise to a taxable temporary difference and the recognition of deferred tax liabilities against to profit or loss for the year. In those cases where there is a revaluation of the non-monetary assets in addition to the restatement, the deferred tax recognized on the restatement is accounted for as profit or loss for the year, and the effect of deferred taxes on the revaluation (excess of the revalued amount over the restated amount) is recognized in other comprehensive income. The Group has no revaluated assets. Restatement of the statement of profit or loss and other comprehensive income: (i) Expenses and revenues are restated as from the date they are accrued, except for those profit or loss items related to the consumption of assets measured in purchasing power currency of a date previous to the recording of such consumption which are restated based on the inception date of the asset to which the items are related (such as depreciation, impairment, and other use of assets valued at historical cost); and except also for any profit or loss arising from comparing two measurements expressed in a currency with a purchasing power from different dates, for which it is necessary to identify the amounts compared, their separate restatement and their comparison based on the new restated amounts. (ii) Net profit or loss on exposure of monetary assets and liabilities to inflation is reported in a separate item of profit and loss , which reflects profit or loss on the exposure to changes in the purchasing power of the currency (“RECPAM” for the Spanish initials of "Resultado por el Cambio en el Poder Adquisitivo de la Moneda"). Restatement of the statement of changes in shareholders’ equity: All equity components' beginning balances are restated by applying the general price index from the beginning of the fiscal year, and the movements of each such components during the year are restated as from the date of the contribution or initial recognition. Capital stock is presented at nominal values and its corresponding restatement adjustment is presented in the "capital adjustment” account. Other comprehensive income resulting after the transition date of the implementation of IAS 29 is recorded net of the inflation effect. Restatement of the statement of cash flows: IAS 29 requires that all entries in this statement should be restated in terms of the unit of measurement that is current at the end of the reporting period. The monetary gain or loss generated from cash and cash equivalents is presented in the statement of cash flows separately from the cash flows from operating, investing and financing activities, as a specific item for the reconciliation between cash and cash equivalents at the beginning and at the end of the fiscal year. 2.3. Applicable accounting standards The consolidated financial statements have been prepared on a historical cost basis, which has been restated at year-end currency in the case of non-monetary items, except for the revaluation of certain financial assets, which are measured at the fair value at the closing date of each fiscal year. In general, historical cost is based on the fair value of the consideration given in exchange for the assets. Fair value is the price that the Group would receive to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date, irrespective of whether such price is directly observable or estimated using another valuation technique. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. Fair value is determined on the basis previously mentioned, except for share-based payment transactions that are within the scope of IFRS 2, lease transactions, within the scope of IFRS 16 and measurements that have some similarities to fair value but are not fair value, such as net realizable value in IAS 2 or value in use in IAS 36. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: • Level 1 quoted (unadjusted) prices in active markets for identical assets and liabilities to which the entity has access as at the measurement date; • Level 2 valuation techniques for which the lowest level input that is significant to their value measurement is directly or indirectly observable; and • Level 3 valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. Classification as current and non-current: The Group classifies assets and liabilities in the consolidated statement of financial position as current and non-current. An asset is classified as current when the Group: a) expects to realize the asset or intends to sell or consume it during its normal operating cycle; b) holds the asset primarily for the purpose of trading; c) expects to realize the asset within twelve months after the end of the reporting period; or d) the asset is cash or cash equivalent unless it is restricted and cannot be exchanged or used to settle a liability for at least twelve months after the end of the reporting period. All other assets are classified as non-current. A liability is classified as current when the Group: a) expects to settle the liability during its normal operating cycle; b) holds the liability primarily for the purpose of trading; c) the liability is due to be settled within twelve months after the end of the reporting period; or d) fails to have an unconditional right to defer settlement of the liability for at least twelve months after the end of the reporting period. All the other liabilities are classified as non-current. Deferred tax assets and liabilities are classified as non-current assets and liabilities in all cases. Year-end date: The fiscal year of the Group starts on January 1° and ends on December 31 each year. Currency: The consolidated financial statements are presented in thousands of Argentine Pesos ($), the currency of legal tender in the Argentine Republic, and which is the functional currency of the Group. Amounts are rounded without decimals. Use of estimates: The preparation of consolidated financial statements requires the Group’s management to make judgements, estimates and assumptions that affect the amount of recorded assets and liabilities and the contingent assets and liabilities disclosed as of the reporting date, as well as the revenues and expenses recognized during each year. Future profit or loss may differ from the estimates and assessments made as of the date of preparation of these consolidated financial statements. The description of estimates and significant accounting judgments made by the Group’s Board in the application of accounting policies as well as the areas with greater degree of complexity requiring further judgment, are disclosed in Note 4. The Group´s material accounting policies are described below. 2.4. Standards and interpretations issued but not yet effective The following is a detail of standards and interpretations that are issued but not yet effective up to the date of issuance of the Group’s consolidated financial statements. The Group intends to adopt these standards, if applicable, when they become effective , but in no case will they be adopted earlier. • IAS 1 Classification of Liabilities as Current or Non-Current In January 2020, the IASB issued amendments to IAS 1 “Presentation of Financial Statements” to specify the requirements for the classification of liabilities as current or non-current. The amendments clarify: (i) what is meant by a right to defer settlement; (ii) that a right to defer must exist at the end of the reporting period; (iii) that classification is unaffected by the likelihood that an entity will exercise its deferral right; and (iv) that only if an embedded derivative in a convertible liability is itself an equity instrument would the terms of a liability not impact its classification. The amendments shall be effective for fiscal years beginning on or after January 1, 2024 and shall be applied retroactively. These amendments are not expected to have an impact on the Group´s consolidated financial statements. • Lease Liability in a Sale and Leaseback – Amendments to IFRS 16 The amendment to IFRS 16 Leases specifies the requirements that a seller-lessee uses in measuring the lease liability arising in a sale and leaseback transaction, to ensure the seller-lessee does not recognize any amount of the gain or loss that relates to the right of use it retains. The amendments are effective for fiscal years beginning as from January 1, 2024. The amendments are not expected to have an impact on the Group's consolidated financial statements. • Disclosures: Supplier Finance Arrangements - Amendments to IAS 7 and IFRS 7 In May 2023, the Board issued amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures. The amendments specify disclosure requirements to enhance the current requirements, which are intended to assist users of financial statements in understanding the effects of supplier finance arrangements on an entity’s liabilities, cash flows and exposure to liquidity risk. The amendments clarify the characteristics of supplier finance arrangements. In these arrangements, one or more finance providers pay amounts an entity owes to its suppliers. The entity agrees to settle those amounts with the finance providers according to the terms and conditions of the arrangements, either at the same date or at a later date than that on which the finance providers pay the entity’s suppliers. The amendments require an entity to provide information about the impact of supplier finance arrangements on liabilities and cash flows, including terms and conditions of those arrangements, quantitative information on liabilities related to those arrangements as at the beginning and end of the reporting period. Considering the Group's business practice in recent years, no impacts are expected in relation to this modification. This modification is effective for financial statement presentation periods beginning on or after January 1, 2024. • Lack of exchangeability – Amendments to IAS 21 In August 2023, the Board issued Lack of Exchangeability (Amendments to IAS 21). The amendment to IAS 21 specifies how an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking. The amendments refer to: – A currency is considered to be exchangeable into another currency when an entity is able to obtain the other currency within a time frame that allows for a normal administrative delay and through a market or exchange mechanism in which an exchange transaction would create enforceable rights and obligations; a currency is not interchangeable with another currency if an entity can only obtain an insignificant amount of the other currency. – If a currency is not exchangeable into another currency, an entity is required to estimate the spot exchange rate at the measurement date. An entity’s objective in estimating the spot exchange rate is to reflect the rate at which an orderly exchange transaction would take place at the measurement date between market participants under prevailing economic conditions. The amendments note that an entity can use an observable exchange rate without adjustment or another estimation technique. – When an entity estimates a spot exchange rate because a currency is not exchangeable into another currency, it discloses information that enables users of its financial statements to understand how the currency not being exchangeable into the other currency affects, or is expected to affect, the entity’s financial performance, financial position and cash flows. The amendments will be effective for annual reporting periods beginning on or after January 1, 2025. Early adoption is permitted but will need to be disclosed. • Enhancement and standardization of climate-related disclosures for investors On March 6 2024, the SEC issued the final rules on the enhancement and standardization of climate-related disclosures for investors. This rules mandates the disclosure of information regarding a registrant’s climate-related risks that have materially impacted, or are reasonably likely to have a material impact on, its business strategy, results of operations, or financial condition. The Group is currently assessing the impact of this rules that may imply the need of additional disclosure to investors. Even though as of April 4, 2024 the SEC voluntarily stayed this rules pending completion of the Eighth Circuit Court of Appeal’s review, the SEC will “continue vigorously defending” the rules in court. If the court upholds the rules, it could lead to their prompt adoption once the stay is lifted. • IFRS 18 Presentation and Disclosure in Financial Statements IFRS 18 was issued on 9 April 2024 and becomes effective for reporting periods beginning on or after 1 January 2027. IFRS 18 introduces new requirements on presentation within the statement of profit or loss, including specified totals and subtotals. It also requires disclosure of management-defined performance measures and includes new requirements for aggregation and disaggregation of financial information based on the identified ‘roles’ of the primary financial statements and the notes. In addition, there are consequential amendments to other accounting standards. Adoption of improvements or new standards The Group has adopted all the improvements and new standards and interpretations issued by the IASB that are relevant to its operations and that are effective for the fiscal year ended December 31, 2023. As from January 1, 2023, these are the new standards or improvements that become effective: • IFRS 17 Insurance Contracts In May 2017, the IASB issued IFRS 17 Insurance Contracts, a comprehensive new accounting standard for insurance contracts covering recognition and measurement, presentation and disclosure. Once effective, IFRS 17 will replace IFRS 4 Insurance Contracts. IFRS 17 applies to all types of insurance contracts (i.e., life, non-life, direct insurance and re-insurance), regardless of the type of entities that issue them, as well as to certain guarantees and financial instruments with discretionary participation features. The overall objective of IFRS 17 is to provide an accounting model for insurance contracts that is more useful and consistent for insurers. In contrast to the requirements in IFRS 4, which are largely based on grandfathering previous local accounting policies, IFRS 17 provides a comprehensive model for insurance contracts, covering all relevant accounting aspects. This rule is not applicable to the Group. • Disclosure of Accounting Policies - Amendments to IAS 1 and IFRS Practice Statement 2 The amendments require entities to disclose their “material accounting policy information”, instead of “significant accounting policies”. The amendments provide guidance and examples to help entities to identify when an accounting policy is material. The Group made the modifications required by the standard, which did not have a material impact on the disclosures of the Group's accounting policies, and did not affect the measurement, recognition or presentation criteria in the Group's financial statements. • IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors The amendments clarify the distinction between changes in accounting estimates, changes in accounting policies and the correction of errors. They also clarify how entities use measurement techniques and inputs to develop accounting estimates. The amendments clarify that a change in the accounting estimate resulting from new information or new developments is not the correction of an error. The amendments had no impact on the Group’s consolidated financial statements. • Deferred Tax related to Assets and Liabilities arising from a Single Transaction – Amendments to IAS 12 The amendments narrow the scope of the initial recognition exception, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences at that moment. The amendments had no impact on the Group’s consolidated financial statements. • International Tax Reform—Pillar Two Model Rules – Amendments to IAS 12 The amendments to IAS 12 have been introduced in response to the OECD’s BEPS Pillar Two rules (inclusive framework about anti base erosion and profit shifting) and include: (a) A mandatory temporary exception to the recognition and disclosure of deferred taxes arising from the jurisdictional implementation of the Pillar Two model rules; and (b) Disclosure requirements for affected entities to help users of the financial statements better understand an entity’s exposure to Pillar Two income taxes arising from that legislation, particularly before its effective date. The mandatory temporary exception (the use of which is required to be disclosed) applies immediately. Although the BEPS rules are global, the rules would be implemented through legislation enacted in jurisdictions that adopt them. The BEPS rules have not been enacted or substantially enacted in jurisdictions in which the Group operates and/or in those jurisdictions in which its controlling entities operate. The Group continues monitoring the legislation, including the effective date, any transitional exemption, if applicable, and any other important requirements. The Group will continue the evaluation of the potential exposure to Pillar Two income taxes and its implementation based on the most recent information available at all times, although it understands that it will not have effects on its financial statements on the basis that the rate of income tax that is applicable is higher than the minimum rate of 15% considered by the BEPS rules. The above mentioned amendments did not have an impact on the Group's consolidated financial statements. 2.5. Basis of consolidation These consolidated financial statements include the financial statements of the Company and the companies controlled by the Group. The Group controls an entity when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. The Group will re-assess whether or not it controls an investee when facts and circumstances indicate changes in one or more of the control elements listed in the preceding paragraph. Generally, there is a presumption that the majority of voting rights results in control. To support this presumption and when the Group has less than a majority of the voting or similar rights of an investee, the Group considers all the relevant facts and circumstances in assessing whether it has power over the investee, including: • The Group’s voting right ownership percentage vis-à-vis the size and dispersion of the percentages held by other shareholders voting rights and potential voting rights; • Potential voting rights held by the Group, other shareholders or other parties; • Rights arising from contractual arrangements; and • Any and all additional events or circumstances that indicate that the Group has, or fails to have, the current ability to direct the relevant activities of the investee when decisions need to be made, including voting patterns at previous shareholders’ meetings. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control over the subsidiary. Specifically, the revenues and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated statement of profit or loss and other comprehensive income since the date on which the Group obtains control until the date on which the Group ceases to control the subsidiary. Profits or losses of each component of other comprehensive income are attributed to the Group´s owners and to the non-controlling interests. The total comprehensive income of the subsidiaries is attributed to the Group’s owners and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with the Group’s accounting policies. All intra-group assets, liabilities, equity, income, expenses and cash flows related to transactions between members of the Group are eliminated in full upon consolidation. If the Group loses control over a subsidiary, it derecognizes the related assets (including goodwill), liabilities, non-controlling interest and other components of equity, while any resultant gain or loss is recognized in profit or loss. Any investment retained is recognized at fair value. The consolidated information disclosed in these consolidated financial statements includes the following subsidiaries: Subsidiary Main business Country % of direct and indirect interest as of December 31, December 31, December 31, Cofesur S.A.U. Investment Argentina 100.00 100.00 100.00 Ferrosur Roca S.A. (1) Rail freight transportation Argentina 80.00 80.00 80.00 Recycomb S.A.U. Waste recycling Argentina 100.00 100.00 100.00 (1) Directly controlled by Cofesur S.A.U. Below is a summary of the financial information for Ferrosur Roca S.A., a subsidiary in which shareholders outside the Group have a material non-controlling interest. 2023 2022 Current assets 6,432,521 6,633,042 Non-current assets 6,018,546 8,015,053 Current liabilities 7,373,666 10,281,947 Non-current liabilities 2,317,828 1,332,845 Shareholders’ equity attributable to owners of the parent company 2,207,659 2,426,642 Non-controlling interest 551,915 606,661 2023 2022 2021 Revenues 33,265,474 36,384,432 36,273,669 Financial results, net (1,042,507) 712,145 (351,779) Depreciation (2,764,791) (8,396,827) (6,894,662) Income tax (552,976) 1,452,029 (76,837) Net losses for the year (4,745,191) (5,298,385) (7,330,754) 2023 2022 2021 Net cash generated by (used in) operating activities (1,983,303) (280,281) 2,865,822 Net cash generated by (used in) investing activities 3,329,828 (2,814,803) (3,576,068) Net cash generated by (used in) financing activities (1,213,679) 3,392,253 556,037 Effects of the exchange rate differences on cash and cash equivalents in foreign currency (228,460) (175,373) (115,395) |
MATERIAL ACCOUNTING POLICIES
MATERIAL ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of accounting policy and other classification adjustments [abstract] | |
MATERIAL ACCOUNTING POLICIES | MATERIAL ACCOUNTING POLICIES 3.1. Revenue recognition The Group is engaged in the production and distribution of cement, masonry cement, concrete, limestone and aggregates, operates a railway concession to provide transportation services and it is also engaged in the industrial waste recycling business. The goods to be delivered and the services to be provided arise from agreements with commercial substance (in general, they are not written) where the Group may identify the right of each one of the parties and the payment terms . 3.1.1. Sale of goods Revenues from sales of goods are recognized when control over goods is transferred to the customer for an amount that reflects the consideration that the Group expects to be entitled to in exchange for such assets. The customer obtains control of the goods when significant risks and rewards of the products sold are transferred in accordance with the specific delivery terms agreed with the customer. Revenues from the sale of goods are measured at fair value of the consideration received or to be collected, net of commercial discounts. No financing components are considered in the transaction since credit terms vary greatly between 20 and 35 days, depending on the specific terms agreed upon by the Group, which is consistent with market practices. Some agreements with customers offer commercial discounts or volume-based discounts. If revenues cannot be reliably measured, the Group defers revenue recognition until the uncertainty is resolved. However, due to the fact that performance obligations relate mainly to the delivery of the acquired goods, and that both the price and any discount granted are specifically agreed between the parties, there are in practice no uncertainties associated with revenue recognition from sales of goods. Variable consideration is recognized when there is a high likelihood that there will not be a significant reversal in the amount of the accumulated revenues recognized in the agreement and is measured using the expected value or the most likely amount method, whichever allows to make a better prediction of the amount based on the terms and conditions of the agreement. The products sold by the Group in general are not returned by customers once they have approved their quality, which occurs at the time of reception. 3.1.2. Services rendered The Group provides transportation services along with the sale of cement, concrete, limestone, and aggregates. Revenues from transportation services are recognized at the time services are provided, which is usually when revenues from the sale of the transported good are recognized as transportation distance and time is very short. Revenue is measured on the basis of the consideration defined in the contract with customers. Revenues from freight railway services and waste recycling services are recognized at the time such services are rendered. 3.2. Goodwill The goodwill recorded by the Group due to the acquisition of Recycomb S.A.U. and is measured at cost restated in constant currency at the end of the reporting period, as mentioned in Note 2.2. In accordance with IFRS 3, Business Combinations, goodwill is initially measured at cost being the excess of the aggregate of the consideration transferred and the amount recognized for non-controlling interests and any previous interest held over the fair value of the net identifiable assets acquired and liabilities assumed. Goodwill is not amortized, but rather tested for impairment on an annual basis. For impairment testing purposes, goodwill is allocated to each of the Group’s cash-generating units that are expected to benefit from the synergies of the relevant combination. Cash-generating units to which goodwill is allocated are tested for impairment on an annual basis, or more frequently if there are indications that the unit may have been impaired. An asset’s recoverable amount is the higher of an asset’s or CGU’s fair value less costs of disposal and its value in use. When the recoverable amount of the CGU is less than its carrying amount, an impairment loss is recognized reducing first the carrying amount of goodwill allocated to the CGU and then, proportionally, the other CGU’s assets. Impairment losses related to goodwill cannot be reversed in future periods. Any goodwill impairment loss is recognized directly in profit or loss. Upon disposal of a cash generating unit to which goodwill has been allocated, such goodwill is included in the determination of the profit or loss on such disposal. As of December 31, 2023, 2022 and 2021, the Group has not recognized any goodwill impairment loss. 3.3. Investments in other companies These are investments in which the Group has no significant influence. As these investments do not have a quoted market price in an active market and their fair value cannot be reliably measured, these investments are measured at cost restated at the end of the reporting period, less any impairment losses identified at the end of each reporting period. 3.4. Leases Group as Lessee: The accounting model for the recognition and measurement of all leases is as follows: Right-of-use assets: The Group recognizes a right of use asset at the beginning of each lease (the date on which the underlying asset is available for use). Right-of-use assets are measured at cost, net of accumulated depreciation and impairment losses, and adjusted to reflect any remeasurement of liabilities and to recognize changes in the currency purchasing power. The cost of the right-of-use assets includes the amount of the recognized lease liabilities, initial direct costs incurred, and lease payments made at or before the lease start date, less any incentives received. Unless the Group is certain that it will acquire the asset at the end of the lease, right-of-use assets are depreciated on a straight-line basis over the shorter of their estimated useful lives and the lease term (calculated based on the term of the relevant agreements, including renewal provisions in the event that they are highly likely to continue). Right-of-use assets are subject to impairment. The Group applies the short-term lease recognition exception (i.e., those leases that have a lease term of 12 months or less from the inception date and do not contain a purchase option). The Group also applies the recognition exception to leases that are considered to be of low value. Payments under these leases are recognized as expense on a straight-line basis over the lease term. Lease liabilities: Lease liabilities are measured at the present value of future lease payments to be made throughout the lease term, for which market rates have been used according to the nature and term of each agreement. Lease payments include fixed payments, less any lease incentives to be received, variable payments depending on an index or rate and amounts expected to be paid under residual value guarantees. Lease payments also include the exercise price of any purchase option of the leased underlying asset, and any penalties for terminating the lease, provided that it is reasonably likely that the Group will exercise such options. Variable payments that do not depend on an index or rate are recognized in profit or loss for the year of occurrence of the condition to which they are subject. The unwinding of the present value recognized for each lease is accounted by the Group in the comprehensive income of each year. Group as Lessor: The income from the operating lease of buildings and equipment is recognized every month during the lease term. Leases in which the Group does not transfer substantially all the risks and rewards inherent in the ownership of the asset are classified as operating leases. The initial direct costs incurred in negotiating an operating lease are in addition to the carrying amount of the leased asset and are recognized throughout the lease term on the same basis as lease income. 3.5. Foreign currency and functional currency The consolidated financial statements are presented in Argentine Pesos (Argentina’s currency of legal tender), which is also the functional currency (the currency of the primary economic environment where the entity operates) for all the Group companies , and the reporting currency of the consolidated financial statements. For the purposes of presenting these consolidated financial statements, the assets and liabilities in foreign currency held by the Group are translated to Argentine pesos at the foreign exchange rate prevailing at the end of each fiscal year. Any exchange gain or loss from monetary items is recognized in the profit or loss for the year, restated at year-end currency, except for those arising from foreign currency borrowings related to financing qualifying assets, such as assets under construction for future productive use, which were included in the cost of such assets for being considered as an adjustment to the cost of interest accrued on such foreign currency denominated borrowings. 3.6. Borrowing costs Borrowing costs, net of the effect of inflation directly attributed to the acquisition, construction or production of qualifying assets, which are assets that take a substantial period of time to get ready for their intended use or sale, are capitalized as part of the cost of the asset until the assets are ready for use or sale. Income earned on short term investments of specific outstanding borrowings to finance the construction of qualifying assets is deducted from the borrowing costs that may qualify for capitalization. All the other borrowing costs are recognized in profit or loss during the fiscal year in which they are incurred, net of the effect of inflation on the liabilities that generated them. The Group has not capitalized interest or exchange differences in the fiscal year ended December 31, 2023 and 2022, respectively. 3.7. Taxation 3.7.1. Income tax The Group assesses the income tax to be recorded in accordance with the deferred tax method, which considers the effect of temporary differences arising from the different bases for the measurement of assets and liabilities according to accounting and taxing criteria, and of existing tax losses and unused tax credits deductible from future taxable income, computed by considering the tax rate in force. Law No. 27,260, which was enacted on June 16, 2021, introduced amendments to the corporate tax rate by setting a staggered structure of applicable rates based on the level of accumulated net taxable income for each company, which may be 25%, 30%, or 35% (Note 11); the 7% tax on the distribution of dividends, however, has remained unchanged. 3.7.1.1. Current taxes Current tax payable is based on the taxable profit for the fiscal year. Taxable profit differs from profit before tax as reported in the consolidated statement of profit and loss and other comprehensive income because of items of income, or expenses that are taxable or deductible in other years and items that will never be taxable or deductible. The Group’s liability for current tax is calculated using the tax rates that have been substantially enacted at the end of the reporting period. 3.7.1.2. Deferred tax Deferred tax is recognized on the temporary differences between the carrying amount of the assets and liabilities included in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all future taxable temporary differences. Deferred tax assets are recognized for all deductible temporary differences to the extent that the Group is likely to have future tax profit against which it is possible to account for those deductible temporary differences. Such deferred tax assets and liabilities are not recognized when temporary difference arose from goodwill or the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable nor the accounting profit. The carrying amounts of deferred tax assets are reviewed at the end of each fiscal year and derecognized to the extent it is no longer probable that sufficient taxable profit will be available to allow all or part of the asset to be recovered. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply in the fiscal year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantially enacted at the end of the reporting period. Measurement of deferred tax assets and liabilities at the end of the reporting period reflects the tax consequences that would stem from the manner in which the entity expects to recover or settle the carrying amount of its assets and liabilities. The Group offsets deferred tax assets and deferred tax liabilities only if (a) it has enforceable right to set off current taxes and current liabilities and (b) the deferred tax assets and liabilities relate to income taxes levied by the same tax authority on either the same taxable entity or different taxable entities and the Group intends either to settle current tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered. Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, except where the Group is able to control the reversal of the temporary difference and it is probable that temporary differences will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments are recognized only to the extent it is probable that there will be sufficient taxable profit to use the benefits of temporary differences and they are expected to reverse in the foreseeable future. 3.7.1.3. Current tax charge and deferred taxes profit or loss Current and deferred taxes are recognized in the statement of profit or loss and other comprehensive income, except when they relate to items that are recognized in other comprehensive income or directly in shareholders’ equity, in which case the current and deferred taxes are also recognized in other comprehensive income or directly in shareholders’ equity, respectively. When the current tax or deferred tax arises from the initial accounting of a business combination, the tax effect is included in the accounting for the business combination. 3.7.2. Personal assets tax – Substitute taxpayer In Argentina, individuals and foreign entities, as well as their undistributed estates, regardless of whether they are domiciled or located in Argentina or abroad are subject to personal property tax at the rate of 0.50% over the value of any shares or the American Depositary Shares (ADSs) issued by Argentine entities held as of December 31 of each year. The tax is applied to the Argentine issuers of such shares, who must pay this tax on behalf of the relevant shareholders and is based on the value of the shares (following the equity method), or the book value of the shares derived from the most recent financial statements as of December 31 of each year. In accordance with the Personal Assests Tax Law, the Group has the right to obtain a reimbursement of the tax paid from the shareholders to whom the above tax is applicable, through the reimbursement procedure deemed appropriate by the Group. As of December 31, 2022 the Group carried receivables for $416,364, in relation to this tax. 3.8. Property, plant and equipment Property, plant and equipment held for use in the production or supply of goods and services, or for administrative purposes, are carried at the cost restated in constant currency at the end of the reporting period, in accordance with Note 2.2, less accumulated depreciation and impairment loss. The cost includes the stripping and initial preparation of the open pit quarries, as mentioned in Note 3.18, and the counterpart for the environmental restoration and/or dismantling obligations recognized, as indicated in Note 3.12. It also includes borrowing costs for long-term construction projects if the recognition criteria are met. When significant parts of plant and equipment are required to be replaced at intervals, the Group depreciates them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognized in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognized in profit or loss as incurred. The lands owned by the Group are not subject to depreciation. Construction in progress for administrative, production, supply or other purposes are carried at cost restated in constant currency at the end of the reporting period, in accordance with Note 2.2, less any recognized impairment loss. Depreciation of Property, Plant and Equipment commences when such assets are ready for their intended use. Property, plant and equipment are depreciated, except for land and assets under construction, over their estimated useful lives using the straight-line method. The estimated useful life, the residual value and the depreciation method are reviewed at the end of each fiscal year, with the effect of any changes in estimates being accounted for on a prospective basis. Gain or loss from the disposal or write-off of an item of property, plant and equipment is calculated as the difference between net disposal proceeds and the carrying amount of the asset and is recognized in profit or loss at its value restated at the year-end currency. The Group assesses the recoverability of the value of its property, plant and equipment items whenever any indication of impairment is identified. The assessments are carried out considering the cash-generating units established by the Group. 3.9. Intangible assets Intangible assets with finite useful lives that were separately acquired are carried at cost restated in constant currency at the end of the reporting period, as described in Note 2.2, less accumulated depreciation and impairment losses. The estimated useful life and depreciation method are reviewed at the end of each fiscal year, with the effect of any changes in estimates being accounted for on a prospective basis. Intangible assets with indefinite useful lives that were separately acquired are carried at the cost restated in constant currency at the end of the reporting period, as described in Note 2.2, less accumulated impairment losses. Intangible assets are derecognized when no future economic benefits are expected from their use or disposal. Gains or losses from a derecognized intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in profit or loss when the asset is derecognized. 3.10. Impairment of tangible and intangible assets At the end of each period, the Group reviews if any indication that tangible and intangible assets might be impaired. In case of impairment indicators are observed, the Group calculates the recoverable amount per cash-generating unit. The recoverable amount of an asset is the higher of the fair value less cost of disposal and its value in use. In assessing value in use, the estimated future cash flows are discounted using a pre-tax discount rate that reflects current market assessments as of year-end with respect to the time value of money considering the risks that are specific to the asset. Cash-generating units match the business segments defined in Note 31. If the recoverable value of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying value of the asset (or cash-generating unit) is reduced to its recoverable value. Impairment losses are immediately recognized in profit or loss. When a recognized impairment loss is subsequently reversed, the book value of the asset is increased up to the new recoverable amount but the reversal is limited so that the carrying amount of the asset does not exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset or CGU in prior years. Impairment loss reversals are immediately recognized in profit loss. Impairment losses related to goodwill are not reversed in future periods. 3.11. Inventories Inventories are stated at the lower of cost restated in constant currency at the end of the reporting period in accordance with Note 2.2 and net realizable value. Costs incurred in bringing products to their present condition are accounted for as follows: • Raw materials and spare parts: at acquisition cost according to the Weighted Average Price method. • Finished goods and work in progress: at acquisition cost of raw materials and labor, plus a proportion of manufacturing overheads based on normal operating capacity. The net realizable value of an inventory component is the estimated selling price for that component in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale, calculated as of the end of the reporting period. In assessing recoverable amounts, slow-moving inventories are also considered. The carrying amount of inventories as of the fiscal year-end does not exceed their recoverable value. 3.12. Provisions Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Estimated amounts of the obligation are based on the expected outflows that will be required to settle such obligation. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When the Group expects some or all of a provision to be reimbursed, the reimbursement is recognized as a separate asset (a receivable), but only when the reimbursement is virtually certain and the amount of the receivable can be reliably measured. The Group uses the opinion of its legal advisors to determine if a provision should be recorded as well as to estimate the amounts of the obligations. Environmental restoration and asset decommissioning obligations: Under legal provisions and best practices, and the environmental commitments assumed by the Group, land used by the Group for mining and quarrying is subject to environmental restoration, and the fixed assets used in production will be removed at the end of operations. In this context, provisions are recognized, as long as they are determinable, in order to afford the estimated expenses for environmental recovery and restoration of the mining areas and the retirement of the corresponding productive assets. These provisions are recorded simultaneously with the increase in value in the underlying asset and the relevant depreciation of the assets involved is recognized in profit and loss prospectively. .The environmental restoration and asset retirement obligation can also increase or decrease due to changes in the estimated timing of cash flows, changes in the discount rate and/or changes in the original estimated undiscounted costs. In estimating the expected cost, the Group takes into account changes in environmental legislation and regulations, if any, that may impact the process and restoration and dismantling costs. Increases or decreases in the obligation other than the unwinding of discount will result in a corresponding change in the carrying amount of the related asset. Actual costs incurred upon settlement of the asset retirement obligation are charged against the asset retirement obligation to the extent of the liability recorded. The Group discounts the costs related to asset retirement obligations using the discount rate that reflects the current market assessment of the time value of money and risks specific to the liabilities that have not been reflected in the cash flow estimates. Asset retirement obligations are remeasured at each reporting period in order to reflect the discount rates in effect at that time. In addition, the Group follows the practice of progressively restoring the areas by the removal of quarries using the provisions recognized for that purpose. 3.13. Financial instruments A financial instrument arises from any contract that results in the recognition of a financial asset in one entity and a financial liability or equity instrument in another entity. All financial assets and liabilities are initially measured at fair value. Transaction costs that are attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and liabilities at fair value through profit or loss) are added or deducted from the fair value of the financial assets or liabilities on the initial cost of recognition. Transactions costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss. Interest and financial income are recognized to the extent the effective interest rate is accrued. In general, the Group receives short-term advances from its customers. Pursuant to the practical expedient of IFRS 15, the Group does not adjust the promised amount of consideration for the effects of a significant financing component if it expects, at contract inception, that the period between the entity transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. The Group does not receive any long-term advances from its customers. 3.14. Financial assets According to IFRS 9 Financial instruments, the Group classifies its financial assets into two categories because the company has not asset that are designated as fair value through other comprehensive income: • Financial Assets at amortized cost A financial asset is measured at amortized cost if both of the following conditions are met: (i) the asset is held within a business model of the Group whose objective is to hold assets in order to collect contractual cash flows; and (ii) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. In addition, for the assets that meet the conditions mentioned above, IFRS 9 contains an option to designate, at initial recognition, a financial asset as measured at fair value if doing so eliminates or significantly reduces an account mismatch that would otherwise arise from measuring assets or liabilities or recognizing the gains and losses on them on different bases. The Group has not recognized financial assets at fair value using this option. At the date of the consolidated financial statements, the Group’s financial assets at amortized cost include certain items of cash and cash equivalents and trade and other receivables. • Financial assets at fair value through profit or loss If one of the above two criteria is not met, the financial asset is classified as an asset measured at “fair value through profit or loss”. At the date of these consolidated financial statements, the Group’s financial assets at fair value through profit or loss include mutual funds classified as current investments. Recognition and Measurement: Acquisitions and disposals of financial assets are recognized on the date on which the Group promises to purchase or sell the asset. Financial assets are derecognized when the rights to receive cash flows from such instruments and the risks and benefits related to their ownership have been terminated or assigned. Financial assets at amortized cost are initially recognized at fair value plus transaction costs. These assets accrue interest based on the effective interest rate method. Financial assets at fair value through profit or loss are initially recognized at fair value and transaction costs are recognized as expenses in the statement of profit or loss and other comprehensive income. They are subsequently measured at fair value. Changes in fair values and gains or losses on the sale of financial assets at fair value through profit or loss are recognized in “Financial results, net” in the statement of profit or loss and other comprehensive income. In general, the Group uses the transaction price to determine the fair value of a financial instrument at initial recognition. In all other cases, the Group only records a gain or loss at initial recognition if the fair value of the instrument is evidenced by other comparable and observable market transactions for the same instrument or is based on a valuation technique incorporating only observable market data. Any gains or losses not recognized at initial recognition of a financial asset are subsequently recognized only to the extent that they arise from a change in factors (including time) that market participants would consider in establishing the price. The results of debt instruments that are measured at amortized cost and are not designated in a hedging relationship are recognized in the profit or loss and other comprehensive income statement using the effective interest rate method. The Group reclassifies between categories all investments in debt instruments only when there is a change in the business model used to manage such assets. Financial asset impairment The Group assesses at the end of each period whether there is any objective evidence that a financial asset or group of financial assets measured at amortized cost is impaired. The impairment is recorded only if there is objective evidence of impairment as the result of one or more events that occurred after the initial recognition of the asset and that impairment can be reliably estimated. The Group defined a policy to calculate ECLs for trade receivables and record the related allowance for debtors’ impairment. The provision is initially based on the Group’s historical observed default rates and it is complemented by a case by case analysis to identify special circumstances on individual customers and/or transactions. Evidence of impairment includes indications that the debtors or a group of debtors are experiencing serious financial difficulties, default or arrears in interest or principal payments, the likelihood that they will be declared bankrupt or file for reorganization proceedings, and when such observable data indicates that there is a decrease in estimated future cash flows. The amount of the impairment is measured as the difference between the carrying amount of the asset and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the original effective interest rate of the financial asset. The carrying amount of the asset is written down and the amount of the loss is recognized in the profit or loss and other comprehensive income statement. As a practical measure, the Group may measure impairment based on the fair value of an instrument using an observable market price. If, in a subsequent period, the impairment amount decreases and such reduction is related to an event taking place after the original impairment, the reversal of the impairment loss is recognized in the consolidated statement of profit and loss and other comprehensive income. Offsetting of financial instruments: Financial assets and liabilities are offset whenever there is a legal right to offset such assets and liabilities and there is an intention to settle them on a net basis, or to realize the asset and settle the liability simultaneously. Derecognition of a financial asset A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e., removed from the Group’s consolidated statement of financial position) when: • The rights to receive cash flows from the asset have expired, or • The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor retained |
CRITICAL ACCOUNTING JUDGMENTS A
CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY | 12 Months Ended |
Dec. 31, 2023 | |
Critical Accounting Judgments And Key Sources Of Estimation Uncertainty [Abstract] | |
CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY | CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY In the application of the Group´s accounting policies described in Note 3, the Group ’ s management has been required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors considered to be relevant. It should be noted that actual results could differ from those estimates. Underlying estimates and assumptions are continuously reviewed. The effects of revisions to the accounting estimates are recognized in the year in which the estimates are reviewed. 4.1. Critical judgments in applying accounting policies The following are the critical assumptions, in addition to those involving estimations (Note 4.2), made by Management in the process of applying the Group’s accounting policies and that have the most significant effect on the amounts recognized in the consolidated financial statements. 4.1.1. Ferrosur Roca S.A. concession Management has reviewed the Group’s interest in Ferrosur Roca S.A., taking into account the provisions of IFRIC 12 Service Concession Arrangements, which provides guidance on accounting by the operators of public-to-private service concession arrangements. Based on the fact that the grantor neither controls nor regulates which services should be provided by the operator to the infrastructure or to whom it must provide them, and at what price, Group Management conclude that Ferrosur Roca S.A. concession is out of the scope of IFRIC 12 and, therefore, the Group does not apply its provisions. Accordingly, the Group has recorded the assets received from the concession and those subsequently acquired under IAS 16 - Property, Plant and Equipment. The concession bidding terms and conditions grant an original term of thirty years (1993-2023) and originally provided for the possibility of an extension for ten additional years, which was rejected by the Ministry of Transport for the reasons described in Note 38. On December 22, 2022, the Ministry of Transport provisionally granted an extension for an additional term of 18 months as from the expiration date of the concession. Therefore, the concession of Ferrosur Roca S.A. will end in September 2024. The Group has evaluated potential business scenarios based on its intention to continue delivering services as a rail network operator and has not anticipated significant associated effects to date. Likewise, it has reassessed all the accounting estimates affected to the end of the current concession, especially those associated with the recoverability of certain non-current assets affected by it. The evaluations carried out by the Group are detailed in Note 38. 4.2. Key assumptions and sources of estimation uncertainty The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period that may have a risk of causing material adjustments to the carrying amounts of assets and liabilities during the next fiscal year. 4.2.1. Property, plant and equipment and intangible assets The following is the estimated useful life for each component of property, plant and equipment and intangible assets: Useful life Fields 50 to 100 years Quarries - Stripping cost Based on estimated tons Buildings 10 to 50 years Machinery 10 to 35 years Furniture and fixtures 5 to 10 years Tools 5 years Software 5 years Transportation and load vehicles 4 to 32 years The assets used in the concession of Ferrosur Roca S.A. are depreciated over the shorter of their estimated useful lives and the remaining concession term. An impairment exists when the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, which is the higher of its fair value less costs to sell and its value in use. The calculation of fair value less costs to sell is based on available data from binding sales transactions conducted under market conditions for similar assets or observable market prices less incremental costs of asset disposal. The calculation of the value in use is based on a discounted cash flow model. Cash flows are derived from the budget for next year, extrapolated for subsequent years using a growth rate, and do not include restructuring activities that the Group is not yet committed to or significant future investments that will enhance the performance of the assets of the cash-generating unit being tested. The recoverable amount is sensitive to the discount rate used for the discounted cash flow model, as well as the expected future cash inflows and the growth rate used for extrapolation purposes, among other factors. These matters are the most relevant in the related estimates. Note 13 provides more information on impairment analysis and assumptions used. The Group has considered the impact of potential climate-related matters, including legislation, which may affect the fair value measurement of assets and liabilities in the financial statements. The group has assessed whether its items of property, plant and equipment are exposed to physical risks, such as flooding, water shortages and increasing forest fires, but understands that such risks do not currently exist due to circumstances and conditions of the locations where its plants, deposits and quarries are located. Additionally, the Group has assessed that it is not currently affected by transition risks, such as those derived from energy efficiency requirements or reductions in emissions due to possible changes in climate-related legislation and regulations. The objectives that the Group has voluntarily imposed in relation to these matters are contemplated in its budgets and business plans and do not have a material impact on the measurements of recoverable values. As described in Notes 3.8 and 3.9, the Group annually assesses the estimated useful lives of tangible and intangible assets, respectively. 4.2.2. Provisions for lawsuits and other contingencies The final settlement cost of complaints and litigation may vary due to estimates based on different interpretations of regulations, opinions and final assessments of damages. Therefore, any change in the circumstances related to this type of contingencies may have a significant impact on the amount of the provision for contingencies recorded. In the normal course of its business, the Group selects tax criteria and accounting positions based on a reasonable interpretation of the current regulations, also taking into consideration the opinion of its tax and legal advisors along with evidence available up to the date of issuance of these financial statements. Nevertheless, in the event of situations where the assessment by a third party and the potential occurrence of damage for the Group are uncertain, the Group has not recorded a provision as it is has not been required under IFRS. The Group makes judgments and estimates to assess whether it is necessary to record costs and make provisions for environmental cleanup remediation and asset retirement obligations based on the current information related to expected remediation costs and plans. In the case of environmental provisions, costs may differ from estimates due to changes in laws and regulations, discovery and analysis of local conditions, as well as changes in cleanup technologies. Therefore, any change in the factors or circumstances related to this type of provisions, as well as any amendment to the rules and regulations may thus have a significant impact on the provisions recorded in these consolidated financial statements. 4.2.3. Calculation of income tax and deferred income tax assets The proper assessment of income tax expenses depends on several factors, including estimates in the timing and realization of deferred tax assets and the frequency of income tax payments. In order to measure the effect of deferral on investments in controlled or associated companies, Management has determined the presumption that they will not be disposed of in the foreseeable future and therefore no deferred income tax has been recorded. 4.2.4. Management’s accounting estimates and judgments on environmental matters The Group is constantly working on a responsible and sustainable business strategy, committed to improving environmental performance on an ongoing basis, minimizing environmental impact caused by its operations, and providing maximum value for society. To this end, the Group has set various environmental sustainability goals within the medium term (year 2030) and long term (year 2050), aligned with the 2030 Agenda Sustainable Development Goals (“SDG”) promoted by the United Nations. The main committed goals are related to maximizing energy efficiency and renewable energy, reducing gas emissions and improving air quality, reducing the carbon footprint, maximizing water management, streamlining waste management by promoting circular economy, and improving efficiency in the use of materials. In preparing the consolidated financial statements, the Group's Management has considered the potential environmental impact. Therefore, the estimates and judgments made by the Group's Management primarily involve assumptions related to future regulations and performance of the industry in which the Group operates. The effects of changes in the estimates and judgments made may primarily relate to impairment tests on property, plant and equipment, the estimated useful life of those assets and therefore the related depreciation recognized annually, as well as the recognition of provisions, such as the environmental provision to afford the estimated expenses for the environmental recovery and restoration of the mining areas exploited by the Group. |
REVENUES
REVENUES | 12 Months Ended |
Dec. 31, 2023 | |
Revenue [abstract] | |
REVENUES | REVENUES 2023 2022 2021 Sale of products 614,033,971 627,924,111 613,783,915 - Domestic market 613,771,519 627,743,238 613,379,901 - External customers 262,452 180,873 404,014 Services rendered 15,077,673 18,761,289 20,198,930 Bonuses / Discounts (206,950,827) (194,731,346) (187,111,238) Total 422,160,817 451,954,054 446,871,607 |
COST OF SALES
COST OF SALES | 12 Months Ended |
Dec. 31, 2023 | |
Analysis of income and expense [abstract] | |
COST OF SALES | COST OF SALES 2023 2022 2021 Inventories at the beginning of the year 83,407,748 71,465,476 70,025,517 Finished products 5,235,997 3,610,248 4,312,946 Products in progress 14,966,747 12,165,049 8,240,170 Raw materials, materials, fuel, and spare parts 63,205,004 55,690,179 57,472,401 Purchases and production expenses for the year 332,002,049 341,847,366 307,070,468 Inventories at the end of the year (99,156,221) (83,407,748) (71,465,476) Finished products (4,171,765) (5,235,997) (3,610,248) Products in progress (17,649,645) (14,966,747) (12,165,049) Raw materials, materials, fuel, and spare parts (77,334,811) (63,205,004) (55,690,179) Cost of sales 316,253,576 329,905,094 305,630,509 The breakdown of production costs is as follows: 2023 2022 2021 Fees and compensation for services 4,824,164 6,224,735 6,122,508 Salaries, wages, and social security contributions 48,315,608 49,158,340 48,170,901 Transport and traveling expenses 2,707,952 2,419,876 2,179,660 Data processing 165,897 184,139 120,484 Taxes, duties, contributions, and commissions 5,511,485 6,027,942 6,218,524 Depreciation and amortization 31,860,526 40,557,578 36,155,471 Preservation and maintenance costs 28,848,789 28,111,393 28,360,476 Communications 265,395 302,747 293,150 Leases 559,015 533,776 337,557 Employee benefits 1,580,643 1,469,734 1,329,001 Water, natural gas, and energy services 92,341 71,633 62,353 Freight and tolls 33,085,274 35,201,204 31,589,306 Fuels 50,755,980 52,325,243 41,838,109 Insurance 1,183,817 1,099,379 949,784 Packaging 10,590,791 11,449,210 12,539,651 Electric power 24,278,677 28,865,993 29,872,012 Contractors 24,927,448 22,776,427 22,759,383 Canon (concession fee) 210,582 232,174 239,768 Security 1,427,618 1,495,425 1,537,416 Others 3,937,480 4,462,876 4,158,678 Total 275,129,482 292,969,824 274,834,192 |
SELLING AND ADMINISTRATIVE EXPE
SELLING AND ADMINISTRATIVE EXPENSES | 12 Months Ended |
Dec. 31, 2023 | |
Analysis of income and expense [abstract] | |
SELLING AND ADMINISTRATIVE EXPENSES | SELLING AND ADMINISTRATIVE EXPENSES 2023 2022 2021 Managers and directors’ compensation fees 2,804,523 3,017,529 2,822,191 Fees and compensation for services 3,311,630 2,571,901 2,249,637 Salaries, wages, and social security contributions 9,665,392 9,768,778 8,723,883 Transport and traveling expenses 522,432 502,604 204,903 Data processing 1,390,817 975,828 1,126,570 Advertising expenses 2,127,755 1,808,897 1,891,998 Taxes, duties, contributions, and commissions 8,328,934 9,456,135 9,577,426 Depreciation and amortization 2,014,873 2,522,764 2,255,476 Preservation and maintenance 119,311 67,574 87,347 Communications 211,827 302,606 256,354 Leases 150,090 121,814 155,754 Employee benefits 550,638 294,747 325,978 Water, natural gas, and energy services 18,519 16,152 22,767 Freight 4,688,096 5,725,645 5,890,705 Insurance 1,733,962 963,228 883,015 Allowance for doubtful accounts 109,601 85,119 1,191,265 Security 94,717 87,740 80,928 Others 822,599 669,851 643,888 Total 38,665,716 38,958,912 38,390,085 |
OTHER GAINS AND LOSSES
OTHER GAINS AND LOSSES | 12 Months Ended |
Dec. 31, 2023 | |
Analysis of income and expense [abstract] | |
OTHER GAINS AND LOSSES | OTHER GAINS AND LOSSES 2023 2022 2021 Gain on disposal of property, plant and equipment 450,860 10,493,634 540,541 Donations (276,017) (219,069) (273,201) Technical services and assistance 11,048 17,648 59,921 Gain over tax credit assignment 73,424 340,004 559,347 Contingencies (853,264) (1,164,304) (358,795) Leases 392,172 521,515 665,628 Service fee from ADS Depositary bank 878,856 442,285 306,068 Insurance claim collection 4,517 - - Miscellaneous 236,473 110,767 (229,047) Total 918,069 10,542,480 1,270,462 |
TAX ON DEBITS AND CREDITS TO BA
TAX ON DEBITS AND CREDITS TO BANK ACCOUNTS | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of Tax on debits and credits to bank accounts [abstract] | |
TAX ON DEBITS AND CREDITS TO BANK ACCOUNTS | TAX ON DEBITS AND CREDITS TO BANK ACCOUNTS The general tax rate on bank credits and debits is 0.6% for amounts debited and credited in the bank accounts of companies based in Argentina. Regarding credited and debited amounts, 33% of both items can be computed as payment on account of other taxes. Sixty seven percent (67%) of credits and debits is included in this line item in the statement of profit or loss and other comprehensive income. |
FINANCIAL RESULTS, NET
FINANCIAL RESULTS, NET | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of finance income costs [abstract] | |
FINANCIAL RESULTS, NET | FINANCIAL RESULTS, NET 2023 2022 2021 Exchange rate differences: Foreign exchange gains 12,271,935 2,599,842 1,716,834 Foreign exchange losses (129,483,801) (25,703,369) (11,705,714) Total (117,211,866) (23,103,527) (9,988,880) Financial income Interest from short-term investments 5,016,309 4,708,054 6,109,952 Effect of discounts on provisions and liabilities 693,625 356,464 90,171 Total 5,709,934 5,064,518 6,200,123 Financial expenses Interest on borrowings (61,852,712) (17,757,415) (2,983,830) Loss from securities transactions (Note 32.4) (1,836,132) (54,919,417) - Interest on leases (358,923) (289,306) (315,661) Tax interest (616,320) (804,813) (357,630) Effect of discounts on receivables (2,366,806) (2,667,735) (2,071,540) Others (6,292,271) (3,168,614) (2,406,555) Total (73,323,164) (79,607,300) (8,135,216) |
INCOME TAX EXPENSES
INCOME TAX EXPENSES | 12 Months Ended |
Dec. 31, 2023 | |
Major components of tax expense (income) [abstract] | |
INCOME TAX EXPENSES | INCOME TAX EXPENSES 2023 2022 2021 Profit before income tax expenses 17,418,253 34,264,184 98,948,305 Income tax rate 35 % 35 % 35 % Income tax at the statutory tax rate (6,096,389) (11,992,464) (34,631,906) Adjustments for calculation of the effective income tax: Recovery of tax losses / Unrecognized tax losses 1,063,259 (13,965,632) (1,438,622) Effects of inflation adjustments for accounting and tax purposes (2,979,017) (2,571,900) (1,029,682) Change in tax rate (13,233) 3,000 (23,401,908) Other non-taxable income or non-deductible expense, net 287,650 (110,433) 37,320 Total income tax (7,737,730) (28,637,429) (60,464,798) Income tax Current (3,809,918) (12,782,304) (40,269,309) Deferred (3,927,812) (15,855,125) (20,195,489) Total (7,737,730) (28,637,429) (60,464,798) 11.1. The deferred income tax assets and liabilities are as follows: 2023 2022 Assets Tax loss carryforward 10,387,206 15,159,150 Valuation allowance of tax loss carryforward (4,137,345) (13,982,670) Leases 504,358 16,370 Provisions 2,071,727 918,897 Salaries and social security contributions 307,325 178,670 Other liabilities 338,199 428,218 Others 566,268 216,228 Total deferred tax assets 10,037,738 2,934,863 2023 2022 Liabilities Property, plant and equipment (100,938,571) (92,302,691) Inventories (14,854,114) (9,741,243) Taxes payable (tax inflation adjustment) (648,759) (3,374,191) Borrowings (194,128) (89,222) Others (1,576) (99,114) Total deferred tax liabilities (116,637,148) (105,606,461) Total net deferred tax liabilities (106,599,410) (102,671,598) 11.2. Unrecognized temporary differences on investments and other interests Temporary differences related to investments in subsidiaries and other interests for which no deferred tax assets or liabilities have been recognized since it is not considered probable that they will be reversed in the foreseeable future, are as follows: 2023 2022 Subsidiaries (744,988) 1,188,609 Others (11,122) (11,055) Total (756,110) 1,177,554 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2023 | |
Profit or loss [abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic and diluted earnings per share: The earnings and the weighted average number of ordinary shares used in the calculation of basic and diluted earnings per share are as follows: 2023 2022 2021 Profit attributable to the owners of the parent company used in the calculation of basic and diluted earnings per share 10,305,179 6,037,186 39,949,661 Weighted average number of ordinary shares for the purposes of basic and diluted earnings per share (in thousands of shares) 583,536 585,317 592,046 Basic and diluted earnings per share (in pesos) 17.6599 10.3144 67.4772 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT 2023 2022 Cost 1,212,747,831 1,179,854,760 Accumulated depreciation (730,619,923) (701,933,319) Total 482,127,908 477,921,441 Land 6,157,733 6,210,098 Plant and buildings 78,991,885 79,190,529 Machinery, equipment and spare parts 339,259,490 349,634,093 Transportation and load vehicles 6,841,896 7,173,697 Furniture and fixtures 532,842 574,137 Fields and quarries 33,757,180 29,449,339 Tools 624,447 543,136 Construction in process 15,962,435 5,146,412 Total 482,127,908 477,921,441 Cost Land Buildings Machinery, Transportation Furniture Fields and quarries Tools Works in Total Balance as of January 1, 2022 6,219,522 300,979,660 608,464,616 75,590,036 21,357,079 128,964,236 4,166,935 11,494,837 1,157,236,921 Additions - 488,183 - - - 233,520 - 26,205,979 26,927,682 Disposal (9,424) (1,964,150) (370,246) (691,216) (10,381) (1,257,868) (6,558) - (4,309,843) Transfers - 3,852,949 14,752,704 3,364,005 428,916 10,024,085 131,745 (32,554,404) - Balance as of December 31, 2022 6,210,098 303,356,642 622,847,074 78,262,825 21,775,614 137,963,973 4,292,122 5,146,412 1,179,854,760 Additions 72 858,529 - - - 423,695 - 35,841,852 37,124,148 Disposal (52,437) (2,328,480) (1,231,979) (617,440) (741) - - - (4,231,077) Transfers - 4,725,307 6,500,298 1,876,150 163,076 11,479,491 281,507 (25,025,829) - Balance as of December 31, 2023 6,157,733 306,611,998 628,115,393 79,521,535 21,937,949 149,867,159 4,573,629 15,962,435 1,212,747,831 Accumulated depreciation and impairment in value Buildings Machinery, Transportation Furniture and Fields and quarries Tools Total Balance as of January 1, 2022 (217,764,600) (256,984,789) (66,566,633) (20,780,972) (98,460,911) (3,541,684) (664,099,589) Disposal 1,782,024 298,150 601,469 10,381 1,164,835 6,558 3,863,417 Depreciation (8,183,537) (16,526,342) (5,123,964) (430,886) (11,218,558) (213,860) (41,697,147) Balance as of December 31, 2022 (224,166,113) (273,212,981) (71,089,128) (21,201,477) (108,514,634) (3,748,986) (701,933,319) Disposal 2,328,480 1,113,988 401,913 605 - - 3,844,986 Depreciation charge (5,782,480) (16,756,910) (1,992,424) (204,235) (7,595,345) (200,196) (32,531,590) Balance as of December 31, 2023 (227,620,113) (288,855,903) (72,679,639) (21,405,107) (116,109,979) (3,949,182) (730,619,923) 13.1. Impairment of property, plant and equipment The Group tests property, plant and equipment for impairment when circumstances indicate that their carrying value may be impaired. The impairment test conducted by the Group for property, plant and equipment is based on estimates of the recoverable amount per cash-generating unit, which has been defined as the higher of fair value less costs to sell and value in use. In assessing the value in use, the estimated future cash flows are discounted using a discount rate reflecting market assessments as of the end of the period with respect to the time value of money considering the risks that are specific to the assets involved. The calculation of the value in use for all cash-generating units is more sensitive to the following assumptions which, as described below, were considered by Group Management in the development of the impairment test: volumes, prices, gross margins, levels of operating expenses and capital expenditure in property, plant and equipment and working capital, discount rate, growth rate used to extrapolate cash flows beyond the forecast period, and macroeconomic variables estimated to be present during the projection horizon including, without limitation, exchange rates, inflation levels, and GDP growth. The Group has also considered a number of other factors in reviewing impairment indicators, such as market capitalization, participation in each of the segments where it does business, unused installed capacity, industry trends, potential environmental impact, and other factors, together with the increase in property, plant and equipment balances due to the application of the restatement in constant currency as a result of applying IAS 29 in relation to those assets. At the end of fiscal year ended December 31, 2021, considering the prevailing uncertainty of the Argentine economic situation and the inflationary environment, as well as the impact derived from commissioning the new power plant L'Amalí which includes innovative technology and therefore higher efficiency in operating costs compared to other facilities, and the reallocation of production volumes derived from L'Amalí operation, the Group has determined that certain facilities belonging to its cement plant called “Sierras Bayas” would not be used in the foreseeable future, since Sierras Bayas volumes would be reallocated to the new plant considering the volumes produced and sold until then. Therefore, the Group recognized an impairment loss on property, plant and equipment amounting to 927,176 in the consolidated statement of profit or loss and other comprehensive income as of December 31, 2021, that requires not reversal to date. As of the current fiscal year-end, the Company determined that property, plant and equipment amounts are recoverable. Cement, Masonry Cement and Lime Cash-generating Unit The determination of the recoverable amount of cement, masonry cement and lime cash-generating unit is based on a calculation of the value in use of the assets involved using cash flow projections from the financial budgets approved by Company Management. Projected cash flows have been updated to reflect variations in the demand for traded products, such as the Argentine macroeconomic variables that have an impact on the Company’s businesses. The discount rate used in cash flow projections is 15.45% (15.70% in 2022) in US dollars considering that cash flows have been prepared in that currency. As a result of the analysis carried out, no impairment has been determined for this cash-generating unit as of December 31, 2023. Concrete Cash-generating Unit The determination of the recoverable amount of concrete cash-generating unit is based on a calculation of the value in use of the assets involved using cash flow projections from the financial budgets approved by Company Management. Projected cash flows have been updated to reflect variations in the demand for traded products, such as the Argentine macroeconomic variables that have an impact on the Company’s businesses. The discount rate used in cash flow projections is 15.45% (15.70% in 2022) in US dollars considering that cash flows have been prepared in that currency. As a result of the analysis carried out, no impairment has been determined for this cash-generating unit as of December 31, 2023. Aggregates Cash-generating Unit The recoverable amount of aggregates cash-generating unit is determined based on a calculation of the value in use of the assets involved using cash flow projections from the financial budgets approved by Company Management. Projected cash flows have been updated to reflect variations in the demand for traded products, such as the Argentine macroeconomic variables that have an impact on the Company’s businesses. The discount rate used in cash flow projections is 15.45% (15.70% in 2022) in US dollars considering that cash flows have been prepared in that currency. As a result of the analysis carried out, no impairment has been determined for this cash-generating unit as December 31, 2023. Rail Services Cash-generating Unit |
RIGHT OF USE ASSETS AND LEASE L
RIGHT OF USE ASSETS AND LEASE LIABILITIES | 12 Months Ended |
Dec. 31, 2023 | |
Right Of Use Asset And Lease Liability [Abstract] | |
RIGHT OF USE ASSETS AND LEASE LIABILITIES | RIGHT OF USE ASSETS AND LEASE LIABILITIES The Group has entered into lease agreements primarily for the lease of offices and premises. Changes in right of use assets and lease liabilities as of December 31, 2023 and 2022 are as follows: 2023 2022 Lease liabilities: As of the beginning of the year 3,318,236 1,909,119 Additions 71,084 2,160,014 Financial restatements 358,923 289,307 Foreign Exchange gain /(losses) 4,271,628 930,664 Gain on net monetary position (3,071,750) (1,088,899) Payments (960,757) (881,969) As of the end of the year 3,987,364 3,318,236 Right of use assets: As of the beginning of the year 3,271,458 1,879,740 Additions 71,084 2,160,014 Depreciation (796,200) (768,296) As of the end of the year 2,546,342 3,271,458 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS 2023 2022 Software 1,585,465 1,463,250 Total 1,585,465 1,463,250 Software Cost: Balance as of January 1, 2022 7,208,457 Additions 324,567 Balance as of December 31, 2022 7,533,024 Additions 669,825 Balance as of December 31, 2023 8,202,849 Accumulated amortization: Balance as of January 1, 2022 (5,454,876) Amortization (614,898) Balance as of December 31, 2022 (6,069,774) Amortization (547,610) Balance as of December 31, 2023 (6,617,384) |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of Investments [abstract] | |
INVESTMENTS | INVESTMENTS 2023 2022 Non-Current Investments in other companies: - Cementos del Plata S.A. 31,869 31,869 Total 31,869 31,869 Current Short-term investments: - Government securities in dollars 1,609,330 - - Mutual fund in pesos 30,503 2,068,052 - Short-term investments in foreign currency 70,535 11,155,278 Total 1,710,368 13,223,330 Short-term investments in pesos accrue interest at an annual nominal rate of approximately 89.8% and 59.2% as of December 31, 2023 and 2022, respectively. Short-term investments in foreign currency accrue interest at an annual nominal rate of approximately 0.72% and 0.14% as of December 31, 2023 and 2022, respectively. |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Goodwill [abstract] | |
GOODWILL | GOODWILL 2023 2022 Cost Recycomb S.A.U. 317,878 317,878 Total 317,878 317,878 For impairment testing purposes, goodwill was allocated to the waste treatment cash-generating unit. The recoverable amount of this cash-generating unit is determined based on a calculation of the value in use which uses cash flow projections based on financial budgets approved by the directors for a five-year period. The key hypothesis used in the determination of the recoverable value are consistent with the ones disclosed in Note 13.1 used for the impairment test of property, plant and equipment items. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2023 | |
Inventory [Abstract] | |
INVENTORIES | INVENTORIES 2023 2022 Non-Current Spare Parts 23,140,685 20,816,309 Allowance for obsolete inventories (470,177) (948,175) Total 22,670,508 19,868,134 Current Finished products 4,171,765 5,235,997 Production in progress 17,649,645 14,966,747 Raw materials, materials and spare parts 44,945,404 33,450,670 Fuels 9,718,899 9,886,200 Total 76,485,713 63,539,614 |
PARENT COMPANY, OTHER SHAREHOLD
PARENT COMPANY, OTHER SHAREHOLDERS, ASSOCIATES AND OTHER RELATED PARTIES BALANCES AND TANSACTIONS | 12 Months Ended |
Dec. 31, 2023 | |
Related party transactions [abstract] | |
PARENT COMPANY, OTHER SHAREHOLDERS, ASSOCIATES AND OTHER RELATED PARTIES BALANCES AND TRANSACTIONS | PARENT COMPANY, OTHER SHAREHOLDERS, ASSOCIATES AND OTHER RELATED PARTIES BALANCES AND TRANSACTIONS The balances between the Group and related parties as of December 31, 2023 and 2022 are as follows: 2023 2022 Related parties: InterCement Brasil S.A. Accounts payable (141,115) (93,693) InterCement Trading e Inversiones S.A. Other receivables 1,693,789 1,306,661 Accounts payable (778,006) (516,560) Intercement Participações S.A. Other receivables 1,967,205 1,186,085 Accounts payable (2,132,681) (2,306,469) InterCement Trading e Inversiones Argentina S.L Other receivables - 265,265 Other liabilities – dividends payable - (5,681,123) Total Group's balances per item with other related parties as of December 31, 2023 and 2022 are as follows: 2023 2022 Other receivables 3,660,994 2,758,011 Accounts payable (3,051,802) (2,916,722) Other liabilities – dividends payable - (5,681,123) The transactions between the Group and other related parties during the fiscal years ended December 31, 2023, 2022, and 2021 respectively, are detailed below. These transactions are made on terms equivalent to those that prevail in arm's length transactions: 2023 2022 2021 InterCement Trading e Inversiones S.A. - sales of goods and services - - 23,975 Intercement Participações S.A. - services provided 148,821 238,249 823,953 Intercement Participações S.A. - services received (2,735,576) (4,312,762) (4,303,006) InterCement Trading e Inversiones Argentina S.A. - distribution of dividends (40,108,638) (41,075,634) - On May 2, 2023, the Board of Directors of the Company resolved to partially cancel the optional reserve for future dividends in the amount of 48,610,174 (amount restated at the closing date of the period) and distribute as dividends in kind through the delivery of LEDE National Treasury Bill in pesos at a discount maturing on June 6, 2023 (the “Letters”), for a total of 25,590,778,098 Letters (“Total Amount of Letters”), with a ratio of 43.858641084 Letters for each share of $0.10 outstanding face value of the Company. The dividend was made available as of May 5, 2023. On June 23, 2023, the Company's Board of Directors resolved to partially cancel the optional reserve for future dividends in the amount of 28,313,295 (amount restated at the closing date of the period) and declare a dividend Additionally, the Company's Board of Directors, at its meetings held on April 14, July 1 and December 27, 2022, approved the distribution of dividends for a total of 25,380,007, 42,725,459 and 10,899,268 (amounts restated as of the fiscal year-end), respectively, and announced as a general principle that shareholders would receive such dividends in Pesos and were guaranteed with the option to receive payment of their portion of dividends in the equivalent amount in United States Dollars by converting the original dividend in pesos at the exchange rate called "Reference Exchange Rate of the Central Bank of the Argentine Republic – Com. "A" 3500" prevailing at the close of the business day immediately prior to the day of dividend availability for distribution; and, in such case, grant shareholders the option of receiving such payment through Caja de Valores S.A. in their local bank account or in a bank account held abroad. Dividends were made available on April 26, 2022, July 12, 2022, and January 9, 2023, respectively. The amount charged to income as fixed and variable remuneration for key management personnel of the Group was 2,171,265 and 2,448,947 during the fiscal years ended December 31, 2023 and 2022, respectively. Additionally, 697,205 and 224,397 have been accrued as long-term incentive program during the fiscal years ended December 31, 2023 and 2022, respectively (Note 3.17). No expenditure has been recognized in this or prior fiscal years in respect of bad or doubtful accounts related to amounts owed by related parties. Amounts outstanding with related parties as of December 31, 2023 are not guaranteed and will be settled in cash. No guarantees have been given or received regarding outstanding balances. |
OTHER RECEIVABLES
OTHER RECEIVABLES | 12 Months Ended |
Dec. 31, 2023 | |
Trade and other receivables [abstract] | |
OTHER RECEIVABLES | OTHER RECEIVABLES 2023 2022 Non-Current Advances to suppliers 809,864 2,102,928 Tax receivables 17,705 57,735 Contributions to the Trust Fund to Strengthen the Inter-urban Railroad System (F.F.F.S.F.I.) 283,852 951,538 Prepaid expenses 1,020,549 1,245,819 Guarantee deposits - 84,800 Subtotal 2,131,970 4,442,820 Allowance for other doubtful accounts (283,852) (951,538) Total 1,848,118 3,491,282 Current Income tax receivables 5,767,981 8,940,294 Turnover tax receivables 166,448 815,259 Value added tax receivables 191,282 - Receivable for sale of interest in Yguazú Cementos S.A. 806,452 1,375,475 Related party receivables (Note 19) 3,660,994 2,758,011 Prepaid expenses 1,997,365 1,945,937 Guarantee deposits 919 2,665 Reimbursements receivable 14,694 6,283 Advance payments to suppliers 2,875,372 1,516,256 Salaries advances and loans to employees 41,597 99,089 Insurances receivable 4,838,710 - Receivables from sales of property, plant and equipment 951,830 716,094 Miscellaneous 434,126 42,103 Total 21,747,770 18,217,466 |
TRADE RECEIVABLES
TRADE RECEIVABLES | 12 Months Ended |
Dec. 31, 2023 | |
Trade and other receivables [abstract] | |
TRADE RECEIVABLES | TRADE RECEIVABLES 2023 2022 Accounts receivable 22,623,900 28,418,758 Accounts receivable in litigations 1,883,274 1,285,941 Notes receivable 5,322 16,801 Foreign customers 161,707 17,874 Subtotal 24,674,203 29,739,374 Allowance for doubtful accounts (1,925,045) (1,329,119) Total 22,749,158 28,410,255 The trade receivables disclosed above are carried at amortized cost. Interest is recognized on overdue trade receivables at current market rates. The Group measures the allowance for doubtful receivables for an amount equal to the losses expected throughout the life of the receivable. The determination of the loss expected to be recognized is calculated based on a percentage of uncollectibility according to maturity ranges for each receivable. This historical percentage should consider the expectations of future credit collectability and therefore the estimated changes in behavior. Before accepting a new customer, the Group conducts an internal credit analysis to evaluate the potential customer’s credit quality and define its credit limit. The limits and ratings attributed to the main customers are reviewed at least once a year. The trade receivables disclosed in the preceding paragraphs include the amounts (see aging analysis below) which are overdue as of December 31, 2023 and 2022. Accounts receivable aging is as follows: 2023 2022 To expire 14,650,767 18,935,824 Past due: 0 to 30 days 7,029,712 7,193,784 31 to 60 days 449,533 1,334,517 61 to 90 days 278,923 294,520 More than 90 days 2,265,268 1,980,729 Total 24,674,203 29,739,374 Trade receivables disclosed above include certain amounts (see aging analysis below) that are past due at the end of each reporting period, but for which the Group has not recognized an allowance for doubtful receivables because there has not been a significant change in credit quality and the amounts are still considered recoverable. Aging of past due, but not impaired, accounts receivable is as follows: 2023 2022 Past due: 0 to 30 days 7,029,712 7,193,784 31 to 60 days 449,533 1,334,517 61 to 90 days 278,923 294,520 More than 90 days 340,223 1,769,082 Total 8,098,391 10,591,903 Average age of overdue balances (in days) 22 27 The average aging of past due and impaired accounts receivable is as follows: 2023 2022 Past due: More than 90 days 1,925,045 1,329,119 Total 1,925,045 1,329,119 In determining the recoverability of a trade receivable, the Group considers any change in the credit quality of the receivable from the date the credit was initially granted up to the end of each reporting period. The concentration of credit risk is limited due to the fact that the customer base is large and independent, collection terms are short and there exists credit limit controls applicable to each individual sale transaction. Changes in the allowance for doubtful receivables were as follows: Balance as of January 1, 2022 1,575,960 Increases 683,201 Gain on net monetary position (879,511) Decreases (*) (50,531) Balance as of December 31, 2022 1,329,119 Increases, net of recoveries 1,862,288 Gain on net monetary position (1,265,427) Decreases (*) (935) Balance as of December 31, 2023 1,925,045 (*) |
CASH AND BANKS
CASH AND BANKS | 12 Months Ended |
Dec. 31, 2023 | |
Subclassifications of assets, liabilities and equities [abstract] | |
CASH AND BANKS | CASH AND BANKS 2023 2022 In Pesos 1,793,728 2,059,103 In Dollars 3,220,510 4,600 In Euros 9,559 5,927 Total 5,023,797 2,069,630 |
CAPITAL STOCK AND OTHER RELATED
CAPITAL STOCK AND OTHER RELATED ACCOUNTS | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of capital stock and other capital related accounts [abstract] | |
CAPITAL STOCK AND OTHER RELATED ACCOUNTS | CAPITAL STOCK AND OTHER RELATED ACCOUNTS 2023 2022 Capital stock 58,349 59,603 Capital adjustment 43,012,348 43,936,999 Treasury shares - (20,038,774) Share-based payment plans 569,731 356,176 Treasury shares trading premium 158,837 43,080 Share premium 63,825,938 79,442,908 Merger premium 14,350,655 14,350,655 Total 121,975,858 118,150,647 The issued, paid-in and registered capital stock consists of: Common stock with a face value of 0.10 per share and entitled to 1 vote each, fully paid-in (in thousands) 583,483 596,026 Since fiscal year 2021, based on the context and the Group’s financial position, the Board of Directors approved various plans for the acquisition of own shares. The purpose of these plans was to use a portion of the Company’s liquidity in an efficient manner, which might result in a higher shareholder return and therefore increase shareholder value considering the current value of the shares. Pursuant to Article 64 of the Capital Markets Law, treasury stock may not exceed, as a whole, the limit of 10% of capital stock. Such acquisitions were made with realized and liquid profits, as the Company had the necessary liquidity to conduct the acquisition of treasury stock, as approved, without affecting its solvency. Until the date of these consolidated financial statements, the Group acquired 12,352,329 own shares for a total value of 19,972,158 and 27,542 ADRs for a total value of 106,458, whose destination has been the following, with no own shares in the portfolio as of that date: • Within the framework of the incentive programs for senior staff, 17,473 and 10,069 ADRs were distributed in the months of January 2023 and 2022, respectively. • On April 25, 2023, the Ordinary and Extraordinary General Shareholders' Meeting approved the voluntary reduction of the Company's share capital for a total of 12,543,339 ordinary shares (which included 12,352,329 shares in the portfolio and 191,010 unnamed actions). On the other hand, on December 19, 2023, taking into account the context and financial position of the Group, the Board of Directors approved a new plan for the acquisition of own shares for up to a maximum amount of $600 million and for a period of up to on March 30, 2024. During the month of January 2024, the Group acquired 25,650 ADRs for a total value of 146,403. |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of detailed information about borrowings [abstract] | |
BORROWINGS | BORROWINGS 24.1. Composition of borrowings 2023 2022 Borrowings - In foreign currency 111,358,993 33,888,039 - In local currency 36,011,283 30,792,459 Total 147,370,276 64,680,498 Non-current borrowings 110,145,543 30,766,107 Current borrowings 37,224,733 33,914,391 Total 147,370,276 64,680,498 24.2 Detail of borrowings 2023 2022 Ref. Company Rate Last maturity Amount Amount Borrowings in foreign currency - US$ Industrial and Commercial Bank of China (Dubai) Loma Negra C.I.A.S.A. 3-Month Libor + 7.50% Nov-23 - 2,148,385 Industrial and Commercial Bank of China (Dubai) (1) Loma Negra C.I.A.S.A. 3-Month Libor + 8.00% Jul-24 - 31,502,232 Banco Patagonia (2) Ferrosur Roca S.A. 17.00% Jun-24 37,281 - Banco Patagonia (2) Ferrosur Roca S.A. 18.00% Jul-24 88,173 - Banco Patagonia (2) Ferrosur Roca S.A. 36.00% May-23 6,489 Banco Patagonia (2) Ferrosur Roca S.A. 15.00% May-23 66,664 Banco Patagonia (2) Ferrosur Roca S.A. 19.00% Mar-23 8,875 Banco Patagonia (2) Ferrosur Roca S.A. 37.00% Feb-23 6,016 Banco Patagonia (2) Ferrosur Roca S.A. 15.00% Feb-23 15,397 Banco Patagonia (2) Ferrosur Roca S.A. 13.50% Feb-23 133,981 Total borrowings in foreign currency 125,454 33,888,039 Borrowings in local currency Bank overdrafts (3) Ferrosur Roca S.A. 102.56% Jan-24 2,304,780 3,863,785 Bank overdrafts (3) Loma Negra C.I.A.S.A. 97.83% Jan-24 4,645,464 3,000,735 Bank overdrafts (4) Loma Negra C.I.A.S.A. 52.00% Jan-23 - 9,404,983 Bank overdrafts (3) Loma Negra C.I.A.S.A. 69.00% Jan-23 - 6,305,600 Securities-guaranteed borrowing (5) Loma Negra C.I.A.S.A. 64.99% Jan-23 - 8,217,356 Total borrowings in local currency 6,950,244 30,792,459 2023 2022 Ref. Company Rate Last maturity Amount Amount Corporate notes - US$ Serie – Class 2 (6) Loma Negra C.I.A.S.A. 6.50% Dec-25 57,851,670 - Serie – Class 3 (6) Loma Negra C.I.A.S.A. 7.49% Mar-26 45,262,452 - Serie – Class 4 (6) Loma Negra C.I.A.S.A. 6.00% Mar-26 8,119,417 - Total corporate bonds in foreing currency 111,233,539 - 2023 2022 Ref. Company Rate Last maturity Amount Amount Corporate notes - Ps. Serie – Class 1 (7) Loma Negra C.I.A.S.A. BADLAR +2% Aug-24 29,061,039 - Total corporate bonds in local currency 29,061,039 - Total 147,370,276 64,680,498 (1) In April 2022, Loma Negra C.I.A.S.A. entered into a loan agreement abroad with Industrial and Commercial Bank of China Limited for US$ 56 million, the principal payments of which mature in three equal installments in January, April, and July 2024. The loan was guaranteed by Intercement Participações S.A. up to 51% of its amount. Interest accrues at Libor plus 8% payable on a quarterly basis. As this loan has been used to settle Company obligations held abroad, the loan proceeds have not been deposited or settled through Argentina’s single and free exchange market (“MULC” for the Spanish initials of Mercado Único y Libre de Cambios). The loan has been valued at its amortized cost in foreign currency, and the resulting amounts have been translated into local currency at the official selling exchange rate in force at the end of the reporting period. On October 4, 2023, the Group prepaid the balance owed on the loan with the Industrial and Commercial Bank of China for a total amount of US$48,208 thousand, including interest. (2) During the fiscal year 2023 and 2022 , Ferrosur Roca S.A. entered into several contracts in US dollars with Banco Patagonia, accruing interest at a fixed rate. (3) As of December 31, 2023 and 2022, the Group carries bank overdrafts in the amount of 6,950,244 and 13,170,120, respectively. Bank overdrafts existing at the beginning of the year were canceled regularly during fiscal year 2023. (4) In addition, on July 7, 2022, the Company entered into a loan agreement with HSBC Bank Argentina S.A. for 3,000 million pesos maturing in a term of 180 days, accruing interest at a fixed annual rate of 52%. As of December 31, 2023, it is canceled. (5) As of December 31, 2022, Loma Negra entered into fundraising agreements through securities-guaranteed borrowings, using its own shares as guarantee at an annual nominal average rate of 64.99%, which has been canceled during fiscal year 2023. (6) On June 21, 2023, September 11, 2023 and November 2, 2023, the Company issued its Class 2, 3 and 4 Corporate Bonds in dollars for a total amount of US$71,723 thousand, US$55,000 thousand and US10,000 thousand, with an interest rate of 6.5%, 7.49% and 6.00%, and maturing on December 21, 2025, March 11, 2026 and May 2, 2026, respectively. Interest is paid semiannually. The issuance of these corporate bonds in foreign currency has been carried out within the scope of the local public offering, without intervention of the single and free exchange market ("MULC"). These debts have been valued at their amortized cost in foreign currency, converting the resulting amounts into local currency at the official selling exchange rate effective at the end of the reporting period. (7) On February 22, 2023, the Company issued its Class 1 Corporate Bonds for a total amount of $25,636.3 million, with an interest rate BADLAR + 2.0%, principal maturity at 18 months and payments quarterly interest. 2023 2022 Total borrowings by company: - Loma Negra C.I.A.S.A. 144,940,042 60,579,291 - Ferrosur Roca S.A. 2,430,234 4,101,207 Total 147,370,276 64,680,498 24.3 Movements of borrowings The movements of borrowings for the fiscal year ended December 31, 2023, are disclosed below: Balances as of January 1, 2023 64,680,498 New borrowings and financing 69,468,936 Issuance of corporate bonds 142,486,878 Accrued interest 61,852,712 Effects of foreign exchange rate variation 97,363,920 Gain on net monetary position (123,246,800) Interest payments (54,374,304) Principal payments (110,861,564) Balances as of December 31, 2023 147,370,276 As of December 31, 2023, long-term borrowings have the following maturity schedule: Fiscal year 2025 57,794,807 2026 52,350,736 Total 110,145,543 |
ACCOUNTS PAYABLE
ACCOUNTS PAYABLE | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Accounts Payable [abstract] | |
ACCOUNTS PAYABLE | ACCOUNTS PAYABLE 2023 2022 Current Suppliers 41,824,376 39,003,595 Related parties (Note 19) 3,051,802 2,916,722 Accounts payable for investments in property, plant and equipment 348,192 2,656,884 Provisions for expenses 12,030,872 10,540,082 Total 57,255,242 55,117,283 |
PROVISIONS
PROVISIONS | 12 Months Ended |
Dec. 31, 2023 | |
Provisions [abstract] | |
PROVISIONS | PROVISIONS 2023 2022 Labor and social security 1,305,780 1,382,456 Environmental restoration 4,574,024 2,219,589 Civil and other 861,712 468,522 Total 6,741,516 4,070,567 Changes in provisions are as follows: Labor and Environmental Civil and other Total Balance as of January 1, 2022 645,226 2,035,257 760,956 3,441,439 Increases (*) 1,615,516 1,948,712 546,977 4,111,205 Gain on net monetary position (582,718) (1,243,167) (400,567) (2,226,452) Decreases (**) (295,568) (521,213) (438,844) (1,255,625) Balance as of December 31, 2022 1,382,456 2,219,589 468,522 4,070,567 Increases (*) 1,610,912 5,480,500 1,329,368 8,420,780 Gain on net monetary position (1,471,926) (2,834,570) (771,722) (5,078,218) Decreases (**) (215,662) (291,495) (164,456) (671,613) Balance as of December 31, 2023 1,305,780 4,574,024 861,712 6,741,516 (*) The increase in the environmental provision includes the increase resulting from changes in the measurement of liabilities arising from the estimated restoration schedule and the discount rates used as of December 31, 2023 and 2022, respectively, the effect of which has adjusted the cost of the relevant assets. (**) It includes the uses of provisions for specific purposes. The provision for labor and social security claims represents the present value of the best estimate of future cash flows that will be required for the Group to cover labor and social security litigations. All the provisioned claims are of a similar nature and none of them is individually significant. Environmental provisions are the provisions made to afford the estimated expenses for the environmental recovery and restoration of the mining areas and the retirement of assets used in production activities, as mentioned in Note 3.12. The provision for civil and other claims represents the present value of the best estimate of future cash flows that will be required for the Group to cover tax, administrative and civil litigations. All the provisioned claims are of a similar nature and none of them is individually significant. As of December 31, 2023, as mentioned in Note 3.12, there are claims against the Group classified as possible contingencies. The potential risk amount of those claims is $4,925 million, mainly including $434 million related to tax contingencies, $685 million related to labor contingencies, and $3,806 million related to administrative, commercial and other proceedings. The Group has not recognized a provision for such possible claims, as it is not required under IFRS. As of the date of issuance of these consolidated financial statements, the Group understands there is no evidence to determine that other contingencies could materialize and have a negative impact on the consolidated financial statements. |
TAX LIABILITIES
TAX LIABILITIES | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Tax Liabilities [abstract] | |
TAX LIABILITIES | TAX LIABILITIES 2023 2022 Income tax 202,674 601,293 Value added tax 1,377,515 6,528,267 Turnover tax 847,627 1,015,497 Other taxes 523,225 932,706 Total 2,951,041 9,077,763 |
OTHER LIABILITIES
OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2023 | |
Miscellaneous liabilities [abstract] | |
OTHER LIABILITIES | OTHER LIABILITIES 2023 2022 Non-current Benefit plans 370,813 302,445 Termination payment plans 107,102 209,042 Total 477,915 511,487 Current Termination payment plans 301,582 479,710 Dividends payable to related parties (Note 19) - 5,681,123 Dividends payable to third parties minority 226,309 5,450,550 Agreement for settlement of claims 4,838,710 - Others 91,174 72,804 Total 5,457,775 11,684,187 |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 12 Months Ended |
Dec. 31, 2023 | |
Cash and cash equivalents [abstract] | |
CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS For purposes of the consolidated statement of cash flows, cash and cash equivalents include cash and banks, and short-term investments with high liquidity (with maturities of less than 90 days from the date of acquisition), held to settle short term liabilities, which are easily convertible into cash and that have low risk of changes in their value. Cash and cash equivalents at the end of each reporting period as disclosed in the consolidated statement of cash flows can be reconciled to the related items in the consolidated statement of financial position as follows: 2023 2022 2021 Cash and banks (Note 22) 5,023,797 2,069,630 2,006,225 Short-term investments (Note 16) 1,710,368 13,223,330 18,046,171 Cash and cash equivalents 6,734,165 15,292,960 20,052,396 |
NON-CASH TRANSACTIONS
NON-CASH TRANSACTIONS | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Non Cash Transactions [abstract] | |
NON-CASH TRANSACTIONS | NON-CASH TRANSACTIONS Below is a detail of the transactions that did not involve cash flows in each fiscal year: 2023 2022 2021 - Right of use assets and lease liabilities 71,084 2,160,014 347,192 - Acquisition of financed property, plant and equipment 348,246 5,259,641 9,566,122 - Delivery of shares – benefit plans 182,372 197,242 241,855 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of operating segments [abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company has adopted IFRS 8 Operating Segments, that requires operating segments to be identified on the basis of internal reports regarding components of the Company that are regularly reviewed by the Executive Committee, the chief operating decision maker, in order to allocate resources and to assess their performance. This analysis is based on monthly information consisting of historical figures of the identified segments. The information reviewed by the main decision maker consists of the historical details for each month accumulated until the end of the reporting periods being analyzed, which is the reason why they differ from the inflation-adjusted figures as described in Note 2.2. For management purposes, both financially and operatively, the Company has classified its businesses' activities as follows: i) Cement, masonry cement and lime: this segment includes profit or loss from the cement, masonry cement and lime business, from procurement of raw materials in quarries, the manufacturing process of clinker and quicklime and their subsequent grinding with certain aggregates for the production of cement, masonry cement and lime. ii) Concrete: this segment includes profits or loss from the production and sale of ready-mix concrete. It also includes the delivery of the product at the worksite and, depending on the circumstances, the pumping of concrete up to the place of destination. iii) Aggregates: this segment includes profits or loss from the aggregates business, from obtaining to crushing the stone. iv) Rail Services: this segment includes profits or loss from the provision of rail transportation services. v) Others: this segment includes profits or loss from the industrial waste treatment and recycling business for use as fuel. 2023 2022 2021 Revenues Cement, masonry cement and lime 205,007,364 96,498,837 173,743,274 Concrete 21,866,051 9,389,682 13,901,377 Rail services 18,450,706 8,720,472 15,813,685 Aggregates 7,071,371 2,775,092 2,989,635 Others 1,354,975 664,332 1,189,017 Segment-to-segment eliminations (20,411,026) (8,805,043) (13,482,789) Total 233,339,441 109,243,372 194,154,199 Effect from restatement in constant currency 188,821,376 342,710,682 252,717,408 Total 422,160,817 451,954,054 446,871,607 2023 2022 2021 Cost of sales Cement, masonry cement and lime 118,763,699 58,125,212 101,210,427 Concrete 20,728,478 8,924,833 14,195,542 Rail services 17,254,059 8,308,344 14,989,065 Aggregates 6,081,288 2,282,557 2,866,884 Others 896,919 389,501 742,172 Segment-to-segment eliminations (20,411,026) (8,805,043) (13,482,789) Total 143,313,417 69,225,404 120,521,301 Effect from restatement in constant currency 172,940,159 260,679,690 185,109,208 Total 316,253,576 329,905,094 305,630,509 2023 2022 2021 Selling, administrative and other expenses Cement, masonry cement and lime 17,259,548 4,345,407 13,069,959 Concrete 681,148 337,403 165,426 Rail services 1,021,921 469,408 1,693,896 Aggregates 72,640 33,259 34,672 Others 453,282 211,365 415,838 Total 19,488,539 5,396,842 15,379,791 Effect from restatement in constant currency 18,259,108 23,019,590 21,739,832 Total 37,747,647 28,416,432 37,119,623 2023 2022 2021 Depreciation and amortization Cement, masonry cement and lime 3,097,258 2,411,444 4,162,150 Concrete 104,245 57,140 205,878 Rail services 546,760 607,668 950,170 Aggregates 117,188 55,837 104,253 Others 5,241 4,978 15,813 Total 3,870,692 3,137,067 5,438,264 Effect from restatement in constant currency 28,320,788 38,211,532 30,710,894 Total 32,191,480 41,348,599 36,149,158 2023 2022 2021 Revenues less cost of sales, selling and administrative expenses, and other gains and losses Cement, masonry cement and lime 68,984,117 34,028,218 59,462,888 Concrete 456,425 127,446 (459,591) Rail services 174,726 (57,280) (869,276) Aggregates 917,443 459,276 88,079 Others 4,774 63,466 31,007 Total 70,537,485 34,621,126 58,253,107 Effect from restatement in constant currency (2,377,891) 59,011,402 45,868,368 Total 68,159,594 93,632,528 104,121,475 Reconciling items Tax on debits and credits to bank accounts (4,676,516) (4,531,752) (4,503,693) Impairment of property, plant and equipment - Cement - - (927,176) Financial results (loss), net (46,064,825) (54,836,592) 257,699 Income tax (7,737,730) (28,637,429) (60,464,798) Net profit for the year 9,680,523 5,626,755 38,483,507 In relation to the segregation of profit or loss by geographic segment, the Group carries out its activities and operations in Argentina, exports are not significant. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of detailed information about financial instruments [abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS 32.1 Capital risk management The Group manages its capital stock to ensure that its entities will be able to continue as a going concern while maximizing the return to its shareholders through the optimization of debt and equity balances. The Group’s strategy has not changed for the financial years 2023 and 2022. The Group and its subsidiaries participate in transactions involving financial instruments, recognized as equity items, which are intended to meet their needs and to reduce exposure to market, currency and interest rate risks. These risks, as well as their respective instruments, are managed through the definition of strategies, the implementation of control systems, and the determination of exposure limits. The Group’s capital structure consists of net debt (borrowings as detailed in Note 24 offset against cash, banks and short term investments) and shareholders’ equity (consisting of issued capital stock, reserves and retained earnings). The Group is not subject to any external capital requirement. The Group’s risk management committee reviews the capital structure of the Group. Net debt-to-equity ratio: The net debt-to-equity ratio for the reporting fiscal years is as follows: 2023 2022 Debt (i) 147,370,276 64,680,498 Cash and current investment 6,734,165 15,292,960 Net debt 140,636,111 49,387,538 Shareholders’ Equity (ii) 294,221,535 361,068,554 Net debt-to-equity ratio and shareholders’ equity 0.48 0.14 (i) Debt is defined as long and short-term borrowings. (ii) Shareholders’ equity includes non-controlling interest, which are managed as capital stock. 32.2 Categories of financial instruments 2023 2022 Financial Assets At amortized cost: Cash and banks 5,023,797 2,069,630 Investments 1,679,865 11,155,278 Accounts receivable and other receivables 33,264,975 33,395,629 At fair value through profit or loss: Investments 30,503 2,068,052 2023 2022 Financial Liabilities Amortized cost 226,900,332 158,530,073 At the end of this reporting period, there are no significant credit risk concentrations for debt instruments designated at fair value through profit or loss. The carrying amount reflected above represents the Group’s maximum exposure to credit risk for such instruments. 32.3 Financial risk management objectives The treasury function offers services to business, coordinates access to domestic and international financial markets, monitors and manages the financial risks related to the Group’s operations through internal risk reports, which analyze exposures depending on the degree and extent thereof. These risks include market risk (including currency risk, interest rate at fair value and price risk), credit risk and liquidity risk. The Company and its subsidiaries do not employ or traded derivative financial instruments for speculative purposes. Monitoring compliance with these provisions policy is made by the executive committee and the internal audit team. 32.4 Foreign exchange risk management The Group carries out transactions in foreign currency; and is hence exposed to exchange rate fluctuations, also considering the current exchange regulations in force. Exposures in the exchange rate are managed within approved policy parameters using foreign exchange contracts. The carrying amounts of monetary assets and liabilities denominated in foreign currency at the end of the fiscal years ended December 31, 2023 and 2022 are as follows: 2023 2022 Liabilities: United States Dollars 130,228,653 42,156,027 Euros 693,536 1,163,015 Reales 423 265 2023 2022 Assets: United States Dollars 15,764,054 16,758,306 Euros 9,559 142,433 32.4.1. Foreign currency sensitivity analysis The Group is mainly exposed to the US Dollar and Euro, considering that the Group’s functional currency is the Argentine peso. The following table details the Group’s sensitivity to an increase in the exchange rate of the US Dollar and the Euro as of December 31, 2023. The sensitivity rate is the rate used when reporting exchange rate risk internally to key management staff and represents management’s assessment of a possible reasonable change in exchange rates. The sensitivity analysis includes only outstanding monetary items denominated in foreign currency and adjusts their translation on the balance sheet day for a 25% change in the exchange rate, considering for its calculation the whole of the items of the subsidiaries. US Dollar effect Euro effect Income for the year 28,616,150 170,994 Shareholders’ Equity 28,616,150 170,994 Additionally, considering the exchange regulations currently applicable in Argentina, the Group constantly monitors the alternatives for collecting assets and settling liabilities in foreign currency and the related impact. The gain/loss arising from the use of financial instruments to settle transactions in foreign currency is recognized when the Group unconditionally commits to or irreversibly executes such settlement. As of December 31, 2023, the use of financial instruments to settle the above transactions would result in an impact of approximately 21% Likewise, as of December 31, 2023 and 2022, the gain/loss from using such instruments to settle certain financial borrowings was Ps. 1,836,132 and Ps. 54,919,417 and is recorded in the statement of profit or loss and other comprehensive income within financial results as "Loss from securities transactions” (Note 10). 32.5 Interest rate risk management The Group is exposed to the risk of significant fluctuations in interest rates because Group entities have borrowings at both fixed and floating interest rates. The Group manages this risk by maintaining an appropriate combination of fixed- and floating-rate borrowings. 2023 2022 Financial Assets: Investments held to maturity (1) 1,679,865 11,155,278 Investments at fair value through profit or loss (2) 30,503 2,068,052 Financial Liabilities: Amortized cost (3) 147,370,276 64,680,498 (1) Fixed-term deposits at fixed rates. (2) Short-term investments at floating rates. (3) Related to borrowings, as detailed in Note 24. 32.5.1. Interest rate sensitivity analysis The sensitivity analysis below has been determined based on the exposure to interest rates for non-derivative financial instruments at the end of this fiscal year. For floating-rate liabilities, the analysis is prepared based on an average monthly debt balance. A 100-basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonable threshold to conduct an interest rate risk analysis. In the event that the average SOFR rate applicable to financial liabilities for the fiscal year ended December 31, 2023, were 1.0% higher than the average interest rate during that fiscal year, financial expenses for the fiscal year ended December 31, 2023, would have increased by approximately US$ 94,675. In the event that the average BADLAR rate applicable to financial liabilities for the fiscal year ended December 31, 2023, were 1.0% higher than the average interest rate during that fiscal year, financial expenses for the fiscal year ended December 31, 2023, would have increased by approximately 224,317. With regard to financial assets, a 1.0% increase in the average interest rate during the fiscal year ended December 31, 2023, would have increased financial income by approximately 44,318. 32.6 Credit risk management Credit risk refers to the risk that one of the parties will fail to comply with its contractual obligations and resulting in a financial loss to the Group. The Group has adopted a policy of engaging only with solvent parties and obtaining sufficient collateral, where appropriate, as a way of mitigating the risk of financial loss caused by defaults. Credit exposure is controlled by counterparty limits, which are reviewed and approved periodically. Trade receivables are made up of a significant number of customers. Credit assessment is continuously performed on the financial condition of accounts receivable. Credit risk on liquid funds and financial instruments is limited because the counterparties are banks with high credit ratings assigned by credit rating agencies. The carrying amount of financial assets recognized in the consolidated financial statements, which is net of impairment losses, represents the maximum exposure to credit risk, regardless of the guarantees of accounts or other credit enhancements. 32.7 Liquidity risk management The Group’s Board of Directors has the ultimate responsibility for liquidity management, having established an appropriate framework for liquidity management so that management is able to deal with short-, medium- and long-term financing requirements, as well as the Group’s liquidity management. The Group manages liquidity risk by maintaining reserves, adequate financial and lending facilities, continuously monitoring projected and actual cash flows, and reconciling the maturity profiles of financial assets and liabilities. The Group carefully manages liquidity risk, and therefore it maintains cash and bank balances, liquid instruments, and available funds. The Group’s Board of Directors considers that exposure to liquidity risk is low as the Group has generated cash flows from its operating activities, as a result of its operations, and has access to borrowings and financial resources, as explained in Note 24. The following tables show the Group’s remaining contractual maturity dates for its non-derivative financial liabilities with agreed repayment terms. The tables have been drawn up based on undiscounted cash flows of financial liabilities based on the earliest date on which the Group may be required to pay. The tables include both interest and principal cash flows. To the extent that interest flows are at floating rates, the undiscounted amount is derived from interest rate curves at the end of this reporting period. Borrowings Weighted Less than 1 From 1 From 3 From 1 to Total As of December 31, 2023 61% 6,939,996 9,887,760 47,965,502 119,713,394 184,506,652 As of December 31, 2022 58% 28,741,032 3,771,421 4,665,270 32,740,936 69,918,659 Leases Weighted Less From 1 From 3 From 1 From 3 to Total As of December 31, 2023 (*) 108,095 324,450 967,459 3,465,001 148,090 5,013,095 As of December 31, 2022 (*) 82,646 247,569 611,888 2,625,646 732,225 4,299,974 (*) The average rates in Pesos were 53% and 69% for the fiscal years ended December 31, 2023 and 2022, respectively. The average rates in US Dollars were 12% and 12% for the fiscal years ended December 31, 2023 and 2022, respectively. 32.8 Fair value measurements Some of the Group’s financial assets are measured at fair value at the end of this reporting period. The following table provides information on how the fair values of these financial assets are measured (particularly, valuation techniques and inputs used). Fair value at: Hierarchy level Financial assets 2023 2022 Assets: Mutual Funds 30,503 2,068,052 Level 1 Level 1: quoted price in an active market. Fair value of financial assets and financial liabilities measured at amortized cost: The estimated fair value of borrowings based on the interest rates offered to the Group (Level 3) for financial borrowings amounted to 145,786,056 and 64,288,430 as of December 31, 2023 and 2022, respectively. The Board considers that the carrying amounts of the remaining financial assets and liabilities recognized at amortized cost in the consolidated financial statements approximate their fair values. |
GUARANTEES GRANTED TO SUBSIDIAR
GUARANTEES GRANTED TO SUBSIDIARIES | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of detailed information about financial instruments [abstract] | |
GUARANTEES GRANTED TO SUBSIDIARIES | GUARANTEES GRANTED TO SUBSIDIARIESThe Company guarantees the bank overdrafts borrowed by Ferrosur Roca S.A. in the normal conduct of its business, and the letters of credit to be entered into by the company to finance imports up to a maximum amount of Ps. 6,400 million. As of December 31, 2023, Ferrosur Roca S.A. carries current account overdraft balances for 2,304,780 and import financing balances for 125,454. |
RESTRICTED ASSETS
RESTRICTED ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of restricted assets [abstract] | |
RESTRICTED ASSETS | RESTRICTED ASSETS As of the date of these consolidated financial statements, the Group has judicial deposits for 12,957, which are disclosed in other current and non-current receivables. |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of Commitments [abstract] | |
Commitments | COMMITMENTS The Group has certain contractual commitments to purchase slag valid until 2028. The estimate of future cash flows is approximately Ps. 5,286,581 thousand per year. Additionally, it has commitments to purchase granite stone up to 2025 for an annual average of Ps. 2.5 million. In the ordinary course of business, to ensure the supply of key inputs, the Group has entered into contracts for the supply of gas, assuming payment commitments for a total amount of approximately Ps. 65,227 million, of which Ps. 31,352 million is payable during fiscal year 2024, Ps. 22,332 million during fiscal year 2025, Ps. 8,811 million during fiscal year 2026 and Ps. 2,732 million during 2027. In addition, the Group has entered into power supply agreements with certain suppliers for a total amount of Ps. 91,300 million, of which Ps. 11,425 million per year is payable until 2028 and, and Ps. 34,175 million from 2029. The Group entered into product sales contracts under which it has undertaken to supply concrete and cement so that a third party can carry out residential projects in the province of Buenos Aires and the City of Buenos Aires. The contracts provide that the Group shall collect a portion of the concrete sales in kind by receiving functional units of the real estate developments upon completion, for which the related agreements of sale have been signed. In addition, the contracts include various rights and obligations for the parties to ensure fulfillment of the main purpose of the contract, which is the purchase and sale of concrete. |
FUND ADMINISTRATION TRUST FOR I
FUND ADMINISTRATION TRUST FOR INVESTMENT WORKS | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Management Trust [Abstract] | |
FUND ADMINISTRATION TRUST FOR INVESTMENT WORKS | FUND ADMINISTRATION TRUST FOR INVESTMENT WORKS On February 5, 2013, a trust agreement was entered into between Ferrosur Roca S.A. and Banco de la Nación Argentina to conduct the formalization process necessary to manage the funds paid by Ferrosur Roca S.A. for the investment works intended to strengthen the interurban rail system. The trust assets are the amounts contributed by the trustor which are amounts resulting from the application of the Memorandum of Agreement entered into between the Group and "Unidad de Renegociación y Análisis de Contratos de Servicios Públicos" (Unit for the Renegotiation and Analysis of Public Service Contracts) dated May 19, 2008 and ratified by Decree No. 2017 of November 25, 2008, the income that the trust might earn from temporary placement of idle resources, the funds existing in the current account that the Group held at Standard Bank as of February 2013 and any other amounts that must be added to the trust. With the enactment of Resolution No. 218 by the Ministry of Transport on July 27, 2016, which was published on August 3, 2016, the procedure for the certification of works proposed by the railway concessionaires was established. Exhibits I and II of the above-mentioned resolution set a clear procedure whereby the Group must submit the projects of the works to be funded with the trust funds, the circuit to study the projects by the different agencies (National Committee for Transportation Regulation, ADIP and Secretariat of Transportation), the requirements for approval and the contents of the administrative act to be handed down by the competent authority approving the project and the maximum amount to be assigned to the trust accounts for such project. Based on the new regulation, the Company recognizes in other receivables the contributions to the Trust Fund for the Strengthening of the Interurban Railway System (“FFFSFI”) for which it has the right of reimbursement for infrastructure works under the concession agreements, net of an impairment reserve for the amounts it expects will not be recovered or used against future capital expenditures due to the concession end date. The contributions made during 2023 amounted to Ps. 576,786. |
RESTRICTIONS ON DIVIDEND DISTRI
RESTRICTIONS ON DIVIDEND DISTRIBUTION | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure restrictions to dividends distribution [abstract] | |
RESTRICTIONS ON DIVIDEND DISTRIBUTION | RESTRICTIONS ON DIVIDEND DISTRIBUTION In accordance with the provisions of Law 19,550, the Group is required to make a legal reserve of not less than 5% of the positive result arising from the sum of the income for the year, the adjustments from previous years, transfers of other comprehensive income to retained earnings, and accumulated income (losses) from previous years, to complete 20% of the sum of capital stock and the capital adjustment balance. |
FERROSUR ROCA S.A. CONCESSION A
FERROSUR ROCA S.A. CONCESSION AND RELATED RAIL SERVICES | 12 Months Ended |
Dec. 31, 2023 | |
Disclosue Of Concession [abstract] | |
FERROSUR ROCA S.A. CONCESSION AND RELATED RAIL SERVICES | FERROSUR ROCA S.A. CONCESSION AND RELATED RAIL SERVICES On March 11, 1993, Ferrosur Roca S.A. obtained the concession of the General Roca National Cargo Railway Network with the exception of the Altamirano-Miramar corridor and the urban sections, through the approval of the concession contract formalized by National Executive Branch Decree No. 2681/92, after the presentation made through a national and international tender and formalized to that effect. The area of influence is concentrated in the center and south of the province of Buenos Aires, north of the province of Río Negro and Neuquén. It has access to the ports of Buenos Aires, Dock Sud, La Plata, Quequén, and Bahía Blanca. Ferrosur Roca S.A. is indirectly controlled by the Company, through Cofesur S.A.U. which owns 80% of the interest, 16% of which belongs to the National State and the remaining 4% belongs to the workers of Ferrosur Roca S.A. through a trust created for this purpose. The term of the concession is 30 years, which expires in March 2023, and originally provides for an extension of 10 additional years. Ferrosur Roca S.A. requested the above-mentioned extension in due time on March 8, 2018, and in line with the bidding terms and conditions and the concession agreement. The concession extension request was reiterated on March 1, 2019. On November 7, 2018, Decree No. 1027/2018, which regulated Law No. 27,132, was published in the Official Gazette. The relevant subjects were: readjustment of existing concession contracts with the possibility of extending them for a term not greater than 10 years, full implementation of an open access system on the day following expiration of the last concession contract (of the three million private concessions existing at present), including extensions, with the possibility of initiating this modality in the branches that allow it when the planned investments are made; revision of technical standards; revision of the sanction regime, and creation of the registry of operators. On March 29, 2021, through Resolution No. 219/2021, the National Commission for Transport Regulation (“CNRT”) approved the Rules and Regulations of the National Registry of Railway Operators and granted such capacity to Ferrosur Roca S.A. and the other railway concessionaires that operate the current concessions and, through Resolution No. 211 of the Ministry of Transport, published in the Official Gazette on June 28, 2021, and rejected the request for an extension of the concession contracts duly submitted by all the private railway concessionaires. Therefore, the railway concession operated by the Company expired at the end of its original term, that is, on March 10, 2023. The purpose of the National State is that the national railway network be based on a mixed modality combining public and private cargo operators, where the National State will manage the infrastructure and control the related investments, thus allowing any registered railway operator to provide railway services regardless of who owns or possesses the facilities at the point of loading or destination. Consequently, the Group understands that, at the end of its concession, it will continue to provide the cargo transport rail services it currently provides but as a cargo operator under the terms set forth in Resolution No. 211, Law No. 27,132, and Decree No. 1027 dated November 7, 2018. To this end, the Group will have to readjust various operational issues once it hands over control of the railway infrastructure linked to its current concession to the National State. The Group’s Management understands that the intention of the National State is to prioritize the continuity of the current operators for each of the existing services and businesses, thus guaranteeing the best use of the experience they have acquired. On June 9, 2022, the Ministry of Transport published Resolution No. 353/2022 in the Official Gazette, thus granting an 18-month extension to the concession granted to the concessionaire FerroExpreso Pampeano S.A., which expires on June 30, 2023, and setting the “canon” (concession fee) or toll to be paid by the railway operators using the Bahía Blanca – Rosario branch. Subsequently, on July 20, 2022, the National and International Comprehensive Projects Tender No. 1/2022 was published in the Official Gazette by Belgrano Cargas y Logística in order to award the railway operation of the Bahía Blanca – Rosario branch managed by such concession. The bid opening act was held on October 31, 2022, resulting in the tender being void. On December 22, 2022, the Ministry of Transport published Resolution No. 960/2022 in the Official Gazette, by which the concessions of FerroExpreso Pampeano S.A., Nuevo Central Argentino S.A. and Ferrosur Roca S.A. were extended for 18 additional months as from the expiration date of their respective concessions. Therefore, the concession of Ferrosur Roca S.A. will end in September 2024. Resolution No. 960/2022 provides that during the extended concession period the services will be delivered on a provisional basis and may be revoked at any time without this generating any subjective right, pending right or setting any precedent that may be claimed in favor of the operators, or otherwise the recognition of any amount for the potential early revocation of the additional concession term granted. Notwithstanding the above scenario and considering the provisions of Resolution No. 960/2022, the Group has assessed the possible business scenarios, considering that its intention is to continue providing services as operator of the railway network. In these scenarios, the National State, which is responsible for managing the train traffic control systems and maintaining the railway infrastructure, would charge the Group a fee for the use of the railway infrastructure, which would replace direct maintenance expenses currently paid by the concessionaires plus applicable tolls. No other significant changes are currently known regarding the rest of the matters and activities as compared to the current business model of the Group. In addition, the Group’s assessment of the new business model has included estimation of the term for the provision of rail services, the routes and businesses that would be assigned, the future demand for rail freight services, and the allocation of fixed and variable costs in the Group’s new cost structure, among other issues. Finally, the Group has reassessed all accounting estimates associated with the end of the current concession. No significant impact is expected as of the issuance date of these consolidated financial statements in this regard. We will continue to monitor the new regulations as they come into effect, as well as the progress of ongoing negotiations with the National State and will record any related effect as soon as it is possible to make an estimate. |
COMPLAINTS BROUGHT AGAINST THE
COMPLAINTS BROUGHT AGAINST THE GROUP AND OTHERS IN THE UNITED STATES | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Claims And Benefits Paid Explanatory [Abstract] | |
COMPLAINTS BROUGHT AGAINST THE GROUP AND OTHERS IN THE UNITED STATES | COMPLAINTS BROUGHT AGAINST THE GROUP AND OTHERS IN THE UNITED STATES During 2018, two lawsuits were brought in the United States (“USA”) against the Group, its directors and some of its first-line managers and the controlling shareholder at the time of the Company’s initial public offering in 2017 (“Initial Public Offering” or “IPO”), one in federal court and the other in the state of New York. Regarding the lawsuit filed in federal jurisdiction, after various motions from the parties, on April 27, 2020, the Court sustained the motion to dismiss filed by the Group. Finally, on July 21, 2020, the plaintiffs voluntarily withdrew the appeal filed against the judgment of first instance that fully sustained the motion to dismiss submitted by the Group. Accordingly, a final and conclusive judgment was rendered in favor of the Group and the rest of the defendants, and the lawsuit came to an end. Regarding the state class action (Kohl v. Loma Negra CIASA, et al. -Index No. 653114/2018 - Supreme Court of the State of New York, County of New York), the complaint was filed with the state courts of New York in June 2018 by Dan Kohl –a shareholder who acquired ADSs issued by the Company during its 2017 initial public offering. The banks that placed the ADSs have also been sued. In the complaint, the plaintiff alleges assumed violations of the US Federal Securities Law on grounds of allegedly false representations contained in the Offering Memorandum and/or failure to include relevant information. On March 13, 2019, the Company filed a motion to dismiss the lawsuit, which, after various instances, resulted in a partially favourable ruling for the Group dated June 1, 2021. This ruling narrowed down the grounds on which the case could proceed according to the plaintiff's allegations, leaving only two points out of all the claims to be addressed in the discovery process: (i) whether there were indeed irregularities on the part of an affiliate of the Group, and (ii) whether it is true that there was a slowdown in payments for public works at the time of the IPO. In addition, on January 11, 2021, the plaintiff requested to certify the case as a class action, which, after various submissions from the parties, was granted by the court on December 2, 2021. On January 6, 2022, the case was reassigned from Judge Schecter to another judge in the Commercial Division of the New York Supreme Court, Judge Borrok. On October 11, 2023, we entered into a proposed agreement with the lead plaintiff which received the preliminary approval from the New York State Court on November 30, 2023. On April 10, 2024 the final approval by the New York State Court was granted. The completion of the Settlement is contingent on a final class payment, to be made before October 11, 2024, which is covered by our Directors and Officers (D&O) insurance policies. Once such payment has been made, the New York State Court should issue the final judgment and the case will end The Agreement does not contain any admission or acknowledgment of guilt for wrongful conduct by Loma Negra or other defendants in the class action, and it includes a release of all claims. The material payment obligations under the agreement are covered by insurance policies contracted by the Company, with a significant portion of the Agreement amount having been paid in December 2023, which is deposited in the court’s escrow accounts. There is still an additional payment that must be made 365 days from the signing of the Agreement. Due to the Group having signed the agreement reached with the lead plaintiff, which was finally approved by the Court, a provision has been recorded for the final committed payment and a credit for the coverage of the insurance policies contracted regarding said payment. |
INVESTIGATION PROCEEDINGS START
INVESTIGATION PROCEEDINGS STARTED BY THE NATIONAL COMMISSION FOR THE DEFENSE OF COMPETITION | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Claims And Benefits Paid Explanatory [Abstract] | |
INVESTIGATION PROCEEDINGS STARTED BY THE NATIONAL COMMISSION FOR THE DEFENSE OF COMPETITION | INVESTIGATION PROCEEDINGS STARTED BY THE NATIONAL COMMISSION FOR THE DEFENSE OF COMPETITION On November 2, 2022, the Company was notified that proceedings were started by the National Commission for the Defense of Competition (“CNDC” for the Spanish initials of Comisión Nacional de Defensa de la Competencia ) pursuant to Law No. 27,442 on Defense of Competition to investigate alleged anti-competitive conduct by the Company. The investigation proceedings initiated do not imply an accusation against the Company for its conduct. During February 2023, the CNDC gave the Company notice of a request for information in relation to the above proceedings. As part of the investigation, the Company has provided and will continue to provide the information and evidence that the CNDC may require and has declared that it has always complied with applicable rules and regulations on relations with competitors and compliance and ethics policies. |
THE ARGENTINE CONTEXT
THE ARGENTINE CONTEXT | 12 Months Ended |
Dec. 31, 2023 | |
Economic Context [Abstract] | |
THE ARGENTINE CONTEXT | THE ARGENTINE CONTEXT On December 10, 2023, new authorities of the Argentine national government took office and began the process of issuing a series of emergency measures in order to face the critical economic situation. The main objectives of the measures include, among others, make more flexible rules for economic development, reduction of different public expenses with the aim of reducing the fiscal deficit, and reduction of subsidies. In the context of the change of government, there was a significant devaluation of the Argentine peso, reflected in the official exchange rate, which raised from approximately 360 pesos per dollar to 800. Regarding the level of public Argentine debt, there are significant commitments for the coming years, as well as the need to obtain refinancing during the year 2024, both in local and foreign currency. Additionally, other critical macroeconomic indicators are presented such as the fiscal deficit, the reserves of the Argentine Central Bank, as well as the inflation indicators published by the local statistics bureau (INDEC), with retail inflation of more than 210% during the year 2023. The comprehensive program that the government intends to implement includes reforms in the economy, justice, foreign affairs, infrastructure and others. Some of the measures necessary to carry out the plan will be implemented through one or more executive orders and other measures will require specific laws that must be dealt with by the National Congress, all of which will be part of the legislative agenda and the executive orders to be issued by Argentine President in the coming months. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of Events After Reporting Period [abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS The Group has considered events after December 31, 2023, to assess whether it is necessary to recognize or disclose them in these consolidated financial statements. Such events were assessed through April 29, 2024, the date when the consolidated financial statements were available for issue. 42.1 Repurchase of common stock Subsequent to the end of this fiscal year, the Group has executed a treasury shares repurchase program approved by the Board of Directors on December 19, 2023 as explained in Note 23. 42.2 Annual shareholders’ meeting The annual shareholders’ meeting held on April 25, 2024, approved (i) to allocate the sum of Ps. 6,876 million (in December 31, 2023 currency) to the Optional Reserve for Future Dividends; and (ii) to delegate to the Board of Directors the power to totally or partially release and distribute in cash and/or in kind, one or more payments, the amount in constant currency of the Optional Reserve for Future Dividends depending on the evolution of the business and the regulatory restrictions and limitations through the next annual shareholders meeting that will consider the financial statements corresponding to the year ending December 31, 2024. |
BASIS OF PREPARATION OF THE C_2
BASIS OF PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTS (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Basis Of Preparation Of Financial Statements [Abstract] | |
Statement of compliance with the International Financial Reporting Standards (IFRS) and bases of preparation of these financial statements | Statement of compliance with the International Financial Reporting Standards (IFRS) and bases of preparation of these consolidated financial statements The consolidated financial statements of the Group as of December 31, 2023 and 2022 and for the fiscal years ended December 31, 2023, 2022 and 2021 have been prepared and presented in accordance with the IFRS as issued by the International Accounting Standards Board (“IASB”). These consolidated financial statements comprehensively recognize the effects of variations in the purchasing power of currency through the application of the method to restate the consolidated financial statements in constant currency, as established by the International Accounting Standard 29 (IAS 29). For comparative purposes, these consolidated financial statements include figures and other details corresponding to the fiscal years ended on December 31, 2022 and 2021, which are an integral part of the above-mentioned consolidated financial statements and are presented in order for them to be solely interpreted in accordance with the figures and other information for this current fiscal year. These figures have been restated in the current fiscal year’s end-of-period currency in the manner described in the following section in order to allow comparability. |
Financial information presented in constant currency | Financial information presented in constant currency The consolidated financial statements as of December 31, 2023, and the corresponding figures for prior fiscal years have been restated to consider changes in the general purchasing power of the Group’s functional currency (the Argentine Peso) in accordance with the provisions included in IAS 29. As a result, the consolidated financial statements are stated in constant currency as at the end of the current fiscal year. According to IAS 29, the restatement of the financial statements is necessary when the functional currency of an entity is that of a hyperinflationary economy. IAS 29 provides certain guidelines for illustrative purposes to define a situation in which hyperinflation is deemed to arise, including (i) analysis of general population behavior, prices, interest rate, and salaries in the face of changes in price indexes and the loss of the currency purchasing power and (ii) as a quantitative feature, which is the condition more frequently considered in practice, the existence of a cumulative three-year inflation rate that approximates or exceeds 100%. In order to assess the above-mentioned quantitative condition and also to restate financial statements, the series of indices to be used in the application of IAS 29 is determined by FACPCE. These series combines the Consumer Price Index (CPI) at the national level and as published by Instituto Nacional de Estadística y Censos (Official Statistics Bureau, “INDEC” as per the initials in Spanish) as from January 2017 (baseline month: December 2016) with the Wholesale Domestic Price Index (IPIM, for its acronym in Spanish) as published by INDEC until that date, computing for the months of November and December 2015, for which INDEC has no information with respect to changes in the IPIM, the variation in the CPI of the City of Buenos Aires. Taking such index into account, inflation was 211.40%, 94.79% and 50.94% in the years ended December 31, 2023, 2022 and 2021, respectively, and more than 100% accumulated in three years during each of the years presented was reached. Below is a summary of the methods of applying IAS 29. Restatement of the statement of financial position: (i) Monetary items (those with a fixed nominal value in local currency) are not restated because they are already stated at the current unit of measurement as of the end of the reporting period. In an inflationary period, holding monetary assets causes losses in the purchasing power and holding monetary liabilities generates gains in the purchasing power, provided that such items are not subject to an adjustment mechanism that may otherwise offset these effects. Monetary gains or losses are included in the statement of profit or loss and other comprehensive income for every fiscal year. (ii) The assets and liabilities that are subject to changes based on specific agreements are adjusted on the basis of such agreements. (iii) Non-monetary assets and liabilities measured at fair values as of the balance sheet date are not inflation-restated for presentation purposes in the statement of financial position, however, their restated amounts are used to measure the gains or losses caused by holdings of such non-monetary items. For the fiscal years ended December 31, 2023, 2022 and 2021, the Group did not have non-monetary items measured at fair value. (iv) Non-monetary items measured at historical cost or at the current value of a date prior to the end of the reporting fiscal year are restated by coefficients that reflect the variations in the general price level since the date of acquisition or revaluation through the end of the reporting period. Subsequently, the restated amounts of such assets are compared to the corresponding recoverable values at the end of the reporting period. The amounts charged to against the statement of profit or loss and other comprehensive income due to depreciation of property, plant and equipment and amortization of intangible assets, as well as any other consumption of non-monetary assets shall be determined based on the restated amounts. As of December 31, 2023, 2022 and 2021, the items subject to this restatement process have been those included in inventories, other receivables, property, plant and equipment, right of use assets, goodwill, and non-current investments. (v) When borrowing costs are capitalized in non-monetary assets pursuant to IAS 23, the components of those costs compensating the creditor for the effects of inflation are not capitalized. (vi) The restatement of non-monetary assets in terms of current units of measurement as of the end of the year with no equivalent adjustment for tax purposes gives rise to a taxable temporary difference and the recognition of deferred tax liabilities against to profit or loss for the year. In those cases where there is a revaluation of the non-monetary assets in addition to the restatement, the deferred tax recognized on the restatement is accounted for as profit or loss for the year, and the effect of deferred taxes on the revaluation (excess of the revalued amount over the restated amount) is recognized in other comprehensive income. The Group has no revaluated assets. Restatement of the statement of profit or loss and other comprehensive income: (i) Expenses and revenues are restated as from the date they are accrued, except for those profit or loss items related to the consumption of assets measured in purchasing power currency of a date previous to the recording of such consumption which are restated based on the inception date of the asset to which the items are related (such as depreciation, impairment, and other use of assets valued at historical cost); and except also for any profit or loss arising from comparing two measurements expressed in a currency with a purchasing power from different dates, for which it is necessary to identify the amounts compared, their separate restatement and their comparison based on the new restated amounts. (ii) Net profit or loss on exposure of monetary assets and liabilities to inflation is reported in a separate item of profit and loss , which reflects profit or loss on the exposure to changes in the purchasing power of the currency (“RECPAM” for the Spanish initials of "Resultado por el Cambio en el Poder Adquisitivo de la Moneda"). Restatement of the statement of changes in shareholders’ equity: All equity components' beginning balances are restated by applying the general price index from the beginning of the fiscal year, and the movements of each such components during the year are restated as from the date of the contribution or initial recognition. Capital stock is presented at nominal values and its corresponding restatement adjustment is presented in the "capital adjustment” account. Other comprehensive income resulting after the transition date of the implementation of IAS 29 is recorded net of the inflation effect. Restatement of the statement of cash flows: IAS 29 requires that all entries in this statement should be restated in terms of the unit of measurement that is current at the end of the reporting period. The monetary gain or loss generated from cash and cash equivalents is presented in the statement of cash flows separately from the cash flows from operating, investing and financing activities, as a specific item for the reconciliation between cash and cash equivalents at the beginning and at the end of the fiscal year. |
Applicable accounting standards | 2.3. Applicable accounting standards The consolidated financial statements have been prepared on a historical cost basis, which has been restated at year-end currency in the case of non-monetary items, except for the revaluation of certain financial assets, which are measured at the fair value at the closing date of each fiscal year. In general, historical cost is based on the fair value of the consideration given in exchange for the assets. Fair value is the price that the Group would receive to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date, irrespective of whether such price is directly observable or estimated using another valuation technique. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. Fair value is determined on the basis previously mentioned, except for share-based payment transactions that are within the scope of IFRS 2, lease transactions, within the scope of IFRS 16 and measurements that have some similarities to fair value but are not fair value, such as net realizable value in IAS 2 or value in use in IAS 36. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: • Level 1 quoted (unadjusted) prices in active markets for identical assets and liabilities to which the entity has access as at the measurement date; • Level 2 valuation techniques for which the lowest level input that is significant to their value measurement is directly or indirectly observable; and • Level 3 valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. Classification as current and non-current: The Group classifies assets and liabilities in the consolidated statement of financial position as current and non-current. An asset is classified as current when the Group: a) expects to realize the asset or intends to sell or consume it during its normal operating cycle; b) holds the asset primarily for the purpose of trading; c) expects to realize the asset within twelve months after the end of the reporting period; or d) the asset is cash or cash equivalent unless it is restricted and cannot be exchanged or used to settle a liability for at least twelve months after the end of the reporting period. All other assets are classified as non-current. A liability is classified as current when the Group: a) expects to settle the liability during its normal operating cycle; b) holds the liability primarily for the purpose of trading; c) the liability is due to be settled within twelve months after the end of the reporting period; or d) fails to have an unconditional right to defer settlement of the liability for at least twelve months after the end of the reporting period. All the other liabilities are classified as non-current. Deferred tax assets and liabilities are classified as non-current assets and liabilities in all cases. Year-end date: The fiscal year of the Group starts on January 1° and ends on December 31 each year. Currency: The consolidated financial statements are presented in thousands of Argentine Pesos ($), the currency of legal tender in the Argentine Republic, and which is the functional currency of the Group. Amounts are rounded without decimals. Use of estimates: The preparation of consolidated financial statements requires the Group’s management to make judgements, estimates and assumptions that affect the amount of recorded assets and liabilities and the contingent assets and liabilities disclosed as of the reporting date, as well as the revenues and expenses recognized during each year. Future profit or loss may differ from the estimates and assessments made as of the date of preparation of these consolidated financial statements. The description of estimates and significant accounting judgments made by the Group’s Board in the application of accounting policies as well as the areas with greater degree of complexity requiring further judgment, are disclosed in Note 4. The Group´s material accounting policies are described below. |
Standards and interpretations issued but not yet effective | 2.4. Standards and interpretations issued but not yet effective The following is a detail of standards and interpretations that are issued but not yet effective up to the date of issuance of the Group’s consolidated financial statements. The Group intends to adopt these standards, if applicable, when they become effective , but in no case will they be adopted earlier. • IAS 1 Classification of Liabilities as Current or Non-Current In January 2020, the IASB issued amendments to IAS 1 “Presentation of Financial Statements” to specify the requirements for the classification of liabilities as current or non-current. The amendments clarify: (i) what is meant by a right to defer settlement; (ii) that a right to defer must exist at the end of the reporting period; (iii) that classification is unaffected by the likelihood that an entity will exercise its deferral right; and (iv) that only if an embedded derivative in a convertible liability is itself an equity instrument would the terms of a liability not impact its classification. The amendments shall be effective for fiscal years beginning on or after January 1, 2024 and shall be applied retroactively. These amendments are not expected to have an impact on the Group´s consolidated financial statements. • Lease Liability in a Sale and Leaseback – Amendments to IFRS 16 The amendment to IFRS 16 Leases specifies the requirements that a seller-lessee uses in measuring the lease liability arising in a sale and leaseback transaction, to ensure the seller-lessee does not recognize any amount of the gain or loss that relates to the right of use it retains. The amendments are effective for fiscal years beginning as from January 1, 2024. The amendments are not expected to have an impact on the Group's consolidated financial statements. • Disclosures: Supplier Finance Arrangements - Amendments to IAS 7 and IFRS 7 In May 2023, the Board issued amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures. The amendments specify disclosure requirements to enhance the current requirements, which are intended to assist users of financial statements in understanding the effects of supplier finance arrangements on an entity’s liabilities, cash flows and exposure to liquidity risk. The amendments clarify the characteristics of supplier finance arrangements. In these arrangements, one or more finance providers pay amounts an entity owes to its suppliers. The entity agrees to settle those amounts with the finance providers according to the terms and conditions of the arrangements, either at the same date or at a later date than that on which the finance providers pay the entity’s suppliers. The amendments require an entity to provide information about the impact of supplier finance arrangements on liabilities and cash flows, including terms and conditions of those arrangements, quantitative information on liabilities related to those arrangements as at the beginning and end of the reporting period. Considering the Group's business practice in recent years, no impacts are expected in relation to this modification. This modification is effective for financial statement presentation periods beginning on or after January 1, 2024. • Lack of exchangeability – Amendments to IAS 21 In August 2023, the Board issued Lack of Exchangeability (Amendments to IAS 21). The amendment to IAS 21 specifies how an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking. The amendments refer to: – A currency is considered to be exchangeable into another currency when an entity is able to obtain the other currency within a time frame that allows for a normal administrative delay and through a market or exchange mechanism in which an exchange transaction would create enforceable rights and obligations; a currency is not interchangeable with another currency if an entity can only obtain an insignificant amount of the other currency. – If a currency is not exchangeable into another currency, an entity is required to estimate the spot exchange rate at the measurement date. An entity’s objective in estimating the spot exchange rate is to reflect the rate at which an orderly exchange transaction would take place at the measurement date between market participants under prevailing economic conditions. The amendments note that an entity can use an observable exchange rate without adjustment or another estimation technique. – When an entity estimates a spot exchange rate because a currency is not exchangeable into another currency, it discloses information that enables users of its financial statements to understand how the currency not being exchangeable into the other currency affects, or is expected to affect, the entity’s financial performance, financial position and cash flows. The amendments will be effective for annual reporting periods beginning on or after January 1, 2025. Early adoption is permitted but will need to be disclosed. • Enhancement and standardization of climate-related disclosures for investors On March 6 2024, the SEC issued the final rules on the enhancement and standardization of climate-related disclosures for investors. This rules mandates the disclosure of information regarding a registrant’s climate-related risks that have materially impacted, or are reasonably likely to have a material impact on, its business strategy, results of operations, or financial condition. The Group is currently assessing the impact of this rules that may imply the need of additional disclosure to investors. Even though as of April 4, 2024 the SEC voluntarily stayed this rules pending completion of the Eighth Circuit Court of Appeal’s review, the SEC will “continue vigorously defending” the rules in court. If the court upholds the rules, it could lead to their prompt adoption once the stay is lifted. • IFRS 18 Presentation and Disclosure in Financial Statements IFRS 18 was issued on 9 April 2024 and becomes effective for reporting periods beginning on or after 1 January 2027. IFRS 18 introduces new requirements on presentation within the statement of profit or loss, including specified totals and subtotals. It also requires disclosure of management-defined performance measures and includes new requirements for aggregation and disaggregation of financial information based on the identified ‘roles’ of the primary financial statements and the notes. In addition, there are consequential amendments to other accounting standards. Adoption of improvements or new standards The Group has adopted all the improvements and new standards and interpretations issued by the IASB that are relevant to its operations and that are effective for the fiscal year ended December 31, 2023. As from January 1, 2023, these are the new standards or improvements that become effective: • IFRS 17 Insurance Contracts In May 2017, the IASB issued IFRS 17 Insurance Contracts, a comprehensive new accounting standard for insurance contracts covering recognition and measurement, presentation and disclosure. Once effective, IFRS 17 will replace IFRS 4 Insurance Contracts. IFRS 17 applies to all types of insurance contracts (i.e., life, non-life, direct insurance and re-insurance), regardless of the type of entities that issue them, as well as to certain guarantees and financial instruments with discretionary participation features. The overall objective of IFRS 17 is to provide an accounting model for insurance contracts that is more useful and consistent for insurers. In contrast to the requirements in IFRS 4, which are largely based on grandfathering previous local accounting policies, IFRS 17 provides a comprehensive model for insurance contracts, covering all relevant accounting aspects. This rule is not applicable to the Group. • Disclosure of Accounting Policies - Amendments to IAS 1 and IFRS Practice Statement 2 The amendments require entities to disclose their “material accounting policy information”, instead of “significant accounting policies”. The amendments provide guidance and examples to help entities to identify when an accounting policy is material. The Group made the modifications required by the standard, which did not have a material impact on the disclosures of the Group's accounting policies, and did not affect the measurement, recognition or presentation criteria in the Group's financial statements. • IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors The amendments clarify the distinction between changes in accounting estimates, changes in accounting policies and the correction of errors. They also clarify how entities use measurement techniques and inputs to develop accounting estimates. The amendments clarify that a change in the accounting estimate resulting from new information or new developments is not the correction of an error. The amendments had no impact on the Group’s consolidated financial statements. • Deferred Tax related to Assets and Liabilities arising from a Single Transaction – Amendments to IAS 12 The amendments narrow the scope of the initial recognition exception, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences at that moment. The amendments had no impact on the Group’s consolidated financial statements. • International Tax Reform—Pillar Two Model Rules – Amendments to IAS 12 The amendments to IAS 12 have been introduced in response to the OECD’s BEPS Pillar Two rules (inclusive framework about anti base erosion and profit shifting) and include: (a) A mandatory temporary exception to the recognition and disclosure of deferred taxes arising from the jurisdictional implementation of the Pillar Two model rules; and (b) Disclosure requirements for affected entities to help users of the financial statements better understand an entity’s exposure to Pillar Two income taxes arising from that legislation, particularly before its effective date. The mandatory temporary exception (the use of which is required to be disclosed) applies immediately. Although the BEPS rules are global, the rules would be implemented through legislation enacted in jurisdictions that adopt them. The BEPS rules have not been enacted or substantially enacted in jurisdictions in which the Group operates and/or in those jurisdictions in which its controlling entities operate. The Group continues monitoring the legislation, including the effective date, any transitional exemption, if applicable, and any other important requirements. The Group will continue the evaluation of the potential exposure to Pillar Two income taxes and its implementation based on the most recent information available at all times, although it understands that it will not have effects on its financial statements on the basis that the rate of income tax that is applicable is higher than the minimum rate of 15% considered by the BEPS rules. The above mentioned amendments did not have an impact on the Group's consolidated financial statements. |
Basis of consolidation | 2.5. Basis of consolidation These consolidated financial statements include the financial statements of the Company and the companies controlled by the Group. The Group controls an entity when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. The Group will re-assess whether or not it controls an investee when facts and circumstances indicate changes in one or more of the control elements listed in the preceding paragraph. Generally, there is a presumption that the majority of voting rights results in control. To support this presumption and when the Group has less than a majority of the voting or similar rights of an investee, the Group considers all the relevant facts and circumstances in assessing whether it has power over the investee, including: • The Group’s voting right ownership percentage vis-à-vis the size and dispersion of the percentages held by other shareholders voting rights and potential voting rights; • Potential voting rights held by the Group, other shareholders or other parties; • Rights arising from contractual arrangements; and • Any and all additional events or circumstances that indicate that the Group has, or fails to have, the current ability to direct the relevant activities of the investee when decisions need to be made, including voting patterns at previous shareholders’ meetings. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control over the subsidiary. Specifically, the revenues and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated statement of profit or loss and other comprehensive income since the date on which the Group obtains control until the date on which the Group ceases to control the subsidiary. Profits or losses of each component of other comprehensive income are attributed to the Group´s owners and to the non-controlling interests. The total comprehensive income of the subsidiaries is attributed to the Group’s owners and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with the Group’s accounting policies. All intra-group assets, liabilities, equity, income, expenses and cash flows related to transactions between members of the Group are eliminated in full upon consolidation. If the Group loses control over a subsidiary, it derecognizes the related assets (including goodwill), liabilities, non-controlling interest and other components of equity, while any resultant gain or loss is recognized in profit or loss. Any investment retained is recognized at fair value. The consolidated information disclosed in these consolidated financial statements includes the following subsidiaries: Subsidiary Main business Country % of direct and indirect interest as of December 31, December 31, December 31, Cofesur S.A.U. Investment Argentina 100.00 100.00 100.00 Ferrosur Roca S.A. (1) Rail freight transportation Argentina 80.00 80.00 80.00 Recycomb S.A.U. Waste recycling Argentina 100.00 100.00 100.00 (1) Directly controlled by Cofesur S.A.U. Below is a summary of the financial information for Ferrosur Roca S.A., a subsidiary in which shareholders outside the Group have a material non-controlling interest. 2023 2022 Current assets 6,432,521 6,633,042 Non-current assets 6,018,546 8,015,053 Current liabilities 7,373,666 10,281,947 Non-current liabilities 2,317,828 1,332,845 Shareholders’ equity attributable to owners of the parent company 2,207,659 2,426,642 Non-controlling interest 551,915 606,661 2023 2022 2021 Revenues 33,265,474 36,384,432 36,273,669 Financial results, net (1,042,507) 712,145 (351,779) Depreciation (2,764,791) (8,396,827) (6,894,662) Income tax (552,976) 1,452,029 (76,837) Net losses for the year (4,745,191) (5,298,385) (7,330,754) 2023 2022 2021 Net cash generated by (used in) operating activities (1,983,303) (280,281) 2,865,822 Net cash generated by (used in) investing activities 3,329,828 (2,814,803) (3,576,068) Net cash generated by (used in) financing activities (1,213,679) 3,392,253 556,037 Effects of the exchange rate differences on cash and cash equivalents in foreign currency (228,460) (175,373) (115,395) |
Revenue recognition | 3.1. Revenue recognition |
Sale of goods | 3.1.1. Sale of goods Revenues from sales of goods are recognized when control over goods is transferred to the customer for an amount that reflects the consideration that the Group expects to be entitled to in exchange for such assets. The customer obtains control of the goods when significant risks and rewards of the products sold are transferred in accordance with the specific delivery terms agreed with the customer. Revenues from the sale of goods are measured at fair value of the consideration received or to be collected, net of commercial discounts. No financing components are considered in the transaction since credit terms vary greatly between 20 and 35 days, depending on the specific terms agreed upon by the Group, which is consistent with market practices. Some agreements with customers offer commercial discounts or volume-based discounts. If revenues cannot be reliably measured, the Group defers revenue recognition until the uncertainty is resolved. However, due to the fact that performance obligations relate mainly to the delivery of the acquired goods, and that both the price and any discount granted are specifically agreed between the parties, there are in practice no uncertainties associated with revenue recognition from sales of goods. Variable consideration is recognized when there is a high likelihood that there will not be a significant reversal in the amount of the accumulated revenues recognized in the agreement and is measured using the expected value or the most likely amount method, whichever allows to make a better prediction of the amount based on the terms and conditions of the agreement. The products sold by the Group in general are not returned by customers once they have approved their quality, which occurs at the time of reception. 3.1.2. Services rendered The Group provides transportation services along with the sale of cement, concrete, limestone, and aggregates. Revenues from transportation services are recognized at the time services are provided, which is usually when revenues from the sale of the transported good are recognized as transportation distance and time is very short. Revenue is measured on the basis of the consideration defined in the contract with customers. |
Goodwill | 3.2. Goodwill The goodwill recorded by the Group due to the acquisition of Recycomb S.A.U. and is measured at cost restated in constant currency at the end of the reporting period, as mentioned in Note 2.2. In accordance with IFRS 3, Business Combinations, goodwill is initially measured at cost being the excess of the aggregate of the consideration transferred and the amount recognized for non-controlling interests and any previous interest held over the fair value of the net identifiable assets acquired and liabilities assumed. Goodwill is not amortized, but rather tested for impairment on an annual basis. For impairment testing purposes, goodwill is allocated to each of the Group’s cash-generating units that are expected to benefit from the synergies of the relevant combination. Cash-generating units to which goodwill is allocated are tested for impairment on an annual basis, or more frequently if there are indications that the unit may have been impaired. An asset’s recoverable amount is the higher of an asset’s or CGU’s fair value less costs of disposal and its value in use. When the recoverable amount of the CGU is less than its carrying amount, an impairment loss is recognized reducing first the carrying amount of goodwill allocated to the CGU and then, proportionally, the other CGU’s assets. Impairment losses related to goodwill cannot be reversed in future periods. Any goodwill impairment loss is recognized directly in profit or loss. |
Investments in other companies | 3.3. Investments in other companies |
Leases | 3.4. Leases Group as Lessee: The accounting model for the recognition and measurement of all leases is as follows: Right-of-use assets: The Group recognizes a right of use asset at the beginning of each lease (the date on which the underlying asset is available for use). Right-of-use assets are measured at cost, net of accumulated depreciation and impairment losses, and adjusted to reflect any remeasurement of liabilities and to recognize changes in the currency purchasing power. The cost of the right-of-use assets includes the amount of the recognized lease liabilities, initial direct costs incurred, and lease payments made at or before the lease start date, less any incentives received. Unless the Group is certain that it will acquire the asset at the end of the lease, right-of-use assets are depreciated on a straight-line basis over the shorter of their estimated useful lives and the lease term (calculated based on the term of the relevant agreements, including renewal provisions in the event that they are highly likely to continue). Right-of-use assets are subject to impairment. The Group applies the short-term lease recognition exception (i.e., those leases that have a lease term of 12 months or less from the inception date and do not contain a purchase option). The Group also applies the recognition exception to leases that are considered to be of low value. Payments under these leases are recognized as expense on a straight-line basis over the lease term. Lease liabilities: Lease liabilities are measured at the present value of future lease payments to be made throughout the lease term, for which market rates have been used according to the nature and term of each agreement. Lease payments include fixed payments, less any lease incentives to be received, variable payments depending on an index or rate and amounts expected to be paid under residual value guarantees. Lease payments also include the exercise price of any purchase option of the leased underlying asset, and any penalties for terminating the lease, provided that it is reasonably likely that the Group will exercise such options. Variable payments that do not depend on an index or rate are recognized in profit or loss for the year of occurrence of the condition to which they are subject. The unwinding of the present value recognized for each lease is accounted by the Group in the comprehensive income of each year. Group as Lessor: |
Foreign currency and functional currency | 3.5. Foreign currency and functional currency The consolidated financial statements are presented in Argentine Pesos (Argentina’s currency of legal tender), which is also the functional currency (the currency of the primary economic environment where the entity operates) for all the Group companies , and the reporting currency of the consolidated financial statements. For the purposes of presenting these consolidated financial statements, the assets and liabilities in foreign currency held by the Group are translated to Argentine pesos at the foreign exchange rate prevailing at the end of each fiscal year. |
Borrowing costs | 3.6. Borrowing costs Borrowing costs, net of the effect of inflation directly attributed to the acquisition, construction or production of qualifying assets, which are assets that take a substantial period of time to get ready for their intended use or sale, are capitalized as part of the cost of the asset until the assets are ready for use or sale. Income earned on short term investments of specific outstanding borrowings to finance the construction of qualifying assets is deducted from the borrowing costs that may qualify for capitalization. |
Taxes | 3.7. Taxation 3.7.1. Income tax The Group assesses the income tax to be recorded in accordance with the deferred tax method, which considers the effect of temporary differences arising from the different bases for the measurement of assets and liabilities according to accounting and taxing criteria, and of existing tax losses and unused tax credits deductible from future taxable income, computed by considering the tax rate in force. Law No. 27,260, which was enacted on June 16, 2021, introduced amendments to the corporate tax rate by setting a staggered structure of applicable rates based on the level of accumulated net taxable income for each company, which may be 25%, 30%, or 35% (Note 11); the 7% tax on the distribution of dividends, however, has remained unchanged. 3.7.1.1. Current taxes Current tax payable is based on the taxable profit for the fiscal year. Taxable profit differs from profit before tax as reported in the consolidated statement of profit and loss and other comprehensive income because of items of income, or expenses that are taxable or deductible in other years and items that will never be taxable or deductible. The Group’s liability for current tax is calculated using the tax rates that have been substantially enacted at the end of the reporting period. 3.7.1.2. Deferred tax Deferred tax is recognized on the temporary differences between the carrying amount of the assets and liabilities included in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all future taxable temporary differences. Deferred tax assets are recognized for all deductible temporary differences to the extent that the Group is likely to have future tax profit against which it is possible to account for those deductible temporary differences. Such deferred tax assets and liabilities are not recognized when temporary difference arose from goodwill or the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable nor the accounting profit. The carrying amounts of deferred tax assets are reviewed at the end of each fiscal year and derecognized to the extent it is no longer probable that sufficient taxable profit will be available to allow all or part of the asset to be recovered. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply in the fiscal year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantially enacted at the end of the reporting period. Measurement of deferred tax assets and liabilities at the end of the reporting period reflects the tax consequences that would stem from the manner in which the entity expects to recover or settle the carrying amount of its assets and liabilities. The Group offsets deferred tax assets and deferred tax liabilities only if (a) it has enforceable right to set off current taxes and current liabilities and (b) the deferred tax assets and liabilities relate to income taxes levied by the same tax authority on either the same taxable entity or different taxable entities and the Group intends either to settle current tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered. Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, except where the Group is able to control the reversal of the temporary difference and it is probable that temporary differences will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments are recognized only to the extent it is probable that there will be sufficient taxable profit to use the benefits of temporary differences and they are expected to reverse in the foreseeable future. 3.7.1.3. Current tax charge and deferred taxes profit or loss Current and deferred taxes are recognized in the statement of profit or loss and other comprehensive income, except when they relate to items that are recognized in other comprehensive income or directly in shareholders’ equity, in which case the current and deferred taxes are also recognized in other comprehensive income or directly in shareholders’ equity, respectively. When the current tax or deferred tax arises from the initial accounting of a business combination, the tax effect is included in the accounting for the business combination. 3.7.2. Personal assets tax – Substitute taxpayer In Argentina, individuals and foreign entities, as well as their undistributed estates, regardless of whether they are domiciled or located in Argentina or abroad are subject to personal property tax at the rate of 0.50% over the value of any shares or the American Depositary Shares (ADSs) issued by Argentine entities held as of December 31 of each year. |
Property, plant and equipment | 3.8. Property, plant and equipment Property, plant and equipment held for use in the production or supply of goods and services, or for administrative purposes, are carried at the cost restated in constant currency at the end of the reporting period, in accordance with Note 2.2, less accumulated depreciation and impairment loss. The cost includes the stripping and initial preparation of the open pit quarries, as mentioned in Note 3.18, and the counterpart for the environmental restoration and/or dismantling obligations recognized, as indicated in Note 3.12. It also includes borrowing costs for long-term construction projects if the recognition criteria are met. When significant parts of plant and equipment are required to be replaced at intervals, the Group depreciates them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognized in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognized in profit or loss as incurred. The lands owned by the Group are not subject to depreciation. Construction in progress for administrative, production, supply or other purposes are carried at cost restated in constant currency at the end of the reporting period, in accordance with Note 2.2, less any recognized impairment loss. Depreciation of Property, Plant and Equipment commences when such assets are ready for their intended use. Property, plant and equipment are depreciated, except for land and assets under construction, over their estimated useful lives using the straight-line method. The estimated useful life, the residual value and the depreciation method are reviewed at the end of each fiscal year, with the effect of any changes in estimates being accounted for on a prospective basis. Gain or loss from the disposal or write-off of an item of property, plant and equipment is calculated as the difference between net disposal proceeds and the carrying amount of the asset and is recognized in profit or loss at its value restated at the year-end currency. |
Intangible assets | 3.9. Intangible assets Intangible assets with finite useful lives that were separately acquired are carried at cost restated in constant currency at the end of the reporting period, as described in Note 2.2, less accumulated depreciation and impairment losses. The estimated useful life and depreciation method are reviewed at the end of each fiscal year, with the effect of any changes in estimates being accounted for on a prospective basis. Intangible assets with indefinite useful lives that were separately acquired are carried at the cost restated in constant currency at the end of the reporting period, as described in Note 2.2, less accumulated impairment losses. |
Impairment of tangible and intangible assets | 3.10. Impairment of tangible and intangible assets At the end of each period, the Group reviews if any indication that tangible and intangible assets might be impaired. In case of impairment indicators are observed, the Group calculates the recoverable amount per cash-generating unit. The recoverable amount of an asset is the higher of the fair value less cost of disposal and its value in use. In assessing value in use, the estimated future cash flows are discounted using a pre-tax discount rate that reflects current market assessments as of year-end with respect to the time value of money considering the risks that are specific to the asset. Cash-generating units match the business segments defined in Note 31. If the recoverable value of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying value of the asset (or cash-generating unit) is reduced to its recoverable value. Impairment losses are immediately recognized in profit or loss. When a recognized impairment loss is subsequently reversed, the book value of the asset is increased up to the new recoverable amount but the reversal is limited so that the carrying amount of the asset does not exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset or CGU in prior years. Impairment loss reversals are immediately recognized in profit loss. Impairment losses related to goodwill are not reversed in future periods. |
Inventories | 3.11. Inventories Inventories are stated at the lower of cost restated in constant currency at the end of the reporting period in accordance with Note 2.2 and net realizable value. Costs incurred in bringing products to their present condition are accounted for as follows: • Raw materials and spare parts: at acquisition cost according to the Weighted Average Price method. • Finished goods and work in progress: at acquisition cost of raw materials and labor, plus a proportion of manufacturing overheads based on normal operating capacity. The net realizable value of an inventory component is the estimated selling price for that component in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale, calculated as of the end of the reporting period. In assessing recoverable amounts, slow-moving inventories are also considered. The carrying amount of inventories as of the fiscal year-end does not exceed their recoverable value. |
Provisions | 3.12. Provisions Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Estimated amounts of the obligation are based on the expected outflows that will be required to settle such obligation. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When the Group expects some or all of a provision to be reimbursed, the reimbursement is recognized as a separate asset (a receivable), but only when the reimbursement is virtually certain and the amount of the receivable can be reliably measured. The Group uses the opinion of its legal advisors to determine if a provision should be recorded as well as to estimate the amounts of the obligations. Environmental restoration and asset decommissioning obligations: Under legal provisions and best practices, and the environmental commitments assumed by the Group, land used by the Group for mining and quarrying is subject to environmental restoration, and the fixed assets used in production will be removed at the end of operations. In this context, provisions are recognized, as long as they are determinable, in order to afford the estimated expenses for environmental recovery and restoration of the mining areas and the retirement of the corresponding productive assets. These provisions are recorded simultaneously with the increase in value in the underlying asset and the relevant depreciation of the assets involved is recognized in profit and loss prospectively. .The environmental restoration and asset retirement obligation can also increase or decrease due to changes in the estimated timing of cash flows, changes in the discount rate and/or changes in the original estimated undiscounted costs. In estimating the expected cost, the Group takes into account changes in environmental legislation and regulations, if any, that may impact the process and restoration and dismantling costs. Increases or decreases in the obligation other than the unwinding of discount will result in a corresponding change in the carrying amount of the related asset. Actual costs incurred upon settlement of the asset retirement obligation are charged against the asset retirement obligation to the extent of the liability recorded. The Group discounts the costs related to asset retirement obligations using the discount rate that reflects the current market assessment of the time value of money and risks specific to the liabilities that have not been reflected in the cash flow estimates. Asset retirement obligations are remeasured at each reporting period in order to reflect the discount rates in effect at that time. In addition, the Group follows the practice of progressively restoring the areas by the removal of quarries using the provisions recognized for that purpose. |
Financial instruments | 3.13. Financial instruments A financial instrument arises from any contract that results in the recognition of a financial asset in one entity and a financial liability or equity instrument in another entity. All financial assets and liabilities are initially measured at fair value. Transaction costs that are attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and liabilities at fair value through profit or loss) are added or deducted from the fair value of the financial assets or liabilities on the initial cost of recognition. Transactions costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss. Interest and financial income are recognized to the extent the effective interest rate is accrued. |
Financial assets | 3.14. Financial assets According to IFRS 9 Financial instruments, the Group classifies its financial assets into two categories because the company has not asset that are designated as fair value through other comprehensive income: • Financial Assets at amortized cost A financial asset is measured at amortized cost if both of the following conditions are met: (i) the asset is held within a business model of the Group whose objective is to hold assets in order to collect contractual cash flows; and (ii) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. In addition, for the assets that meet the conditions mentioned above, IFRS 9 contains an option to designate, at initial recognition, a financial asset as measured at fair value if doing so eliminates or significantly reduces an account mismatch that would otherwise arise from measuring assets or liabilities or recognizing the gains and losses on them on different bases. The Group has not recognized financial assets at fair value using this option. At the date of the consolidated financial statements, the Group’s financial assets at amortized cost include certain items of cash and cash equivalents and trade and other receivables. • Financial assets at fair value through profit or loss If one of the above two criteria is not met, the financial asset is classified as an asset measured at “fair value through profit or loss”. At the date of these consolidated financial statements, the Group’s financial assets at fair value through profit or loss include mutual funds classified as current investments. Recognition and Measurement: Acquisitions and disposals of financial assets are recognized on the date on which the Group promises to purchase or sell the asset. Financial assets are derecognized when the rights to receive cash flows from such instruments and the risks and benefits related to their ownership have been terminated or assigned. Financial assets at amortized cost are initially recognized at fair value plus transaction costs. These assets accrue interest based on the effective interest rate method. Financial assets at fair value through profit or loss are initially recognized at fair value and transaction costs are recognized as expenses in the statement of profit or loss and other comprehensive income. They are subsequently measured at fair value. Changes in fair values and gains or losses on the sale of financial assets at fair value through profit or loss are recognized in “Financial results, net” in the statement of profit or loss and other comprehensive income. In general, the Group uses the transaction price to determine the fair value of a financial instrument at initial recognition. In all other cases, the Group only records a gain or loss at initial recognition if the fair value of the instrument is evidenced by other comparable and observable market transactions for the same instrument or is based on a valuation technique incorporating only observable market data. Any gains or losses not recognized at initial recognition of a financial asset are subsequently recognized only to the extent that they arise from a change in factors (including time) that market participants would consider in establishing the price. The results of debt instruments that are measured at amortized cost and are not designated in a hedging relationship are recognized in the profit or loss and other comprehensive income statement using the effective interest rate method. The Group reclassifies between categories all investments in debt instruments only when there is a change in the business model used to manage such assets. Financial asset impairment The Group assesses at the end of each period whether there is any objective evidence that a financial asset or group of financial assets measured at amortized cost is impaired. The impairment is recorded only if there is objective evidence of impairment as the result of one or more events that occurred after the initial recognition of the asset and that impairment can be reliably estimated. The Group defined a policy to calculate ECLs for trade receivables and record the related allowance for debtors’ impairment. The provision is initially based on the Group’s historical observed default rates and it is complemented by a case by case analysis to identify special circumstances on individual customers and/or transactions. Evidence of impairment includes indications that the debtors or a group of debtors are experiencing serious financial difficulties, default or arrears in interest or principal payments, the likelihood that they will be declared bankrupt or file for reorganization proceedings, and when such observable data indicates that there is a decrease in estimated future cash flows. The amount of the impairment is measured as the difference between the carrying amount of the asset and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the original effective interest rate of the financial asset. The carrying amount of the asset is written down and the amount of the loss is recognized in the profit or loss and other comprehensive income statement. As a practical measure, the Group may measure impairment based on the fair value of an instrument using an observable market price. If, in a subsequent period, the impairment amount decreases and such reduction is related to an event taking place after the original impairment, the reversal of the impairment loss is recognized in the consolidated statement of profit and loss and other comprehensive income. Offsetting of financial instruments: Financial assets and liabilities are offset whenever there is a legal right to offset such assets and liabilities and there is an intention to settle them on a net basis, or to realize the asset and settle the liability simultaneously. Derecognition of a financial asset A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e., removed from the Group’s consolidated statement of financial position) when: • The rights to receive cash flows from the asset have expired, or • The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset When the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if, and to what extent, it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Group continues to recognise the transferred asset to the extent of its continuing involvement. In that case, the Group also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Group has retained. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Group could be required to repay. |
Ferrocarril Roca Management Trust | 3.15. Ferrocarril Roca Management Trust for capital expenditures |
Financial Liabilities and Equity Instruments | 3.16. Financial Liabilities and Equity Instruments i) Classification as debt or equity: Debt and equity instruments are classified as financial liabilities or as equity in accordance with the substance of the contractual agreement and the definitions of financial liabilities and equity instruments. ii) Equity instruments: An equity instrument consists in a contract evidencing a residual ownership interest over an entity’s net assets after deducting all its liabilities. Equity instruments issued by an entity of the Group are recognized at the amount of proceeds received, net of direct issuance costs. The repurchase of the Group’s own equity instruments is recognized and deducted directly in equity. No gain or loss is recognized in the profit or loss statement stemming from purchases, sales, issuance or cancellation of the Group’s own equity instruments. Capital Stock Component Accounts Capital Stock and Share Premium: It comprises the contributions committed or made by the shareholders represented by outstanding shares at nominal value. Adjustment to capital: Capital stock accounts were restated by recognizing the effects of changes in the purchasing power of the currency by applying the procedure described in Note 2.2. The capital stock account was maintained at nominal value and the adjustment derived from such monetary restatement is disclosed in capital adjustment account. Capital adjustment is not available for distribution in cash or in kind; however, it can be capitalized by issuing additional shares. In addition, the adjustment mentioned above may be used to cover losses for the year, according to the order of absorption of accumulated losses, as explained below in “Retained Earnings”. Merger premium: This reflects the recognition of premiums originated in mergers between the Parent Company and Ecocemento S.A. and Compañía de Servicios a la Construcción S.A. in the years 2002 and 2010, respectively. Merger premium balances were restated in constant currency at the end of the reporting period by applying the adjustment procedure described in Note 2.2 based on the respective merger dates. Share-based payment plans: It refers to the counterpart of the recognition of share-based payment plans received by Group Directors, restated in constant currency at the end of the reporting period following the adjustment procedure described in Note 2.2, based on the dates of issuance of the plans. Treasury shares trading premium: This trading premium relates to treasury shares delivered to employees under current share-based payment plans and represents the difference between the purchase value of the shares delivered and the estimated value of the consideration received from the relevant employees. Legal reserve: In accordance with the provisions under Law No. 19,550, the Group must appropriate 5% of income for the year, plus adjustments of previous fiscal years, transfers of other comprehensive income to retained earnings and accumulated losses from previous fiscal years, until it reaches a 20% of the sum of the balances of “Capital” and “Adjustment to capital” accounts. The Legal reserve has been restated in constant currency at the end of the reporting period as described in Note 2.2, considering the movements taking place each fiscal year. Environmental reserve and future dividends reserve: This corresponds to the reserve created by the Group’s shareholders for future use on environmental matters and dividend distributions, respectively. These two reserves have been restated in constant currency at the end of the reporting period as described in Note 2.2. considering the movements for each fiscal year. Other comprehensive income: This includes income and losses recognized directly in equity and that will be transferred from equity to the profit or loss statement or accumulated retained earnings, as defined in IFRS. Retained earnings: Retained earnings include the accumulated income or losses with no specific allocation, which, if positive, can be distributed by means of a decision of the Shareholders’ Meeting, provided that they are not subject to any legal restrictions. It includes profit or loss from previous fiscal years that were not distributed, the amounts transferred from other comprehensive income, and adjustments from previous fiscal years by application of new accounting standards. Retained earnings are restated in constant currency at the end of the reporting period by applying the adjustment procedure described in Note 2.2, considering the movements taking place each fiscal year. Non-controlling interest: This includes the minority ownership interest not owned by Loma Negra C.I.A.S.A. in the net assets and profit or loss of Ferrosur Roca S.A. (20%). iii) Financial liabilities: Financial liabilities are classified as at fair value through profit or loss or other financial liabilities. Financial liabilities at fair value through profit or loss: A financial liability at fair value through profit or loss is a financial liability held for trading . Financial liabilities are classified as held for trading if: a) It has been acquired or incurred principally for the purpose of selling or repurchasing it in the near term; or b) At the time of initial recognition, the liabilities are part of a portfolio of financial instruments that are managed by the Group and there is evidence of a recent current pattern of short-term profit; or c) It is a derivative that has not been designated and is not effective as a hedging instrument or financial guarantee. Financial liabilities at fair value through profit or loss are recorded at fair value, with any gains or losses arising from the remeasurement being recognized in profit or loss. The net gain or loss recognized in profit or loss includes any interest paid on the financial liability and is included in other financial results. Fair value is determined as described in Note 32. Financial liabilities (other than financial liabilities held for trading) or contingent consideration to be paid by an acquirer as a part of a business combination may be designated as a liability at fair value through profit and loss upon initial recognition if: • Such designation eliminates or significantly reduces a potential accounting mismatch that would otherwise arise; or • Financial liabilities are part of a group of financial assets or liabilities or both, which is managed and whose performance is assessed on the basis of fair value, in accordance with the Group’s documented risk management or investment strategy, and information about the Group is provided internally on that basis; or • They are part of a contract containing one or more embedded derivatives, and IFRS 9 allows the entire combined contract to be carried at fair value through profit and loss. The Company has no financial liabilities measured at fair value to be presented in the statement of financial position. Other financial liabilities: Other financial liabilities, including borrowings and trade and other payables, are initially recognized at fair value, net of transaction costs. Subsequent to initial recognition, other financial liabilities are then measured at amortized cost using the effective interest rate method, with interest expense recognized based on actual return. Financial liabilities are classified as current liabilities unless the Group has an unconditional right to defer settlement for more than twelve months after the date of the financial statements. iv) Financial liabilities in foreign currency : The fair value of financial liabilities in foreign currency is determined in that foreign currency and translated at the exchange rate at the end of each fiscal year. The foreign currency component is part of its profit or loss at fair value. For financial liabilities classified as at fair value through profit or loss, the foreign currency component is recognized in profit or loss. For debt instruments denominated in foreign currency classified at amortized cost, gains and losses in foreign currency are determined on the basis of the amortized cost of the liability and recognized in “Exchange rate differences” under the “Financial results net” in the statement of profit or loss and other comprehensive income. v) Derecognition of financial liabilities : |
Short- and long-term employee benefits | 3.17. Short- and long-term employee benefits Liabilities are recognized for the benefits accrued in favor of employees with respect to salaries and wages, annual vacations, and leaves of absence due to illness in the period in which the service is rendered in connection with the non-discounted amount of the benefits expected to be paid in exchange for such service. Liabilities recognized with respect to other long-term employee benefits (severance payment plans resulting from specific plans for employees leaving the Group and receiving a compensation payable in installments) are measured at the present value of estimated future cash outflows expected to be paid by the Group. On January 24, 2018, the Company’s Board of Directors approved the implementation of an employee incentive program calculated on the basis of ADSs for the purpose of attracting and retaining certain high-ranking employees who satisfied certain eligibility criteria, with the goal of aligning their long-term interests with those of the Company and its shareholders. Under this program, a liability was recorded to reflect the fair value of the obligations resulting from the incentive plan as they are settled in cash. Such fair value is determined at the beginning and at the end of the fiscal year through the plan settlement date. To calculate the fair value, the Group uses the Black-Scholes valuation method. Changes in the fair value is recorded as an expense during the vesting period and any changes in the fair value are recognized in salaries, wages and social security contributions within the statement of profit or loss and other comprehensive income and the related liability is recognized in non-current Salaries and social security payables within the statement of financial position. During fiscal year 2021, the Board of Directors, through its meeting held on February 12, 2021, implemented two new employee incentive programs with the same objective. These programs replaced the one approved by the Board of Directors at its meeting of January 24, 2018, notwithstanding the fact that the annual awards that have already been granted as part of the original program will remain in force. The programs approved in 2021 consist in delivering, to certain employees, shares of the Company’s common stock listed on the Argentine Stock Exchanges and Markets (“BYMA”) and/or on the New York Stock Exchange (“NYSE”) in the form of ADSs, being one of the programs subject to total shareholder return (Total Shareholder Return or “TSR”), and the other to the permanence of the selected employees with the Group. In other words, the effective delivery of the shares will depend on the degree of performance of the return as defined in each of the annual plans that will be issued as part of the program, and on the permanence of the employee with the Group. On December 19, 2023, December 21, 2022, and December 21, 2021 the Company’s Board of Directors approved the issuance of the new plans within the framework of the programs implemented in 2021. |
Stripping costs and quarry exploitation | 3.18. Stripping and quarry exploitation costs Following the guidelines established by IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine, the costs of stripping and initial preparation of open-pit quarries for subsequent exploitation are capitalized as property, plant and equipment, as part of the Company’s open-pit quarry stripping and development costs, and are subsequently depreciated based on the units extracted, considering to that end the estimation of reserves available for extraction and existing in the stripped area at all times. The Group periodically revalues the estimate of proven reserves in stripped quarries and prospectively adjusts the effects of any difference in the estimate of tons available for extraction. Due to the frequency in which estimates are reviewed, the risk of significant differences in estimates is reduced. Extraction costs incurred later during the production phase are recognized as part of production costs. In the ordinary course of business, the Company undertakes several exploration and evaluation activities in order to search for mineral ore and determine the technical and commercial feasibility of the resources identified. Exploration and evaluation activities include research and analysis of historical exploration data, the compilation of exploration data through geological studies, exploratory drilling and sampling in several areas, the determination of the volume and qualification of the resources identified, among others. Mineral rights acquired in connection with the right to explore existing exploration areas are capitalized and amortized during the term of the right. As soon as a legal right has been acquired to explore, exploration and evaluation costs are expensed as incurred to profit or loss, unless the Company’s Management arrives at the conclusion that there is a highest likelihood of obtaining future profits; when this is the case, costs are capitalized. In assessing whether the costs satisfy the criteria to be capitalized several information sources are used, including the nature of the assets, the surface area explored and the results of the samples taken, among others. All capitalized stripping, exploration and evaluation costs are subject to impairment testing. In the case of determining a potential impairment indicator, the Company carries out an assessment of its recoverability together with the group of related operating assets, which represents the cash-generating unit to which the exploration is attributed. |
BASIS OF PREPARATION OF THE C_3
BASIS OF PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Basis Of Preparation Of Financial Statements [Abstract] | |
Schedule of Significant Investments in Subsidiaries | The consolidated information disclosed in these consolidated financial statements includes the following subsidiaries: Subsidiary Main business Country % of direct and indirect interest as of December 31, December 31, December 31, Cofesur S.A.U. Investment Argentina 100.00 100.00 100.00 Ferrosur Roca S.A. (1) Rail freight transportation Argentina 80.00 80.00 80.00 Recycomb S.A.U. Waste recycling Argentina 100.00 100.00 100.00 (1) Directly controlled by Cofesur S.A.U. |
Schedule of Financial Information of Subsidiaries with Material Non-controlling Interests | Below is a summary of the financial information for Ferrosur Roca S.A., a subsidiary in which shareholders outside the Group have a material non-controlling interest. 2023 2022 Current assets 6,432,521 6,633,042 Non-current assets 6,018,546 8,015,053 Current liabilities 7,373,666 10,281,947 Non-current liabilities 2,317,828 1,332,845 Shareholders’ equity attributable to owners of the parent company 2,207,659 2,426,642 Non-controlling interest 551,915 606,661 2023 2022 2021 Revenues 33,265,474 36,384,432 36,273,669 Financial results, net (1,042,507) 712,145 (351,779) Depreciation (2,764,791) (8,396,827) (6,894,662) Income tax (552,976) 1,452,029 (76,837) Net losses for the year (4,745,191) (5,298,385) (7,330,754) 2023 2022 2021 Net cash generated by (used in) operating activities (1,983,303) (280,281) 2,865,822 Net cash generated by (used in) investing activities 3,329,828 (2,814,803) (3,576,068) Net cash generated by (used in) financing activities (1,213,679) 3,392,253 556,037 Effects of the exchange rate differences on cash and cash equivalents in foreign currency (228,460) (175,373) (115,395) |
CRITICAL ACCOUNTING JUDGMENTS_2
CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Critical Accounting Judgments And Key Sources Of Estimation Uncertainty [Abstract] | |
Schedule of Estimated Useful Life for Property Plant and Equipment and Other Intangible Assets | The following is the estimated useful life for each component of property, plant and equipment and intangible assets: Useful life Fields 50 to 100 years Quarries - Stripping cost Based on estimated tons Buildings 10 to 50 years Machinery 10 to 35 years Furniture and fixtures 5 to 10 years Tools 5 years Software 5 years Transportation and load vehicles 4 to 32 years |
REVENUES (Tables)
REVENUES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue [abstract] | |
Schedule of Net Revenues From Sales | 2023 2022 2021 Sale of products 614,033,971 627,924,111 613,783,915 - Domestic market 613,771,519 627,743,238 613,379,901 - External customers 262,452 180,873 404,014 Services rendered 15,077,673 18,761,289 20,198,930 Bonuses / Discounts (206,950,827) (194,731,346) (187,111,238) Total 422,160,817 451,954,054 446,871,607 |
COST OF SALES (Tables)
COST OF SALES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Analysis of income and expense [abstract] | |
Schedule of Cost of Sales | 2023 2022 2021 Inventories at the beginning of the year 83,407,748 71,465,476 70,025,517 Finished products 5,235,997 3,610,248 4,312,946 Products in progress 14,966,747 12,165,049 8,240,170 Raw materials, materials, fuel, and spare parts 63,205,004 55,690,179 57,472,401 Purchases and production expenses for the year 332,002,049 341,847,366 307,070,468 Inventories at the end of the year (99,156,221) (83,407,748) (71,465,476) Finished products (4,171,765) (5,235,997) (3,610,248) Products in progress (17,649,645) (14,966,747) (12,165,049) Raw materials, materials, fuel, and spare parts (77,334,811) (63,205,004) (55,690,179) Cost of sales 316,253,576 329,905,094 305,630,509 |
Schedule of Breakdown of Production Costs | The breakdown of production costs is as follows: 2023 2022 2021 Fees and compensation for services 4,824,164 6,224,735 6,122,508 Salaries, wages, and social security contributions 48,315,608 49,158,340 48,170,901 Transport and traveling expenses 2,707,952 2,419,876 2,179,660 Data processing 165,897 184,139 120,484 Taxes, duties, contributions, and commissions 5,511,485 6,027,942 6,218,524 Depreciation and amortization 31,860,526 40,557,578 36,155,471 Preservation and maintenance costs 28,848,789 28,111,393 28,360,476 Communications 265,395 302,747 293,150 Leases 559,015 533,776 337,557 Employee benefits 1,580,643 1,469,734 1,329,001 Water, natural gas, and energy services 92,341 71,633 62,353 Freight and tolls 33,085,274 35,201,204 31,589,306 Fuels 50,755,980 52,325,243 41,838,109 Insurance 1,183,817 1,099,379 949,784 Packaging 10,590,791 11,449,210 12,539,651 Electric power 24,278,677 28,865,993 29,872,012 Contractors 24,927,448 22,776,427 22,759,383 Canon (concession fee) 210,582 232,174 239,768 Security 1,427,618 1,495,425 1,537,416 Others 3,937,480 4,462,876 4,158,678 Total 275,129,482 292,969,824 274,834,192 |
SELLING AND ADMINISTRATIVE EX_2
SELLING AND ADMINISTRATIVE EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Analysis of income and expense [abstract] | |
Schedule of Selling and Administrative Expenses | 2023 2022 2021 Managers and directors’ compensation fees 2,804,523 3,017,529 2,822,191 Fees and compensation for services 3,311,630 2,571,901 2,249,637 Salaries, wages, and social security contributions 9,665,392 9,768,778 8,723,883 Transport and traveling expenses 522,432 502,604 204,903 Data processing 1,390,817 975,828 1,126,570 Advertising expenses 2,127,755 1,808,897 1,891,998 Taxes, duties, contributions, and commissions 8,328,934 9,456,135 9,577,426 Depreciation and amortization 2,014,873 2,522,764 2,255,476 Preservation and maintenance 119,311 67,574 87,347 Communications 211,827 302,606 256,354 Leases 150,090 121,814 155,754 Employee benefits 550,638 294,747 325,978 Water, natural gas, and energy services 18,519 16,152 22,767 Freight 4,688,096 5,725,645 5,890,705 Insurance 1,733,962 963,228 883,015 Allowance for doubtful accounts 109,601 85,119 1,191,265 Security 94,717 87,740 80,928 Others 822,599 669,851 643,888 Total 38,665,716 38,958,912 38,390,085 |
OTHER GAINS AND LOSSES (Tables)
OTHER GAINS AND LOSSES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Analysis of income and expense [abstract] | |
Schedule of Detailed Information About Gains and Losses | 2023 2022 2021 Gain on disposal of property, plant and equipment 450,860 10,493,634 540,541 Donations (276,017) (219,069) (273,201) Technical services and assistance 11,048 17,648 59,921 Gain over tax credit assignment 73,424 340,004 559,347 Contingencies (853,264) (1,164,304) (358,795) Leases 392,172 521,515 665,628 Service fee from ADS Depositary bank 878,856 442,285 306,068 Insurance claim collection 4,517 - - Miscellaneous 236,473 110,767 (229,047) Total 918,069 10,542,480 1,270,462 |
FINANCIAL RESULTS, NET (Tables)
FINANCIAL RESULTS, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of finance income costs [abstract] | |
Schedule of Financial Results, Net | 2023 2022 2021 Exchange rate differences: Foreign exchange gains 12,271,935 2,599,842 1,716,834 Foreign exchange losses (129,483,801) (25,703,369) (11,705,714) Total (117,211,866) (23,103,527) (9,988,880) Financial income Interest from short-term investments 5,016,309 4,708,054 6,109,952 Effect of discounts on provisions and liabilities 693,625 356,464 90,171 Total 5,709,934 5,064,518 6,200,123 Financial expenses Interest on borrowings (61,852,712) (17,757,415) (2,983,830) Loss from securities transactions (Note 32.4) (1,836,132) (54,919,417) - Interest on leases (358,923) (289,306) (315,661) Tax interest (616,320) (804,813) (357,630) Effect of discounts on receivables (2,366,806) (2,667,735) (2,071,540) Others (6,292,271) (3,168,614) (2,406,555) Total (73,323,164) (79,607,300) (8,135,216) |
INCOME TAX EXPENSES (Tables)
INCOME TAX EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Major components of tax expense (income) [abstract] | |
Schedule of Income Tax Expense | 2023 2022 2021 Profit before income tax expenses 17,418,253 34,264,184 98,948,305 Income tax rate 35 % 35 % 35 % Income tax at the statutory tax rate (6,096,389) (11,992,464) (34,631,906) Adjustments for calculation of the effective income tax: Recovery of tax losses / Unrecognized tax losses 1,063,259 (13,965,632) (1,438,622) Effects of inflation adjustments for accounting and tax purposes (2,979,017) (2,571,900) (1,029,682) Change in tax rate (13,233) 3,000 (23,401,908) Other non-taxable income or non-deductible expense, net 287,650 (110,433) 37,320 Total income tax (7,737,730) (28,637,429) (60,464,798) Income tax Current (3,809,918) (12,782,304) (40,269,309) Deferred (3,927,812) (15,855,125) (20,195,489) Total (7,737,730) (28,637,429) (60,464,798) |
Schedule of Deferred Income Tax | 2023 2022 Assets Tax loss carryforward 10,387,206 15,159,150 Valuation allowance of tax loss carryforward (4,137,345) (13,982,670) Leases 504,358 16,370 Provisions 2,071,727 918,897 Salaries and social security contributions 307,325 178,670 Other liabilities 338,199 428,218 Others 566,268 216,228 Total deferred tax assets 10,037,738 2,934,863 2023 2022 Liabilities Property, plant and equipment (100,938,571) (92,302,691) Inventories (14,854,114) (9,741,243) Taxes payable (tax inflation adjustment) (648,759) (3,374,191) Borrowings (194,128) (89,222) Others (1,576) (99,114) Total deferred tax liabilities (116,637,148) (105,606,461) Total net deferred tax liabilities (106,599,410) (102,671,598) |
Schedule of Unrecognized Taxable Temporary Difference Associated with Investments | Temporary differences related to investments in subsidiaries and other interests for which no deferred tax assets or liabilities have been recognized since it is not considered probable that they will be reversed in the foreseeable future, are as follows: 2023 2022 Subsidiaries (744,988) 1,188,609 Others (11,122) (11,055) Total (756,110) 1,177,554 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Profit or loss [abstract] | |
Schedule of Earnings and Weighted Average Number of Ordinary Shares used in Calculation of Basic Earnings per Share | The earnings and the weighted average number of ordinary shares used in the calculation of basic and diluted earnings per share are as follows: 2023 2022 2021 Profit attributable to the owners of the parent company used in the calculation of basic and diluted earnings per share 10,305,179 6,037,186 39,949,661 Weighted average number of ordinary shares for the purposes of basic and diluted earnings per share (in thousands of shares) 583,536 585,317 592,046 Basic and diluted earnings per share (in pesos) 17.6599 10.3144 67.4772 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Schedule of Property, Plant and Equipment | 2023 2022 Cost 1,212,747,831 1,179,854,760 Accumulated depreciation (730,619,923) (701,933,319) Total 482,127,908 477,921,441 Land 6,157,733 6,210,098 Plant and buildings 78,991,885 79,190,529 Machinery, equipment and spare parts 339,259,490 349,634,093 Transportation and load vehicles 6,841,896 7,173,697 Furniture and fixtures 532,842 574,137 Fields and quarries 33,757,180 29,449,339 Tools 624,447 543,136 Construction in process 15,962,435 5,146,412 Total 482,127,908 477,921,441 Cost Land Buildings Machinery, Transportation Furniture Fields and quarries Tools Works in Total Balance as of January 1, 2022 6,219,522 300,979,660 608,464,616 75,590,036 21,357,079 128,964,236 4,166,935 11,494,837 1,157,236,921 Additions - 488,183 - - - 233,520 - 26,205,979 26,927,682 Disposal (9,424) (1,964,150) (370,246) (691,216) (10,381) (1,257,868) (6,558) - (4,309,843) Transfers - 3,852,949 14,752,704 3,364,005 428,916 10,024,085 131,745 (32,554,404) - Balance as of December 31, 2022 6,210,098 303,356,642 622,847,074 78,262,825 21,775,614 137,963,973 4,292,122 5,146,412 1,179,854,760 Additions 72 858,529 - - - 423,695 - 35,841,852 37,124,148 Disposal (52,437) (2,328,480) (1,231,979) (617,440) (741) - - - (4,231,077) Transfers - 4,725,307 6,500,298 1,876,150 163,076 11,479,491 281,507 (25,025,829) - Balance as of December 31, 2023 6,157,733 306,611,998 628,115,393 79,521,535 21,937,949 149,867,159 4,573,629 15,962,435 1,212,747,831 Accumulated depreciation and impairment in value Buildings Machinery, Transportation Furniture and Fields and quarries Tools Total Balance as of January 1, 2022 (217,764,600) (256,984,789) (66,566,633) (20,780,972) (98,460,911) (3,541,684) (664,099,589) Disposal 1,782,024 298,150 601,469 10,381 1,164,835 6,558 3,863,417 Depreciation (8,183,537) (16,526,342) (5,123,964) (430,886) (11,218,558) (213,860) (41,697,147) Balance as of December 31, 2022 (224,166,113) (273,212,981) (71,089,128) (21,201,477) (108,514,634) (3,748,986) (701,933,319) Disposal 2,328,480 1,113,988 401,913 605 - - 3,844,986 Depreciation charge (5,782,480) (16,756,910) (1,992,424) (204,235) (7,595,345) (200,196) (32,531,590) Balance as of December 31, 2023 (227,620,113) (288,855,903) (72,679,639) (21,405,107) (116,109,979) (3,949,182) (730,619,923) |
RIGHT OF USE ASSETS AND LEASE_2
RIGHT OF USE ASSETS AND LEASE LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Right Of Use Asset And Lease Liability [Abstract] | |
Schedule of Changes in Right of Use Assets and Lease Liabilities | Changes in right of use assets and lease liabilities as of December 31, 2023 and 2022 are as follows: 2023 2022 Lease liabilities: As of the beginning of the year 3,318,236 1,909,119 Additions 71,084 2,160,014 Financial restatements 358,923 289,307 Foreign Exchange gain /(losses) 4,271,628 930,664 Gain on net monetary position (3,071,750) (1,088,899) Payments (960,757) (881,969) As of the end of the year 3,987,364 3,318,236 Right of use assets: As of the beginning of the year 3,271,458 1,879,740 Additions 71,084 2,160,014 Depreciation (796,200) (768,296) As of the end of the year 2,546,342 3,271,458 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets [Abstract] | |
Schedule of Intangible Assets | 2023 2022 Software 1,585,465 1,463,250 Total 1,585,465 1,463,250 |
Schedule of Changes in Intangible Assets | Software Cost: Balance as of January 1, 2022 7,208,457 Additions 324,567 Balance as of December 31, 2022 7,533,024 Additions 669,825 Balance as of December 31, 2023 8,202,849 Accumulated amortization: Balance as of January 1, 2022 (5,454,876) Amortization (614,898) Balance as of December 31, 2022 (6,069,774) Amortization (547,610) Balance as of December 31, 2023 (6,617,384) |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of Investments [abstract] | |
Schedule of Investments | 2023 2022 Non-Current Investments in other companies: - Cementos del Plata S.A. 31,869 31,869 Total 31,869 31,869 Current Short-term investments: - Government securities in dollars 1,609,330 - - Mutual fund in pesos 30,503 2,068,052 - Short-term investments in foreign currency 70,535 11,155,278 Total 1,710,368 13,223,330 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Goodwill [abstract] | |
Schedule of Goodwill | 2023 2022 Cost Recycomb S.A.U. 317,878 317,878 Total 317,878 317,878 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory [Abstract] | |
Schedule of Inventories | 2023 2022 Non-Current Spare Parts 23,140,685 20,816,309 Allowance for obsolete inventories (470,177) (948,175) Total 22,670,508 19,868,134 Current Finished products 4,171,765 5,235,997 Production in progress 17,649,645 14,966,747 Raw materials, materials and spare parts 44,945,404 33,450,670 Fuels 9,718,899 9,886,200 Total 76,485,713 63,539,614 |
PARENT COMPANY, OTHER SHAREHO_2
PARENT COMPANY, OTHER SHAREHOLDERS, ASSOCIATES AND OTHER RELATED PARTIES BALANCES AND TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related party transactions [abstract] | |
Schedule of Outstanding Balances Between the Group and the Related Party Transactions and Balances | The balances between the Group and related parties as of December 31, 2023 and 2022 are as follows: 2023 2022 Related parties: InterCement Brasil S.A. Accounts payable (141,115) (93,693) InterCement Trading e Inversiones S.A. Other receivables 1,693,789 1,306,661 Accounts payable (778,006) (516,560) Intercement Participações S.A. Other receivables 1,967,205 1,186,085 Accounts payable (2,132,681) (2,306,469) InterCement Trading e Inversiones Argentina S.L Other receivables - 265,265 Other liabilities – dividends payable - (5,681,123) |
Schedule of Balances of Related Party Transactions | Total Group's balances per item with other related parties as of December 31, 2023 and 2022 are as follows: 2023 2022 Other receivables 3,660,994 2,758,011 Accounts payable (3,051,802) (2,916,722) Other liabilities – dividends payable - (5,681,123) |
Schedule of Transactions Between the Group and Parent Companies, Associates and Related Parties | The transactions between the Group and other related parties during the fiscal years ended December 31, 2023, 2022, and 2021 respectively, are detailed below. These transactions are made on terms equivalent to those that prevail in arm's length transactions: 2023 2022 2021 InterCement Trading e Inversiones S.A. - sales of goods and services - - 23,975 Intercement Participações S.A. - services provided 148,821 238,249 823,953 Intercement Participações S.A. - services received (2,735,576) (4,312,762) (4,303,006) InterCement Trading e Inversiones Argentina S.A. - distribution of dividends (40,108,638) (41,075,634) - |
OTHER RECEIVABLES (Tables)
OTHER RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Trade and other receivables [abstract] | |
Schedule of Other Receivables | 2023 2022 Non-Current Advances to suppliers 809,864 2,102,928 Tax receivables 17,705 57,735 Contributions to the Trust Fund to Strengthen the Inter-urban Railroad System (F.F.F.S.F.I.) 283,852 951,538 Prepaid expenses 1,020,549 1,245,819 Guarantee deposits - 84,800 Subtotal 2,131,970 4,442,820 Allowance for other doubtful accounts (283,852) (951,538) Total 1,848,118 3,491,282 Current Income tax receivables 5,767,981 8,940,294 Turnover tax receivables 166,448 815,259 Value added tax receivables 191,282 - Receivable for sale of interest in Yguazú Cementos S.A. 806,452 1,375,475 Related party receivables (Note 19) 3,660,994 2,758,011 Prepaid expenses 1,997,365 1,945,937 Guarantee deposits 919 2,665 Reimbursements receivable 14,694 6,283 Advance payments to suppliers 2,875,372 1,516,256 Salaries advances and loans to employees 41,597 99,089 Insurances receivable 4,838,710 - Receivables from sales of property, plant and equipment 951,830 716,094 Miscellaneous 434,126 42,103 Total 21,747,770 18,217,466 |
TRADE RECEIVABLES (Tables)
TRADE RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Trade and other receivables [abstract] | |
Schedule of Trade Accounts Receivables | 2023 2022 Accounts receivable 22,623,900 28,418,758 Accounts receivable in litigations 1,883,274 1,285,941 Notes receivable 5,322 16,801 Foreign customers 161,707 17,874 Subtotal 24,674,203 29,739,374 Allowance for doubtful accounts (1,925,045) (1,329,119) Total 22,749,158 28,410,255 |
Schedule of Maturities of Accounts Receivable | The trade receivables disclosed in the preceding paragraphs include the amounts (see aging analysis below) which are overdue as of December 31, 2023 and 2022. Accounts receivable aging is as follows: 2023 2022 To expire 14,650,767 18,935,824 Past due: 0 to 30 days 7,029,712 7,193,784 31 to 60 days 449,533 1,334,517 61 to 90 days 278,923 294,520 More than 90 days 2,265,268 1,980,729 Total 24,674,203 29,739,374 |
Schedule of Financial Assets That Are Either Past Due or Impaired | Aging of past due, but not impaired, accounts receivable is as follows: 2023 2022 Past due: 0 to 30 days 7,029,712 7,193,784 31 to 60 days 449,533 1,334,517 61 to 90 days 278,923 294,520 More than 90 days 340,223 1,769,082 Total 8,098,391 10,591,903 Average age of overdue balances (in days) 22 27 The average aging of past due and impaired accounts receivable is as follows: 2023 2022 Past due: More than 90 days 1,925,045 1,329,119 Total 1,925,045 1,329,119 |
Schedule of Changes in Allowance for Doubtful Accounts | Changes in the allowance for doubtful receivables were as follows: Balance as of January 1, 2022 1,575,960 Increases 683,201 Gain on net monetary position (879,511) Decreases (*) (50,531) Balance as of December 31, 2022 1,329,119 Increases, net of recoveries 1,862,288 Gain on net monetary position (1,265,427) Decreases (*) (935) Balance as of December 31, 2023 1,925,045 (*) |
CASH AND BANKS (Tables)
CASH AND BANKS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Schedule of Cash and Banks | 2023 2022 In Pesos 1,793,728 2,059,103 In Dollars 3,220,510 4,600 In Euros 9,559 5,927 Total 5,023,797 2,069,630 |
CAPITAL STOCK AND OTHER RELAT_2
CAPITAL STOCK AND OTHER RELATED ACCOUNTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of capital stock and other capital related accounts [abstract] | |
Schedule of Detailed Information of Capital Stock and Other Capital Related Accounts | 2023 2022 Capital stock 58,349 59,603 Capital adjustment 43,012,348 43,936,999 Treasury shares - (20,038,774) Share-based payment plans 569,731 356,176 Treasury shares trading premium 158,837 43,080 Share premium 63,825,938 79,442,908 Merger premium 14,350,655 14,350,655 Total 121,975,858 118,150,647 The issued, paid-in and registered capital stock consists of: Common stock with a face value of 0.10 per share and entitled to 1 vote each, fully paid-in (in thousands) 583,483 596,026 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of detailed information about borrowings [abstract] | |
Schedule of Composition of Borrowings | Composition of borrowings 2023 2022 Borrowings - In foreign currency 111,358,993 33,888,039 - In local currency 36,011,283 30,792,459 Total 147,370,276 64,680,498 Non-current borrowings 110,145,543 30,766,107 Current borrowings 37,224,733 33,914,391 Total 147,370,276 64,680,498 |
Schedule of Detail Information of Loans | 24.2 Detail of borrowings 2023 2022 Ref. Company Rate Last maturity Amount Amount Borrowings in foreign currency - US$ Industrial and Commercial Bank of China (Dubai) Loma Negra C.I.A.S.A. 3-Month Libor + 7.50% Nov-23 - 2,148,385 Industrial and Commercial Bank of China (Dubai) (1) Loma Negra C.I.A.S.A. 3-Month Libor + 8.00% Jul-24 - 31,502,232 Banco Patagonia (2) Ferrosur Roca S.A. 17.00% Jun-24 37,281 - Banco Patagonia (2) Ferrosur Roca S.A. 18.00% Jul-24 88,173 - Banco Patagonia (2) Ferrosur Roca S.A. 36.00% May-23 6,489 Banco Patagonia (2) Ferrosur Roca S.A. 15.00% May-23 66,664 Banco Patagonia (2) Ferrosur Roca S.A. 19.00% Mar-23 8,875 Banco Patagonia (2) Ferrosur Roca S.A. 37.00% Feb-23 6,016 Banco Patagonia (2) Ferrosur Roca S.A. 15.00% Feb-23 15,397 Banco Patagonia (2) Ferrosur Roca S.A. 13.50% Feb-23 133,981 Total borrowings in foreign currency 125,454 33,888,039 Borrowings in local currency Bank overdrafts (3) Ferrosur Roca S.A. 102.56% Jan-24 2,304,780 3,863,785 Bank overdrafts (3) Loma Negra C.I.A.S.A. 97.83% Jan-24 4,645,464 3,000,735 Bank overdrafts (4) Loma Negra C.I.A.S.A. 52.00% Jan-23 - 9,404,983 Bank overdrafts (3) Loma Negra C.I.A.S.A. 69.00% Jan-23 - 6,305,600 Securities-guaranteed borrowing (5) Loma Negra C.I.A.S.A. 64.99% Jan-23 - 8,217,356 Total borrowings in local currency 6,950,244 30,792,459 2023 2022 Ref. Company Rate Last maturity Amount Amount Corporate notes - US$ Serie – Class 2 (6) Loma Negra C.I.A.S.A. 6.50% Dec-25 57,851,670 - Serie – Class 3 (6) Loma Negra C.I.A.S.A. 7.49% Mar-26 45,262,452 - Serie – Class 4 (6) Loma Negra C.I.A.S.A. 6.00% Mar-26 8,119,417 - Total corporate bonds in foreing currency 111,233,539 - 2023 2022 Ref. Company Rate Last maturity Amount Amount Corporate notes - Ps. Serie – Class 1 (7) Loma Negra C.I.A.S.A. BADLAR +2% Aug-24 29,061,039 - Total corporate bonds in local currency 29,061,039 - Total 147,370,276 64,680,498 (1) In April 2022, Loma Negra C.I.A.S.A. entered into a loan agreement abroad with Industrial and Commercial Bank of China Limited for US$ 56 million, the principal payments of which mature in three equal installments in January, April, and July 2024. The loan was guaranteed by Intercement Participações S.A. up to 51% of its amount. Interest accrues at Libor plus 8% payable on a quarterly basis. As this loan has been used to settle Company obligations held abroad, the loan proceeds have not been deposited or settled through Argentina’s single and free exchange market (“MULC” for the Spanish initials of Mercado Único y Libre de Cambios). The loan has been valued at its amortized cost in foreign currency, and the resulting amounts have been translated into local currency at the official selling exchange rate in force at the end of the reporting period. On October 4, 2023, the Group prepaid the balance owed on the loan with the Industrial and Commercial Bank of China for a total amount of US$48,208 thousand, including interest. (2) During the fiscal year 2023 and 2022 , Ferrosur Roca S.A. entered into several contracts in US dollars with Banco Patagonia, accruing interest at a fixed rate. (3) As of December 31, 2023 and 2022, the Group carries bank overdrafts in the amount of 6,950,244 and 13,170,120, respectively. Bank overdrafts existing at the beginning of the year were canceled regularly during fiscal year 2023. (4) In addition, on July 7, 2022, the Company entered into a loan agreement with HSBC Bank Argentina S.A. for 3,000 million pesos maturing in a term of 180 days, accruing interest at a fixed annual rate of 52%. As of December 31, 2023, it is canceled. (5) As of December 31, 2022, Loma Negra entered into fundraising agreements through securities-guaranteed borrowings, using its own shares as guarantee at an annual nominal average rate of 64.99%, which has been canceled during fiscal year 2023. (6) On June 21, 2023, September 11, 2023 and November 2, 2023, the Company issued its Class 2, 3 and 4 Corporate Bonds in dollars for a total amount of US$71,723 thousand, US$55,000 thousand and US10,000 thousand, with an interest rate of 6.5%, 7.49% and 6.00%, and maturing on December 21, 2025, March 11, 2026 and May 2, 2026, respectively. Interest is paid semiannually. The issuance of these corporate bonds in foreign currency has been carried out within the scope of the local public offering, without intervention of the single and free exchange market ("MULC"). These debts have been valued at their amortized cost in foreign currency, converting the resulting amounts into local currency at the official selling exchange rate effective at the end of the reporting period. (7) On February 22, 2023, the Company issued its Class 1 Corporate Bonds for a total amount of $25,636.3 million, with an interest rate BADLAR + 2.0%, principal maturity at 18 months and payments quarterly interest. 2023 2022 Total borrowings by company: - Loma Negra C.I.A.S.A. 144,940,042 60,579,291 - Ferrosur Roca S.A. 2,430,234 4,101,207 Total 147,370,276 64,680,498 |
Schedule of Movements of Loans | The movements of borrowings for the fiscal year ended December 31, 2023, are disclosed below: Balances as of January 1, 2023 64,680,498 New borrowings and financing 69,468,936 Issuance of corporate bonds 142,486,878 Accrued interest 61,852,712 Effects of foreign exchange rate variation 97,363,920 Gain on net monetary position (123,246,800) Interest payments (54,374,304) Principal payments (110,861,564) Balances as of December 31, 2023 147,370,276 |
Schedule of Long-term Borrowings Maturity | As of December 31, 2023, long-term borrowings have the following maturity schedule: Fiscal year 2025 57,794,807 2026 52,350,736 Total 110,145,543 |
ACCOUNTS PAYABLE (Tables)
ACCOUNTS PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Accounts Payable [abstract] | |
Schedule of Accounts Payable | 2023 2022 Current Suppliers 41,824,376 39,003,595 Related parties (Note 19) 3,051,802 2,916,722 Accounts payable for investments in property, plant and equipment 348,192 2,656,884 Provisions for expenses 12,030,872 10,540,082 Total 57,255,242 55,117,283 |
PROVISIONS (Tables)
PROVISIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Provisions [abstract] | |
Schedule of Other Provisions | 2023 2022 Labor and social security 1,305,780 1,382,456 Environmental restoration 4,574,024 2,219,589 Civil and other 861,712 468,522 Total 6,741,516 4,070,567 |
Schedule of Changes in Provisions | Changes in provisions are as follows: Labor and Environmental Civil and other Total Balance as of January 1, 2022 645,226 2,035,257 760,956 3,441,439 Increases (*) 1,615,516 1,948,712 546,977 4,111,205 Gain on net monetary position (582,718) (1,243,167) (400,567) (2,226,452) Decreases (**) (295,568) (521,213) (438,844) (1,255,625) Balance as of December 31, 2022 1,382,456 2,219,589 468,522 4,070,567 Increases (*) 1,610,912 5,480,500 1,329,368 8,420,780 Gain on net monetary position (1,471,926) (2,834,570) (771,722) (5,078,218) Decreases (**) (215,662) (291,495) (164,456) (671,613) Balance as of December 31, 2023 1,305,780 4,574,024 861,712 6,741,516 (*) The increase in the environmental provision includes the increase resulting from changes in the measurement of liabilities arising from the estimated restoration schedule and the discount rates used as of December 31, 2023 and 2022, respectively, the effect of which has adjusted the cost of the relevant assets. (**) It includes the uses of provisions for specific purposes. |
TAX LIABILITIES (Tables)
TAX LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Tax Liabilities [abstract] | |
Schedule of Taxes Liabilities | 2023 2022 Income tax 202,674 601,293 Value added tax 1,377,515 6,528,267 Turnover tax 847,627 1,015,497 Other taxes 523,225 932,706 Total 2,951,041 9,077,763 |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Miscellaneous liabilities [abstract] | |
Schedule of Other Liabilities | 2023 2022 Non-current Benefit plans 370,813 302,445 Termination payment plans 107,102 209,042 Total 477,915 511,487 Current Termination payment plans 301,582 479,710 Dividends payable to related parties (Note 19) - 5,681,123 Dividends payable to third parties minority 226,309 5,450,550 Agreement for settlement of claims 4,838,710 - Others 91,174 72,804 Total 5,457,775 11,684,187 |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Cash and cash equivalents [abstract] | |
Schedule of Detailed Information About Cash and Cash Equivalents | Cash and cash equivalents at the end of each reporting period as disclosed in the consolidated statement of cash flows can be reconciled to the related items in the consolidated statement of financial position as follows: 2023 2022 2021 Cash and banks (Note 22) 5,023,797 2,069,630 2,006,225 Short-term investments (Note 16) 1,710,368 13,223,330 18,046,171 Cash and cash equivalents 6,734,165 15,292,960 20,052,396 |
NON-CASH TRANSACTIONS (Tables)
NON-CASH TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Non Cash Transactions [abstract] | |
Schedule of Non-Cash transactions | Below is a detail of the transactions that did not involve cash flows in each fiscal year: 2023 2022 2021 - Right of use assets and lease liabilities 71,084 2,160,014 347,192 - Acquisition of financed property, plant and equipment 348,246 5,259,641 9,566,122 - Delivery of shares – benefit plans 182,372 197,242 241,855 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of operating segments [abstract] | |
Schedule of Segment Reporting | 2023 2022 2021 Revenues Cement, masonry cement and lime 205,007,364 96,498,837 173,743,274 Concrete 21,866,051 9,389,682 13,901,377 Rail services 18,450,706 8,720,472 15,813,685 Aggregates 7,071,371 2,775,092 2,989,635 Others 1,354,975 664,332 1,189,017 Segment-to-segment eliminations (20,411,026) (8,805,043) (13,482,789) Total 233,339,441 109,243,372 194,154,199 Effect from restatement in constant currency 188,821,376 342,710,682 252,717,408 Total 422,160,817 451,954,054 446,871,607 2023 2022 2021 Cost of sales Cement, masonry cement and lime 118,763,699 58,125,212 101,210,427 Concrete 20,728,478 8,924,833 14,195,542 Rail services 17,254,059 8,308,344 14,989,065 Aggregates 6,081,288 2,282,557 2,866,884 Others 896,919 389,501 742,172 Segment-to-segment eliminations (20,411,026) (8,805,043) (13,482,789) Total 143,313,417 69,225,404 120,521,301 Effect from restatement in constant currency 172,940,159 260,679,690 185,109,208 Total 316,253,576 329,905,094 305,630,509 2023 2022 2021 Selling, administrative and other expenses Cement, masonry cement and lime 17,259,548 4,345,407 13,069,959 Concrete 681,148 337,403 165,426 Rail services 1,021,921 469,408 1,693,896 Aggregates 72,640 33,259 34,672 Others 453,282 211,365 415,838 Total 19,488,539 5,396,842 15,379,791 Effect from restatement in constant currency 18,259,108 23,019,590 21,739,832 Total 37,747,647 28,416,432 37,119,623 2023 2022 2021 Depreciation and amortization Cement, masonry cement and lime 3,097,258 2,411,444 4,162,150 Concrete 104,245 57,140 205,878 Rail services 546,760 607,668 950,170 Aggregates 117,188 55,837 104,253 Others 5,241 4,978 15,813 Total 3,870,692 3,137,067 5,438,264 Effect from restatement in constant currency 28,320,788 38,211,532 30,710,894 Total 32,191,480 41,348,599 36,149,158 2023 2022 2021 Revenues less cost of sales, selling and administrative expenses, and other gains and losses Cement, masonry cement and lime 68,984,117 34,028,218 59,462,888 Concrete 456,425 127,446 (459,591) Rail services 174,726 (57,280) (869,276) Aggregates 917,443 459,276 88,079 Others 4,774 63,466 31,007 Total 70,537,485 34,621,126 58,253,107 Effect from restatement in constant currency (2,377,891) 59,011,402 45,868,368 Total 68,159,594 93,632,528 104,121,475 Reconciling items Tax on debits and credits to bank accounts (4,676,516) (4,531,752) (4,503,693) Impairment of property, plant and equipment - Cement - - (927,176) Financial results (loss), net (46,064,825) (54,836,592) 257,699 Income tax (7,737,730) (28,637,429) (60,464,798) Net profit for the year 9,680,523 5,626,755 38,483,507 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of detailed information about financial instruments [abstract] | |
Schedule of Net Debt to Equity Ratio | The net debt-to-equity ratio for the reporting fiscal years is as follows: 2023 2022 Debt (i) 147,370,276 64,680,498 Cash and current investment 6,734,165 15,292,960 Net debt 140,636,111 49,387,538 Shareholders’ Equity (ii) 294,221,535 361,068,554 Net debt-to-equity ratio and shareholders’ equity 0.48 0.14 (i) Debt is defined as long and short-term borrowings. (ii) |
Schedule of Financial Instruments | 32.2 Categories of financial instruments 2023 2022 Financial Assets At amortized cost: Cash and banks 5,023,797 2,069,630 Investments 1,679,865 11,155,278 Accounts receivable and other receivables 33,264,975 33,395,629 At fair value through profit or loss: Investments 30,503 2,068,052 2023 2022 Financial Liabilities Amortized cost 226,900,332 158,530,073 |
Schedule of Monetary Assets and Liabilities Denominated in Foreign Currency | The carrying amounts of monetary assets and liabilities denominated in foreign currency at the end of the fiscal years ended December 31, 2023 and 2022 are as follows: 2023 2022 Liabilities: United States Dollars 130,228,653 42,156,027 Euros 693,536 1,163,015 Reales 423 265 2023 2022 Assets: United States Dollars 15,764,054 16,758,306 Euros 9,559 142,433 |
Schedule of Foreign Currency Sensitivity Analysis | The following table details the Group’s sensitivity to an increase in the exchange rate of the US Dollar and the Euro as of December 31, 2023. The sensitivity rate is the rate used when reporting exchange rate risk internally to key management staff and represents management’s assessment of a possible reasonable change in exchange rates. The sensitivity analysis includes only outstanding monetary items denominated in foreign currency and adjusts their translation on the balance sheet day for a 25% change in the exchange rate, considering for its calculation the whole of the items of the subsidiaries. US Dollar effect Euro effect Income for the year 28,616,150 170,994 Shareholders’ Equity 28,616,150 170,994 |
Schedule of Interest Rate Risk Management | The Group is exposed to the risk of significant fluctuations in interest rates because Group entities have borrowings at both fixed and floating interest rates. The Group manages this risk by maintaining an appropriate combination of fixed- and floating-rate borrowings. 2023 2022 Financial Assets: Investments held to maturity (1) 1,679,865 11,155,278 Investments at fair value through profit or loss (2) 30,503 2,068,052 Financial Liabilities: Amortized cost (3) 147,370,276 64,680,498 (1) Fixed-term deposits at fixed rates. (2) Short-term investments at floating rates. (3) Related to borrowings, as detailed in Note 24. |
Schedule of Contractual Maturity for Non-derivative Financial Liabilities with Agreed Repayment Periods | The tables include both interest and principal cash flows. To the extent that interest flows are at floating rates, the undiscounted amount is derived from interest rate curves at the end of this reporting period. Borrowings Weighted Less than 1 From 1 From 3 From 1 to Total As of December 31, 2023 61% 6,939,996 9,887,760 47,965,502 119,713,394 184,506,652 As of December 31, 2022 58% 28,741,032 3,771,421 4,665,270 32,740,936 69,918,659 Leases Weighted Less From 1 From 3 From 1 From 3 to Total As of December 31, 2023 (*) 108,095 324,450 967,459 3,465,001 148,090 5,013,095 As of December 31, 2022 (*) 82,646 247,569 611,888 2,625,646 732,225 4,299,974 |
Schedule of Financial Assets and Financial Liabilities are Measured at Fair Value on a Recurring Basis | Some of the Group’s financial assets are measured at fair value at the end of this reporting period. The following table provides information on how the fair values of these financial assets are measured (particularly, valuation techniques and inputs used). Fair value at: Hierarchy level Financial assets 2023 2022 Assets: Mutual Funds 30,503 2,068,052 Level 1 |
LEGAL INFORMATION (Details)
LEGAL INFORMATION (Details) | 12 Months Ended | |||||
Jan. 01, 2023 | Dec. 31, 2023 ARS ($) facility Vote $ / shares shares | Dec. 31, 2022 shares | Dec. 31, 2021 | Dec. 31, 1993 | Jun. 06, 2023 $ / shares | |
Disclosure of general information about financial statements [line items] | ||||||
Fiscal year | 99 years | |||||
Number of factories | facility | 8,000,000 | |||||
Proportion of ownership interest in subsidiary | 16% | |||||
Percentage of voting interest transferred by the latter to the workers through a trust | 4% | |||||
Number of shares in entity held by entity or by its subsidiaries or associates | 12,543,339 | |||||
Capital | $ | $ 58,348,315 | |||||
Number of common shares issued (in shares) | 583,483,151 | 596,026,000 | ||||
Par value per share (in pesos per share) | $ / shares | $ 0.10 | $ 0.10 | ||||
Number of votes per share | Vote | 1 | |||||
Treasury shares | ||||||
Disclosure of general information about financial statements [line items] | ||||||
Number of shares in entity held by entity or by its subsidiaries or associates | 12,352,329 | |||||
Other reserves | ||||||
Disclosure of general information about financial statements [line items] | ||||||
Number of shares in entity held by entity or by its subsidiaries or associates | 191,010 | |||||
InterCement Trading e Inversiones S.A. | ||||||
Disclosure of general information about financial statements [line items] | ||||||
Percentage of ownership held by parent company | 52.1409% | |||||
Cofesur S.A.U | ||||||
Disclosure of general information about financial statements [line items] | ||||||
Proportion of ownership interest in subsidiary | 80% | |||||
Ferrosur Roca S.A. | ||||||
Disclosure of general information about financial statements [line items] | ||||||
Proportion of ownership interest in subsidiary | 80% | 80% | 80% | |||
Concession period | 30 years |
BASIS OF PREPARATION OF THE C_4
BASIS OF PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTS - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Basis Of Preparation Of Financial Statements [Abstract] | |||
Period for deemed hyperinflation of functional currency | 3 years | ||
Threshold percent for deemed hyperinflation of functional currency | 100% | ||
Variation of index used for restatement of financial statements | 2.1140 | 0.9479 | 0.5094 |
Accumulated price index movements in the three years | 100% |
BASIS OF PREPARATION OF THE C_5
BASIS OF PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTS - Schedule of Significant Investments in Subsidiaries (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of subsidiaries [line items] | |||
Percentage of direct and indirect equity interest rate | 16% | ||
Cofesur S.A.U. | |||
Disclosure of subsidiaries [line items] | |||
Percentage of direct and indirect equity interest rate | 100% | 100% | 100% |
Ferrosur Roca S.A. | |||
Disclosure of subsidiaries [line items] | |||
Percentage of direct and indirect equity interest rate | 80% | 80% | 80% |
Recycomb S.A.U. | |||
Disclosure of subsidiaries [line items] | |||
Percentage of direct and indirect equity interest rate | 100% | 100% | 100% |
BASIS OF PREPARATION OF THE C_6
BASIS OF PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTS - Schedule of Financial Information on Ferrosur Roca S A (Details) - ARS ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of subsidiaries [line items] | |||
Current assets | $ 127,716,806 | $ 125,460,295 | |
Non-current assets | 511,128,088 | 506,365,312 | |
Current liabilities | 117,359,492 | 130,003,943 | |
Non-current liabilities | 227,263,867 | 140,753,110 | |
Shareholders’ equity attributable to owners of the parent company | 294,239,498 | 360,461,861 | |
Non-controlling interest | (17,963) | 606,693 | |
Revenues | 422,160,817 | 451,954,054 | $ 446,871,607 |
Financial results, net | (46,064,825) | (54,836,592) | 257,699 |
Income tax | (7,737,730) | (28,637,429) | (60,464,798) |
Net losses for the year | 9,680,523 | 5,626,755 | 38,483,507 |
Net cash generated by (used in) operating activities | 85,030,209 | 97,663,754 | 91,292,551 |
Net cash generated by (used in) investing activities | (35,825,361) | (14,688,912) | (53,654,338) |
Net cash generated by (used in) financing activities | (41,085,569) | (77,172,406) | (53,135,729) |
Effects of the exchange rate differences on cash and cash equivalents in foreign currency | 6,540,801 | 710,337 | 6,799,736 |
Ferrosur Roca S.A. | |||
Disclosure of subsidiaries [line items] | |||
Current assets | 6,432,521 | 6,633,042 | |
Non-current assets | 6,018,546 | 8,015,053 | |
Current liabilities | 7,373,666 | 10,281,947 | |
Non-current liabilities | 2,317,828 | 1,332,845 | |
Shareholders’ equity attributable to owners of the parent company | 2,207,659 | 2,426,642 | |
Non-controlling interest | 551,915 | 606,661 | |
Revenues | 33,265,474 | 36,384,432 | 36,273,669 |
Financial results, net | (1,042,507) | 712,145 | (351,779) |
Depreciation | (2,764,791) | (8,396,827) | (6,894,662) |
Income tax | (552,976) | 1,452,029 | (76,837) |
Net losses for the year | (4,745,191) | (5,298,385) | (7,330,754) |
Net cash generated by (used in) operating activities | (1,983,303) | (280,281) | 2,865,822 |
Net cash generated by (used in) investing activities | 3,329,828 | (2,814,803) | (3,576,068) |
Net cash generated by (used in) financing activities | (1,213,679) | 3,392,253 | 556,037 |
Effects of the exchange rate differences on cash and cash equivalents in foreign currency | $ (228,460) | $ (175,373) | $ (115,395) |
MATERIAL ACCOUNTING POLICIES (D
MATERIAL ACCOUNTING POLICIES (Details) | 12 Months Ended | |||||||
Jun. 16, 2021 | Dec. 31, 2023 ARS ($) shares | Dec. 31, 2022 ARS ($) shares | Dec. 31, 2021 ARS ($) | Jan. 31, 2023 shares | Jan. 31, 2022 shares | Feb. 12, 2021 program | Jan. 24, 2018 program | |
Disclosure of significant accounting policies [line items] | ||||||||
Goodwill impairment loss | $ 0 | $ 0 | $ 0 | |||||
Income tax rate | 35% | 35% | 35% | |||||
Percentage of tax rate on dividends distributions | 7% | |||||||
Personal assets tax rate | 0.50% | |||||||
Current receivables from taxes other than income tax | $ 416,364,000 | |||||||
Legal reserve allowed proportion of subscribed capital adjustment | 20% | |||||||
Proportion of ownership interest in subsidiary | 16% | |||||||
Number of employee incentive programs | program | 2 | 1 | ||||||
Shares distributed (in shares) | shares | 17,473 | 10,069 | 17,473 | 10,069 | ||||
Ferrosur Roca S.A. | ||||||||
Disclosure of significant accounting policies [line items] | ||||||||
Proportion of ownership interest in subsidiary | 80% | 80% | 80% | |||||
Non-controlling interest | Ferrosur Roca S.A. | ||||||||
Disclosure of significant accounting policies [line items] | ||||||||
Proportion of ownership interest in subsidiary | 20% | |||||||
Minimum | ||||||||
Disclosure of significant accounting policies [line items] | ||||||||
Period of credit given to customers | 20 days | |||||||
Maximum | ||||||||
Disclosure of significant accounting policies [line items] | ||||||||
Period of credit given to customers | 35 days | |||||||
Legal reserve as percentage of net income | 5% | |||||||
Law 27,630 | Minimum | ||||||||
Disclosure of significant accounting policies [line items] | ||||||||
Income tax rate | 25% | |||||||
Law 27,630 | Weighted Average | ||||||||
Disclosure of significant accounting policies [line items] | ||||||||
Income tax rate | 30% | |||||||
Law 27,630 | Maximum | ||||||||
Disclosure of significant accounting policies [line items] | ||||||||
Income tax rate | 35% |
CRITICAL ACCOUNTING JUDGMENTS_3
CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Software | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 5 years |
Tools | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 5 years |
Minimum | Fields | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 50 years |
Minimum | Buildings | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 10 years |
Minimum | Machinery | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 10 years |
Minimum | Furniture and fixtures | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 5 years |
Minimum | Transportation and load vehicles | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 4 years |
Maximum | Fields | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 100 years |
Maximum | Buildings | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 50 years |
Maximum | Machinery | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 35 years |
Maximum | Furniture and fixtures | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 10 years |
Maximum | Transportation and load vehicles | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 32 years |
REVENUES (Details)
REVENUES (Details) - ARS ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue [abstract] | |||
Sale of products | $ 614,033,971 | $ 627,924,111 | $ 613,783,915 |
- Domestic market | 613,771,519 | 627,743,238 | 613,379,901 |
- External customers | 262,452 | 180,873 | 404,014 |
Services rendered | 15,077,673 | 18,761,289 | 20,198,930 |
Bonuses / Discounts | (206,950,827) | (194,731,346) | (187,111,238) |
Revenues | $ 422,160,817 | $ 451,954,054 | $ 446,871,607 |
COST OF SALES - Schedule of Cos
COST OF SALES - Schedule of Cost of Sales (Details) - ARS ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Analysis of income and expense [abstract] | ||||
Inventories at the beginning of the year | $ 83,407,748 | $ 71,465,476 | $ 70,025,517 | |
Finished products | 4,171,765 | 5,235,997 | 3,610,248 | $ 4,312,946 |
Products in progress | 17,649,645 | 14,966,747 | 12,165,049 | 8,240,170 |
Raw materials, materials, fuel, and spare parts | 77,334,811 | 63,205,004 | 55,690,179 | $ 57,472,401 |
Purchases and production expenses for the year | 332,002,049 | 341,847,366 | 307,070,468 | |
Inventories at the end of the year | (99,156,221) | (83,407,748) | (71,465,476) | |
Cost of sales | $ 316,253,576 | $ 329,905,094 | $ 305,630,509 |
COST OF SALES - Schedule of Bre
COST OF SALES - Schedule of Breakdown of Production Costs (Details) - Cost of Sales - ARS ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of attribution of expenses by nature to their function [line items] | |||
Fees and compensation for services | $ 4,824,164 | $ 6,224,735 | $ 6,122,508 |
Salaries, wages, and social security contributions | 48,315,608 | 49,158,340 | 48,170,901 |
Transport and traveling expenses | 2,707,952 | 2,419,876 | 2,179,660 |
Data processing | 165,897 | 184,139 | 120,484 |
Taxes, duties, contributions, and commissions | 5,511,485 | 6,027,942 | 6,218,524 |
Depreciation and amortization | 31,860,526 | 40,557,578 | 36,155,471 |
Preservation and maintenance costs | 28,848,789 | 28,111,393 | 28,360,476 |
Communications | 265,395 | 302,747 | 293,150 |
Leases | 559,015 | 533,776 | 337,557 |
Employee benefits | 1,580,643 | 1,469,734 | 1,329,001 |
Water, natural gas, and energy services | 92,341 | 71,633 | 62,353 |
Freight and tolls | 33,085,274 | 35,201,204 | 31,589,306 |
Fuels | 50,755,980 | 52,325,243 | 41,838,109 |
Insurance | 1,183,817 | 1,099,379 | 949,784 |
Packaging | 10,590,791 | 11,449,210 | 12,539,651 |
Electric power | 24,278,677 | 28,865,993 | 29,872,012 |
Contractors | 24,927,448 | 22,776,427 | 22,759,383 |
Canon (concession fee) | 210,582 | 232,174 | 239,768 |
Security | 1,427,618 | 1,495,425 | 1,537,416 |
Others | 3,937,480 | 4,462,876 | 4,158,678 |
Total | $ 275,129,482 | $ 292,969,824 | $ 274,834,192 |
SELLING AND ADMINISTRATIVE EX_3
SELLING AND ADMINISTRATIVE EXPENSES (Details) - ARS ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of selling and administrative expenses [line items] | |||
Total | $ 38,665,716 | $ 38,958,912 | $ 38,390,085 |
Selling and Administrative Expenses | |||
Disclosure of selling and administrative expenses [line items] | |||
Managers and directors’ compensation fees | 2,804,523 | 3,017,529 | 2,822,191 |
Fees and compensation for services | 3,311,630 | 2,571,901 | 2,249,637 |
Salaries, wages, and social security contributions | 9,665,392 | 9,768,778 | 8,723,883 |
Transport and traveling expenses | 522,432 | 502,604 | 204,903 |
Data processing | 1,390,817 | 975,828 | 1,126,570 |
Advertising expenses | 2,127,755 | 1,808,897 | 1,891,998 |
Taxes, duties, contributions, and commissions | 8,328,934 | 9,456,135 | 9,577,426 |
Depreciation and amortization | 2,014,873 | 2,522,764 | 2,255,476 |
Preservation and maintenance | 119,311 | 67,574 | 87,347 |
Communications | 211,827 | 302,606 | 256,354 |
Leases | 150,090 | 121,814 | 155,754 |
Employee benefits | 550,638 | 294,747 | 325,978 |
Water, natural gas, and energy services | 18,519 | 16,152 | 22,767 |
Freight | 4,688,096 | 5,725,645 | 5,890,705 |
Insurance | 1,733,962 | 963,228 | 883,015 |
Allowance for doubtful accounts | 109,601 | 85,119 | 1,191,265 |
Security | 94,717 | 87,740 | 80,928 |
Others | 822,599 | 669,851 | 643,888 |
Total | $ 38,665,716 | $ 38,958,912 | $ 38,390,085 |
OTHER GAINS AND LOSSES (Details
OTHER GAINS AND LOSSES (Details) - ARS ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Analysis of income and expense [abstract] | |||
Gain on disposal of property, plant and equipment | $ 450,860 | $ 10,493,634 | $ 540,541 |
Donations | (276,017) | (219,069) | (273,201) |
Technical services and assistance | 11,048 | 17,648 | 59,921 |
Gain over tax credit assignment | 73,424 | 340,004 | 559,347 |
Contingencies | (853,264) | (1,164,304) | (358,795) |
Leases | 392,172 | 521,515 | 665,628 |
Service fee from ADS Depositary bank | 878,856 | 442,285 | 306,068 |
Insurance claim collection | 4,517 | 0 | 0 |
Miscellaneous | 236,473 | 110,767 | (229,047) |
Total | $ 918,069 | $ 10,542,480 | $ 1,270,462 |
TAX ON DEBITS AND CREDITS TO _2
TAX ON DEBITS AND CREDITS TO BANK ACCOUNTS (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of Tax on debits and credits to bank accounts [abstract] | |||
General tax rate for credits and debits | 0.60% | 0.60% | 0.60% |
Percentage of other taxes applied on amounts credited and debited as payment | 33% | ||
Percentage included within income applied on amounts credited and debited as payment | 67% |
FINANCIAL RESULTS, NET (Details
FINANCIAL RESULTS, NET (Details) - ARS ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Exchange rate differences | |||
Foreign exchange gains | $ 12,271,935 | $ 2,599,842 | $ 1,716,834 |
Foreign exchange losses | (129,483,801) | (25,703,369) | (11,705,714) |
Total | (117,211,866) | (23,103,527) | (9,988,880) |
Financial income | |||
Interest from short-term investments | 5,016,309 | 4,708,054 | 6,109,952 |
Effect of discounts on provisions and liabilities | 693,625 | 356,464 | 90,171 |
Total | 5,709,934 | 5,064,518 | 6,200,123 |
Financial expenses | |||
Interest on borrowings | (61,852,712) | (17,757,415) | (2,983,830) |
Loss from securities transactions | (1,836,132) | (54,919,417) | 0 |
Interest on leases | (358,923) | (289,306) | (315,661) |
Tax interest | (616,320) | (804,813) | (357,630) |
Effect of discounts on receivables | (2,366,806) | (2,667,735) | (2,071,540) |
Others | (6,292,271) | (3,168,614) | (2,406,555) |
Total | $ (73,323,164) | $ (79,607,300) | $ (8,135,216) |
INCOME TAX EXPENSES - Schedule
INCOME TAX EXPENSES - Schedule of Income Tax Expense (Details) - ARS ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Major components of tax expense (income) [abstract] | |||
Profit before income tax expenses | $ 17,418,253 | $ 34,264,184 | $ 98,948,305 |
Income tax rate | 35% | 35% | 35% |
Income tax at the statutory tax rate | $ (6,096,389) | $ (11,992,464) | $ (34,631,906) |
Adjustments for calculation of the effective income tax: | |||
Recovery of tax losses / Unrecognized tax losses | 1,063,259 | (13,965,632) | (1,438,622) |
Effects of inflation adjustments for accounting and tax purposes | (2,979,017) | (2,571,900) | (1,029,682) |
Change in tax rate | (13,233) | 3,000 | (23,401,908) |
Other non-taxable income or non-deductible expense, net | 287,650 | (110,433) | 37,320 |
Total income tax | (7,737,730) | (28,637,429) | (60,464,798) |
Income tax | |||
Current | (3,809,918) | (12,782,304) | (40,269,309) |
Deferred | (3,927,812) | (15,855,125) | (20,195,489) |
Total income tax | $ (7,737,730) | $ (28,637,429) | $ (60,464,798) |
INCOME TAX EXPENSES - Schedul_2
INCOME TAX EXPENSES - Schedule of Deferred Income Tax (Details) - ARS ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Total deferred tax assets | $ 10,037,738 | $ 2,934,863 |
Deferred tax liabilities | (116,637,148) | (105,606,461) |
Total net deferred tax liabilities | (106,599,410) | (102,671,598) |
Tax loss carryforward | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Total deferred tax assets | 10,387,206 | 15,159,150 |
Valuation allowance of tax loss carryforward | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Total deferred tax assets | 4,137,345 | 13,982,670 |
Leases | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Total deferred tax assets | 504,358 | 16,370 |
Provisions | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Total deferred tax assets | 2,071,727 | 918,897 |
Salaries and social security contributions | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Total deferred tax assets | 307,325 | 178,670 |
Other liabilities | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Total deferred tax assets | 338,199 | 428,218 |
Others | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Total deferred tax assets | 566,268 | 216,228 |
Property, plant and equipment | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax liabilities | (100,938,571) | (92,302,691) |
Inventories | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax liabilities | (14,854,114) | (9,741,243) |
Taxes payable (tax inflation adjustment) | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax liabilities | (648,759) | (3,374,191) |
Borrowings | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax liabilities | (194,128) | (89,222) |
Others | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax liabilities | $ (1,576) | $ (99,114) |
INCOME TAX EXPENSES - Schedul_3
INCOME TAX EXPENSES - Schedule of Unrecognized Taxable Temporary Difference Associated with Investments (Details) - ARS ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognized temporary differences on investments and other interests | $ 1,177,554 | |
Temporary differences associated with investments in subsidiaries, branches and associates and interests in joint arrangements for which deferred tax liabilities have not been recognised | $ (756,110) | |
Subsidiaries | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unrecognized temporary differences on investments and other interests | 1,188,609 | |
Temporary differences associated with investments in subsidiaries, branches and associates and interests in joint arrangements for which deferred tax liabilities have not been recognised | (744,988) | |
Others | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Others | $ (11,122) | $ (11,055) |
INCOME TAX EXPENSES - Additiona
INCOME TAX EXPENSES - Additional Information (Details) | Dec. 31, 2023 ARS ($) |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Tax losses with impairment and other unrecognized tax losses | $ 14,178,123,000 |
2024 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Tax losses with impairment and other unrecognized tax losses | 429,819,000 |
2025 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Tax losses with impairment and other unrecognized tax losses | 100,462,000 |
2026 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Tax losses with impairment and other unrecognized tax losses | 843,487 |
2027 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Tax losses with impairment and other unrecognized tax losses | 12,781,349,000 |
2028 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Tax losses with impairment and other unrecognized tax losses | $ 23,007,000 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - ARS ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Profit or loss [abstract] | |||
Owners of the parent company | $ 10,305,179 | $ 6,037,186 | $ 39,949,661 |
Weighted average number of ordinary shares for the purposes of basic earnings per share (in thousands of shares) | 583,536 | 585,317 | 592,046 |
Weighted average number of ordinary shares for the purposes of diluted earnings per share (in thousands of shares) | 583,536 | 585,317 | 592,046 |
Earnings per share, basic from continued operations (in pesos per share) | $ 17.6599 | $ 10.3144 | $ 67.4772 |
Earnings per share, diluted from continued operations (in pesos per share) | $ 17.6599 | $ 10.3144 | $ 67.4772 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Schedule of Property, Plant and Equipment (Details) - ARS ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | $ 482,127,908 | $ 477,921,441 | |
Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 1,212,747,831 | 1,179,854,760 | $ 1,157,236,921 |
Accumulated depreciation | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | (730,619,923) | (701,933,319) | (664,099,589) |
Land | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 6,157,733 | 6,210,098 | |
Land | Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 6,157,733 | 6,210,098 | 6,219,522 |
Plant and buildings | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 78,991,885 | 79,190,529 | |
Machinery, equipment and spare parts | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 339,259,490 | 349,634,093 | |
Machinery, equipment and spare parts | Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 628,115,393 | 622,847,074 | 608,464,616 |
Machinery, equipment and spare parts | Accumulated depreciation | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | (288,855,903) | (273,212,981) | (256,984,789) |
Transportation and load vehicles | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 6,841,896 | 7,173,697 | |
Transportation and load vehicles | Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 79,521,535 | 78,262,825 | 75,590,036 |
Transportation and load vehicles | Accumulated depreciation | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | (72,679,639) | (71,089,128) | (66,566,633) |
Furniture and fixtures | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 532,842 | 574,137 | |
Furniture and fixtures | Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 21,937,949 | 21,775,614 | 21,357,079 |
Furniture and fixtures | Accumulated depreciation | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | (21,405,107) | (21,201,477) | (20,780,972) |
Fields and quarries | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 33,757,180 | 29,449,339 | |
Fields and quarries | Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 149,867,159 | 137,963,973 | 128,964,236 |
Fields and quarries | Accumulated depreciation | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | (116,109,979) | (108,514,634) | (98,460,911) |
Tools | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 624,447 | 543,136 | |
Tools | Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 4,573,629 | 4,292,122 | 4,166,935 |
Tools | Accumulated depreciation | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | (3,949,182) | (3,748,986) | (3,541,684) |
Construction in process | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 15,962,435 | 5,146,412 | |
Construction in process | Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | $ 15,962,435 | $ 5,146,412 | $ 11,494,837 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT - Schedule of Breakdown of Property, Plant and Equipment (Details) - ARS ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | $ 477,921,441 | |
Ending balance | 482,127,908 | $ 477,921,441 |
Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 1,179,854,760 | 1,157,236,921 |
Additions | 37,124,148 | 26,927,682 |
Disposal | (4,231,077) | (4,309,843) |
Transfers | 0 | 0 |
Ending balance | 1,212,747,831 | 1,179,854,760 |
Accumulated depreciation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | (701,933,319) | (664,099,589) |
Disposal | 3,844,986 | 3,863,417 |
Depreciation | (32,531,590) | (41,697,147) |
Ending balance | (730,619,923) | (701,933,319) |
Land | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 6,210,098 | |
Ending balance | 6,157,733 | 6,210,098 |
Land | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 6,210,098 | 6,219,522 |
Additions | 72 | 0 |
Disposal | (52,437) | (9,424) |
Transfers | 0 | 0 |
Ending balance | 6,157,733 | 6,210,098 |
Buildings | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 303,356,642 | 300,979,660 |
Additions | 858,529 | 488,183 |
Disposal | (2,328,480) | (1,964,150) |
Transfers | 4,725,307 | 3,852,949 |
Ending balance | 306,611,998 | 303,356,642 |
Buildings | Accumulated depreciation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | (224,166,113) | (217,764,600) |
Disposal | 2,328,480 | 1,782,024 |
Depreciation | (5,782,480) | (8,183,537) |
Ending balance | (227,620,113) | (224,166,113) |
Machinery, equipment and spare parts | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 349,634,093 | |
Ending balance | 339,259,490 | 349,634,093 |
Machinery, equipment and spare parts | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 622,847,074 | 608,464,616 |
Additions | 0 | 0 |
Disposal | (1,231,979) | (370,246) |
Transfers | 6,500,298 | 14,752,704 |
Ending balance | 628,115,393 | 622,847,074 |
Machinery, equipment and spare parts | Accumulated depreciation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | (273,212,981) | (256,984,789) |
Disposal | 1,113,988 | 298,150 |
Depreciation | (16,756,910) | (16,526,342) |
Ending balance | (288,855,903) | (273,212,981) |
Transportation and load vehicles | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 7,173,697 | |
Ending balance | 6,841,896 | 7,173,697 |
Transportation and load vehicles | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 78,262,825 | 75,590,036 |
Additions | 0 | 0 |
Disposal | (617,440) | (691,216) |
Transfers | 1,876,150 | 3,364,005 |
Ending balance | 79,521,535 | 78,262,825 |
Transportation and load vehicles | Accumulated depreciation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | (71,089,128) | (66,566,633) |
Disposal | 401,913 | 601,469 |
Depreciation | (1,992,424) | (5,123,964) |
Ending balance | (72,679,639) | (71,089,128) |
Furniture and fixtures | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 574,137 | |
Ending balance | 532,842 | 574,137 |
Furniture and fixtures | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 21,775,614 | 21,357,079 |
Additions | 0 | 0 |
Disposal | (741) | (10,381) |
Transfers | 163,076 | 428,916 |
Ending balance | 21,937,949 | 21,775,614 |
Furniture and fixtures | Accumulated depreciation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | (21,201,477) | (20,780,972) |
Disposal | 605 | 10,381 |
Depreciation | (204,235) | (430,886) |
Ending balance | (21,405,107) | (21,201,477) |
Fields and quarries | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 29,449,339 | |
Ending balance | 33,757,180 | 29,449,339 |
Fields and quarries | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 137,963,973 | 128,964,236 |
Additions | 423,695 | 233,520 |
Disposal | 0 | (1,257,868) |
Transfers | 11,479,491 | 10,024,085 |
Ending balance | 149,867,159 | 137,963,973 |
Fields and quarries | Accumulated depreciation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | (108,514,634) | (98,460,911) |
Disposal | 0 | 1,164,835 |
Depreciation | (7,595,345) | (11,218,558) |
Ending balance | (116,109,979) | (108,514,634) |
Tools | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 543,136 | |
Ending balance | 624,447 | 543,136 |
Tools | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 4,292,122 | 4,166,935 |
Additions | 0 | 0 |
Disposal | 0 | (6,558) |
Transfers | 281,507 | 131,745 |
Ending balance | 4,573,629 | 4,292,122 |
Tools | Accumulated depreciation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | (3,748,986) | (3,541,684) |
Disposal | 0 | 6,558 |
Depreciation | (200,196) | (213,860) |
Ending balance | (3,949,182) | (3,748,986) |
Works in process | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 5,146,412 | |
Ending balance | 15,962,435 | 5,146,412 |
Works in process | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 5,146,412 | 11,494,837 |
Additions | 35,841,852 | 26,205,979 |
Disposal | 0 | 0 |
Transfers | (25,025,829) | (32,554,404) |
Ending balance | $ 15,962,435 | $ 5,146,412 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT - Additional Information (Details) - ARS ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Impairment loss on property, plant and equipment | $ 927,176,000 | ||
Cement masonry cement and lime cash generating unit | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Discount rate, cash flow projections | 15.45% | 15.70% | |
Concrete cash generating unit | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Discount rate, cash flow projections | 15.70% | ||
Aggregates cash generating units | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Discount rate, cash flow projections | 15.45% | 15.70% | |
Rail services cash generating unit | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Discount rate, cash flow projections | 16.09% | 16.44% |
RIGHT OF USE ASSETS AND LEASE_3
RIGHT OF USE ASSETS AND LEASE LIABILITIES - Schedule of Changes in Right of Use Assets and Lease Liabilities (Details) - ARS ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lease liabilities: | |||
As of the beginning of the year | $ 3,318,236 | $ 1,909,119 | |
Additions | 71,084 | 2,160,014 | |
Financial restatements | 358,923 | 289,307 | |
Foreign Exchange gain /(losses) | 4,271,628 | 930,664 | |
Gain on net monetary position | (3,071,750) | (1,088,899) | |
Payments | (960,757) | (881,969) | $ (1,072,089) |
As of the end of the year | 3,987,364 | 3,318,236 | 1,909,119 |
Right of use assets: | |||
As of the beginning of the year | 3,271,458 | 1,879,740 | |
Additions | 71,084 | 2,160,014 | |
Depreciation | (796,200) | (768,296) | |
As of the end of the year | $ 2,546,342 | $ 3,271,458 | $ 1,879,740 |
INTANGIBLE ASSETS - Schedule of
INTANGIBLE ASSETS - Schedule of Intangible Assets (Details) - ARS ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets | $ 1,585,465 | $ 1,463,250 |
Software | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets | $ 1,585,465 | $ 1,463,250 |
INTANGIBLE ASSETS - Schedule _2
INTANGIBLE ASSETS - Schedule of Changes in Intangible Assets (Details) - ARS ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Beginning balance | $ 1,463,250 | |
Ending balance | 1,585,465 | $ 1,463,250 |
Software | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Beginning balance | 1,463,250 | |
Ending balance | 1,585,465 | 1,463,250 |
Software | Cost | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Beginning balance | 7,533,024 | 7,208,457 |
Additions | 669,825 | 324,567 |
Ending balance | 8,202,849 | 7,533,024 |
Software | Accumulated depreciation | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Beginning balance | (6,069,774) | (5,454,876) |
Amortization | (547,610) | (614,898) |
Ending balance | $ (6,617,384) | $ (6,069,774) |
INVESTMENTS - Schedule of Inves
INVESTMENTS - Schedule of Investments (Details) - ARS ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Non-Current | ||
Investments in other companies | $ 31,869 | $ 31,869 |
Current | ||
Short-term investments | 1,710,368 | 13,223,330 |
Government securities in pesos | ||
Current | ||
Short-term investments | 1,609,330 | 0 |
Mutual funds in pesos | ||
Current | ||
Short-term investments | 30,503 | 2,068,052 |
Short-term investments in foreign currency | ||
Current | ||
Short-term investments | 70,535 | 11,155,278 |
Cementos del Plata S.A. | ||
Non-Current | ||
Investments in other companies | $ 31,869 | $ 31,869 |
INVESTMENTS - Additional Inform
INVESTMENTS - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Investments In Argentine Pesos | ||
Disclosure of detailed information about investment property [line items] | ||
Accrued interest annual nominal rate | 89.80% | 59.20% |
Short-term investments in foreign currency | ||
Disclosure of detailed information about investment property [line items] | ||
Accrued interest annual nominal rate | 0.72% | 0.14% |
GOODWILL (Details)
GOODWILL (Details) - ARS ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of information for cash-generating units [line items] | ||
Cost | $ 317,878 | $ 317,878 |
Waste Treatment Cash-Generating Unit | ||
Disclosure of information for cash-generating units [line items] | ||
Period for cash flow projections | 5 years | |
Recycomb S.A.U. | ||
Disclosure of information for cash-generating units [line items] | ||
Cost | $ 317,878 | $ 317,878 |
INVENTORIES - Schedule of Inven
INVENTORIES - Schedule of Inventories (Details) - ARS ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Inventory [Abstract] | ||
Spare Parts | $ 23,140,685 | $ 20,816,309 |
Allowance for obsolete inventories | (470,177) | (948,175) |
Total | 22,670,508 | 19,868,134 |
Current | ||
Finished products | 4,171,765 | 5,235,997 |
Production in progress | 17,649,645 | 14,966,747 |
Raw materials, materials and spare parts | 44,945,404 | 33,450,670 |
Fuels | 9,718,899 | 9,886,200 |
Total | $ 76,485,713 | $ 63,539,614 |
PARENT COMPANY, OTHER SHAREHO_3
PARENT COMPANY, OTHER SHAREHOLDERS, ASSOCIATES AND OTHER RELATED PARTIES BALANCES AND TRANSACTIONS - Schedule of Outstanding Balances Between the Group and the Related Party Transactions and Balances (Details) - ARS ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of transactions between related parties [line items] | ||
Other receivables | $ 3,660,994 | $ 2,758,011 |
Accounts payable | (3,051,802) | (2,916,722) |
Other liabilities – dividends payable | 0 | (5,681,123) |
InterCement Brasil S.A. | ||
Disclosure of transactions between related parties [line items] | ||
Accounts payable | (141,115) | (93,693) |
InterCement Trading e Inversiones S.A. | ||
Disclosure of transactions between related parties [line items] | ||
Other receivables | 1,693,789 | 1,306,661 |
Accounts payable | (778,006) | (516,560) |
Intercement Participações S.A. | ||
Disclosure of transactions between related parties [line items] | ||
Other receivables | 1,967,205 | 1,186,085 |
Accounts payable | (2,132,681) | (2,306,469) |
InterCement Trading e Inversiones Argentina S.L | ||
Disclosure of transactions between related parties [line items] | ||
Other receivables | 0 | 265,265 |
Other liabilities – dividends payable | $ 0 | $ (5,681,123) |
PARENT COMPANY, OTHER SHAREHO_4
PARENT COMPANY, OTHER SHAREHOLDERS, ASSOCIATES AND OTHER RELATED PARTIES BALANCES AND TRANSACTIONS - Schedule of Balances of Related Party Transactions (Details) - ARS ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Related party transactions [abstract] | ||
Other receivables | $ 3,660,994 | $ 2,758,011 |
Accounts payable | (3,051,802) | (2,916,722) |
Other liabilities – dividends payable | $ 0 | $ (5,681,123) |
PARENT COMPANY, OTHER SHAREHO_5
PARENT COMPANY, OTHER SHAREHOLDERS, ASSOCIATES AND OTHER RELATED PARTIES BALANCES AND TRANSACTIONS - Schedule of Transactions Between the Group and Parent Companies, Associates and Related Parties (Details) - ARS ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
InterCement Brasil S.A. | |||
Disclosure of transactions between related parties [line items] | |||
Purchase of goods and services | $ 0 | $ 0 | $ 23,975 |
Distribution of dividends | (40,108,638) | (41,075,634) | 0 |
Intercement Participações S.A. | |||
Disclosure of transactions between related parties [line items] | |||
Purchase of goods and services | (2,735,576) | (4,312,762) | (4,303,006) |
Services provided | $ 148,821 | $ 238,249 | $ 823,953 |
PARENT COMPANY, OTHER SHAREHO_6
PARENT COMPANY, OTHER SHAREHOLDERS, ASSOCIATES AND OTHER RELATED PARTIES BALANCES AND TRANSACTIONS - Additional Information (Details) - ARS ($) | 12 Months Ended | ||||||||
Jun. 23, 2023 | Jun. 06, 2023 | May 02, 2023 | Dec. 27, 2022 | Jul. 01, 2022 | Apr. 14, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related party transactions [abstract] | |||||||||
Distribution of dividends | $ 28,313,295,000 | $ 25,590,778,098 | $ 48,610,174,000 | $ 10,899,268,000 | $ 42,725,459,000 | $ 25,380,007,000 | |||
Dividends recognised to distributions for each share as outstanding face value | $ 43.858641084 | ||||||||
Par value per share | $ 0.10 | $ 0.10 | |||||||
Key management fees | $ 2,171,265,000 | $ 2,448,947,000 | |||||||
Key management personnel compensation, other long-term employee benefits | 697,205,000 | 224,397,000 | |||||||
Expense recognised during period for bad or doubtful debts for related party transactions | $ 0 | $ 0 | $ 0 |
OTHER RECEIVABLES (Details)
OTHER RECEIVABLES (Details) - ARS ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Non-Current | ||
Advances to suppliers | $ 809,864 | $ 2,102,928 |
Tax receivables | 17,705 | 57,735 |
Contributions to the Trust Fund to Strengthen the Inter-urban Railroad System (F.F.F.S.F.I.) | 283,852 | 951,538 |
Prepaid expenses | 1,020,549 | 1,245,819 |
Guarantee deposits | 0 | 84,800 |
Subtotal | 2,131,970 | 4,442,820 |
Allowance for other doubtful accounts | (283,852) | (951,538) |
Other receivables | 1,848,118 | 3,491,282 |
Current | ||
Income tax receivables | 5,767,981 | 8,940,294 |
Turnover tax receivables | 166,448 | 815,259 |
Value added tax receivables | 191,282 | 0 |
Receivable for sale of interest in Yguazú Cementos S.A. | 806,452 | 1,375,475 |
Related party receivables | 3,660,994 | 2,758,011 |
Prepaid expenses | 1,997,365 | 1,945,937 |
Guarantee deposits | 919 | 2,665 |
Reimbursements receivable | 14,694 | 6,283 |
Advance payments to suppliers | 2,875,372 | 1,516,256 |
Salaries advances and loans to employees | 41,597 | 99,089 |
Insurances receivable | 4,838,710 | 0 |
Receivables from sales of property, plant and equipment | 951,830 | 716,094 |
Miscellaneous | 434,126 | 42,103 |
Total | $ 21,747,770 | $ 18,217,466 |
TRADE RECEIVABLES - Schedule of
TRADE RECEIVABLES - Schedule of Trade Accounts Receivables (Details) - ARS ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Trade and other receivables [abstract] | ||
Accounts receivable | $ 22,623,900 | $ 28,418,758 |
Accounts receivable in litigations | 1,883,274 | 1,285,941 |
Notes receivable | 5,322 | 16,801 |
Foreign customers | 161,707 | 17,874 |
Subtotal | 24,674,203 | 29,739,374 |
Allowance for doubtful accounts | (1,925,045) | (1,329,119) |
Trade accounts receivable | $ 22,749,158 | $ 28,410,255 |
TRADE RECEIVABLES - Schedule _2
TRADE RECEIVABLES - Schedule of Maturities of Accounts Receivable (Details) - ARS ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Trade receivables | ||
Disclosure of accounts receivable [line items] | ||
Assets: | $ 24,674,203 | $ 29,739,374 |
Trade receivables | 0 to 30 days | ||
Disclosure of accounts receivable [line items] | ||
Assets: | 7,029,712 | 7,193,784 |
Trade receivables | 31 to 60 days | ||
Disclosure of accounts receivable [line items] | ||
Assets: | 449,533 | 1,334,517 |
Trade receivables | 61 to 90 days | ||
Disclosure of accounts receivable [line items] | ||
Assets: | 278,923 | 294,520 |
Trade receivables | More than 90 days | ||
Disclosure of accounts receivable [line items] | ||
Assets: | 2,265,268 | 1,980,729 |
To expire | ||
Disclosure of accounts receivable [line items] | ||
Assets: | $ 14,650,767 | $ 18,935,824 |
TRADE RECEIVABLES - Schedule _3
TRADE RECEIVABLES - Schedule of Financial Assets That Are Either Past Due or Impaired (Details) - Trade receivables - ARS ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of financial assets that are either past due or impaired [line items] | ||
Assets: | $ 24,674,203 | $ 29,739,374 |
0 to 30 days | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Assets: | 7,029,712 | 7,193,784 |
31 to 60 days | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Assets: | 449,533 | 1,334,517 |
61 to 90 days | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Assets: | 278,923 | 294,520 |
More than 90 days | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Assets: | 2,265,268 | 1,980,729 |
Financial assets past due but not impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Assets: | $ 8,098,391 | $ 10,591,903 |
Average age of overdue balances (in days) | 22 days | 27 days |
Financial assets past due but not impaired | 0 to 30 days | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Assets: | $ 7,029,712 | $ 7,193,784 |
Financial assets past due but not impaired | 31 to 60 days | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Assets: | 449,533 | 1,334,517 |
Financial assets past due but not impaired | 61 to 90 days | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Assets: | 278,923 | 294,520 |
Financial assets past due but not impaired | More than 90 days | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Assets: | 340,223 | 1,769,082 |
Financial assets impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Assets: | 1,925,045 | 1,329,119 |
Financial assets impaired | More than 90 days | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Assets: | $ 1,925,045 | $ 1,329,119 |
TRADE RECEIVABLES - Schedule _4
TRADE RECEIVABLES - Schedule of Changes in Allowance for Doubtful Accounts (Details) - ARS ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | ||
Beginning balance | $ 1,329,119 | $ 1,575,960 |
Increases | 683,201 | |
Gain on net monetary position | (1,265,427) | (879,511) |
Decreases | (935) | (50,531) |
Increases, net of recoveries | 1,862,288 | |
Ending balance | $ 1,925,045 | $ 1,329,119 |
CASH AND BANKS (Details)
CASH AND BANKS (Details) € in Thousands, $ in Thousands, $ in Thousands | Dec. 31, 2023 ARS ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 EUR (€) | Dec. 31, 2022 ARS ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 EUR (€) | Dec. 31, 2021 ARS ($) |
Disclosure of cash and cash equivalents [line items] | |||||||
Cash and banks | $ 5,023,797 | $ 2,069,630 | $ 2,006,225 | ||||
In Pesos | |||||||
Disclosure of cash and cash equivalents [line items] | |||||||
Cash and banks | $ 1,793,728 | $ 2,059,103 | |||||
In Dollars | |||||||
Disclosure of cash and cash equivalents [line items] | |||||||
Cash and banks | $ 3,220,510 | $ 4,600 | |||||
In Euros | |||||||
Disclosure of cash and cash equivalents [line items] | |||||||
Cash and banks | € | € 9,559 | € 5,927 |
CAPITAL STOCK AND OTHER RELAT_3
CAPITAL STOCK AND OTHER RELATED ACCOUNTS - Schedule of Capital Stock and Other Capital Related Accounts (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 ARS ($) Vote $ / shares shares | Jun. 06, 2023 $ / shares | Dec. 31, 2022 ARS ($) shares | |
Disclosure of capital stock and other capital related accounts [abstract] | |||
Capital stock | $ 58,349 | $ 59,603 | |
Capital adjustment | 43,012,348 | 43,936,999 | |
Treasury shares | 0 | (20,038,774) | |
Share-based payment plans | 569,731 | 356,176 | |
Treasury shares trading premium | 158,837 | 43,080 | |
Share premium | 63,825,938 | 79,442,908 | |
Merger premium | 14,350,655 | 14,350,655 | |
Total | $ 121,975,858 | $ 118,150,647 | |
Number of common shares issued (in shares) | shares | 583,483,151 | 596,026,000 | |
Par value per share (in pesos per share) | $ / shares | $ 0.10 | $ 0.10 | |
Number of votes per share | Vote | 1 |
CAPITAL STOCK AND OTHER RELAT_4
CAPITAL STOCK AND OTHER RELATED ACCOUNTS - Additional Information (Details) - ARS ($) | 1 Months Ended | 12 Months Ended | ||||
Jan. 31, 2024 | Dec. 31, 2023 | Dec. 19, 2023 | Jan. 31, 2023 | Dec. 31, 2022 | Jan. 31, 2022 | |
Disclosure of capital stock and other capital related accounts [line items] | ||||||
Percent limit on treasury stock | 10% | |||||
Number of shares in entity held by entity or by its subsidiaries or associates | 12,543,339 | |||||
Increase (decrease) through treasury share transactions, equity | $ 19,972,158,000 | |||||
Shares distributed (in shares) | 17,473 | 17,473 | 10,069 | 10,069 | ||
Acquisition amount | $ 600,000,000 | |||||
ADR shares | ||||||
Disclosure of capital stock and other capital related accounts [line items] | ||||||
Number of shares issued (in shares) | 27,542 | |||||
Issue of equity | $ 106,458,000 | |||||
ADR shares | Major ordinary share transactions | ||||||
Disclosure of capital stock and other capital related accounts [line items] | ||||||
Number of shares issued (in shares) | 25,650 | |||||
Issue of equity | $ 146,403,000 | |||||
Treasury shares | ||||||
Disclosure of capital stock and other capital related accounts [line items] | ||||||
Number of shares in entity held by entity or by its subsidiaries or associates | 12,352,329 | |||||
Other reserves | ||||||
Disclosure of capital stock and other capital related accounts [line items] | ||||||
Number of shares in entity held by entity or by its subsidiaries or associates | 191,010 |
BORROWINGS - Schedule of Compos
BORROWINGS - Schedule of Composition of Borrowings (Details) - ARS ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of detailed information about borrowings [line items] | ||
Total | $ 147,370,276 | $ 64,680,498 |
Non-current borrowings | 110,145,543 | 30,766,107 |
Current borrowings | 37,224,733 | 33,914,391 |
In Foreign Currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Total | 111,358,993 | 33,888,039 |
In Local Currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Total | $ 36,011,283 | $ 30,792,459 |
BORROWINGS - Schedule of Detail
BORROWINGS - Schedule of Detail Information of Borrowings (Details) $ in Thousands, $ in Thousands | 12 Months Ended | ||||||||||
Feb. 22, 2023 ARS ($) | Jul. 07, 2022 ARS ($) | Dec. 31, 2023 ARS ($) | Dec. 31, 2023 USD ($) | Nov. 02, 2023 ARS ($) | Oct. 04, 2023 USD ($) | Sep. 11, 2023 ARS ($) | Jun. 21, 2023 ARS ($) | Dec. 31, 2022 ARS ($) | Dec. 31, 2022 USD ($) | Apr. 30, 2022 USD ($) Installment | |
Disclosure of detailed information about borrowings [line items] | |||||||||||
Amount | $ 147,370,276 | $ 64,680,498 | |||||||||
Maturity period | 180 days | ||||||||||
Bank overdrafts | 6,950,244 | 13,170,120 | |||||||||
Intercement Participações S.A. | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Maximum percentage of loan guarantee | 51% | ||||||||||
Loma Negra C.I.A.S.A. | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Amount | $ 144,940,042 | 60,579,291 | |||||||||
Percentage of annual nominal average rate | 64.99% | ||||||||||
Ferrosur Roca S.A. | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Amount | $ 2,430,234 | 4,101,207 | |||||||||
Industrial and Commercial Bank of China two | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Amount | $ 48,208 | ||||||||||
Industrial and Commercial Bank of China two | Borrowings Maturity Due On July 2024 | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Amount | $ 56,000 | ||||||||||
Number of installments | Installment | 3 | ||||||||||
Industrial and Commercial Bank of China two | LIBRO plus 8.00.% | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings adjustment to interest rate basis | 8% | ||||||||||
Corporate Notes - Serie Class 2 | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings interest rate | 6.50% | ||||||||||
Amount | $ 71,723 | ||||||||||
Corporate Notes - Serie Class 3 | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings interest rate | 7.49% | ||||||||||
Amount | $ 55,000 | ||||||||||
Corporate Notes - Serie Class 4 | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings interest rate | 6% | ||||||||||
Amount | $ 10,000 | ||||||||||
Corporate Notes - Serie Class 1 | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Amount | $ 25,636,300 | ||||||||||
Maturity period | 18 months | ||||||||||
Corporate Notes - Serie Class 1 | BADLAR | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings adjustment to interest rate basis | 2% | 2% | 2% | ||||||||
HSBC Bank Argentina S.A | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Amount | $ 3,000,000 | ||||||||||
HSBC Bank Argentina S.A | Fixed interest rate | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings interest rate | 52% | ||||||||||
United States Dollars | Loma Negra C.I.A.S.A. | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Amount | $ 125,454 | $ 33,888,039 | |||||||||
United States Dollars | Industrial and Commercial Bank of China one | Loma Negra C.I.A.S.A. | LIBRO plus 750.% | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings adjustment to interest rate basis | 7.50% | 7.50% | |||||||||
Amount | $ 0 | 2,148,385 | |||||||||
United States Dollars | Industrial and Commercial Bank of China two | Loma Negra C.I.A.S.A. | LIBRO plus 8.00.% | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings adjustment to interest rate basis | 8% | 8% | |||||||||
Amount | $ 0 | 31,502,232 | |||||||||
United States Dollars | Banco Patagonia One | Ferrosur Roca S.A. | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings interest rate | 17% | 17% | |||||||||
Amount | $ 37,281 | 0 | |||||||||
United States Dollars | Banco Patagonia Two | Ferrosur Roca S.A. | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings interest rate | 18% | 18% | |||||||||
Amount | $ 88,173 | 0 | |||||||||
United States Dollars | Banco Patagonia Three | Ferrosur Roca S.A. | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings interest rate | 36% | 36% | |||||||||
Amount | 6,489 | ||||||||||
United States Dollars | Banco Patagonia Four | Ferrosur Roca S.A. | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings interest rate | 15% | 15% | |||||||||
Amount | 66,664 | ||||||||||
United States Dollars | Banco Patagonia Five | Ferrosur Roca S.A. | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings interest rate | 19% | 19% | |||||||||
Amount | 8,875 | ||||||||||
United States Dollars | Banco Patagonia Six | Ferrosur Roca S.A. | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings interest rate | 37% | 37% | |||||||||
Amount | 6,016 | ||||||||||
United States Dollars | Banco Patagonia Seven | Ferrosur Roca S.A. | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings interest rate | 15% | 15% | |||||||||
Amount | 15,397 | ||||||||||
United States Dollars | Banco Patagonia Eight | Ferrosur Roca S.A. | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings interest rate | 13.50% | 13.50% | |||||||||
Amount | $ 133,981 | ||||||||||
United States Dollars | Corporate Bonds | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Amount | $ 111,233,539 | 0 | |||||||||
United States Dollars | Corporate Notes - Serie Class 2 | Loma Negra C.I.A.S.A. | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings interest rate | 6.50% | 6.50% | |||||||||
Amount | $ 57,851,670 | 0 | |||||||||
United States Dollars | Corporate Notes - Serie Class 3 | Loma Negra C.I.A.S.A. | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings interest rate | 7.49% | 7.49% | |||||||||
Amount | $ 45,262,452 | 0 | |||||||||
United States Dollars | Corporate Notes - Serie Class 4 | Loma Negra C.I.A.S.A. | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings interest rate | 6% | 6% | |||||||||
Amount | $ 8,119,417 | 0 | |||||||||
United States Dollars | Corporate Notes - Serie Class 1 | Loma Negra C.I.A.S.A. | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Amount | 29,061,039 | 0 | |||||||||
Local currency | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Amount | 36,011,283 | 30,792,459 | |||||||||
Local currency | Advances In Account And Securities Guaranteed Borrowing | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Amount | $ 6,950,244 | 30,792,459 | |||||||||
Local currency | Bank overdrafts one | Ferrosur Roca S.A. | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings interest rate | 102.56% | 102.56% | |||||||||
Amount | $ 2,304,780 | 3,863,785 | |||||||||
Local currency | Bank overdrafts two | Loma Negra C.I.A.S.A. | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings interest rate | 97.83% | 97.83% | |||||||||
Amount | $ 4,645,464 | 3,000,735 | |||||||||
Local currency | Bank overdrafts Three | Loma Negra C.I.A.S.A. | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings interest rate | 52% | 52% | |||||||||
Amount | $ 0 | 9,404,983 | |||||||||
Local currency | Bank overdrafts Four | Loma Negra C.I.A.S.A. | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings interest rate | 69% | 69% | |||||||||
Amount | $ 0 | 6,305,600 | |||||||||
Local currency | Securities-guaranteed borrowing | Loma Negra C.I.A.S.A. | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Borrowings interest rate | 64.99% | 64.99% | |||||||||
Amount | $ 0 | 8,217,356 | |||||||||
Local currency | Corporate Bonds | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Amount | $ 29,061,039 | $ 0 |
BORROWINGS - Schedule of Borrow
BORROWINGS - Schedule of Borrowings by Company (Details) - ARS ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of detailed information about borrowings [line items] | ||
Amount | $ 147,370,276 | $ 64,680,498 |
Ferrosur Roca S.A. | ||
Disclosure of detailed information about borrowings [line items] | ||
Amount | 2,430,234 | 4,101,207 |
Loma Negra C.I.A.S.A. | ||
Disclosure of detailed information about borrowings [line items] | ||
Amount | $ 144,940,042 | $ 60,579,291 |
BORROWINGS - Schedule of Moveme
BORROWINGS - Schedule of Movements of Borrowings (Details) - ARS ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Issuance of corporate bonds | $ 142,486,878 | $ 0 | $ 0 |
Long-term borrowings | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Beginning balance | 64,680,498 | ||
New borrowings and financing | 69,468,936 | ||
Accrued interest | 61,852,712 | ||
Effects of foreign exchange rate variation | 97,363,920 | ||
Gain on net monetary position | (123,246,800) | ||
Interest payments | (54,374,304) | ||
Principal payments | (110,861,564) | ||
Ending balance | $ 147,370,276 | $ 64,680,498 |
BORROWINGS - Schedule of Long-t
BORROWINGS - Schedule of Long-term Borrowings Maturity (Details) - ARS ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 110,145,543 | $ 30,766,107 |
2025 | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 57,794,807 | |
2026 | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 52,350,736 |
ACCOUNTS PAYABLE (Details)
ACCOUNTS PAYABLE (Details) - ARS ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current | ||
Suppliers | $ 41,824,376 | $ 39,003,595 |
Related parties | 3,051,802 | 2,916,722 |
Accounts payable for investments in property, plant and equipment | 348,192 | 2,656,884 |
Provisions for expenses | 12,030,872 | 10,540,082 |
Total | $ 57,255,242 | $ 55,117,283 |
PROVISIONS - Schedule of Provis
PROVISIONS - Schedule of Provisions (Details) - ARS ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of other provisions [line items] | |||
Non-current provisions | $ 6,741,516 | $ 4,070,567 | $ 3,441,439 |
Labor and social security | |||
Disclosure of other provisions [line items] | |||
Non-current provisions | 1,305,780 | 1,382,456 | 645,226 |
Environmental restoration | |||
Disclosure of other provisions [line items] | |||
Non-current provisions | 4,574,024 | 2,219,589 | 2,035,257 |
Civil and other | |||
Disclosure of other provisions [line items] | |||
Non-current provisions | $ 861,712 | $ 468,522 | $ 760,956 |
PROVISIONS - Schedule of Change
PROVISIONS - Schedule of Changes in Provisions (Details) - ARS ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reconciliation of changes in other provisions [abstract] | ||
Beginning balance | $ 4,070,567 | $ 3,441,439 |
Increases | 8,420,780 | 4,111,205 |
Gain on net monetary position | (5,078,218) | (2,226,452) |
Decreases | (671,613) | (1,255,625) |
Ending balance | 6,741,516 | 4,070,567 |
Labor and social security | ||
Reconciliation of changes in other provisions [abstract] | ||
Beginning balance | 1,382,456 | 645,226 |
Increases | 1,610,912 | 1,615,516 |
Gain on net monetary position | (1,471,926) | (582,718) |
Decreases | (215,662) | (295,568) |
Ending balance | 1,305,780 | 1,382,456 |
Environmental restoration | ||
Reconciliation of changes in other provisions [abstract] | ||
Beginning balance | 2,219,589 | 2,035,257 |
Increases | 5,480,500 | 1,948,712 |
Gain on net monetary position | (2,834,570) | (1,243,167) |
Decreases | (291,495) | (521,213) |
Ending balance | 4,574,024 | 2,219,589 |
Civil and other | ||
Reconciliation of changes in other provisions [abstract] | ||
Beginning balance | 468,522 | 760,956 |
Increases | 1,329,368 | 546,977 |
Gain on net monetary position | (771,722) | (400,567) |
Decreases | (164,456) | (438,844) |
Ending balance | $ 861,712 | $ 468,522 |
Provisions - Additional Informa
Provisions - Additional Information (Details) $ in Millions | Dec. 31, 2023 ARS ($) |
Disclosure of other provisions [line items] | |
Estimated amount of cash flow for uncertain contingencies | $ 4,925 |
Tax Contingencies | |
Disclosure of other provisions [line items] | |
Estimated amount of cash flow for uncertain contingencies | 434 |
Labor Contingencies | |
Disclosure of other provisions [line items] | |
Estimated amount of cash flow for uncertain contingencies | 685 |
Administrative and Other Proceedings | |
Disclosure of other provisions [line items] | |
Estimated amount of cash flow for uncertain contingencies | $ 3,806 |
TAX LIABILITIES (Details)
TAX LIABILITIES (Details) - ARS ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure Of Tax Payable [line items] | ||
Current tax liabilities | $ 2,951,041 | $ 9,077,763 |
Income tax | ||
Disclosure Of Tax Payable [line items] | ||
Current tax liabilities | 202,674 | 601,293 |
Value added tax | ||
Disclosure Of Tax Payable [line items] | ||
Current tax liabilities | 1,377,515 | 6,528,267 |
Turnover tax | ||
Disclosure Of Tax Payable [line items] | ||
Current tax liabilities | 847,627 | 1,015,497 |
Other taxes | ||
Disclosure Of Tax Payable [line items] | ||
Current tax liabilities | $ 523,225 | $ 932,706 |
OTHER LIABILITIES (Details)
OTHER LIABILITIES (Details) - ARS ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Miscellaneous liabilities [abstract] | ||
Benefit plans | $ 370,813 | $ 302,445 |
Termination payment plans | 107,102 | 209,042 |
Total | 477,915 | 511,487 |
Termination payment plans | 301,582 | 479,710 |
Dividends payable to related parties | 0 | 5,681,123 |
Dividends payable to third parties minority | 226,309 | 5,450,550 |
Agreement for settlement of claims | 4,838,710 | 0 |
Others | 91,174 | 72,804 |
Total | $ 5,457,775 | $ 11,684,187 |
CASH AND CASH EQUIVALENTS (Deta
CASH AND CASH EQUIVALENTS (Details) - ARS ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Cash and cash equivalents [abstract] | ||||
Cash and banks | $ 5,023,797 | $ 2,069,630 | $ 2,006,225 | |
Short-term investments | 1,710,368 | 13,223,330 | 18,046,171 | |
Cash and cash equivalents | $ 6,734,165 | $ 15,292,960 | $ 20,052,396 | $ 40,063,098 |
NON-CASH TRANSACTIONS (Details)
NON-CASH TRANSACTIONS (Details) - ARS ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Non Cash Transactions [abstract] | |||
Right of use assets and lease liabilities | $ 71,084 | $ 2,160,014 | $ 347,192 |
Acquisition of financed property, plant and equipment | 348,246 | 5,259,641 | 9,566,122 |
Delivery of shares – benefit plans | $ 182,372 | $ 197,242 | $ 241,855 |
SEGMENT INFORMATION - Schedule
SEGMENT INFORMATION - Schedule of Segment Reporting (Details) - ARS ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of operating segments [line items] | |||
Revenue before effect from restatement in constant currency | $ 233,339,441 | $ 109,243,372 | $ 194,154,199 |
Effect from restatement in constant currency | 188,821,376 | 342,710,682 | 252,717,408 |
Revenue | 422,160,817 | 451,954,054 | 446,871,607 |
Cost of sales before effect from restatement in constant currency | 143,313,417 | 69,225,404 | 120,521,301 |
Effect from restatement in constant currency | 172,940,159 | 260,679,690 | 185,109,208 |
Cost of sales | 316,253,576 | 329,905,094 | 305,630,509 |
Effect from restatement in constant currency | 18,259,108 | 23,019,590 | 21,739,832 |
Selling, administrative and other expenses | 37,747,647 | 28,416,432 | 37,119,623 |
Effect from restatement in constant currency | 28,320,788 | 38,211,532 | 30,710,894 |
Depreciation and amortization | 32,191,480 | 41,348,599 | 36,149,158 |
Effect from restatement in constant currency | (2,377,891) | 59,011,402 | 45,868,368 |
Revenues less cost of sales, selling and administrative expenses, and other gains and losses | 68,159,594 | 93,632,528 | 104,121,475 |
Tax on debits and credits to bank accounts | (4,676,516) | (4,531,752) | (4,503,693) |
Impairment of property, plant and equipment | 0 | 0 | (927,176) |
Financial results, net | (46,064,825) | (54,836,592) | 257,699 |
Income tax included in the statement of other comprehensive income | (7,737,730) | (28,637,429) | (60,464,798) |
NET PROFIT FOR THE YEAR | 9,680,523 | 5,626,755 | 38,483,507 |
Cement | |||
Disclosure of operating segments [line items] | |||
Impairment of property, plant and equipment | 0 | 0 | (927,176) |
Operating segments | |||
Disclosure of operating segments [line items] | |||
Selling, administrative and other expenses before effect from restatement in constant currency | 19,488,539 | 5,396,842 | 15,379,791 |
Depreciation and amortisation expense before effect from restatement in constant currency | 3,870,692 | 3,137,067 | 5,438,264 |
Revenues less cost of sales, selling and administrative expenses, and other gains and losses before effect from restatement in constant currency | 70,537,485 | 34,621,126 | 58,253,107 |
Operating segments | Cement, masonry cement and lime | |||
Disclosure of operating segments [line items] | |||
Revenue before effect from restatement in constant currency | 205,007,364 | 96,498,837 | 173,743,274 |
Cost of sales before effect from restatement in constant currency | 118,763,699 | 58,125,212 | 101,210,427 |
Selling, administrative and other expenses before effect from restatement in constant currency | 17,259,548 | 4,345,407 | 13,069,959 |
Depreciation and amortisation expense before effect from restatement in constant currency | 3,097,258 | 2,411,444 | 4,162,150 |
Revenues less cost of sales, selling and administrative expenses, and other gains and losses before effect from restatement in constant currency | 68,984,117 | 34,028,218 | 59,462,888 |
Operating segments | Concrete | |||
Disclosure of operating segments [line items] | |||
Revenue before effect from restatement in constant currency | 21,866,051 | 9,389,682 | 13,901,377 |
Cost of sales before effect from restatement in constant currency | 20,728,478 | 8,924,833 | 14,195,542 |
Selling, administrative and other expenses before effect from restatement in constant currency | 681,148 | 337,403 | 165,426 |
Depreciation and amortisation expense before effect from restatement in constant currency | 104,245 | 57,140 | 205,878 |
Revenues less cost of sales, selling and administrative expenses, and other gains and losses before effect from restatement in constant currency | 456,425 | 127,446 | (459,591) |
Operating segments | Rail services | |||
Disclosure of operating segments [line items] | |||
Revenue before effect from restatement in constant currency | 18,450,706 | 8,720,472 | 15,813,685 |
Cost of sales before effect from restatement in constant currency | 17,254,059 | 8,308,344 | 14,989,065 |
Selling, administrative and other expenses before effect from restatement in constant currency | 1,021,921 | 469,408 | 1,693,896 |
Depreciation and amortisation expense before effect from restatement in constant currency | 546,760 | 607,668 | 950,170 |
Revenues less cost of sales, selling and administrative expenses, and other gains and losses before effect from restatement in constant currency | 174,726 | (57,280) | (869,276) |
Operating segments | Aggregates | |||
Disclosure of operating segments [line items] | |||
Revenue before effect from restatement in constant currency | 7,071,371 | 2,775,092 | 2,989,635 |
Cost of sales before effect from restatement in constant currency | 6,081,288 | 2,282,557 | 2,866,884 |
Selling, administrative and other expenses before effect from restatement in constant currency | 72,640 | 33,259 | 34,672 |
Depreciation and amortisation expense before effect from restatement in constant currency | 117,188 | 55,837 | 104,253 |
Revenues less cost of sales, selling and administrative expenses, and other gains and losses before effect from restatement in constant currency | 917,443 | 459,276 | 88,079 |
Operating segments | Others | |||
Disclosure of operating segments [line items] | |||
Revenue before effect from restatement in constant currency | 1,354,975 | 664,332 | 1,189,017 |
Cost of sales before effect from restatement in constant currency | 896,919 | 389,501 | 742,172 |
Selling, administrative and other expenses before effect from restatement in constant currency | 453,282 | 211,365 | 415,838 |
Depreciation and amortisation expense before effect from restatement in constant currency | 5,241 | 4,978 | 15,813 |
Revenues less cost of sales, selling and administrative expenses, and other gains and losses before effect from restatement in constant currency | 4,774 | 63,466 | 31,007 |
Segment-to-segment deletions | |||
Disclosure of operating segments [line items] | |||
Revenue before effect from restatement in constant currency | (20,411,026) | (8,805,043) | (13,482,789) |
Cost of sales before effect from restatement in constant currency | $ (20,411,026) | $ (8,805,043) | $ (13,482,789) |
SEGMENT INFORMATION - Additiona
SEGMENT INFORMATION - Additional Information (Details) - customer | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of operating segments [abstract] | |||
Number of customers contributing more than ten percent of revenue | 0 | 0 | 0 |
FINANCIAL INSTRUMENTS - Schedul
FINANCIAL INSTRUMENTS - Schedule of Net Debt to Equity Ratio (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 ARS ($) | Dec. 31, 2022 ARS ($) | Dec. 31, 2021 ARS ($) | Dec. 31, 2020 ARS ($) | |
Disclosure of detailed information about financial instruments [abstract] | ||||
Debt | $ 147,370,276 | $ 64,680,498 | ||
Cash and current investment | 6,734,165 | 15,292,960 | ||
Net debt | 140,636,111 | 49,387,538 | ||
Shareholders' Equity | $ 294,221,535 | $ 361,068,554 | $ 439,846,824 | $ 415,602,543 |
Net debt-to-equity ratio and shareholders’ equity | 0.48 | 0.14 |
FINANCIAL INSTRUMENTS - Sched_2
FINANCIAL INSTRUMENTS - Schedule of Financial Instruments (Details) - ARS ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of detailed information about financial instruments [line items] | ||
Amortised cost | $ 226,900,332 | $ 158,530,073 |
Cash and banks | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at amortised cost | 5,023,797 | 2,069,630 |
Investments | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at amortised cost | 1,679,865 | 11,155,278 |
Financial assets at fair value through profit or loss | 30,503 | 2,068,052 |
Accounts receivable and other receivables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at amortised cost | $ 33,264,975 | $ 33,395,629 |
FINANCIAL INSTRUMENTS - Sched_3
FINANCIAL INSTRUMENTS - Schedule of Monetary Assets and Liabilities Denominated in Foreign Currency (Details) - ARS ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
United States Dollars | ||
Disclosure of detailed information about financial instruments [line items] | ||
Liabilities: | $ 130,228,653 | $ 42,156,027 |
Assets: | 15,764,054 | 16,758,306 |
Euros | ||
Disclosure of detailed information about financial instruments [line items] | ||
Liabilities: | 693,536 | 1,163,015 |
Assets: | 9,559 | 142,433 |
Reales | ||
Disclosure of detailed information about financial instruments [line items] | ||
Liabilities: | $ 423 | $ 265 |
FINANCIAL INSTRUMENTS - Additio
FINANCIAL INSTRUMENTS - Additional Information (Details) - ARS ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of interest rate risk [line items] | ||
Percentage of increase in foreign currency exchange rate | 25% | |
Financial loans at amortized cost | $ 226,900,332 | $ 158,530,073 |
Level 1 | ||
Disclosure of interest rate risk [line items] | ||
Financial loans at amortized cost | $ 145,786,056 | $ 64,288,430 |
Secured Overnight Financial Rate | ||
Disclosure of interest rate risk [line items] | ||
Borrowing interest rate basis | 1% | |
Increase in financial expense | $ 94,675 | |
BADLAR Plus 1 | ||
Disclosure of interest rate risk [line items] | ||
Increase in financial expense | $ 224,317 | |
Average interest rate | ||
Disclosure of interest rate risk [line items] | ||
Borrowing interest rate basis | 1% | |
Increase in financial expense | $ 44,318 |
FINANCIAL INSTRUMENTS - Sched_4
FINANCIAL INSTRUMENTS - Schedule of Foreign Currency Sensitivity Analysis (Details) - ARS ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure foreign currency sensitivity analysis [line items] | ||
Settle transactions in foreign currency of percentage | 21% | |
Gain (loss) on financial borrowings | $ 1,836,132 | $ 54,919,417 |
In Dollars | ||
Disclosure foreign currency sensitivity analysis [line items] | ||
Income for the year | 28,616,150 | |
Shareholders’ Equity | 28,616,150 | |
Euros | ||
Disclosure foreign currency sensitivity analysis [line items] | ||
Income for the year | 170,994 | |
Shareholders’ Equity | $ 170,994 |
FINANCIAL INSTRUMENTS - Sched_5
FINANCIAL INSTRUMENTS - Schedule of Interest Rate Risk Management (Details) - ARS ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of interest rate risk [line items] | ||
Amortised cost | $ 226,900,332 | $ 158,530,073 |
Interest rate risk | Financial assets, class | ||
Disclosure of interest rate risk [line items] | ||
Investments held to maturity | 1,679,865 | 11,155,278 |
Investments measured at fair value through profit or loss | 30,503 | 2,068,052 |
Interest rate risk | Financial liabilities, class | ||
Disclosure of interest rate risk [line items] | ||
Amortised cost | $ 147,370,276 | $ 64,680,498 |
FINANCIAL INSTRUMENTS - Sched_6
FINANCIAL INSTRUMENTS - Schedule of Contractual Maturity for Non-derivative Financial Liabilities with Agreed Repayment Periods (Details) - ARS ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Borrowings | $ 184,506,652 | $ 69,918,659 |
Leases | 5,013,095 | 4,299,974 |
Less than 1 month | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Borrowings | 6,939,996 | 28,741,032 |
Leases | 108,095 | 82,646 |
From 1 to 3 months | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Borrowings | 9,887,760 | 3,771,421 |
Leases | 324,450 | 247,569 |
From 3 months to 1 year | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Borrowings | 47,965,502 | 4,665,270 |
Leases | 967,459 | 611,888 |
From 1 to 3 years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Borrowings | 119,713,394 | 32,740,936 |
Leases | 3,465,001 | 2,625,646 |
From 3 to 6 years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Leases | $ 148,090 | $ 732,225 |
Weighted Average | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Weighted average effective interest rate % | 61% | 58% |
FINANCIAL INSTRUMENTS - Sched_7
FINANCIAL INSTRUMENTS - Schedule of Contractual Maturity for Non-derivative Financial Liabilities with Agreed Repayment Periods (Parenthetical) (Details) - Weighted Average | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Weighted average effective interest rate % | 61% | 58% |
Lease liabilities | In Pesos | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Weighted average effective interest rate % | 53% | 69% |
Lease liabilities | In Dollars | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Weighted average effective interest rate % | 12% | 12% |
FINANCIAL INSTRUMENTS - Sched_8
FINANCIAL INSTRUMENTS - Schedule of Financial Assets and Financial Liabilities are Measured at Fair Value on a Recurring Basis (Details) - ARS ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of fair value measurement of assets [line items] | ||
Fair value, financial asset | $ 638,844,894 | $ 631,825,607 |
Mutual Funds | Level 1 | Recurring Fair Value Measurement | ||
Disclosure of fair value measurement of assets [line items] | ||
Fair value, financial asset | $ 30,503 | $ 2,068,052 |
GUARANTEES GRANTED TO SUBSIDI_2
GUARANTEES GRANTED TO SUBSIDIARIES (Details) - ARS ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of detailed information about borrowings [line items] | ||
Amount | $ 147,370,276 | $ 64,680,498 |
Ferrosur Roca S.A. | ||
Disclosure of detailed information about borrowings [line items] | ||
Amount | 2,430,234 | $ 4,101,207 |
Financing balance | 125,454 | |
Guarantees | Ferrosur Roca S.A. | Current Account Advances | ||
Disclosure of detailed information about borrowings [line items] | ||
Line of credit | 2,304,780 | |
Guarantees | Ferrosur Roca S.A. | Maximum | ||
Disclosure of detailed information about borrowings [line items] | ||
Amount | $ 6,400,000 |
RESTRICTED ASSETS (Details)
RESTRICTED ASSETS (Details) $ in Thousands | Dec. 31, 2023 ARS ($) |
Disclosure of restricted assets [abstract] | |
Judicial deposits | $ 12,957 |
COMMITMENTS (Details)
COMMITMENTS (Details) | Dec. 31, 2023 ARS ($) |
Disclosure of commitments [line items] | |
Contractual commitments to purchase slag, estimated undiscounted future cash flows | $ 5,286,581 |
Contractual commitment to purchase limestone | 2,500,000 |
Provision of natural gas commitment | 65,227,000,000 |
Electrical energy consumption commitment annual payment | 91,300,000,000 |
2024 | |
Disclosure of commitments [line items] | |
Provision of natural gas commitment | 31,352,000,000 |
2025 | |
Disclosure of commitments [line items] | |
Provision of natural gas commitment | 22,332,000,000 |
2026 | |
Disclosure of commitments [line items] | |
Provision of natural gas commitment | 8,811 |
2027 | |
Disclosure of commitments [line items] | |
Provision of natural gas commitment | 2,732,000,000 |
2028 | |
Disclosure of commitments [line items] | |
Electrical energy consumption commitment annual payment | 11,425,000,000 |
2029 | |
Disclosure of commitments [line items] | |
Electrical energy consumption commitment annual payment | $ 34,175,000,000 |
FUND ADMINISTRATION TRUST FOR_2
FUND ADMINISTRATION TRUST FOR INVESTMENT WORKS (Details) - ARS ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Management Trust [Abstract] | |||
Contributions | $ 576,786 | $ 602,730 | $ 557,547 |
RESTRICTIONS ON DIVIDEND DIST_2
RESTRICTIONS ON DIVIDEND DISTRIBUTION (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure restrictions to dividends distribution [line items] | |
Legal reserve percentage with respect to net income subscribed capital plus adjustment to capital | 20% |
Minimum | |
Disclosure restrictions to dividends distribution [line items] | |
Legal reserve percentage with respect to net income | 5% |
FERROSUR ROCA S.A. CONCESSION_2
FERROSUR ROCA S.A. CONCESSION AND RELATED RAIL SERVICES (Details) | 12 Months Ended |
Dec. 31, 2023 contract | |
Disclosue Of Concession [line items] | |
Proportion of ownership interest in subsidiary | 16% |
Actual term for concession agreements | 30 years |
Actual term for concession agreements, extension | 10 years |
Expiration period for concession agreements | March 2023 |
Number of private concessions contract still in force | 3,000,000 |
Maximum | |
Disclosue Of Concession [line items] | |
Extension term for concession agreements | 10 years |
Cofesur S.A.U | |
Disclosue Of Concession [line items] | |
Proportion of ownership interest in subsidiary | 80% |
National State | |
Disclosue Of Concession [line items] | |
Proportion of ownership interest in subsidiary | 16% |
Workers of Ferrosur Roca S.A. | |
Disclosue Of Concession [line items] | |
Proportion of ownership interest in subsidiary | 4% |
COMPLAINTS BROUGHT AGAINST TH_2
COMPLAINTS BROUGHT AGAINST THE GROUP AND OTHERS IN THE UNITED STATES (Details) - Installment | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2018 | |
Disclosure Of Claims And Benefits Paid Explanatory [Abstract] | ||
Number of lawsuits brought against group | 2 | |
Period of time where additional payment must be made | 365 days |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ in Millions | Apr. 25, 2023 ARS ($) |
Events After Reporting Period | |
Disclosure of non-adjusting events after reporting period [line items] | |
Nominal value allocated to optional reserve for future dividends | $ 6,876 |