LOMA3.BA - Earnings call transcript Q3 2022 | Loma Negra Compañía Industrial Argentina Sociedad Anónima

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to the Loma Negra Third Quarter 2022 Conference Call and Webcast. All participants will be in a listen-only mode. [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions. Also Mr. responding immediately be translation. an will Faifman in following Spanish English Sergio Instructions]. [Operator is Please note being this event recorded. I conference over now to would like Mr. to turn the Head Jalón, of Relations. Diego Investor Please, Diego, go ahead.

Diego Jalón

conference and to market access earnings close. yesterday both press presentation Loma Good of should the our welcome and today's you. now, everyone morning, Negra's Thank after earnings for call. release which By have distributed to call, were

will of be President me and Sergio our session. Joining this on Gradin. Vice Board call CEO will for Marcos of CFO, morning the them be Directors; the our and of the Faifman, Both available Q&A

of forward-looking we Today's earnings filings reconciliation new recent to also the call call or to like make the release I SEC. full The I on forward-looking with statements. update We changed to release. discussion contain measures financial section earnings Harbor conference include and statements statements any This Safe press the or our Before will included is events will of corresponding to revise in the proceed, refer and the measures. no would obligation circumstances. assume financial you following reflect or Statements Forward-Looking non-GAAP

turn and financial the Starting then that, questions. and the Thank highlights over today. and of the like Sergio. Sergio like to quarter, and call X. through After Marcos, market will results. the Slide to your then, review will you with to of open final provide take I Faifman will would I would we I you for remarks, Now, some our with presentation you, discussion a to everyone, Hello, us Diego. call thank joining begin my

capacity future accompanying in more us, third robustness the that Loma recent to market present solvency back positive growing with efficiency, on of shows absorb are result demand for the the our to that we with productivity, glad scenario. being quarter are and prepared growth. flexibility, got momentum more us macroeconomic with a despite the of very industry challenging cement good We expansion Believe the

for As you in reached of could achieving see $XX million assessment by showed from in our decline the with EBITDA XX.X% When with a XXXX of record million the compared quarter. release compared third third this quarter a pesos, XXXX, our inflation. the quarter assessment the for measured quarter yesterday, $XX

quarter third inputs. Our impacted by usually higher energy

EBITDA per Our XX% ton EBITDA at above consolidated the third dollar assessment quarter. margin while reached U.S. XX.X%, stood XXXX's XX.X%

second X million will approved pesos Marcos that same will ahead. till total for and hand million financial we be our an the to As in in a off market dividend recently our for who $XXX year. the end mentioned Marcos, will July, distributed now the review review call sense, share $XX we've of repurchase in new last the In year. results. Please accumulated million call program place we of go of this I Gradin

Marcos Gradin

Thank you, Sergio. Good morning, everyone.

XX% X.X% the bagged a momentum from cement turbulences. of see In while up in tendency shows higher the third bulk the previous average national exhibiting in a are retail mainly and showing the new of Sales the or third the mode of outstanding shipments dispatch against of X, in the XXXX, level and supported explained by talent resilience a level tendency the quarter is October slight evolution, level, working September is third amid decline Slide days public sector, a data levels. The suggested at When activity ISAC and continues that at volumes for should remains an quarter the political increase sales this October October works, XX% the at by a of the private activity Even showing going historical in year. by of As dispatch the maintain though September of October. continues. robust by provincial XX% growth. mainly projects, Market Bank from be infrastructure the dynamism, strong, moderate solid GDP also to of accumulated breakdown bulk macroeconomic seeing forecast from show industry figures. by a cement to of you quarter that nine-month particular of activity XX%. dispatch preliminary in less the participation demand activity show at cement gain quarter level modality can sequential on municipal in X.X%, the by continues from remain Report daily industrial, When the second last the quarter the construction was against last Central driven measured a X.X% while volume the compared looking looking of the to as for decline Expectation figures the recent residential about greatest this stood and figures, quarter XXXX reaching XXXX accompanied upwards When

the industry time year. break the million optimistic XX that this are will first for history We the in tons

As future we and mentioned the the we're the growth. challenges inflation next the especially macroeconomic distortion for effects quarter, though even before, increasing optimistic will overshadow

political the as probably next increase extension On the of Election scenario we year. coming Presidential will hand, approach other that

performance. quarter up show a and XX.X%. Volumes performance bulk quarter. our third Top-line XX.X% coupled coupled strong in in cement increase with same product Turning with X.X% revenues mix. affected XX.X% expansion by due Slide performance was concrete line X with a a cement masonry by the of volume that with of good primarily XX.X% aggregates of of concrete XX% the while railroad. way, strong In Concrete was average revenue robust on the the Volumes up of in pricing and the the lime of momentum dynamic. expansion to of softer was X.X% pricing cement, for segment price increased back in the segment. year-on-year a performance review mainly increased were Cement, decrease to sharply in aggregates revenues compensated top-line positive with cement our up

fracsand. were transported negative distance the by due volumes materials, by of partially improvements Transported L'Amalí in Railroad to by management price performance boosted winter construction construction average increased well related lower second by product conducted slightly quarter proper line, good up volumes negatively XXXX. percentage that quarter cost year-on-year. to of revenues was the mix increasing a slightly X.X%. remained offset price concrete with both while margins to of turn SG&A offset as Cement and of a transported X.X% lower revenues by by the inputs impacted expenses a And railroad quarter and to XX year-on-year third Finally, and the profit operational results to natural points X% and gross gross in better points XXX mainly of by in performance contraction impacted lower X. the basis from X. reverted gas a Consolidated Please Slide of our XX.X%, Slide to margin higher X.X% contracting depreciation availability. for margin the going segment, completion was declined to energy aggregates to to XX.X% flattish, core basis period, due higher a

energy segments XX% with management. in affected Our a adjusted in for quarter, participation mainly contracting and the lower second reaching In other contraction quarter with EBITDA the EBITDA quarter quarter inputs higher at and performance quarter to negative ₱XXX segment, $XX.X was top-line mainly XXXX. points million by down of and by ₱X dynamics ₱X.X great basis and margin EBITDA XX.X% the a recovery Concrete the a XX% million logistic to adjusted and of higher cost an sales cement to increased due quarter, Aggregates and reaching positive efficiencies. basis offset margin million billion the third showing million of ton ago, EBITDA dollar EBITDA higher in softer a margin per margins. points, record contracted a reached a other XXX by a figures. margins supported consolidated year-on-year compared third year in a reached EBITDA ton, for the performance X.X% quarter this of where productive price partially Cement expansion XXXX per volume. XX.X%, adjusted top-line XX.X%, from our with from increasing basis EBITDA by higher adjusted stood $XX boosted volume in improved pesos, margin sales adjusted third XXX ₱XXX by from XXX was for strong XX.X% setting volumes same $XX great with up quarter points by the increase coupled pricing million XXXX, reverting On segment explained basis, new mainly reaching

with affected despite by X.XX%, quarter adjusted the million product to price of transported the margin to of average volume lower the performance mix mainly ₱XXX negative a impact and for EBITDA Finally, a negative distance Railroad decreased million expansion. ₱X due

bottom on Moving on XX. the line to Slide

year primarily the by ₱X.X quarter expense billion cost ₱XX.X the affected quarter local last the total the position. ₱XX.X of on primarily net by Total loss net from with on a posted results. we cost third partially this debt dollar XXXX, denominated increase financial billion billion funding stood with profit compensated with quarter, ₱X.X gain net was of position. total quarter financial financial of increase same This the coupled the financial debt compared billion monetary cancellation at explained in a of This by

sheet. balance to on Moving the

the As compared Consequently, at X.XXx see ratio and cash XXXX. billion a XX, our with billion. debt debt-to-EBITDA you of the at of net X.XXx end quarter minus can position Slide ₱XX.X on ₱X.X at ended total we stood to

₱XX.X billion effect at reflecting comparison in on year-on-year higher taxes positive robust the working cash Our generation operating needs. capital that stood paid compensated

capital billion CapEx after expansion and of reduction of capital the spent requirements. the for mostly ₱X.X expenditure, corresponding we L'Amalí maintenance termination Regarding the

rest negative of million, pesos. take During This end that by at the the exposure advantage $XX rates quarter. debt pesos. while of standing seeks total at of the real to represents is debt, increased debt we net denominated down million now it the current Breaking the reduced to our quarter, in debt our currency, in rebalancing our we in $XXX also XX% short-term the

dividend in outstanding. we considering distributed of million that's approximately Additionally, in ADR paid April, per $X of dividend on $XX a a represents yield XX% dividend the July

balance very in ratios. Although, of sheet a with slight Loma remains indebtedness, strong leverage low increase the

call to I the Now for Thank would our hand final Sergio. remarks, you. to back like

Sergio Faifman

Marcos. you, Thank

Now finalize presentation, please to ask the Slide I XX. turn to to you

mark. time this us profiting to reaching that see, its this to efficiently to continue this absorb platform allow As as first tons and main going million to going remains shown not context, the activity Probably set also the are that future growth. of high-level by tendency the invested industry place. in us in industry cement new the maintaining is recent you could for but the attend for is capacity market are confident give we In good only XX our the record we a the is driver year, the momentum,

challenging difficult the other restriction are effects the situation political and for hand, and economy the macroeconomic in On the the dedicated, the current in increase short-term. very remains inflation

In causally the the Presidential difficult and political as could we get confident scenario turn to resilience addition, closer context, more optimistic industry, of we we of are this complex the regardless in the the for upcoming quarter. Election are

November, Without have a anniversary, Market. listing Stock this thank both company. as the Buenos its you grown this the doubt, showing, and it an and Exchange our people our that, New possible. of and Loma to incredible Stock where Finally, evolved York a commemorates want I remarks. been for in end Aires five-year making the we has And This for prepared is stakeholders

ready your call take the for now please questions. to are open Operator, We questions.

Operator

conduct you. session. question-and-answer now [Operator Instructions]. Thank We'll a

please. to yourself We follow-up you please also ask to that would one limit question one like and

those have in Also, will additional that you and an addressed. Sergio Faifman Spanish questions, English responding Mr. they following re-queue be for translation. immediately Instructions]. If [Operator note may will you please questions be

Bank today with Rojas first Daniel America. comes The of go question Please ahead. from

Daniel Rojas

flow forward? it's My if CapEx give CapEx call. cash taking your the expect for absolute your be level. just us. to you finishing going that Good Thank we from question lower you is what morning. after should level been color going maintenance, my L'Amalí. generation regarding Thank Any benefiting And has requirements can of you. Basically,

Marcos Gradin

of we're XXXX, And year. this equating upcoming million are sum in be to say order two in total where investing $XX to I $XX three -- kilos going next on nearly in $XX for XXXX years, be maintenance CapEx is bags, would yes, that should years the facilities years. Marcos. the and and of our to and for that's Daniel, you? How XX additionally, million are to year a the in this Hi a million

Daniel Rojas

in And throughout pricing, terms of terms. year been soft it's the Okay. real in

recuperate difficult? think to terms? possibility you any see the you do forward, Going environment in Or real pricing challenging make will that do how more

Marcos Gradin

delay not year Daniel, in that any inflation And prices or above this movement. are moving slight inflation. we by are seeing

Operator

would like for I concludes remarks. question-and-answer turn to [Operator closing our to over Jalón the Instructions]. Diego This session. conference back any

Diego Jalón

today. Thank you us joining for

that you call. the and really meantime, in we a your interest always, day. remains good may next questions the to available meeting have. Loma, in our again team look have forward and you, for you appreciate As we In any Thank

Operator

now The Thank today's conference concluded. attending you presentation. has for

You disconnect. now may

Loma Negra Compañía Industrial Argentina Sociedad Anónima (LOMA) 9 Nov 222022 Q3 Earnings call transcript