Loma Negra pania Industrial Argentina Sociedad Anonima(LOMA) - 2024 Q3 - Quarterly Report

Financial Performance - Net sales revenues decreased by 21.2% YoY to Ps. 180,686 million (US$185 million) in 3Q24, primarily due to a 21.0$ 55 million), down 18.5% YoY in pesos and 16.5% in dollars, with an EBITDA margin of 24.0%, an increase of 78 basis points YoY[3][7]. - Net profit for 3Q24 was Ps. 21,153 million, an 8.7% decrease from Ps. 23,177 million in the same period last year, with a notable improvement in net total finance gain[3][15]. - Gross profit fell 23.5% YoY to Ps. 40,774 million in 3Q24, with a gross profit margin contraction of 69 basis points to 22.6%[21]. - The company reported a total net financial gain of Ps. 12,599 million in 3Q24, compared to a net financial cost of Ps. 4,884 million in 3Q23[28]. - The company reported a significant decrease in finance costs, down 70.6% to ARS 12,902 million in Q3 2024 from ARS 43,914 million in Q3 2023[50]. - The company’s total shareholder's equity rose to ARS 714,674 million as of September 30, 2024, from ARS 593,095 million as of December 31, 2023[48]. Sales and Volume Trends - Cement, masonry, and lime sales volumes fell by 17.1% YoY to 1.44 million tons, although there was a sequential recovery of 32%[11]. - The Concrete segment experienced a 22.2% YoY decline in sales volumes, with a sequential improvement of 28%[12]. - The Aggregates segment saw a 28.7% decrease in sales volumes year-over-year, indicating ongoing challenges in the market[12]. - Railroad segment revenues decreased by 4.7% YoY, with a 7.0% decline in transported volume, partially offset by positive pricing dynamics[19]. - Net revenue for Q3 2024 was ARS 180,686 million, a decrease of 21.2% compared to ARS 229,223 million in Q3 2023[50]. Cost and Expenses - Cost of sales decreased by 20.5% YoY to Ps. 139,911 million in 3Q24, primarily due to lower sales volumes and improved energy inputs[20]. - Selling and administrative expenses decreased by 12.9% to Ps. 16,569 million in 3Q24, reaching 9.2% of sales, up 87 basis points YoY[22]. - The cost of sales for the three months ended September 30, 2024, was 110,611 million pesos, up from 41,856 million pesos in the same period of 2023, representing a rise of 164.5%[54]. Debt and Liquidity - Net debt decreased to Ps. 171,888 million (US$177 million), resulting in a Net Debt/LTM Adjusted EBITDA ratio of 1.03x, down from 1.40x in FY23, reflecting a US$ 40 million reduction in indebtedness during the quarter[3][7]. - Total debt as of September 30, 2024, was Ps. 185,606 million, down from Ps. 296,811 million YoY, with a net debt to LTM adjusted EBITDA ratio of 1.03x[30][34]. - Cash generated from operating activities in 3Q24 was Ps. 63,570 million, compared to Ps. 45,154 million in 3Q23, mainly due to positive working capital effects[36]. - Cash and cash equivalents at the end of the period were 13,718 million pesos, consistent with 64,610 million pesos at the end of the same period in 2023[52]. Future Outlook - The company anticipates a stronger recovery as macroeconomic factors stabilize, indicating optimism for future performance[6][8]. - The company provided a forward guidance of 8% revenue growth for Q4 2023, projecting revenues between $2.7 billion and$2.8 billion[55]. - The company plans to enter two new international markets by the end of 2023[55]. Operational Highlights - The Adjusted EBITDA margin for the Concrete segment improved to 4.2%, up 355 basis points YoY, while the Aggregates segment contracted to negative 17.0%[25]. - The company experienced a net cash used in investing activities of 17,629 million pesos for the three months ended September 30, 2024, compared to 13,321 million pesos in the same period of 2023, reflecting an increase of 32.5%[52]. - The company reported a net cash used in financing activities of 34,767 million pesos for the three months ended September 30, 2024, compared to 61,206 million pesos in the same period of 2023, indicating a decrease of 43.2%[52]. - The company’s inventories increased to ARS 166,065 million as of September 30, 2024, from ARS 154,181 million as of December 31, 2023[48]. Market and Product Development - New product launches contributed to a 20% increase in sales in the consumer electronics segment[55]. - Market expansion efforts led to a 25% increase in sales in the Asia-Pacific region[55]. - The company completed a strategic acquisition of a tech startup for $200 million to enhance its product offerings[55]. - The company invested$150 million in R&D for new technologies, focusing on AI and machine learning[55]. - Customer satisfaction ratings increased to 90%, reflecting improved service and product quality[55].