Financial Data and Key Metrics Changes - The consolidated margin for the quarter stood at 21.2%, showing a year-over-year decline primarily due to a challenging competitive environment [6] - Adjusted EBITDA for the quarter was $34 million, down 31% in real terms when measured in pesos, reflecting a contraction in EBITDA margin [7][17] - Net profit attributable to owners of the company totaled ARS 0.4 billion for the quarter, a significant decline from ARS 41 billion in the same quarter of 2024 [20] Business Line Data and Key Metrics Changes - Cement dispatch volumes grew by 14% year-over-year, but the Cement segment revenue declined by 9.9% due to weaker pricing [11][12] - Concrete revenues declined by 1.1% despite a 44% increase in volumes, impacted by price pressures [14] - The Aggregates segment posted a slight revenue increase of 0.8%, driven by a 44% increase in volumes [14] Market Data and Key Metrics Changes - The Argentine economy showed a year-over-year growth of 5.8% in the first quarter, with forecasts for the full year around 5% [9][10] - The Construction Activity Index (ISAC) indicates a positive rebound in the industry, although recovery is not uniform across all sectors [11] Company Strategy and Development Direction - The company is focused on operational efficiency and innovation, with a commitment to transitioning to 25-kilogram cement bags [27] - The management remains optimistic about the future, expecting double-digit growth in cement dispatches for 2025 [26] Management Comments on Operating Environment and Future Outlook - Management noted that the recovery is still in the early stages, with potential political volatility due to upcoming midterm elections [11] - The competitive environment is stable, with expectations for pricing recovery in the second half of the year [34][64] Other Important Information - The company successfully issued a new corporate bond for $112.9 million to address upcoming debt maturity and improve its maturity profile [8][24] - Cash flow used in operational activities totaled ARS 22.3 billion, driven by lower operational results and higher income tax paid [22] Q&A Session Summary Question: Timing of price increases and competitive trends - Management indicated that the competitive environment has been challenging, but they foresee an increase in pricing above inflation by the end of the year [33][34] Question: Outlook for construction in the second half of the year - Management expects a gradual moderate growth in construction activity, driven by public works and private investments [39] Question: Expectations for volume growth in 2025 - Management maintains a double-digit growth forecast for volumes in 2025, with specific expectations for low to mid-teens growth [42][50] Question: Impact of energy prices on margins - Management acknowledged that both energy prices and competitive dynamics have affected margins, but they expect a recovery in pricing [56][64] Question: Public work program recovery outlook - Management believes there is significant potential in public infrastructure projects, but the impact in the second half of the year may be limited [67]

Retail Industry Overview - U.S. retail sales declined for the second consecutive month in May, falling 0.9% month over month to $715.4 billion, marking the steepest decline since January [1][8] - The decline in retail activity was primarily driven by a 3.5% drop in motor vehicle purchases, alongside notable decreases in building materials (down 2.7%) and gasoline (down 2%) [2][8] - More than half of the 13 major retail categories tracked reported lower sales in May, indicating broader weakness in consumer spending [2] Consumer Sentiment and Economic Factors - Tariff threats and geopolitical tensions are negatively impacting consumer sentiment, suggesting that the earlier spike in sales was a reaction to anticipated economic challenges rather than a sustained spending trend [3] - The current economic uncertainties are prompting a cautious approach among consumers, reflected in the recent retail sales data [3] Investment Opportunities in Retail Stocks - Companies such as Sprouts Farmers Market, Urban Outfitters, BJ's Wholesale Club, and Costco are identified as better positioned to navigate shifts in consumer behavior due to their strategic initiatives [3][8] Company-Specific Insights Sprouts Farmers Market (SFM) - SFM is focusing on product innovation, competitive pricing, and targeted marketing to expand its customer base and meet evolving consumer preferences [7] - The Zacks Consensus Estimate for SFM indicates a projected growth of 13.7% in sales and 35.5% in earnings per share (EPS) for the current financial year [8] Urban Outfitters (URBN) - URBN is leveraging its multi-brand strength and digital reach, with major brands showing momentum across both digital and physical channels [10] - The Zacks Consensus Estimate for URBN suggests growth of 8.5% in sales and 22.2% in EPS for the current financial year [11] BJ's Wholesale Club (BJ) - BJ's Wholesale is focusing on membership growth and digital innovations, enhancing its omnichannel capabilities and customer value [11] - The Zacks Consensus Estimate for BJ indicates growth of 5.5% in sales and 6.2% in EPS for the current financial year [12] Costco (COST) - Costco is effectively navigating market fluctuations through strategic investments and a strong emphasis on its membership model [13] - The Zacks Consensus Estimate for Costco forecasts growth of 8% in sales and 12% in EPS for the current financial year [14]