Financial Data and Key Metrics Changes - The company's top line reached ARS 180.7 billion, marking a 21.2% decrease in the quarter, primarily due to lower cement dispatches [8] - Consolidated adjusted EBITDA was $55 million or ARS 43 billion, down 18.5% compared to the same period last year [8][23] - EBITDA margin stood at 24%, reflecting an improvement of 78 basis points year-over-year [9][23] - Net profit attributable to owners of the company was ARS 20.9 billion, compared to ARS 22.9 billion in Q3 2023 [27] Business Line Data and Key Metrics Changes - The cement, masonry cement, and lime segment declined by 21%, with volumes contracting 17.1% year-on-year [14] - Concrete revenues decreased by 29.7% in the quarter, primarily due to a 22% drop in dispatches [16] - The aggregates segment experienced a 42.7% decline, with sales volume down by 29% [16] - Railroad revenue saw a modest decline of 4.7%, with transported volumes dropping by 7% [17] Market Data and Key Metrics Changes - Industry volume showed a strong sequential improvement, increasing by 25%, although still below last year's level [7] - Bulk cement dispatches reached 62%, recovering more quickly than other dispatch modes [12] - Positive indicators such as the recovery of real wages, downward trend in inflation, and lower interest rates are essential for driving sustainable growth [13] Company Strategy and Development Direction - The company is focused on maintaining operational flexibility and production strategy to mitigate the impact of seasonal costs [34] - The management is optimistic about the economic recovery, particularly in the construction sector, driven by credit expansion and foreign investment [35][36] - The company is analyzing capital allocation alternatives for potential dividend improvements in the future [42][45] Management's Comments on Operating Environment and Future Outlook - Management noted that the third quarter showed significant sequential improvement, indicating a move past the worst part of the recession [34] - The company is closely monitoring economic challenges, including inflation and interest rate declines, which could provide a solid foundation for growth [35] - The reduction in country risk is seen as a positive step toward attracting foreign investment [36] Other Important Information - The company ended the quarter with a net debt of ARS 172 billion, achieving a net debt-to-EBITDA ratio of 1.03x, down from 1.4x at the end of 2023 [29] - Cash generation from operational activities reached ARS 64 billion, up from ARS 45 billion in the same period of 2023 [30] - The company allocated ARS 17.4 billion to capital expenditure, with a significant portion directed towards a new project [31] Q&A Session Summary Question: Pricing dynamics and its effect on volumes and revenues - Management is closely monitoring pricing dynamics and may adjust prices less frequently if inflation stabilizes [38][39] Question: Catalysts for larger construction projects and bulk cement demand - Management expects larger projects and public works to impact bulk cement sales positively in the upcoming months [40] Question: Potential for dividend improvements - Management indicated that there are no immediate plans for dividends but is analyzing capital allocation alternatives [42][45] Question: Impact of InterCement situation on debt repayment covenants - Management confirmed there are no covenants regarding change of control that may impact the company [47] Question: Details on the 25-kilo bag project and cement volume recovery - Management noted that profitability between cement and bulk is similar, and they expect a significant recovery in volumes next year [49][50] Question: Recovery of the mortgage market in Argentina - Management observed a recovery in real estate sales, which could boost future construction projects and cement sales [51]
Loma Negra pania Industrial Argentina Sociedad Anonima(LOMA) - 2024 Q3 - Earnings Call Transcript