Loma Negra pania Industrial Argentina Sociedad Anonima(US:LOMA)2025-03-07 22:01Financial Data and Key Metrics Changes - The company experienced a 31% decline in sales during the first half of 2024, which improved to a year-on-year decline of 17% in the second half of the year [4]. Business Line Data and Key Metrics Changes - The construction sector faced significant challenges in 2024, impacting cement consumption due to key economic variables and the suspension of many public works projects [5]. Market Data and Key Metrics Changes - The overall industry saw a decline in volumes by 24% to 25% in the previous year, but the company anticipates a two-digit year-on-year increase in volumes for 2025 if the last part of 2024's volumes are maintained [13][15]. Company Strategy and Development Direction - The company is focusing on maintaining pricing dynamics similar to the previous years, with expectations that prices will align with inflation, assuming inflation remains above the devaluation of the peso [9]. Management Comments on Operating Environment and Future Outlook - Management acknowledged the challenging environment in 2024 but expressed optimism for 2025, citing potential private projects that may commence soon [15]. Other Important Information - The Board decided not to pay dividends in 2024 due to the drop in volumes and uncertainty in the market, contrasting with the dividend payments made in 2022 and 2023 [18]. Q&A Session Summary Question: Pricing strategy for 2025 - Management indicated that pricing dynamics in 2025 would likely mirror those of the last couple of years, with a potential deceleration of inflation allowing for more spaced price increments [9]. Question: Volume expectations for 2025 - The company expects a two-digit year-on-year increase in volumes for 2025, contingent on maintaining the volumes from the latter part of 2024 [15]. Question: Dividend expectations for 2025 - The Board did not move forward with dividends in 2024 due to market conditions, and the decision for 2025 is still under analysis [18]. Question: Cost structure and margin opportunities for 2025 - Management noted improvements in energy inputs and indicated that they are assessing their cost structure for potential margin increases [24]. Question: CapEx guidance for 2025 - The company plans to focus on maintenance CapEx for 2025, estimating maintenance costs between $55 million and $60 million [26]. Question: Remaining CapEx for specific projects - The remaining CapEx for the 25-kilogram project is approximately $22 million [31].