Financial Data and Key Metrics Changes - In Q4 2024, the company reported an EBITDA of $50 million, up 2.4% in peso terms, with an EBITDA margin of 29%, significantly improved from 22.8% in Q4 2023 [9][24] - For the full year 2024, EBITDA totaled $198 million with a margin of 25.9%, an improvement of 211 basis points [9][24] - Net debt decreased by $20 million to $157 million, lowering the net debt ratio to below 1x [10][26] Business Line Data and Key Metrics Changes - The cement segment saw a revenue decline of 19.9% with volumes contracting 14.1% year over year [18] - The concrete segment experienced a revenue drop of 26.9% with volumes down 14.4% [18] - The aggregate segment recorded a 34.2% revenue decline, although sales volume only decreased by 3.1% [19] Market Data and Key Metrics Changes - The overall industry volume declined by 24% in 2024, but the company noted a narrowing of the year-on-year gap to a 14% drop in Q4 [15][17] - January 2025 saw nearly 9% growth in dispatches, marking the first year-over-year increase since March 2023 [16] - The Central Bank's report projects a 4.6% economic expansion in 2025, which is expected to support a recovery in cement consumption [17] Company Strategy and Development Direction - The company views 2024 as a transition year, with expectations for double-digit growth in 2025 driven by improved economic conditions and renewed interest in large-scale projects [29][30] - Significant investments in capacity have been made to position the company for future growth in the Argentine market [30] Management Comments on Operating Environment and Future Outlook - Management expressed confidence that the most challenging period is behind the company, with expectations for improved pricing dynamics and volume growth in 2025 [17][29] - The company is focused on efficiency and cost management to sustain margins despite lower volumes [56] Other Important Information - The company reported a net profit of ARS 22.4 billion in Q4 2024, compared to a net loss of ARS 43 billion in the same quarter last year [25] - Cash flow from operating activities reached ARS 47.8 billion, down from ARS 57 billion in Q4 2023 [26] Q&A Session Summary Question: Pricing strategies for 2025 - Management anticipates that pricing dynamics will align with inflation, with potential adjustments above inflation in case of significant devaluation [37] Question: Volume expectations for 2025 and dividend distributions - The company expects a two-digit increase in volumes for 2025, with ongoing analysis regarding capital allocation and potential dividends [45][50] Question: Cost structure and margin opportunities for 2025 - Management noted improvements in energy inputs and believes that margins shown in Q4 2024 are sustainable, with potential for further improvement as volumes increase [56] Question: CapEx guidance for 2025 - The company plans to maintain only maintenance CapEx in 2025, with an estimated range of $55 million to $60 million [60]
Loma Negra pania Industrial Argentina Sociedad Anonima(LOMA) - 2024 Q4 - Earnings Call Transcript