Q3 2024 Loma Negra Compania Industrial Argentina SA Earnings Call Transcript
Key Points
- Loma Negra Cia Industria Argentina SA (LOMA) reported a strong sequential improvement in industry volume, increasing by 25% compared to previous quarters.
- The company's EBITDA margin improved by 78 basis points year-over-year, reaching 24%, despite challenging market conditions.
- Net debt was reduced to $177 million, with a net debt to EBITDA ratio of 1.03 times, indicating a strengthened balance sheet.
- The company successfully managed energy costs by utilizing clinker production during warmer seasons, contributing to lower energy expenses.
- Loma Negra Cia Industria Argentina SA (LOMA) increased the share of renewable energy in its energy matrix to 66%, up from 39% in the previous year, further reducing energy costs.
- Top line revenue decreased by 21.2% due to lower cement dispatches, impacting overall financial performance.
- Concrete revenues fell by 29.7% in the quarter, primarily due to a 22% drop in dispatches, reflecting struggles in gaining traction for central projects.
- The aggregates segment experienced a significant decline, with sales volume down by 29%, indicating a challenging competitive landscape.
- SG&A expenses increased as a percentage of sales, rising to 9.2% due to the decline in revenues.
- The company's adjusted EBITDA in pesos decreased by 18.5%, reflecting the impact of lower volumes and challenging economic conditions.
Good morning and welcome to the Loma Negra third-quarter 2024 conference call and webcast. (Operator instructions) Please note that this event is being recorded.
I would now like to turn the conference over to Mr Diego Jalon, Head of IR. Please Diego, go ahead.
Thank you. Good morning and welcome to Loma Negra earnings conference call. By now everyone should have access to our earnings press release and the presentation for today's call, both of which were distributed yesterday after market close.
Joining me on the call this morning will be Sergio Faifman, our CEO and Vice President of the Board of Directors; and our CFO, Marcos Gardin. Both of them will be available for the Q&A session.
Before we proceed, I would like to make the following safe harbor statements. Today's call will contain forward-looking statements and I refer you to the forward-looking statements section of our earnings release and recent filing with the SEC. We assume no
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