Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Loma Negra Reports 2Q21 results By: Loma Negra via Business Wire August 11, 2021 at 16:45 PM EDT Loma Negra, (NYSE: LOMA; BYMA: LOMA), (“Loma Negra” or the “Company”), the leading cement producer in Argentina, today announced results for the three-month period ended June 30, 2021 (our “2Q21 Results”). 2Q21 Key Highlights Net revenue increased by 46.6% YoY to Ps. 14,269 million (US$147 million), mostly explained by our core cement segment Strong increase in our Consolidated Adjusted EBITDA of 74.1% YoY to Ps. 4,354 million (US$48 million) Consolidated Adjusted EBITDA margin expanded by 483 basis points YoY from 25.7% to 30.5%, driven by higher sales of cement, masonry, and lime together with higher operational leverage Net loss of Ps. 1,265 million as a consequence of a one-off effect in deferred taxes as a result of the recent tax reform Net Debt /LTM Adjusted EBITDA ratio of 0.13x from 1.30x in 2Q20 and 0.16x in FY20 The Company has presented certain financial figures, Table 1b and Table 11, in U.S. dollars and Pesos without giving effect to IAS 29. The Company has prepared all other financial information herein by applying IAS 29. Commenting on the financial and operating performance for the second quarter of 2021, Sergio Faifman, Loma Negra’s Chief Executive Officer, noted: “We are pleased to announce another quarter with an excellent performance. Demand continues with a strong momentum, and after several quarters of recovery is now exceeding pre-pandemic levels. On the back of our revenues growth and a higher operational leverage is that we increased our EBITDA by 74%YoY and expanded our margin by 483 bps, reaching one of the best second quarters in recent years with Adjusted EBITDA in the quarter of US$ 48 million. Additionally, during the quarter, we posted a net loss impacted by one-off income tax effect derived from the recent tax reform. Still, for the first half of the year, Net profit stood at Ps. 1,583 million. Regarding our expansion project, last June we inaugurated the new kiln and is now producing clinker and contributing to our world-class operation. Additionally, the new Cement mill and dispatch center are close to commissioning. For the second half, we expect strong recovery to continue and an expansion vis-à-vis pre-pandemic levels, as seasonality and public works should begin to contribute positively. Yet we remain cautious as macroeconomic context could affect the recovery and some degree of uncertainty remains in relation to the pandemic. Last but not least, I would like to thank all our people, and stakeholders, for their commitment to Loma´s operational excellence, without whom this set of solid results would have been much harder to achieve. Supported by a robust and efficient productive footprint, a solid capital structure, and a dedicated team, Loma has the base to continue thriving in the years to come.” Table 1: Financial Highlights (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended June 30, Six-months ended June 30, 2021 2020 % Chg. 2021 2020 % Chg. Net revenue 14,269 9,735 46.6% 28,888 20,536 40.7% Gross Profit 4,299 2,286 88.0% 9,598 5,578 72.1% Gross Profit margin 30.1% 23.5% +664bps 33.2% 27.2% +606bps Adjusted EBITDA 4,354 2,501 74.1% 9,576 5,990 59.9% Adjusted EBITDA Mg. 30.5% 25.7% +483bps 33.1% 29.2% +398bps Net Profit (1,265) 166 n/a 1,583 1,560 1.5% Net Profit attributable to owners of the Company (1,235) 123 n/a 1,651 1,480 11.6% EPS (2.0747) 0.2060 n/a 2.7770 2.0022 38.7% Shares outstanding at eop 596 596 -0.1% 596 596 -0.1% Net Debt 2,484 18,853 -86.8% 2,484 18,853 -86.8% Net Debt /LTM Adjusted EBITDA 0.13x 1.30x -1.17x 0.13x 1.30x -1.17x Table 1b: Financial Highlights in Ps and in U.S. dollars (figures exclude the impact of IAS 29) In million Ps. Three-months ended June 30, Six-months ended June 30, 2021 2020 % Chg. 2021 2020 % Chg. Net revenue 13,829 6,382 116.7% 26,464 12,990 103.7% Adjusted EBITDA 4,484 1,729 159.3% 9,116 3,934 131.7% Adjusted EBITDA Mg. 32.4% 27.1% +528bps 34.4% 30.3% +414bps Net Profit 4,628 137 3276.2% 7,888 781 909.3% Net Debt 2,484 18,853 -86.8% 2,484 18,853 -86.8% Net Debt /LTM Adjusted EBITDA 0.13x 1.30x -1.17x 0.13x 1.30x -1.17x In million US$ Three-months ended June 30, Six-months ended June 30, 2021 2020 % Chg. 2021 2020 % Chg. Ps./US$, av 94.09 67.71 39.0% 91.37 64.59 41.5% Ps./US$, eop 95.73 70.46 35.9% 95.73 70.46 35.9% Net revenue 147 94 55.9% 290 201 44.0% Adjusted EBITDA 48 26 86.3% 100 61 63.7% Adjusted EBITDA Mg. 32.4% 27.1% +528bps 34.4% 30.3% +414bps Net Profit 49 2 2329.4% 86 12 613.5% Net Debt 26 268 -90.3% 26 268 -90.3% Net Debt /LTM Adjusted EBITDA 0.13x 1.30x -1.17x 0.13x 1.30x -1.17x Overview of Operations Sales Volumes Table 2: Sales Volumes2 Three-months ended June 30, Six-months ended June 30, 2021 2020 % Chg. 2021 2020 % Chg. Cement, masonry & lime MM Tn 1.40 1.01 39.5% 2.79 2.01 38.7% Concrete MM m3 0.12 0.02 583.6% 0.27 0.09 191.5% Railroad MM Tn 1.06 0.63 69.2% 2.05 1.57 30.8% Aggregates MM Tn 0.20 0.03 620.1% 0.38 0.15 145.4% 2 Sales volumes include inter-segment sales Sales volumes of cement, masonry, and lime in Argentina during 2Q21 increased 39.5% to 1.40 million tons, with the robust bagged cement sales driven by strong household and retail demand growing above pre-pandemic levels of 2Q19. Bulk cement is still falling behind pre-pandemic levels, yet volume dispatched in this format have recovered vigorously in a year over year basis, as COVID-19 second wave restrictions have been less severe than in the same period last year. Likewise, Concrete and Aggregates volumes presented a strong YoY recovery of 583.6% and 620.1%, respectively, yet absolute figures are still far from pre-pandemic levels. Railroad segment volumes experienced a 69.2% increase versus the comparable quarter in 2020, with a positive effect of the recovery in building materials and frac-sand transported volumes. Review of Financial Results Table 3: Condensed Interim Consolidated Statements of Profit or Loss and Other Comprehensive Income (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended June 30, Six-months ended June 30, 2021 2020 % Chg. 2021 2020 % Chg. Net revenue 14,269 9,735 46.6% 28,888 20,536 40.7% Cost of sales (9,971) (7,449) 33.8% (19,290) (14,958) 29.0% Gross Profit 4,299 2,286 88.0% 9,598 5,578 72.1% Selling and administrative expenses (1,231) (920) 33.7% (2,428) (1,866) 30.1% Other gains and losses 85 3 2440.9% 132 73 81.6% Impairment of property, plant and equipment - - n/a - - n/a Tax on debits and credits to bank accounts (158) (103) 53.1% (297) (265) 12.0% Finance gain (cost), net Gain on net monetary position 552 102 442.1% 1,171 297 293.7% Exchange rate differences 193 (864) n/a 217 (1,129) n/a Financial income 414 15 2661.4% 135 41 232.7% Financial expense (868) (850) 2.1% (1,074) (1,439) -25.3% Profit before taxes 3,286 (331) n/a 7,453 1,289 478.1% Income tax expense Current (1,537) 111 n/a (3,262) (293) 1013.3% Deferred (3,015) 109 n/a (2,608) 2 n/a Net profit from continuing operations (1,265) (111) 1042.5% 1,583 998 58.6% Income from discontinued operations - 277 n/a - 561 n/a Net profit (1,265) 166 n/a 1,583 1,560 1.5% Net Revenues Net revenue increased 46.6% to Ps. 14,269 million in 2Q21, from Ps. 9,735 million in the comparable quarter last year, reflecting the COVID-19 pandemic restriction of 2Q20 and the positive momentum experienced by our core cement business, together with sales recovery across all segments. Cement, masonry cement and lime segment was up 43.4%, with volumes expanding 39.5% and good pricing performance. Concrete posted a revenues increase of 491.7% as strong volume recovery more than offset soft prices. Aggregates posted a revenue surge of 1000.1% as higher volume sales were coupled with a positive sales mix. Railroad revenues increased 23.5% in 2Q21 versus the same quarter in 2020, as the higher transported volumes more than offset the effect of the transported product mix. Cost of sales, and Gross profit Cost of sales increased 33.8% YoY reaching Ps. 9,971 million in 2Q21 largely explained by the increase in volume sold, impacting in higher thermal and electrical input charges, and higher freight cost. Gross profit increased 88.0% YoY to Ps. 4,299 million in 2Q21 from Ps. 2,286 million in 2Q20, with gross profit margin expanding 664 basis points YoY to 30.1%, reflecting the recovery of cement sales volumes coupled with good cost performance and higher operational leverage. Selling and Administrative Expenses Selling and administrative expenses (SG&A) in 2Q21 increased by 33.7% YoY to Ps. 1,231 million, from Ps. 920 million in 2Q20, mainly as a consequence of higher cement sales and higher labor cost compare to last year´s level, affected by COVID-19 restriction. As a percentage of revenues, SG&A decreased 83 basis points to 8.6% in 2Q21, from 9.5% in 2Q20 mostly explained by higher sales volumes. Adjusted EBITDA & Margin Table 4: Adjusted EBITDA Reconciliation & Margin (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended June 30, Six-months ended June 30, 2021 2020 % Chg. 2021 2020 % Chg. Adjusted EBITDA reconciliation: Net profit (1,265) 166 n/a 1,583 1,560 1.5% (+) Depreciation and amortization 1,201 1,132 6.2% 2,274 2,206 3.1% (+) Tax on debits and credits to bank accounts 158 103 53.1% 297 265 12.0% (+) Income tax expense 4,551 (220) n/a 5,870 291 1917.8% (+) Financial interest, net 420 711 -40.9% 837 1,134 -26.2% (+) Exchange rate differences, net (193) 864 n/a (217) 1,129 n/a (+) Other financial expenses, net 34 124 -72.9% 102 264 -61.6% (+) Gain on net monetary position (552) (102) 442.1% (1,171) (297) 293.7% (-) Income from discontinued operations - 277 n/a - 561 n/a Adjusted EBITDA 4,354 2,501 74.1% 9,576 5,990 59.9% Adjusted EBITDA Margin 30.5% 25.7% +483bps 33.1% 29.2% +398bps Adjusted EBITDA increased 74.1% YoY in the second quarter of 2021 to Ps. 4,354 million, mostly explained by our cement business. Likewise, Adjusted EBITDA margin expanded by 483 basis points to 30.5% compared to 25.7% in 2Q20 largely on the back of cement margins expansion. In particular, Cement, masonry cement and lime segment Adjusted EBITDA margin expanded by 472 bps to 34.0%, mainly due to the increase in sales volume and higher operational leverage. Concrete Adjusted EBITDA recovered by 4.4% compared to 2Q20, yet posted a negative margin of 6.8%, as softer pricing outweighed the increase in sales volumes and the reduction in unitary costs of sales. Railroad Adjusted EBITDA margin deteriorated to 4.9%, mainly impacted by product mix with costs reduction less than proportional to revenues partially offset by higher transported volume and SG&A expenses as a percentage of revenues. Finally, Aggregates Adjusted EBITDA margin improved to 7.7%, as strong volume recovery coupled with better pricing mix and higher operational leverage. Finance Costs-Net Table 5: Finance Gain (Cost), net (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended June 30, Six-months ended June 30, 2021 2020 % Chg. 2021 2020 % Chg. Exchange rate differences 193 (864) n/a 217 (1,129) n/a Financial income 414 15 2661.4% 135 41 232.7% Financial expense (868) (850) 2.1% (1,074) (1,439) -25.3% Gain on net monetary position 552 102 442.1% 1,171 297 293.7% Total Finance Gain (Cost), Net 292 (1,597) n/a 449 (2,230) n/a During 2Q21, the Company reported a total finance gain, net of Ps. 292 million compared to a total finance cost, net of Ps. 1,597 million in 2Q20, mainly due to higher exchange rate difference gain of Ps. 193 million due to a lower net debt denominated in foreign currency and a real appreciation of the Peso during the period. Net Profit and Net Profit Attributable to Owners of the Company Net Profit for 2Q21 was severely impacted with an extraordinary charge equivalent to Ps. 3.0 billion of additional deferred tax charges, related to the recent tax reform resulting in a Net loss of Ps. 1.3 billion. The accumulated net profit for the year was Ps. 1.6 billion. Net Profit Attributable to Owners of the Company decreased to negative Ps. 1,2 billion. During the quarter, the Company reported a loss per common share of Ps. 2.0747 and loss per ADR of Ps. 10.3736, compared with earnings per common share of Ps. 0.2060 and earnings per ADR of Ps. 1.0299 in 2Q20. Capitalization Table 6: Capitalization and Debt Ratio (amounts expressed in millions of pesos, unless otherwise noted) As of June 30, As of December, 31 2021 2020 2020 Total Debt 5,398 22,245 8,072 - Short-Term Debt 4,841 14,766 5,729 - Long-Term Debt 557 7,478 2,343 Cash, Cash Equivalents, and Investments 2,915 3,392 5,484 Total Net Debt 2,484 18,853 2,588 Shareholders' Equity 57,675 51,461 56,886 Capitalization 63,073 73,706 64,957 LTM Adjusted EBITDA 18,493 14,495 16,640 Net Debt /LTM Adjusted EBITDA 0.13x 1.30x 0.16x As of June 30, 2021, total cash and cash equivalents were Ps. 2,915 million compared with Ps. 3,392 million as of the June 30, 2020. Total debt at the close of the quarter stood at Ps. 5,398 million, composed by Ps. 4,841 million in short-term borrowings, including the current portion of long-term borrowings (or 89.7% of total borrowings), and Ps. 557 million in long-term borrowings (or 10.3% of total borrowings). As of June 30, 2021, 82.5% (or Ps. 4,452 million) Loma Negra’s total debt was denominated in U.S. dollars, 17.1% (or Ps. 926 million) in Euros, and 0.4% (or Ps. 21 million) in argentine pesos. The average duration of Loma Negra’s total debt was 0.5 years. As of June 30, 2021, Ps. 4,473 million, or 82.9%, of the Company’s total consolidated borrowings bore interest at rates based on Libor, and Ps. 926 million of borrowings bore interest at a fixed rate. The Net Debt to Adjusted EBITDA (LTM) ratio decreased to 0.13x as of June 30, 2021 from 0.16x as of December 31, 2020 as the cash used in investing and financing activities outweighed the cash generated by operating activities. Cash Flows Table 7: Condensed Interim Consolidated Statement of Cash Flows (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended June 30, Six-months ended June 30, 2021 2020 2021 2020 CASH FLOWS FROM OPERATING ACTIVITIES Net profit (1,265) 166 1,583 1,560 Adjustments to reconcile net profit to net cash provided by operating activities 5,577 1,766 7,902 3,666 Changes in operating assets and liabilities (4,339) 2,212 (6,263) (905) Net cash generated by operating activities (28) 4,144 3,222 4,322 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from disposal of Yguazú Cementos S.A. 156 - 250 - Property, plant and equipment, Intangible Assets, net (1.341) (1.464) (2.475) (7.820) Contributions to Trust (20) (0) (42) (33) Investments (0) - (1.856) - Net cash (used in) investing activities (1,205) (1,464) (4,124) (7,853) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds / Repayments from borrowings, Interest paid (1,745) (1,632) (2,236) 4,766 Share repurchase plan (511) - (794) - Net cash generated by (used in) by financing activities (2,256) (1,632) (3,031) 4,766 Net increase (decrease) in cash and cash equivalents (3,488) 1,049 (3,932) 1,234 Cash and cash equivalents at the beginning of the year 4,829 2,347 5,484 2,225 Effect of the re-expression in homogeneous cash currency ("Inflation-Adjusted") (55) (29) (95) (94) Effects of the exchange rate differences on cash and cash equivalents in foreign currency (126) 25 (297) 26 Cash and cash equivalents at the end of the period 1,160 3,392 1,160 3,392 In the 2Q21, our operating cash generation was largely dedicated to income tax payments and to seasonal working capital requirements. Typically, in the second quarter previous year´s income tax payment are scheduled, in particular, 2Q21 payment of 3.0 billion pesos included 1.5 billion pesos charge related to last year´s divestment in Paraguay. By contrast, last year´s second quarter working capital levels were very low as several initiatives aiming to preserve liquidity under the pandemic uncertainty were taken. During 2Q21, the Company had used cash in financing and investing activities for a total of Ps. 2,256 and Ps. 1,205 million, respectively. Cash allocations to the expansion of production capacity of L’Amalí plant accounted for a total of Ps. 292 million, or 22% of total capital expenditures. Expansion of L’Amalí Plant. Loma Negra is moving ahead with the capital expenditure at its L’Amalí plant, which will add 2.7 million tons annually and drive higher profitability. This expansion involves a total capital expenditure, originally estimated at approximately US$350 million. As of the end of June 2021, the project presents an overall Progress of 99%. All detailed engineering is completed, all equipment and materials supplies has been delivered to site. In previous quarters, commissioning and start-up had been completed at crushing department and raw mill department. Last June it was inaugurated the new kiln, which is now operational and producing clinker. Additionally, new Cement mill and dispatch center are planned to start up by end of September. Share Repurchase Plan. On July 2, 2021, the Company announced the approval of the second share repurchase program, in accordance with Section 64 of Law No. 26.831 (“LMC”) and the CNV Regulations. The purpose is to efficiently apply a portion of the Company´s cash position which may result in a greater return of value for its shareholders considering the current attractive value of the share. The plan became effective as from July 6, 2021, the amount to invest will be up to AR$ 975.000.000 (Argentine Pesos Nine Hundred Seventy Five Million) or such lower amount that derives from the repurchase of up to 10% of Company’s capital stock. The maximum amount of shares or maximum percentage of the Company’s capital stock to be repurchased shall never surpass the limit of 10% of the capital stock in accordance with Section 64 of LMC. A summary of current Share Repurchase Programs is shown below: Repurchase Program II Maximum amount for repurchase AR$ 975 million Maximum price AR$ 310/ordinary share or US$ 9/ADR Period in force 60 days since July 6, 2021 Repurchase under the program until August 11, 2021 AR$ 320 million Progress 32.8% 2Q21 Earnings Conference Call When: 10:00 a.m. U.S. ET (11:00 a.m. BAT), August 12, 2021 Dial-in: 0800-444-2930 (Argentina), 1-833-255-2824 (U.S.), 1-866-605-3852 (Canada), 1-412-902-6701 (International) Password: Loma Negra Earnings Call Webcast: https://services.choruscall.com/links/loma210812gcV4Odjo.html Replay: A telephone replay of the conference call will be available between August 13, 2021 at 1:00 pm U.S. E.T. and ending on August 17, 2021. The replay can be accessed by dialing 1-877-344-7529 (U.S. toll free), or 1-412-317-0088 (International). The passcode for the replay is 10158956. The audio of the conference call will also be archived on the Company’s website at www.lomanegra.com Definitions Adjusted EBITDA is calculated as net profit plus financial interest, net plus income tax expense plus depreciation and amortization plus exchange rate differences plus other financial expenses, net plus tax on debits and credits to bank accounts, plus share of loss of associates, plus net Impairment of Property, plant and equipment, and less income from discontinued operation. Loma Negra believes that excluding tax on debits and credits to bank accounts from its calculation of Adjusted EBITDA is a better measure of operating performance when compared to other international players. Net Debt is calculated as borrowings less cash, cash equivalents and marketable securities. About Loma Negra Founded in 1926, Loma Negra is the leading cement company in Argentina, producing and distributing cement, masonry cement, aggregates, concrete and lime, products primarily used in private and public construction. Loma Negra is a vertically-integrated cement and concrete company, with nationwide operations, supported by vast limestone reserves, strategically located plants, top-of-mind brands and established distribution channels. Loma Negra is listed both on BYMA and on NYSE in the U.S., where it trades under the symbol “LOMA”. One ADS represents five (5) common shares. For more information, visit www.lomanegra.com. Note The Company presented some figures converted from Pesos to U.S. dollars for comparison purposes. The exchange rate used to convert Pesos to U.S. dollars was the reference exchange rate (Communication “A” 3500) reported by the Central Bank for U.S. dollars. The information presented in U.S. dollars is for the convenience of the reader only. Certain figures included in this report have been subject to rounding adjustments. Accordingly, figures shown as totals in certain tables may not be arithmetic aggregations of the figures presented in previous quarters. Rounding: We have made rounding adjustments to reach some of the figures included in this annual report. As a result, numerical figures shown as totals in some tables may not be an arithmetic aggregation of the figures that preceded them. Disclaimer This release contains forward-looking statements within the meaning of federal securities law that are subject to risks and uncertainties. These statements are only predictions based upon our current expectations and projections about possible or assumed future results of our business, financial condition, results of operations, liquidity, plans and objectives. In some cases, you can identify forward-looking statements by terminology such as “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “expect,” “predict,” “potential,” “seek,” “forecast,” or the negative of these terms or other similar expressions. The forward-looking statements are based on the information currently available to us. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including, among others things: changes in general economic, political, governmental and business conditions globally and in Argentina, changes in inflation rates, fluctuations in the exchange rate of the peso, the level of construction generally, changes in cement demand and prices, changes in raw material and energy prices, changes in business strategy and various other factors. You should not rely upon forward-looking statements as predictions of future events. Although we believe in good faith that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Any or all of Loma Negra’s forward-looking statements in this release may turn out to be wrong. You should consider these forward-looking statements in light of other factors discussed under the heading “Risk Factors” in the prospectus filed with the Securities and Exchange Commission on October 31, 2017 in connection with Loma Negra’s initial public offering. Therefore, readers are cautioned not to place undue reliance on these forward-looking statements. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason after the date of this release to conform these statements to actual results or to changes in our expectations. Table 8: Condensed Interim Consolidated Statements of Financial Position (amounts expressed in millions of pesos, unless otherwise noted) As of June 30, As of December 31, 2021 2020 ASSETS Non-current assets Property, plant and equipment 66,464 67,120 Right to use assets 314 561 Intangible assets 198 241 Investments 4 4 Goodwill 44 44 Inventories 2,587 2,702 Other receivables 609 603 Total non-current assets 70,220 71,274 Current assets Inventories 7,909 6,883 Other receivables 1,195 1,525 Trade accounts receivable 3,819 3,746 Investments 2,576 5,149 Cash and banks 338 334 Total current assets 15,838 17,638 TOTAL ASSETS 86,059 88,912 SHAREHOLDERS' EQUITY Capital stock and other capital related accounts 18,066 18,860 Reserves 37,686 23,460 Retained earnings 1,651 14,226 Equity attributable to the owners of the Company 57,402 56,546 Non-controlling interests 272 340 TOTAL SHAREHOLDERS' EQUITY 57,675 56,886 LIABILITIES Non-current liabilities Borrowings 557 2,343 Accounts payables - 128 Provisions 562 611 Salaries and social security payables 68 48 Debts for leases 242 489 Other liabilities 67 140 Deferred tax liabilities 11,727 9,119 Total non-current liabilities 13,223 12,878 Current liabilities Borrowings 4,841 5,729 Accounts payable 5,261 6,759 Advances from customers 615 917 Salaries and social security payables 1,694 1,782 Tax liabilities 2,523 3,614 Debts for leases 91 176 Other liabilities 136 171 Total current liabilities 15,160 19,149 TOTAL LIABILITIES 28,384 32,027 TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 86,059 88,912 Table 9: Condensed Interim Consolidated Statements of Profit or Loss and Other Comprehensive Income (unaudited) (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended June 30, Six-months ended June 30, 2021 2020 % Change 2021 2020 % Change Net revenue 14,269 9,735 46.6% 28,888 20,536 40.7% Cost of sales (9,971) (7,449) 33.8% (19,290) (14,958) 29.0% Gross profit 4,299 2,286 88.0% 9,598 5,578 72.1% Selling and administrative expenses (1,231) (920) 33.7% (2,428) (1,866) 30.1% Other gains and losses 85 3 2440.9% 132 73 81.6% Tax on debits and credits to bank accounts (158) (103) 53.1% (297) (265) 12.0% Finance gain (cost), net Gain on net monetary position 552 102 442.1% 1,171 297 293.7% Exchange rate differences 193 (864) n/a 217 (1,129) n/a Financial income 414 15 2661.4% 135 41 232.7% Financial expenses (868) (850) 2.1% (1,074) (1,439) -25.3% Profit (loss) before taxes 3,286 (331) n/a 7,453 1,289 478.1% Income tax expense Current (1,537) 111 n/a (3,262) (293) 1013.3% Deferred (3,015) 109 n/a (2,608) 2 n/a Net profit (loss) from continuing operations (1,265) (111) 1042.5% 1,583 998 58.6% Income from discontinued operations - 277 n/a - 561 n/a Net profit (loss) (1,265) 166 n/a 1,583 1,560 1.5% Other Comprehensive Income (Loss) Items to be reclassified through profit and loss: Exchange differences on translating foreign operations - 48 n/a - (137) n/a Total other comprehensive income (loss) - 48 n/a - (137) n/a TOTAL COMPREHENSIVE INCOME (LOSS) (1,265) 214 n/a 1,583 1,423 11.3% Net Profit (loss) for the period attributable to: Owners of the Company (1,235) 123 n/a 1,651 1,480 11.6% Non-controlling interests (31) 43 n/a (67) 80 n/a NET PROFIT (LOSS) FOR THE PERIOD (1,265) 166 n/a 1,583 1,560 1.5% Total comprehensive income (loss) attributable to: Owners of the Company (1,235) 147 n/a 1,651 1,410 17.1% Non-controlling interests (31) 67 n/a (67) 13 n/a TOTAL COMPREHENSIVE INCOME (LOSS) (1,265) 214 n/a 1,583 1,423 11.3% Earnings per share (basic and diluted): (2.0747) 0.2060 n/a 2.7770 2.0022 38.7% Table 10: Condensed Interim Consolidated Statement of Cash Flows (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended June 30, Six-months ended June 30, 2021 2020 2021 2020 CASH FLOWS FROM OPERATING ACTIVITIES Net profit (loss) from continuing operations (1,265) (111) 1,583 998 Income from discontinued operations - 277 - 561 Net profit (loss) (1,265) 166 1,583 1,560 Adjustments to reconcile net profit to net cash provided by operating activities Income tax expense 4,551 (184) 5,870 356 Depreciation and amortization 1,201 1,132 2,274 2,206 Provisions (20) (99) (21) (14) Interest expense 96 760 220 1,282 Exchange rate differences (339) 458 (507) 440 Interest income 116 - 102 - Gain on disposal of property, plant and equipment (53) 13 (75) 23 Gain on disposal of shareholding of Yguazú Cementos S.A. - (313) - (626) Depreciation value of trust 24 - 38 - Changes in operating assets and liabilities Inventories (94) 699 (675) (429) Other receivables (34) 205 (337) (110) Trade accounts receivable (402) 242 (848) 450 Advances from customers (170) 91 (194) 142 Accounts payable 129 825 315 31 Salaries and social security payables 120 (317) 302 (398) Provisions (14) 51 (24) (37) Tax liabilities (198) 676 (71) 240 Other liabilities (45) (29) (105) (43) Gain on net monetary position (552) (102) (1,171) (297) Income tax paid (3,080) (128) (3,456) (453) Net cash generated by (used in) operating activities (28) 4,144 3,222 4,322 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from disposal of Yguazú Cementos S.A. 156 - 250 - Proceeds from disposal of Property, plant and equipment 30 8 71 30 Payments to acquire Property, plant and equipment (1,371) (1,471) (2,546) (7,845) Payments to acquire Intangible Assets - (1) - (4) Investments (0) - (1,856) - Contributions to Trust (20) (0) (42) (33) Net cash generated by (used in) investing activities (1,205) (1,464) (4,124) (7,853) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from borrowings 372 6,981 470 15,848 Interest paid (69) (974) (265) (2,054) Debts for leases (36) (37) (79) (85) Repayment of borrowings (2,011) (7,601) (2,362) (8,943) Share repurchase plan (511) - (794) - Net cash generated by (used in) financing activities (2,256) (1,632) (3,031) 4,766 Net increase (decrease) in cash and cash equivalents (3,488) 1,049 (3,932) 1,234 Cash and cash equivalents at the beginning of the period 4,829 2,347 5,484 2,225 Effect of the re-expression in homogeneous cash currency ("Inflation-Adjusted") (55) (29) (95) (94) Effects of the exchange rate differences on cash and cash equivalents in foreign currency (126) 25 (297) 26 Cash and cash equivalents at the end of the period 1,160 3,392 1,160 3,392 Table 11: Financial Data by Segment (figures exclude the impact of IAS 29) (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended June 30, Six-months ended June 30, 2021 % 2020 % 2021 % 2020 % Net revenue 13,829 100.0% 6,382 100.0% 26,464 100.0% 12,990 100.0% Cement, masonry cement and lime 12,392 89.6% 5,844 91.6% 23,709 89.6% 11,632 89.5% Concrete 947 6.8% 109 1.7% 2,033 7.7% 577 4.4% Railroad 1,194 8.6% 655 10.3% 2,108 8.0% 1,397 10.8% Aggregates 190 1.4% 12 0.2% 318 1.2% 74 0.6% Others 68 0.5% 37 0.6% 140 0.5% 85 0.7% Eliminations (961) -6.9% (276) -4.3% (1,844) -7.0% (775) -6.0% Cost of sales 8,668 100.0% 4,335 100.0% 16,071 100.0% 8,504 100.0% Cement, masonry cement and lime 7,268 83.8% 3,735 86.2% 13,311 82.8% 7,031 82.7% Concrete 1,026 11.8% 205 4.7% 2,186 13.6% 729 8.6% Railroad 1,117 12.9% 609 14.1% 2,022 12.6% 1,348 15.9% Aggregates 169 2.0% 38 0.9% 302 1.9% 116 1.4% Others 49 0.6% 24 0.6% 93 0.6% 55 0.6% Eliminations (961) -11.1% (276) -6.4% (1,844) -11.5% (775) -9.1% Selling, admin. expenses and other gains & losses 1,048 100.0% 559 100.0% 1,992 100.0% 1,047 100.0% Cement, masonry cement and lime 949 90.5% 473 84.6% 1,789 89.8% 919 87.8% Concrete 0 0.0% 12 2.1% 22 1.1% 8 0.8% Railroad 72 6.9% 60 10.7% 127 6.4% 90 8.6% Aggregates 2 0.2% (0) 0.0% 4 0.2% (4) -0.4% Others 25 2.4% 15 2.7% 49 2.5% 33 3.2% Depreciation and amortization 371 100.0% 241 100.0% 714 100.0% 495 100.0% Cement, masonry cement and lime 277 74.7% 158 65.7% 530 74.2% 332 67.2% Concrete 15 3.9% 17 7.1% 31 4.4% 34 6.8% Railroad 70 19.0% 59 24.5% 137 19.2% 115 23.3% Aggregates 7 2.0% 5 2.2% 13 1.8% 11 2.2% Others 1 0.4% 1 0.5% 3 0.4% 2 0.4% Adjusted EBITDA 4,484 100.0% 1,729 100.0% 9,116 100.0% 3,934 100.0% Cement, masonry cement and lime 4,452 99.3% 1,795 103.8% 9,139 100.3% 4,014 102.0% Concrete (65) -1.4% (90) -5.2% (145) -1.6% (126) -3.2% Railroad 75 1.7% 45 2.6% 95 1.0% 74 1.9% Aggregates 26 0.6% (20) -1.2% 26 0.3% (28) -0.7% Others (5) -0.1% (1) 0.0% 0 0.0% (1) 0.0% Reconciling items: Effect by translation in homogeneous cash currency ("Inflation-Adjusted") (130) 772 459 2,057 Depreciation and amortization (1,201) (1,132) (2,274) (2,206) Tax on debits and credits banks accounts (158) (103) (297) (265) Finance gain (cost), net 292 (1,597) 449 (2,230) Income tax (4,551) 220 (5,870) (291) Income (loss) from discontinued operations - 277 - 561 NET PROFIT (LOSS) FOR THE PERIOD (1,265) 166 1,583 1,560 View source version on businesswire.com: https://www.businesswire.com/news/home/20210811005861/en/Contacts IR Contacts Marcos I. Gradin, Chief Financial Officer and Investor Relations Gastón Pinnel, Investor Relations Manager +54-11-4319-3050 investorrelations@lomanegra.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Loma Negra Reports 2Q21 results By: Loma Negra via Business Wire August 11, 2021 at 16:45 PM EDT Loma Negra, (NYSE: LOMA; BYMA: LOMA), (“Loma Negra” or the “Company”), the leading cement producer in Argentina, today announced results for the three-month period ended June 30, 2021 (our “2Q21 Results”). 2Q21 Key Highlights Net revenue increased by 46.6% YoY to Ps. 14,269 million (US$147 million), mostly explained by our core cement segment Strong increase in our Consolidated Adjusted EBITDA of 74.1% YoY to Ps. 4,354 million (US$48 million) Consolidated Adjusted EBITDA margin expanded by 483 basis points YoY from 25.7% to 30.5%, driven by higher sales of cement, masonry, and lime together with higher operational leverage Net loss of Ps. 1,265 million as a consequence of a one-off effect in deferred taxes as a result of the recent tax reform Net Debt /LTM Adjusted EBITDA ratio of 0.13x from 1.30x in 2Q20 and 0.16x in FY20 The Company has presented certain financial figures, Table 1b and Table 11, in U.S. dollars and Pesos without giving effect to IAS 29. The Company has prepared all other financial information herein by applying IAS 29. Commenting on the financial and operating performance for the second quarter of 2021, Sergio Faifman, Loma Negra’s Chief Executive Officer, noted: “We are pleased to announce another quarter with an excellent performance. Demand continues with a strong momentum, and after several quarters of recovery is now exceeding pre-pandemic levels. On the back of our revenues growth and a higher operational leverage is that we increased our EBITDA by 74%YoY and expanded our margin by 483 bps, reaching one of the best second quarters in recent years with Adjusted EBITDA in the quarter of US$ 48 million. Additionally, during the quarter, we posted a net loss impacted by one-off income tax effect derived from the recent tax reform. Still, for the first half of the year, Net profit stood at Ps. 1,583 million. Regarding our expansion project, last June we inaugurated the new kiln and is now producing clinker and contributing to our world-class operation. Additionally, the new Cement mill and dispatch center are close to commissioning. For the second half, we expect strong recovery to continue and an expansion vis-à-vis pre-pandemic levels, as seasonality and public works should begin to contribute positively. Yet we remain cautious as macroeconomic context could affect the recovery and some degree of uncertainty remains in relation to the pandemic. Last but not least, I would like to thank all our people, and stakeholders, for their commitment to Loma´s operational excellence, without whom this set of solid results would have been much harder to achieve. Supported by a robust and efficient productive footprint, a solid capital structure, and a dedicated team, Loma has the base to continue thriving in the years to come.” Table 1: Financial Highlights (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended June 30, Six-months ended June 30, 2021 2020 % Chg. 2021 2020 % Chg. Net revenue 14,269 9,735 46.6% 28,888 20,536 40.7% Gross Profit 4,299 2,286 88.0% 9,598 5,578 72.1% Gross Profit margin 30.1% 23.5% +664bps 33.2% 27.2% +606bps Adjusted EBITDA 4,354 2,501 74.1% 9,576 5,990 59.9% Adjusted EBITDA Mg. 30.5% 25.7% +483bps 33.1% 29.2% +398bps Net Profit (1,265) 166 n/a 1,583 1,560 1.5% Net Profit attributable to owners of the Company (1,235) 123 n/a 1,651 1,480 11.6% EPS (2.0747) 0.2060 n/a 2.7770 2.0022 38.7% Shares outstanding at eop 596 596 -0.1% 596 596 -0.1% Net Debt 2,484 18,853 -86.8% 2,484 18,853 -86.8% Net Debt /LTM Adjusted EBITDA 0.13x 1.30x -1.17x 0.13x 1.30x -1.17x Table 1b: Financial Highlights in Ps and in U.S. dollars (figures exclude the impact of IAS 29) In million Ps. Three-months ended June 30, Six-months ended June 30, 2021 2020 % Chg. 2021 2020 % Chg. Net revenue 13,829 6,382 116.7% 26,464 12,990 103.7% Adjusted EBITDA 4,484 1,729 159.3% 9,116 3,934 131.7% Adjusted EBITDA Mg. 32.4% 27.1% +528bps 34.4% 30.3% +414bps Net Profit 4,628 137 3276.2% 7,888 781 909.3% Net Debt 2,484 18,853 -86.8% 2,484 18,853 -86.8% Net Debt /LTM Adjusted EBITDA 0.13x 1.30x -1.17x 0.13x 1.30x -1.17x In million US$ Three-months ended June 30, Six-months ended June 30, 2021 2020 % Chg. 2021 2020 % Chg. Ps./US$, av 94.09 67.71 39.0% 91.37 64.59 41.5% Ps./US$, eop 95.73 70.46 35.9% 95.73 70.46 35.9% Net revenue 147 94 55.9% 290 201 44.0% Adjusted EBITDA 48 26 86.3% 100 61 63.7% Adjusted EBITDA Mg. 32.4% 27.1% +528bps 34.4% 30.3% +414bps Net Profit 49 2 2329.4% 86 12 613.5% Net Debt 26 268 -90.3% 26 268 -90.3% Net Debt /LTM Adjusted EBITDA 0.13x 1.30x -1.17x 0.13x 1.30x -1.17x Overview of Operations Sales Volumes Table 2: Sales Volumes2 Three-months ended June 30, Six-months ended June 30, 2021 2020 % Chg. 2021 2020 % Chg. Cement, masonry & lime MM Tn 1.40 1.01 39.5% 2.79 2.01 38.7% Concrete MM m3 0.12 0.02 583.6% 0.27 0.09 191.5% Railroad MM Tn 1.06 0.63 69.2% 2.05 1.57 30.8% Aggregates MM Tn 0.20 0.03 620.1% 0.38 0.15 145.4% 2 Sales volumes include inter-segment sales Sales volumes of cement, masonry, and lime in Argentina during 2Q21 increased 39.5% to 1.40 million tons, with the robust bagged cement sales driven by strong household and retail demand growing above pre-pandemic levels of 2Q19. Bulk cement is still falling behind pre-pandemic levels, yet volume dispatched in this format have recovered vigorously in a year over year basis, as COVID-19 second wave restrictions have been less severe than in the same period last year. Likewise, Concrete and Aggregates volumes presented a strong YoY recovery of 583.6% and 620.1%, respectively, yet absolute figures are still far from pre-pandemic levels. Railroad segment volumes experienced a 69.2% increase versus the comparable quarter in 2020, with a positive effect of the recovery in building materials and frac-sand transported volumes. Review of Financial Results Table 3: Condensed Interim Consolidated Statements of Profit or Loss and Other Comprehensive Income (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended June 30, Six-months ended June 30, 2021 2020 % Chg. 2021 2020 % Chg. Net revenue 14,269 9,735 46.6% 28,888 20,536 40.7% Cost of sales (9,971) (7,449) 33.8% (19,290) (14,958) 29.0% Gross Profit 4,299 2,286 88.0% 9,598 5,578 72.1% Selling and administrative expenses (1,231) (920) 33.7% (2,428) (1,866) 30.1% Other gains and losses 85 3 2440.9% 132 73 81.6% Impairment of property, plant and equipment - - n/a - - n/a Tax on debits and credits to bank accounts (158) (103) 53.1% (297) (265) 12.0% Finance gain (cost), net Gain on net monetary position 552 102 442.1% 1,171 297 293.7% Exchange rate differences 193 (864) n/a 217 (1,129) n/a Financial income 414 15 2661.4% 135 41 232.7% Financial expense (868) (850) 2.1% (1,074) (1,439) -25.3% Profit before taxes 3,286 (331) n/a 7,453 1,289 478.1% Income tax expense Current (1,537) 111 n/a (3,262) (293) 1013.3% Deferred (3,015) 109 n/a (2,608) 2 n/a Net profit from continuing operations (1,265) (111) 1042.5% 1,583 998 58.6% Income from discontinued operations - 277 n/a - 561 n/a Net profit (1,265) 166 n/a 1,583 1,560 1.5% Net Revenues Net revenue increased 46.6% to Ps. 14,269 million in 2Q21, from Ps. 9,735 million in the comparable quarter last year, reflecting the COVID-19 pandemic restriction of 2Q20 and the positive momentum experienced by our core cement business, together with sales recovery across all segments. Cement, masonry cement and lime segment was up 43.4%, with volumes expanding 39.5% and good pricing performance. Concrete posted a revenues increase of 491.7% as strong volume recovery more than offset soft prices. Aggregates posted a revenue surge of 1000.1% as higher volume sales were coupled with a positive sales mix. Railroad revenues increased 23.5% in 2Q21 versus the same quarter in 2020, as the higher transported volumes more than offset the effect of the transported product mix. Cost of sales, and Gross profit Cost of sales increased 33.8% YoY reaching Ps. 9,971 million in 2Q21 largely explained by the increase in volume sold, impacting in higher thermal and electrical input charges, and higher freight cost. Gross profit increased 88.0% YoY to Ps. 4,299 million in 2Q21 from Ps. 2,286 million in 2Q20, with gross profit margin expanding 664 basis points YoY to 30.1%, reflecting the recovery of cement sales volumes coupled with good cost performance and higher operational leverage. Selling and Administrative Expenses Selling and administrative expenses (SG&A) in 2Q21 increased by 33.7% YoY to Ps. 1,231 million, from Ps. 920 million in 2Q20, mainly as a consequence of higher cement sales and higher labor cost compare to last year´s level, affected by COVID-19 restriction. As a percentage of revenues, SG&A decreased 83 basis points to 8.6% in 2Q21, from 9.5% in 2Q20 mostly explained by higher sales volumes. Adjusted EBITDA & Margin Table 4: Adjusted EBITDA Reconciliation & Margin (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended June 30, Six-months ended June 30, 2021 2020 % Chg. 2021 2020 % Chg. Adjusted EBITDA reconciliation: Net profit (1,265) 166 n/a 1,583 1,560 1.5% (+) Depreciation and amortization 1,201 1,132 6.2% 2,274 2,206 3.1% (+) Tax on debits and credits to bank accounts 158 103 53.1% 297 265 12.0% (+) Income tax expense 4,551 (220) n/a 5,870 291 1917.8% (+) Financial interest, net 420 711 -40.9% 837 1,134 -26.2% (+) Exchange rate differences, net (193) 864 n/a (217) 1,129 n/a (+) Other financial expenses, net 34 124 -72.9% 102 264 -61.6% (+) Gain on net monetary position (552) (102) 442.1% (1,171) (297) 293.7% (-) Income from discontinued operations - 277 n/a - 561 n/a Adjusted EBITDA 4,354 2,501 74.1% 9,576 5,990 59.9% Adjusted EBITDA Margin 30.5% 25.7% +483bps 33.1% 29.2% +398bps Adjusted EBITDA increased 74.1% YoY in the second quarter of 2021 to Ps. 4,354 million, mostly explained by our cement business. Likewise, Adjusted EBITDA margin expanded by 483 basis points to 30.5% compared to 25.7% in 2Q20 largely on the back of cement margins expansion. In particular, Cement, masonry cement and lime segment Adjusted EBITDA margin expanded by 472 bps to 34.0%, mainly due to the increase in sales volume and higher operational leverage. Concrete Adjusted EBITDA recovered by 4.4% compared to 2Q20, yet posted a negative margin of 6.8%, as softer pricing outweighed the increase in sales volumes and the reduction in unitary costs of sales. Railroad Adjusted EBITDA margin deteriorated to 4.9%, mainly impacted by product mix with costs reduction less than proportional to revenues partially offset by higher transported volume and SG&A expenses as a percentage of revenues. Finally, Aggregates Adjusted EBITDA margin improved to 7.7%, as strong volume recovery coupled with better pricing mix and higher operational leverage. Finance Costs-Net Table 5: Finance Gain (Cost), net (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended June 30, Six-months ended June 30, 2021 2020 % Chg. 2021 2020 % Chg. Exchange rate differences 193 (864) n/a 217 (1,129) n/a Financial income 414 15 2661.4% 135 41 232.7% Financial expense (868) (850) 2.1% (1,074) (1,439) -25.3% Gain on net monetary position 552 102 442.1% 1,171 297 293.7% Total Finance Gain (Cost), Net 292 (1,597) n/a 449 (2,230) n/a During 2Q21, the Company reported a total finance gain, net of Ps. 292 million compared to a total finance cost, net of Ps. 1,597 million in 2Q20, mainly due to higher exchange rate difference gain of Ps. 193 million due to a lower net debt denominated in foreign currency and a real appreciation of the Peso during the period. Net Profit and Net Profit Attributable to Owners of the Company Net Profit for 2Q21 was severely impacted with an extraordinary charge equivalent to Ps. 3.0 billion of additional deferred tax charges, related to the recent tax reform resulting in a Net loss of Ps. 1.3 billion. The accumulated net profit for the year was Ps. 1.6 billion. Net Profit Attributable to Owners of the Company decreased to negative Ps. 1,2 billion. During the quarter, the Company reported a loss per common share of Ps. 2.0747 and loss per ADR of Ps. 10.3736, compared with earnings per common share of Ps. 0.2060 and earnings per ADR of Ps. 1.0299 in 2Q20. Capitalization Table 6: Capitalization and Debt Ratio (amounts expressed in millions of pesos, unless otherwise noted) As of June 30, As of December, 31 2021 2020 2020 Total Debt 5,398 22,245 8,072 - Short-Term Debt 4,841 14,766 5,729 - Long-Term Debt 557 7,478 2,343 Cash, Cash Equivalents, and Investments 2,915 3,392 5,484 Total Net Debt 2,484 18,853 2,588 Shareholders' Equity 57,675 51,461 56,886 Capitalization 63,073 73,706 64,957 LTM Adjusted EBITDA 18,493 14,495 16,640 Net Debt /LTM Adjusted EBITDA 0.13x 1.30x 0.16x As of June 30, 2021, total cash and cash equivalents were Ps. 2,915 million compared with Ps. 3,392 million as of the June 30, 2020. Total debt at the close of the quarter stood at Ps. 5,398 million, composed by Ps. 4,841 million in short-term borrowings, including the current portion of long-term borrowings (or 89.7% of total borrowings), and Ps. 557 million in long-term borrowings (or 10.3% of total borrowings). As of June 30, 2021, 82.5% (or Ps. 4,452 million) Loma Negra’s total debt was denominated in U.S. dollars, 17.1% (or Ps. 926 million) in Euros, and 0.4% (or Ps. 21 million) in argentine pesos. The average duration of Loma Negra’s total debt was 0.5 years. As of June 30, 2021, Ps. 4,473 million, or 82.9%, of the Company’s total consolidated borrowings bore interest at rates based on Libor, and Ps. 926 million of borrowings bore interest at a fixed rate. The Net Debt to Adjusted EBITDA (LTM) ratio decreased to 0.13x as of June 30, 2021 from 0.16x as of December 31, 2020 as the cash used in investing and financing activities outweighed the cash generated by operating activities. Cash Flows Table 7: Condensed Interim Consolidated Statement of Cash Flows (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended June 30, Six-months ended June 30, 2021 2020 2021 2020 CASH FLOWS FROM OPERATING ACTIVITIES Net profit (1,265) 166 1,583 1,560 Adjustments to reconcile net profit to net cash provided by operating activities 5,577 1,766 7,902 3,666 Changes in operating assets and liabilities (4,339) 2,212 (6,263) (905) Net cash generated by operating activities (28) 4,144 3,222 4,322 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from disposal of Yguazú Cementos S.A. 156 - 250 - Property, plant and equipment, Intangible Assets, net (1.341) (1.464) (2.475) (7.820) Contributions to Trust (20) (0) (42) (33) Investments (0) - (1.856) - Net cash (used in) investing activities (1,205) (1,464) (4,124) (7,853) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds / Repayments from borrowings, Interest paid (1,745) (1,632) (2,236) 4,766 Share repurchase plan (511) - (794) - Net cash generated by (used in) by financing activities (2,256) (1,632) (3,031) 4,766 Net increase (decrease) in cash and cash equivalents (3,488) 1,049 (3,932) 1,234 Cash and cash equivalents at the beginning of the year 4,829 2,347 5,484 2,225 Effect of the re-expression in homogeneous cash currency ("Inflation-Adjusted") (55) (29) (95) (94) Effects of the exchange rate differences on cash and cash equivalents in foreign currency (126) 25 (297) 26 Cash and cash equivalents at the end of the period 1,160 3,392 1,160 3,392 In the 2Q21, our operating cash generation was largely dedicated to income tax payments and to seasonal working capital requirements. Typically, in the second quarter previous year´s income tax payment are scheduled, in particular, 2Q21 payment of 3.0 billion pesos included 1.5 billion pesos charge related to last year´s divestment in Paraguay. By contrast, last year´s second quarter working capital levels were very low as several initiatives aiming to preserve liquidity under the pandemic uncertainty were taken. During 2Q21, the Company had used cash in financing and investing activities for a total of Ps. 2,256 and Ps. 1,205 million, respectively. Cash allocations to the expansion of production capacity of L’Amalí plant accounted for a total of Ps. 292 million, or 22% of total capital expenditures. Expansion of L’Amalí Plant. Loma Negra is moving ahead with the capital expenditure at its L’Amalí plant, which will add 2.7 million tons annually and drive higher profitability. This expansion involves a total capital expenditure, originally estimated at approximately US$350 million. As of the end of June 2021, the project presents an overall Progress of 99%. All detailed engineering is completed, all equipment and materials supplies has been delivered to site. In previous quarters, commissioning and start-up had been completed at crushing department and raw mill department. Last June it was inaugurated the new kiln, which is now operational and producing clinker. Additionally, new Cement mill and dispatch center are planned to start up by end of September. Share Repurchase Plan. On July 2, 2021, the Company announced the approval of the second share repurchase program, in accordance with Section 64 of Law No. 26.831 (“LMC”) and the CNV Regulations. The purpose is to efficiently apply a portion of the Company´s cash position which may result in a greater return of value for its shareholders considering the current attractive value of the share. The plan became effective as from July 6, 2021, the amount to invest will be up to AR$ 975.000.000 (Argentine Pesos Nine Hundred Seventy Five Million) or such lower amount that derives from the repurchase of up to 10% of Company’s capital stock. The maximum amount of shares or maximum percentage of the Company’s capital stock to be repurchased shall never surpass the limit of 10% of the capital stock in accordance with Section 64 of LMC. A summary of current Share Repurchase Programs is shown below: Repurchase Program II Maximum amount for repurchase AR$ 975 million Maximum price AR$ 310/ordinary share or US$ 9/ADR Period in force 60 days since July 6, 2021 Repurchase under the program until August 11, 2021 AR$ 320 million Progress 32.8% 2Q21 Earnings Conference Call When: 10:00 a.m. U.S. ET (11:00 a.m. BAT), August 12, 2021 Dial-in: 0800-444-2930 (Argentina), 1-833-255-2824 (U.S.), 1-866-605-3852 (Canada), 1-412-902-6701 (International) Password: Loma Negra Earnings Call Webcast: https://services.choruscall.com/links/loma210812gcV4Odjo.html Replay: A telephone replay of the conference call will be available between August 13, 2021 at 1:00 pm U.S. E.T. and ending on August 17, 2021. The replay can be accessed by dialing 1-877-344-7529 (U.S. toll free), or 1-412-317-0088 (International). The passcode for the replay is 10158956. The audio of the conference call will also be archived on the Company’s website at www.lomanegra.com Definitions Adjusted EBITDA is calculated as net profit plus financial interest, net plus income tax expense plus depreciation and amortization plus exchange rate differences plus other financial expenses, net plus tax on debits and credits to bank accounts, plus share of loss of associates, plus net Impairment of Property, plant and equipment, and less income from discontinued operation. Loma Negra believes that excluding tax on debits and credits to bank accounts from its calculation of Adjusted EBITDA is a better measure of operating performance when compared to other international players. Net Debt is calculated as borrowings less cash, cash equivalents and marketable securities. About Loma Negra Founded in 1926, Loma Negra is the leading cement company in Argentina, producing and distributing cement, masonry cement, aggregates, concrete and lime, products primarily used in private and public construction. Loma Negra is a vertically-integrated cement and concrete company, with nationwide operations, supported by vast limestone reserves, strategically located plants, top-of-mind brands and established distribution channels. Loma Negra is listed both on BYMA and on NYSE in the U.S., where it trades under the symbol “LOMA”. One ADS represents five (5) common shares. For more information, visit www.lomanegra.com. Note The Company presented some figures converted from Pesos to U.S. dollars for comparison purposes. The exchange rate used to convert Pesos to U.S. dollars was the reference exchange rate (Communication “A” 3500) reported by the Central Bank for U.S. dollars. The information presented in U.S. dollars is for the convenience of the reader only. Certain figures included in this report have been subject to rounding adjustments. Accordingly, figures shown as totals in certain tables may not be arithmetic aggregations of the figures presented in previous quarters. Rounding: We have made rounding adjustments to reach some of the figures included in this annual report. As a result, numerical figures shown as totals in some tables may not be an arithmetic aggregation of the figures that preceded them. Disclaimer This release contains forward-looking statements within the meaning of federal securities law that are subject to risks and uncertainties. These statements are only predictions based upon our current expectations and projections about possible or assumed future results of our business, financial condition, results of operations, liquidity, plans and objectives. In some cases, you can identify forward-looking statements by terminology such as “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “expect,” “predict,” “potential,” “seek,” “forecast,” or the negative of these terms or other similar expressions. The forward-looking statements are based on the information currently available to us. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including, among others things: changes in general economic, political, governmental and business conditions globally and in Argentina, changes in inflation rates, fluctuations in the exchange rate of the peso, the level of construction generally, changes in cement demand and prices, changes in raw material and energy prices, changes in business strategy and various other factors. You should not rely upon forward-looking statements as predictions of future events. Although we believe in good faith that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Any or all of Loma Negra’s forward-looking statements in this release may turn out to be wrong. You should consider these forward-looking statements in light of other factors discussed under the heading “Risk Factors” in the prospectus filed with the Securities and Exchange Commission on October 31, 2017 in connection with Loma Negra’s initial public offering. Therefore, readers are cautioned not to place undue reliance on these forward-looking statements. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason after the date of this release to conform these statements to actual results or to changes in our expectations. Table 8: Condensed Interim Consolidated Statements of Financial Position (amounts expressed in millions of pesos, unless otherwise noted) As of June 30, As of December 31, 2021 2020 ASSETS Non-current assets Property, plant and equipment 66,464 67,120 Right to use assets 314 561 Intangible assets 198 241 Investments 4 4 Goodwill 44 44 Inventories 2,587 2,702 Other receivables 609 603 Total non-current assets 70,220 71,274 Current assets Inventories 7,909 6,883 Other receivables 1,195 1,525 Trade accounts receivable 3,819 3,746 Investments 2,576 5,149 Cash and banks 338 334 Total current assets 15,838 17,638 TOTAL ASSETS 86,059 88,912 SHAREHOLDERS' EQUITY Capital stock and other capital related accounts 18,066 18,860 Reserves 37,686 23,460 Retained earnings 1,651 14,226 Equity attributable to the owners of the Company 57,402 56,546 Non-controlling interests 272 340 TOTAL SHAREHOLDERS' EQUITY 57,675 56,886 LIABILITIES Non-current liabilities Borrowings 557 2,343 Accounts payables - 128 Provisions 562 611 Salaries and social security payables 68 48 Debts for leases 242 489 Other liabilities 67 140 Deferred tax liabilities 11,727 9,119 Total non-current liabilities 13,223 12,878 Current liabilities Borrowings 4,841 5,729 Accounts payable 5,261 6,759 Advances from customers 615 917 Salaries and social security payables 1,694 1,782 Tax liabilities 2,523 3,614 Debts for leases 91 176 Other liabilities 136 171 Total current liabilities 15,160 19,149 TOTAL LIABILITIES 28,384 32,027 TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 86,059 88,912 Table 9: Condensed Interim Consolidated Statements of Profit or Loss and Other Comprehensive Income (unaudited) (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended June 30, Six-months ended June 30, 2021 2020 % Change 2021 2020 % Change Net revenue 14,269 9,735 46.6% 28,888 20,536 40.7% Cost of sales (9,971) (7,449) 33.8% (19,290) (14,958) 29.0% Gross profit 4,299 2,286 88.0% 9,598 5,578 72.1% Selling and administrative expenses (1,231) (920) 33.7% (2,428) (1,866) 30.1% Other gains and losses 85 3 2440.9% 132 73 81.6% Tax on debits and credits to bank accounts (158) (103) 53.1% (297) (265) 12.0% Finance gain (cost), net Gain on net monetary position 552 102 442.1% 1,171 297 293.7% Exchange rate differences 193 (864) n/a 217 (1,129) n/a Financial income 414 15 2661.4% 135 41 232.7% Financial expenses (868) (850) 2.1% (1,074) (1,439) -25.3% Profit (loss) before taxes 3,286 (331) n/a 7,453 1,289 478.1% Income tax expense Current (1,537) 111 n/a (3,262) (293) 1013.3% Deferred (3,015) 109 n/a (2,608) 2 n/a Net profit (loss) from continuing operations (1,265) (111) 1042.5% 1,583 998 58.6% Income from discontinued operations - 277 n/a - 561 n/a Net profit (loss) (1,265) 166 n/a 1,583 1,560 1.5% Other Comprehensive Income (Loss) Items to be reclassified through profit and loss: Exchange differences on translating foreign operations - 48 n/a - (137) n/a Total other comprehensive income (loss) - 48 n/a - (137) n/a TOTAL COMPREHENSIVE INCOME (LOSS) (1,265) 214 n/a 1,583 1,423 11.3% Net Profit (loss) for the period attributable to: Owners of the Company (1,235) 123 n/a 1,651 1,480 11.6% Non-controlling interests (31) 43 n/a (67) 80 n/a NET PROFIT (LOSS) FOR THE PERIOD (1,265) 166 n/a 1,583 1,560 1.5% Total comprehensive income (loss) attributable to: Owners of the Company (1,235) 147 n/a 1,651 1,410 17.1% Non-controlling interests (31) 67 n/a (67) 13 n/a TOTAL COMPREHENSIVE INCOME (LOSS) (1,265) 214 n/a 1,583 1,423 11.3% Earnings per share (basic and diluted): (2.0747) 0.2060 n/a 2.7770 2.0022 38.7% Table 10: Condensed Interim Consolidated Statement of Cash Flows (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended June 30, Six-months ended June 30, 2021 2020 2021 2020 CASH FLOWS FROM OPERATING ACTIVITIES Net profit (loss) from continuing operations (1,265) (111) 1,583 998 Income from discontinued operations - 277 - 561 Net profit (loss) (1,265) 166 1,583 1,560 Adjustments to reconcile net profit to net cash provided by operating activities Income tax expense 4,551 (184) 5,870 356 Depreciation and amortization 1,201 1,132 2,274 2,206 Provisions (20) (99) (21) (14) Interest expense 96 760 220 1,282 Exchange rate differences (339) 458 (507) 440 Interest income 116 - 102 - Gain on disposal of property, plant and equipment (53) 13 (75) 23 Gain on disposal of shareholding of Yguazú Cementos S.A. - (313) - (626) Depreciation value of trust 24 - 38 - Changes in operating assets and liabilities Inventories (94) 699 (675) (429) Other receivables (34) 205 (337) (110) Trade accounts receivable (402) 242 (848) 450 Advances from customers (170) 91 (194) 142 Accounts payable 129 825 315 31 Salaries and social security payables 120 (317) 302 (398) Provisions (14) 51 (24) (37) Tax liabilities (198) 676 (71) 240 Other liabilities (45) (29) (105) (43) Gain on net monetary position (552) (102) (1,171) (297) Income tax paid (3,080) (128) (3,456) (453) Net cash generated by (used in) operating activities (28) 4,144 3,222 4,322 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from disposal of Yguazú Cementos S.A. 156 - 250 - Proceeds from disposal of Property, plant and equipment 30 8 71 30 Payments to acquire Property, plant and equipment (1,371) (1,471) (2,546) (7,845) Payments to acquire Intangible Assets - (1) - (4) Investments (0) - (1,856) - Contributions to Trust (20) (0) (42) (33) Net cash generated by (used in) investing activities (1,205) (1,464) (4,124) (7,853) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from borrowings 372 6,981 470 15,848 Interest paid (69) (974) (265) (2,054) Debts for leases (36) (37) (79) (85) Repayment of borrowings (2,011) (7,601) (2,362) (8,943) Share repurchase plan (511) - (794) - Net cash generated by (used in) financing activities (2,256) (1,632) (3,031) 4,766 Net increase (decrease) in cash and cash equivalents (3,488) 1,049 (3,932) 1,234 Cash and cash equivalents at the beginning of the period 4,829 2,347 5,484 2,225 Effect of the re-expression in homogeneous cash currency ("Inflation-Adjusted") (55) (29) (95) (94) Effects of the exchange rate differences on cash and cash equivalents in foreign currency (126) 25 (297) 26 Cash and cash equivalents at the end of the period 1,160 3,392 1,160 3,392 Table 11: Financial Data by Segment (figures exclude the impact of IAS 29) (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended June 30, Six-months ended June 30, 2021 % 2020 % 2021 % 2020 % Net revenue 13,829 100.0% 6,382 100.0% 26,464 100.0% 12,990 100.0% Cement, masonry cement and lime 12,392 89.6% 5,844 91.6% 23,709 89.6% 11,632 89.5% Concrete 947 6.8% 109 1.7% 2,033 7.7% 577 4.4% Railroad 1,194 8.6% 655 10.3% 2,108 8.0% 1,397 10.8% Aggregates 190 1.4% 12 0.2% 318 1.2% 74 0.6% Others 68 0.5% 37 0.6% 140 0.5% 85 0.7% Eliminations (961) -6.9% (276) -4.3% (1,844) -7.0% (775) -6.0% Cost of sales 8,668 100.0% 4,335 100.0% 16,071 100.0% 8,504 100.0% Cement, masonry cement and lime 7,268 83.8% 3,735 86.2% 13,311 82.8% 7,031 82.7% Concrete 1,026 11.8% 205 4.7% 2,186 13.6% 729 8.6% Railroad 1,117 12.9% 609 14.1% 2,022 12.6% 1,348 15.9% Aggregates 169 2.0% 38 0.9% 302 1.9% 116 1.4% Others 49 0.6% 24 0.6% 93 0.6% 55 0.6% Eliminations (961) -11.1% (276) -6.4% (1,844) -11.5% (775) -9.1% Selling, admin. expenses and other gains & losses 1,048 100.0% 559 100.0% 1,992 100.0% 1,047 100.0% Cement, masonry cement and lime 949 90.5% 473 84.6% 1,789 89.8% 919 87.8% Concrete 0 0.0% 12 2.1% 22 1.1% 8 0.8% Railroad 72 6.9% 60 10.7% 127 6.4% 90 8.6% Aggregates 2 0.2% (0) 0.0% 4 0.2% (4) -0.4% Others 25 2.4% 15 2.7% 49 2.5% 33 3.2% Depreciation and amortization 371 100.0% 241 100.0% 714 100.0% 495 100.0% Cement, masonry cement and lime 277 74.7% 158 65.7% 530 74.2% 332 67.2% Concrete 15 3.9% 17 7.1% 31 4.4% 34 6.8% Railroad 70 19.0% 59 24.5% 137 19.2% 115 23.3% Aggregates 7 2.0% 5 2.2% 13 1.8% 11 2.2% Others 1 0.4% 1 0.5% 3 0.4% 2 0.4% Adjusted EBITDA 4,484 100.0% 1,729 100.0% 9,116 100.0% 3,934 100.0% Cement, masonry cement and lime 4,452 99.3% 1,795 103.8% 9,139 100.3% 4,014 102.0% Concrete (65) -1.4% (90) -5.2% (145) -1.6% (126) -3.2% Railroad 75 1.7% 45 2.6% 95 1.0% 74 1.9% Aggregates 26 0.6% (20) -1.2% 26 0.3% (28) -0.7% Others (5) -0.1% (1) 0.0% 0 0.0% (1) 0.0% Reconciling items: Effect by translation in homogeneous cash currency ("Inflation-Adjusted") (130) 772 459 2,057 Depreciation and amortization (1,201) (1,132) (2,274) (2,206) Tax on debits and credits banks accounts (158) (103) (297) (265) Finance gain (cost), net 292 (1,597) 449 (2,230) Income tax (4,551) 220 (5,870) (291) Income (loss) from discontinued operations - 277 - 561 NET PROFIT (LOSS) FOR THE PERIOD (1,265) 166 1,583 1,560 View source version on businesswire.com: https://www.businesswire.com/news/home/20210811005861/en/Contacts IR Contacts Marcos I. Gradin, Chief Financial Officer and Investor Relations Gastón Pinnel, Investor Relations Manager +54-11-4319-3050 investorrelations@lomanegra.com
Loma Negra, (NYSE: LOMA; BYMA: LOMA), (“Loma Negra” or the “Company”), the leading cement producer in Argentina, today announced results for the three-month period ended June 30, 2021 (our “2Q21 Results”). 2Q21 Key Highlights Net revenue increased by 46.6% YoY to Ps. 14,269 million (US$147 million), mostly explained by our core cement segment Strong increase in our Consolidated Adjusted EBITDA of 74.1% YoY to Ps. 4,354 million (US$48 million) Consolidated Adjusted EBITDA margin expanded by 483 basis points YoY from 25.7% to 30.5%, driven by higher sales of cement, masonry, and lime together with higher operational leverage Net loss of Ps. 1,265 million as a consequence of a one-off effect in deferred taxes as a result of the recent tax reform Net Debt /LTM Adjusted EBITDA ratio of 0.13x from 1.30x in 2Q20 and 0.16x in FY20 The Company has presented certain financial figures, Table 1b and Table 11, in U.S. dollars and Pesos without giving effect to IAS 29. The Company has prepared all other financial information herein by applying IAS 29. Commenting on the financial and operating performance for the second quarter of 2021, Sergio Faifman, Loma Negra’s Chief Executive Officer, noted: “We are pleased to announce another quarter with an excellent performance. Demand continues with a strong momentum, and after several quarters of recovery is now exceeding pre-pandemic levels. On the back of our revenues growth and a higher operational leverage is that we increased our EBITDA by 74%YoY and expanded our margin by 483 bps, reaching one of the best second quarters in recent years with Adjusted EBITDA in the quarter of US$ 48 million. Additionally, during the quarter, we posted a net loss impacted by one-off income tax effect derived from the recent tax reform. Still, for the first half of the year, Net profit stood at Ps. 1,583 million. Regarding our expansion project, last June we inaugurated the new kiln and is now producing clinker and contributing to our world-class operation. Additionally, the new Cement mill and dispatch center are close to commissioning. For the second half, we expect strong recovery to continue and an expansion vis-à-vis pre-pandemic levels, as seasonality and public works should begin to contribute positively. Yet we remain cautious as macroeconomic context could affect the recovery and some degree of uncertainty remains in relation to the pandemic. Last but not least, I would like to thank all our people, and stakeholders, for their commitment to Loma´s operational excellence, without whom this set of solid results would have been much harder to achieve. Supported by a robust and efficient productive footprint, a solid capital structure, and a dedicated team, Loma has the base to continue thriving in the years to come.” Table 1: Financial Highlights (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended June 30, Six-months ended June 30, 2021 2020 % Chg. 2021 2020 % Chg. Net revenue 14,269 9,735 46.6% 28,888 20,536 40.7% Gross Profit 4,299 2,286 88.0% 9,598 5,578 72.1% Gross Profit margin 30.1% 23.5% +664bps 33.2% 27.2% +606bps Adjusted EBITDA 4,354 2,501 74.1% 9,576 5,990 59.9% Adjusted EBITDA Mg. 30.5% 25.7% +483bps 33.1% 29.2% +398bps Net Profit (1,265) 166 n/a 1,583 1,560 1.5% Net Profit attributable to owners of the Company (1,235) 123 n/a 1,651 1,480 11.6% EPS (2.0747) 0.2060 n/a 2.7770 2.0022 38.7% Shares outstanding at eop 596 596 -0.1% 596 596 -0.1% Net Debt 2,484 18,853 -86.8% 2,484 18,853 -86.8% Net Debt /LTM Adjusted EBITDA 0.13x 1.30x -1.17x 0.13x 1.30x -1.17x Table 1b: Financial Highlights in Ps and in U.S. dollars (figures exclude the impact of IAS 29) In million Ps. Three-months ended June 30, Six-months ended June 30, 2021 2020 % Chg. 2021 2020 % Chg. Net revenue 13,829 6,382 116.7% 26,464 12,990 103.7% Adjusted EBITDA 4,484 1,729 159.3% 9,116 3,934 131.7% Adjusted EBITDA Mg. 32.4% 27.1% +528bps 34.4% 30.3% +414bps Net Profit 4,628 137 3276.2% 7,888 781 909.3% Net Debt 2,484 18,853 -86.8% 2,484 18,853 -86.8% Net Debt /LTM Adjusted EBITDA 0.13x 1.30x -1.17x 0.13x 1.30x -1.17x In million US$ Three-months ended June 30, Six-months ended June 30, 2021 2020 % Chg. 2021 2020 % Chg. Ps./US$, av 94.09 67.71 39.0% 91.37 64.59 41.5% Ps./US$, eop 95.73 70.46 35.9% 95.73 70.46 35.9% Net revenue 147 94 55.9% 290 201 44.0% Adjusted EBITDA 48 26 86.3% 100 61 63.7% Adjusted EBITDA Mg. 32.4% 27.1% +528bps 34.4% 30.3% +414bps Net Profit 49 2 2329.4% 86 12 613.5% Net Debt 26 268 -90.3% 26 268 -90.3% Net Debt /LTM Adjusted EBITDA 0.13x 1.30x -1.17x 0.13x 1.30x -1.17x Overview of Operations Sales Volumes Table 2: Sales Volumes2 Three-months ended June 30, Six-months ended June 30, 2021 2020 % Chg. 2021 2020 % Chg. Cement, masonry & lime MM Tn 1.40 1.01 39.5% 2.79 2.01 38.7% Concrete MM m3 0.12 0.02 583.6% 0.27 0.09 191.5% Railroad MM Tn 1.06 0.63 69.2% 2.05 1.57 30.8% Aggregates MM Tn 0.20 0.03 620.1% 0.38 0.15 145.4% 2 Sales volumes include inter-segment sales Sales volumes of cement, masonry, and lime in Argentina during 2Q21 increased 39.5% to 1.40 million tons, with the robust bagged cement sales driven by strong household and retail demand growing above pre-pandemic levels of 2Q19. Bulk cement is still falling behind pre-pandemic levels, yet volume dispatched in this format have recovered vigorously in a year over year basis, as COVID-19 second wave restrictions have been less severe than in the same period last year. Likewise, Concrete and Aggregates volumes presented a strong YoY recovery of 583.6% and 620.1%, respectively, yet absolute figures are still far from pre-pandemic levels. Railroad segment volumes experienced a 69.2% increase versus the comparable quarter in 2020, with a positive effect of the recovery in building materials and frac-sand transported volumes. Review of Financial Results Table 3: Condensed Interim Consolidated Statements of Profit or Loss and Other Comprehensive Income (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended June 30, Six-months ended June 30, 2021 2020 % Chg. 2021 2020 % Chg. Net revenue 14,269 9,735 46.6% 28,888 20,536 40.7% Cost of sales (9,971) (7,449) 33.8% (19,290) (14,958) 29.0% Gross Profit 4,299 2,286 88.0% 9,598 5,578 72.1% Selling and administrative expenses (1,231) (920) 33.7% (2,428) (1,866) 30.1% Other gains and losses 85 3 2440.9% 132 73 81.6% Impairment of property, plant and equipment - - n/a - - n/a Tax on debits and credits to bank accounts (158) (103) 53.1% (297) (265) 12.0% Finance gain (cost), net Gain on net monetary position 552 102 442.1% 1,171 297 293.7% Exchange rate differences 193 (864) n/a 217 (1,129) n/a Financial income 414 15 2661.4% 135 41 232.7% Financial expense (868) (850) 2.1% (1,074) (1,439) -25.3% Profit before taxes 3,286 (331) n/a 7,453 1,289 478.1% Income tax expense Current (1,537) 111 n/a (3,262) (293) 1013.3% Deferred (3,015) 109 n/a (2,608) 2 n/a Net profit from continuing operations (1,265) (111) 1042.5% 1,583 998 58.6% Income from discontinued operations - 277 n/a - 561 n/a Net profit (1,265) 166 n/a 1,583 1,560 1.5% Net Revenues Net revenue increased 46.6% to Ps. 14,269 million in 2Q21, from Ps. 9,735 million in the comparable quarter last year, reflecting the COVID-19 pandemic restriction of 2Q20 and the positive momentum experienced by our core cement business, together with sales recovery across all segments. Cement, masonry cement and lime segment was up 43.4%, with volumes expanding 39.5% and good pricing performance. Concrete posted a revenues increase of 491.7% as strong volume recovery more than offset soft prices. Aggregates posted a revenue surge of 1000.1% as higher volume sales were coupled with a positive sales mix. Railroad revenues increased 23.5% in 2Q21 versus the same quarter in 2020, as the higher transported volumes more than offset the effect of the transported product mix. Cost of sales, and Gross profit Cost of sales increased 33.8% YoY reaching Ps. 9,971 million in 2Q21 largely explained by the increase in volume sold, impacting in higher thermal and electrical input charges, and higher freight cost. Gross profit increased 88.0% YoY to Ps. 4,299 million in 2Q21 from Ps. 2,286 million in 2Q20, with gross profit margin expanding 664 basis points YoY to 30.1%, reflecting the recovery of cement sales volumes coupled with good cost performance and higher operational leverage. Selling and Administrative Expenses Selling and administrative expenses (SG&A) in 2Q21 increased by 33.7% YoY to Ps. 1,231 million, from Ps. 920 million in 2Q20, mainly as a consequence of higher cement sales and higher labor cost compare to last year´s level, affected by COVID-19 restriction. As a percentage of revenues, SG&A decreased 83 basis points to 8.6% in 2Q21, from 9.5% in 2Q20 mostly explained by higher sales volumes. Adjusted EBITDA & Margin Table 4: Adjusted EBITDA Reconciliation & Margin (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended June 30, Six-months ended June 30, 2021 2020 % Chg. 2021 2020 % Chg. Adjusted EBITDA reconciliation: Net profit (1,265) 166 n/a 1,583 1,560 1.5% (+) Depreciation and amortization 1,201 1,132 6.2% 2,274 2,206 3.1% (+) Tax on debits and credits to bank accounts 158 103 53.1% 297 265 12.0% (+) Income tax expense 4,551 (220) n/a 5,870 291 1917.8% (+) Financial interest, net 420 711 -40.9% 837 1,134 -26.2% (+) Exchange rate differences, net (193) 864 n/a (217) 1,129 n/a (+) Other financial expenses, net 34 124 -72.9% 102 264 -61.6% (+) Gain on net monetary position (552) (102) 442.1% (1,171) (297) 293.7% (-) Income from discontinued operations - 277 n/a - 561 n/a Adjusted EBITDA 4,354 2,501 74.1% 9,576 5,990 59.9% Adjusted EBITDA Margin 30.5% 25.7% +483bps 33.1% 29.2% +398bps Adjusted EBITDA increased 74.1% YoY in the second quarter of 2021 to Ps. 4,354 million, mostly explained by our cement business. Likewise, Adjusted EBITDA margin expanded by 483 basis points to 30.5% compared to 25.7% in 2Q20 largely on the back of cement margins expansion. In particular, Cement, masonry cement and lime segment Adjusted EBITDA margin expanded by 472 bps to 34.0%, mainly due to the increase in sales volume and higher operational leverage. Concrete Adjusted EBITDA recovered by 4.4% compared to 2Q20, yet posted a negative margin of 6.8%, as softer pricing outweighed the increase in sales volumes and the reduction in unitary costs of sales. Railroad Adjusted EBITDA margin deteriorated to 4.9%, mainly impacted by product mix with costs reduction less than proportional to revenues partially offset by higher transported volume and SG&A expenses as a percentage of revenues. Finally, Aggregates Adjusted EBITDA margin improved to 7.7%, as strong volume recovery coupled with better pricing mix and higher operational leverage. Finance Costs-Net Table 5: Finance Gain (Cost), net (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended June 30, Six-months ended June 30, 2021 2020 % Chg. 2021 2020 % Chg. Exchange rate differences 193 (864) n/a 217 (1,129) n/a Financial income 414 15 2661.4% 135 41 232.7% Financial expense (868) (850) 2.1% (1,074) (1,439) -25.3% Gain on net monetary position 552 102 442.1% 1,171 297 293.7% Total Finance Gain (Cost), Net 292 (1,597) n/a 449 (2,230) n/a During 2Q21, the Company reported a total finance gain, net of Ps. 292 million compared to a total finance cost, net of Ps. 1,597 million in 2Q20, mainly due to higher exchange rate difference gain of Ps. 193 million due to a lower net debt denominated in foreign currency and a real appreciation of the Peso during the period. Net Profit and Net Profit Attributable to Owners of the Company Net Profit for 2Q21 was severely impacted with an extraordinary charge equivalent to Ps. 3.0 billion of additional deferred tax charges, related to the recent tax reform resulting in a Net loss of Ps. 1.3 billion. The accumulated net profit for the year was Ps. 1.6 billion. Net Profit Attributable to Owners of the Company decreased to negative Ps. 1,2 billion. During the quarter, the Company reported a loss per common share of Ps. 2.0747 and loss per ADR of Ps. 10.3736, compared with earnings per common share of Ps. 0.2060 and earnings per ADR of Ps. 1.0299 in 2Q20. Capitalization Table 6: Capitalization and Debt Ratio (amounts expressed in millions of pesos, unless otherwise noted) As of June 30, As of December, 31 2021 2020 2020 Total Debt 5,398 22,245 8,072 - Short-Term Debt 4,841 14,766 5,729 - Long-Term Debt 557 7,478 2,343 Cash, Cash Equivalents, and Investments 2,915 3,392 5,484 Total Net Debt 2,484 18,853 2,588 Shareholders' Equity 57,675 51,461 56,886 Capitalization 63,073 73,706 64,957 LTM Adjusted EBITDA 18,493 14,495 16,640 Net Debt /LTM Adjusted EBITDA 0.13x 1.30x 0.16x As of June 30, 2021, total cash and cash equivalents were Ps. 2,915 million compared with Ps. 3,392 million as of the June 30, 2020. Total debt at the close of the quarter stood at Ps. 5,398 million, composed by Ps. 4,841 million in short-term borrowings, including the current portion of long-term borrowings (or 89.7% of total borrowings), and Ps. 557 million in long-term borrowings (or 10.3% of total borrowings). As of June 30, 2021, 82.5% (or Ps. 4,452 million) Loma Negra’s total debt was denominated in U.S. dollars, 17.1% (or Ps. 926 million) in Euros, and 0.4% (or Ps. 21 million) in argentine pesos. The average duration of Loma Negra’s total debt was 0.5 years. As of June 30, 2021, Ps. 4,473 million, or 82.9%, of the Company’s total consolidated borrowings bore interest at rates based on Libor, and Ps. 926 million of borrowings bore interest at a fixed rate. The Net Debt to Adjusted EBITDA (LTM) ratio decreased to 0.13x as of June 30, 2021 from 0.16x as of December 31, 2020 as the cash used in investing and financing activities outweighed the cash generated by operating activities. Cash Flows Table 7: Condensed Interim Consolidated Statement of Cash Flows (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended June 30, Six-months ended June 30, 2021 2020 2021 2020 CASH FLOWS FROM OPERATING ACTIVITIES Net profit (1,265) 166 1,583 1,560 Adjustments to reconcile net profit to net cash provided by operating activities 5,577 1,766 7,902 3,666 Changes in operating assets and liabilities (4,339) 2,212 (6,263) (905) Net cash generated by operating activities (28) 4,144 3,222 4,322 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from disposal of Yguazú Cementos S.A. 156 - 250 - Property, plant and equipment, Intangible Assets, net (1.341) (1.464) (2.475) (7.820) Contributions to Trust (20) (0) (42) (33) Investments (0) - (1.856) - Net cash (used in) investing activities (1,205) (1,464) (4,124) (7,853) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds / Repayments from borrowings, Interest paid (1,745) (1,632) (2,236) 4,766 Share repurchase plan (511) - (794) - Net cash generated by (used in) by financing activities (2,256) (1,632) (3,031) 4,766 Net increase (decrease) in cash and cash equivalents (3,488) 1,049 (3,932) 1,234 Cash and cash equivalents at the beginning of the year 4,829 2,347 5,484 2,225 Effect of the re-expression in homogeneous cash currency ("Inflation-Adjusted") (55) (29) (95) (94) Effects of the exchange rate differences on cash and cash equivalents in foreign currency (126) 25 (297) 26 Cash and cash equivalents at the end of the period 1,160 3,392 1,160 3,392 In the 2Q21, our operating cash generation was largely dedicated to income tax payments and to seasonal working capital requirements. Typically, in the second quarter previous year´s income tax payment are scheduled, in particular, 2Q21 payment of 3.0 billion pesos included 1.5 billion pesos charge related to last year´s divestment in Paraguay. By contrast, last year´s second quarter working capital levels were very low as several initiatives aiming to preserve liquidity under the pandemic uncertainty were taken. During 2Q21, the Company had used cash in financing and investing activities for a total of Ps. 2,256 and Ps. 1,205 million, respectively. Cash allocations to the expansion of production capacity of L’Amalí plant accounted for a total of Ps. 292 million, or 22% of total capital expenditures. Expansion of L’Amalí Plant. Loma Negra is moving ahead with the capital expenditure at its L’Amalí plant, which will add 2.7 million tons annually and drive higher profitability. This expansion involves a total capital expenditure, originally estimated at approximately US$350 million. As of the end of June 2021, the project presents an overall Progress of 99%. All detailed engineering is completed, all equipment and materials supplies has been delivered to site. In previous quarters, commissioning and start-up had been completed at crushing department and raw mill department. Last June it was inaugurated the new kiln, which is now operational and producing clinker. Additionally, new Cement mill and dispatch center are planned to start up by end of September. Share Repurchase Plan. On July 2, 2021, the Company announced the approval of the second share repurchase program, in accordance with Section 64 of Law No. 26.831 (“LMC”) and the CNV Regulations. The purpose is to efficiently apply a portion of the Company´s cash position which may result in a greater return of value for its shareholders considering the current attractive value of the share. The plan became effective as from July 6, 2021, the amount to invest will be up to AR$ 975.000.000 (Argentine Pesos Nine Hundred Seventy Five Million) or such lower amount that derives from the repurchase of up to 10% of Company’s capital stock. The maximum amount of shares or maximum percentage of the Company’s capital stock to be repurchased shall never surpass the limit of 10% of the capital stock in accordance with Section 64 of LMC. A summary of current Share Repurchase Programs is shown below: Repurchase Program II Maximum amount for repurchase AR$ 975 million Maximum price AR$ 310/ordinary share or US$ 9/ADR Period in force 60 days since July 6, 2021 Repurchase under the program until August 11, 2021 AR$ 320 million Progress 32.8% 2Q21 Earnings Conference Call When: 10:00 a.m. U.S. ET (11:00 a.m. BAT), August 12, 2021 Dial-in: 0800-444-2930 (Argentina), 1-833-255-2824 (U.S.), 1-866-605-3852 (Canada), 1-412-902-6701 (International) Password: Loma Negra Earnings Call Webcast: https://services.choruscall.com/links/loma210812gcV4Odjo.html Replay: A telephone replay of the conference call will be available between August 13, 2021 at 1:00 pm U.S. E.T. and ending on August 17, 2021. The replay can be accessed by dialing 1-877-344-7529 (U.S. toll free), or 1-412-317-0088 (International). The passcode for the replay is 10158956. The audio of the conference call will also be archived on the Company’s website at www.lomanegra.com Definitions Adjusted EBITDA is calculated as net profit plus financial interest, net plus income tax expense plus depreciation and amortization plus exchange rate differences plus other financial expenses, net plus tax on debits and credits to bank accounts, plus share of loss of associates, plus net Impairment of Property, plant and equipment, and less income from discontinued operation. Loma Negra believes that excluding tax on debits and credits to bank accounts from its calculation of Adjusted EBITDA is a better measure of operating performance when compared to other international players. Net Debt is calculated as borrowings less cash, cash equivalents and marketable securities. About Loma Negra Founded in 1926, Loma Negra is the leading cement company in Argentina, producing and distributing cement, masonry cement, aggregates, concrete and lime, products primarily used in private and public construction. Loma Negra is a vertically-integrated cement and concrete company, with nationwide operations, supported by vast limestone reserves, strategically located plants, top-of-mind brands and established distribution channels. Loma Negra is listed both on BYMA and on NYSE in the U.S., where it trades under the symbol “LOMA”. One ADS represents five (5) common shares. For more information, visit www.lomanegra.com. Note The Company presented some figures converted from Pesos to U.S. dollars for comparison purposes. The exchange rate used to convert Pesos to U.S. dollars was the reference exchange rate (Communication “A” 3500) reported by the Central Bank for U.S. dollars. The information presented in U.S. dollars is for the convenience of the reader only. Certain figures included in this report have been subject to rounding adjustments. Accordingly, figures shown as totals in certain tables may not be arithmetic aggregations of the figures presented in previous quarters. Rounding: We have made rounding adjustments to reach some of the figures included in this annual report. As a result, numerical figures shown as totals in some tables may not be an arithmetic aggregation of the figures that preceded them. Disclaimer This release contains forward-looking statements within the meaning of federal securities law that are subject to risks and uncertainties. These statements are only predictions based upon our current expectations and projections about possible or assumed future results of our business, financial condition, results of operations, liquidity, plans and objectives. In some cases, you can identify forward-looking statements by terminology such as “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “expect,” “predict,” “potential,” “seek,” “forecast,” or the negative of these terms or other similar expressions. The forward-looking statements are based on the information currently available to us. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including, among others things: changes in general economic, political, governmental and business conditions globally and in Argentina, changes in inflation rates, fluctuations in the exchange rate of the peso, the level of construction generally, changes in cement demand and prices, changes in raw material and energy prices, changes in business strategy and various other factors. You should not rely upon forward-looking statements as predictions of future events. Although we believe in good faith that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Any or all of Loma Negra’s forward-looking statements in this release may turn out to be wrong. You should consider these forward-looking statements in light of other factors discussed under the heading “Risk Factors” in the prospectus filed with the Securities and Exchange Commission on October 31, 2017 in connection with Loma Negra’s initial public offering. Therefore, readers are cautioned not to place undue reliance on these forward-looking statements. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason after the date of this release to conform these statements to actual results or to changes in our expectations. Table 8: Condensed Interim Consolidated Statements of Financial Position (amounts expressed in millions of pesos, unless otherwise noted) As of June 30, As of December 31, 2021 2020 ASSETS Non-current assets Property, plant and equipment 66,464 67,120 Right to use assets 314 561 Intangible assets 198 241 Investments 4 4 Goodwill 44 44 Inventories 2,587 2,702 Other receivables 609 603 Total non-current assets 70,220 71,274 Current assets Inventories 7,909 6,883 Other receivables 1,195 1,525 Trade accounts receivable 3,819 3,746 Investments 2,576 5,149 Cash and banks 338 334 Total current assets 15,838 17,638 TOTAL ASSETS 86,059 88,912 SHAREHOLDERS' EQUITY Capital stock and other capital related accounts 18,066 18,860 Reserves 37,686 23,460 Retained earnings 1,651 14,226 Equity attributable to the owners of the Company 57,402 56,546 Non-controlling interests 272 340 TOTAL SHAREHOLDERS' EQUITY 57,675 56,886 LIABILITIES Non-current liabilities Borrowings 557 2,343 Accounts payables - 128 Provisions 562 611 Salaries and social security payables 68 48 Debts for leases 242 489 Other liabilities 67 140 Deferred tax liabilities 11,727 9,119 Total non-current liabilities 13,223 12,878 Current liabilities Borrowings 4,841 5,729 Accounts payable 5,261 6,759 Advances from customers 615 917 Salaries and social security payables 1,694 1,782 Tax liabilities 2,523 3,614 Debts for leases 91 176 Other liabilities 136 171 Total current liabilities 15,160 19,149 TOTAL LIABILITIES 28,384 32,027 TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 86,059 88,912 Table 9: Condensed Interim Consolidated Statements of Profit or Loss and Other Comprehensive Income (unaudited) (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended June 30, Six-months ended June 30, 2021 2020 % Change 2021 2020 % Change Net revenue 14,269 9,735 46.6% 28,888 20,536 40.7% Cost of sales (9,971) (7,449) 33.8% (19,290) (14,958) 29.0% Gross profit 4,299 2,286 88.0% 9,598 5,578 72.1% Selling and administrative expenses (1,231) (920) 33.7% (2,428) (1,866) 30.1% Other gains and losses 85 3 2440.9% 132 73 81.6% Tax on debits and credits to bank accounts (158) (103) 53.1% (297) (265) 12.0% Finance gain (cost), net Gain on net monetary position 552 102 442.1% 1,171 297 293.7% Exchange rate differences 193 (864) n/a 217 (1,129) n/a Financial income 414 15 2661.4% 135 41 232.7% Financial expenses (868) (850) 2.1% (1,074) (1,439) -25.3% Profit (loss) before taxes 3,286 (331) n/a 7,453 1,289 478.1% Income tax expense Current (1,537) 111 n/a (3,262) (293) 1013.3% Deferred (3,015) 109 n/a (2,608) 2 n/a Net profit (loss) from continuing operations (1,265) (111) 1042.5% 1,583 998 58.6% Income from discontinued operations - 277 n/a - 561 n/a Net profit (loss) (1,265) 166 n/a 1,583 1,560 1.5% Other Comprehensive Income (Loss) Items to be reclassified through profit and loss: Exchange differences on translating foreign operations - 48 n/a - (137) n/a Total other comprehensive income (loss) - 48 n/a - (137) n/a TOTAL COMPREHENSIVE INCOME (LOSS) (1,265) 214 n/a 1,583 1,423 11.3% Net Profit (loss) for the period attributable to: Owners of the Company (1,235) 123 n/a 1,651 1,480 11.6% Non-controlling interests (31) 43 n/a (67) 80 n/a NET PROFIT (LOSS) FOR THE PERIOD (1,265) 166 n/a 1,583 1,560 1.5% Total comprehensive income (loss) attributable to: Owners of the Company (1,235) 147 n/a 1,651 1,410 17.1% Non-controlling interests (31) 67 n/a (67) 13 n/a TOTAL COMPREHENSIVE INCOME (LOSS) (1,265) 214 n/a 1,583 1,423 11.3% Earnings per share (basic and diluted): (2.0747) 0.2060 n/a 2.7770 2.0022 38.7% Table 10: Condensed Interim Consolidated Statement of Cash Flows (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended June 30, Six-months ended June 30, 2021 2020 2021 2020 CASH FLOWS FROM OPERATING ACTIVITIES Net profit (loss) from continuing operations (1,265) (111) 1,583 998 Income from discontinued operations - 277 - 561 Net profit (loss) (1,265) 166 1,583 1,560 Adjustments to reconcile net profit to net cash provided by operating activities Income tax expense 4,551 (184) 5,870 356 Depreciation and amortization 1,201 1,132 2,274 2,206 Provisions (20) (99) (21) (14) Interest expense 96 760 220 1,282 Exchange rate differences (339) 458 (507) 440 Interest income 116 - 102 - Gain on disposal of property, plant and equipment (53) 13 (75) 23 Gain on disposal of shareholding of Yguazú Cementos S.A. - (313) - (626) Depreciation value of trust 24 - 38 - Changes in operating assets and liabilities Inventories (94) 699 (675) (429) Other receivables (34) 205 (337) (110) Trade accounts receivable (402) 242 (848) 450 Advances from customers (170) 91 (194) 142 Accounts payable 129 825 315 31 Salaries and social security payables 120 (317) 302 (398) Provisions (14) 51 (24) (37) Tax liabilities (198) 676 (71) 240 Other liabilities (45) (29) (105) (43) Gain on net monetary position (552) (102) (1,171) (297) Income tax paid (3,080) (128) (3,456) (453) Net cash generated by (used in) operating activities (28) 4,144 3,222 4,322 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from disposal of Yguazú Cementos S.A. 156 - 250 - Proceeds from disposal of Property, plant and equipment 30 8 71 30 Payments to acquire Property, plant and equipment (1,371) (1,471) (2,546) (7,845) Payments to acquire Intangible Assets - (1) - (4) Investments (0) - (1,856) - Contributions to Trust (20) (0) (42) (33) Net cash generated by (used in) investing activities (1,205) (1,464) (4,124) (7,853) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from borrowings 372 6,981 470 15,848 Interest paid (69) (974) (265) (2,054) Debts for leases (36) (37) (79) (85) Repayment of borrowings (2,011) (7,601) (2,362) (8,943) Share repurchase plan (511) - (794) - Net cash generated by (used in) financing activities (2,256) (1,632) (3,031) 4,766 Net increase (decrease) in cash and cash equivalents (3,488) 1,049 (3,932) 1,234 Cash and cash equivalents at the beginning of the period 4,829 2,347 5,484 2,225 Effect of the re-expression in homogeneous cash currency ("Inflation-Adjusted") (55) (29) (95) (94) Effects of the exchange rate differences on cash and cash equivalents in foreign currency (126) 25 (297) 26 Cash and cash equivalents at the end of the period 1,160 3,392 1,160 3,392 Table 11: Financial Data by Segment (figures exclude the impact of IAS 29) (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended June 30, Six-months ended June 30, 2021 % 2020 % 2021 % 2020 % Net revenue 13,829 100.0% 6,382 100.0% 26,464 100.0% 12,990 100.0% Cement, masonry cement and lime 12,392 89.6% 5,844 91.6% 23,709 89.6% 11,632 89.5% Concrete 947 6.8% 109 1.7% 2,033 7.7% 577 4.4% Railroad 1,194 8.6% 655 10.3% 2,108 8.0% 1,397 10.8% Aggregates 190 1.4% 12 0.2% 318 1.2% 74 0.6% Others 68 0.5% 37 0.6% 140 0.5% 85 0.7% Eliminations (961) -6.9% (276) -4.3% (1,844) -7.0% (775) -6.0% Cost of sales 8,668 100.0% 4,335 100.0% 16,071 100.0% 8,504 100.0% Cement, masonry cement and lime 7,268 83.8% 3,735 86.2% 13,311 82.8% 7,031 82.7% Concrete 1,026 11.8% 205 4.7% 2,186 13.6% 729 8.6% Railroad 1,117 12.9% 609 14.1% 2,022 12.6% 1,348 15.9% Aggregates 169 2.0% 38 0.9% 302 1.9% 116 1.4% Others 49 0.6% 24 0.6% 93 0.6% 55 0.6% Eliminations (961) -11.1% (276) -6.4% (1,844) -11.5% (775) -9.1% Selling, admin. expenses and other gains & losses 1,048 100.0% 559 100.0% 1,992 100.0% 1,047 100.0% Cement, masonry cement and lime 949 90.5% 473 84.6% 1,789 89.8% 919 87.8% Concrete 0 0.0% 12 2.1% 22 1.1% 8 0.8% Railroad 72 6.9% 60 10.7% 127 6.4% 90 8.6% Aggregates 2 0.2% (0) 0.0% 4 0.2% (4) -0.4% Others 25 2.4% 15 2.7% 49 2.5% 33 3.2% Depreciation and amortization 371 100.0% 241 100.0% 714 100.0% 495 100.0% Cement, masonry cement and lime 277 74.7% 158 65.7% 530 74.2% 332 67.2% Concrete 15 3.9% 17 7.1% 31 4.4% 34 6.8% Railroad 70 19.0% 59 24.5% 137 19.2% 115 23.3% Aggregates 7 2.0% 5 2.2% 13 1.8% 11 2.2% Others 1 0.4% 1 0.5% 3 0.4% 2 0.4% Adjusted EBITDA 4,484 100.0% 1,729 100.0% 9,116 100.0% 3,934 100.0% Cement, masonry cement and lime 4,452 99.3% 1,795 103.8% 9,139 100.3% 4,014 102.0% Concrete (65) -1.4% (90) -5.2% (145) -1.6% (126) -3.2% Railroad 75 1.7% 45 2.6% 95 1.0% 74 1.9% Aggregates 26 0.6% (20) -1.2% 26 0.3% (28) -0.7% Others (5) -0.1% (1) 0.0% 0 0.0% (1) 0.0% Reconciling items: Effect by translation in homogeneous cash currency ("Inflation-Adjusted") (130) 772 459 2,057 Depreciation and amortization (1,201) (1,132) (2,274) (2,206) Tax on debits and credits banks accounts (158) (103) (297) (265) Finance gain (cost), net 292 (1,597) 449 (2,230) Income tax (4,551) 220 (5,870) (291) Income (loss) from discontinued operations - 277 - 561 NET PROFIT (LOSS) FOR THE PERIOD (1,265) 166 1,583 1,560 View source version on businesswire.com: https://www.businesswire.com/news/home/20210811005861/en/
IR Contacts Marcos I. Gradin, Chief Financial Officer and Investor Relations Gastón Pinnel, Investor Relations Manager +54-11-4319-3050 investorrelations@lomanegra.com
