Loma Negra Compania Industrial Argentina SA
BCBA:LOMA
Loma Negra Compania Industrial Argentina SA
Loma Negra Compañía Industrial Argentina S.A. has carved a significant niche for itself in the South American landscape as a leading player in the realm of cement production. Founded in 1926, this company has steadily transformed itself into Argentina’s largest cement producer, further asserting its influence across the region. The company's operations span a network of strategically located plants, distribution centers, and infrastructure that synergize to meet the ever-growing demand for construction materials. Its vast portfolio includes not only cement but also limestone, aggregates, concrete, and even industrial wastes, creating a vertically integrated business that maximizes efficiency from raw material extraction to final product delivery. This comprehensive control over the supply chain allows Loma Negra to secure a substantial market share, delivering value through reliable supply in an industry characterized by heavy-material movement.
The financial engine powering Loma Negra thrives on the constant need for housing, commercial construction, and infrastructure development in Argentina. Its revenue generation is primarily tied to selling its cement products, vital in meeting the structural aspirations of a nation frequently under construction. The business increasingly focuses on sustainability and efficiency, seeking ways to reduce its carbon footprint and leverage waste as a resource—trends critical to the modern cement industry. By investing in innovative technologies and embracing environmentally friendly practices, Loma Negra not only underscores its commitment to sustainable industrial practice but also positions itself favorably amid the industry’s competitive landscape. The company's sustained profitability and strategic market presence illustrate a well-orchestrated balance of production capacity and market demand, demonstrating the robustness of their business model and expertise in optimizing operations within a fluctuating economic environment.
Loma Negra Compañía Industrial Argentina S.A. has carved a significant niche for itself in the South American landscape as a leading player in the realm of cement production. Founded in 1926, this company has steadily transformed itself into Argentina’s largest cement producer, further asserting its influence across the region. The company's operations span a network of strategically located plants, distribution centers, and infrastructure that synergize to meet the ever-growing demand for construction materials. Its vast portfolio includes not only cement but also limestone, aggregates, concrete, and even industrial wastes, creating a vertically integrated business that maximizes efficiency from raw material extraction to final product delivery. This comprehensive control over the supply chain allows Loma Negra to secure a substantial market share, delivering value through reliable supply in an industry characterized by heavy-material movement.
The financial engine powering Loma Negra thrives on the constant need for housing, commercial construction, and infrastructure development in Argentina. Its revenue generation is primarily tied to selling its cement products, vital in meeting the structural aspirations of a nation frequently under construction. The business increasingly focuses on sustainability and efficiency, seeking ways to reduce its carbon footprint and leverage waste as a resource—trends critical to the modern cement industry. By investing in innovative technologies and embracing environmentally friendly practices, Loma Negra not only underscores its commitment to sustainable industrial practice but also positions itself favorably amid the industry’s competitive landscape. The company's sustained profitability and strategic market presence illustrate a well-orchestrated balance of production capacity and market demand, demonstrating the robustness of their business model and expertise in optimizing operations within a fluctuating economic environment.
Revenue Decline: Loma Negra's revenue for Q2 was ARS51 billion, down 6.5% year-on-year, mainly due to lower sales in its core Cement segment.
Stable EBITDA: Adjusted EBITDA held steady at $63 million, flat versus last year, with US dollar EBITDA per ton up 1% at $36.8.
Margin Pressure: Consolidated gross margin shrank by 437 basis points to 23.7%, and EBITDA margin contracted by 608 basis points to 22.9%, largely due to weaker Cement performance and higher Concrete mix.
Profits Down: Net profit attributable to owners fell to ARS2.5 billion from ARS5.4 billion last year, impacted by operational results and higher financial costs.
Dividend Payments: Approximately $120 million in dividends paid so far this year, or about $1 per ADR.
Guidance: Full-year sales volumes for 2023 expected to be below 2022, but still the second best year in history.
Cost Trends: Natural gas contract prices are set to fall from September, which should improve margins compared to winter rates.
