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Loma Negra Reports 1Q22 results

LOMA

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 March 31, 2022 (our “1Q22 Results”).

1Q22 Key Highlights

  • Net sales revenues decreased by 5.5% YoY to Ps. 19,310 million (US$ 171 million), mainly explained by a decrease in Cement and Concrete sales, partially offset by improvements in Aggregates and in the Railway segment.
  • Consolidated Adjusted EBITDA reached Ps. 6,484 million (US$ 60 million), decreasing 11.2% YoY.
  • The Consolidated Adjusted EBITDA margin contracted 214 basis points YoY from 35.7% to 33.6%, expanding 27 basis points sequentially versus the prior quarter.
  • Net Profit of Ps. 3,134 million, showing a reduction of 21.3% versus the same period of the previous year, mainly explained by the impact of the decrease in the operating result.
  • Net Debt /LTM Adjusted EBITDA ratio of -0.15x compared with -0.12x in FY21.

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 first quarter of 2022, Sergio Faifman, Loma Negra’s Chief Executive Officer, noted: “We started the year in a very good way, the industry continues to show very good levels of activity with a growth of 7% in the quarter compared to the previous year. At the current rate, cement consumption is on track to hit an all-time high for the year, despite the challenges that the local economy is currently facing.

In this sense, the end of the quarter showed very good levels of profitability, with an EBITDA of 60 million dollars, 14% higher than last year, and very good profit margins. Despite the uncertainty in the international context, the scarcity, and the significant increase in the price of fuels worldwide, we were able to maintain our high levels of profitability on the back of a very good operating performance, our productive structure, and an adequate management of our energy matrix.

Likewise, during the month of April, and taking advantage of our solid financial position, we have once again paid dividends of 45 million dollars, thus continuing along the path of maximizing the return to our shareholders that we had been going before with the share repurchase plans.

Last but not least, I would like to thank all of our people and stakeholders for their commitment to Loma's operational excellence. Supported by a robust and efficient production structure, a solid balance sheet and a dedicated team, Loma is prepared to face another challenging year.”

Table 1: Financial Highlights

(amounts expressed in millions of pesos, unless otherwise noted)

Three-months ended
March 31,

2022

2021

% Chg.

Net revenue

19,310

20,436

-5.5%

Gross Profit

6,443

7,407

-13.0%

Gross Profit margin

33.4%

36.2%

-288 bps

Adjusted EBITDA

6,484

7,299

-11.2%

Adjusted EBITDA Mg.

33.6%

35.7%

-214 bps

Net Profit (Loss)

3,134

3,983

-21.3%

Net Profit attributable to owners of the Company

3,168

4,034

-21.5%

EPS

5.4066

6.7716

-20.2%

Average outstanding shares (*)

586

596

-1.6%

Net Debt

(4,145)

993

n/a

Net Debt /LTM Adjusted EBITDA

-0.15x

0.04x

n/a

(*) Net of shares repurchased

Table 1b: Financial Highlights in Ps and in U.S. dollars (figures exclude the impact of IAS 29)

In million Ps.

Three-months ended
March 31,

2022

2021

% Chg.

Net revenue

18,263

12,635

44.5%

Adjusted EBITDA

6,343

4,632

36.9%

Adjusted EBITDA Mg.

34.7%

36.7%

-193 bps

Net Profit (Loss)

4,333

3,260

32.9%

Net Debt

(4,145)

993

n/a

Net Debt /LTM Adjusted EBITDA

-0.15x

0.04x

n/a

In million US$

Three-months ended
March 31,

2022

2021

% Chg.

Ps./US$, av

106.59

88.65

20.2%

Ps./US$, eop

110.98

91.99

20.6%

Net revenue

171

143

20.2%

Adjusted EBITDA

60

52

13.9%

Adjusted EBITDA Mg.

34.7%

36.7%

-193 bps

Net Profit (Loss)

41

37

10.5%

Net Debt

(37)

11

n/a

Net Debt /LTM Adjusted EBITDA

-0.15x

0.04x

n/a

Overview of Operations

Sales Volumes

Table 2: Sales Volumes2

Three-months ended
March 31,

2022

2021

% Chg.

Cement, masonry & lime

MM Tn

1.48

1.38

6.6%

Concrete

MM m3

0.12

0.16

-25.2%

Railroad

MM Tn

1.05

0.99

6.2%

Aggregates

MM Tn

0.24

0.18

35.6%

2 Sales volumes include inter-segment sales

Sales volumes of cement, masonry, and lime during 1Q22 increased by 6.6% to 1.5 million tons, mainly leveraged by the growth of bulk cement. Sales of bagged cement remained solid due to a sustained demand from the retail sector, while bulk cement was driven by a higher level of activity in small and medium-scale infrastructure projects, both private and public.

Regarding the volume of the Concrete segment, it registered a YoY drop of 25.2%. 1Q21 was positively affected by specific infrastructure projects. The volume of concrete maintains its trend, still below historic levels due to the lack of relevant projects, both private and public in the markets where we operate. On the other hand, Aggregates had an increase of 35.6% YoY sustained mainly by the reactivation of certain roadworks in the Buenos Aires area.

Likewise, the volumes of the Railway segment experienced an increase of 6.2% compared to the same quarter of 2021, leveraged mainly on the higher transported volume of construction materials and chemicals, while there was a decrease in the transport of frac sand.

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
March 31,

2022

2021

% Chg.

Net revenue

19,310

20,436

-5.5%

Cost of sales

(12,867)

(13,029)

-1.2%

Gross profit

6,443

7,407

-13.0%

Share of loss of associates

-

-

n/a

Selling and administrative expenses

(1,827)

(1,674)

9.2%

Other gains and losses

30

66

-54.6%

Impairment of property, plant and equipment

-

-

n/a

Tax on debits and credits to bank accounts

(191)

(194)

-1.4%

Finance gain (cost), net

Gain on net monetary position

849

866

-2.0%

Exchange rate differences

(153)

33

n/a

Financial income

18

65

-71.5%

Financial expense

(493)

(744)

-33.8%

Profit (Loss) before taxes

4,676

5,825

-19.7%

Income tax expense

Current

(1,892)

(2,412)

-21.5%

Deferred

351

569

-38.3%

Net profit (Loss)

3,134

3,983

-21.3%

Net Revenues

Net revenue decreased 5.5% to Ps. 19,310 million in 1Q22, from Ps. 20,436 million in the comparable quarter last year, driven by a decrease in Cement and Concrete, partially offset by an improvement in Aggregates and in the Railway segment.

Cement, masonry cement and lime segment was down 6.5% YoY, with volumes expanding 6.6% impacted by price dynamics.

Concrete registered a decrease its top line of 17.5% compared with 1Q21, where the improvement in prices couldn't compensate for the decrease in volume. The Aggregates segment posted a strong revenue increase of 89.0%, as higher volume coupled with good price performance and a positive sales mix.

Railroad revenues increased 10.8% in 1Q22 compared to the same quarter of 2021, mainly explained by an increase in transported volumes and the improvement in prices, which offset the slight drop in the average transported distance because of the decrease in the transported volume of frac sand.

Cost of sales, and Gross profit

Cost of sales decreased 1.2% YoY, reaching Ps. 12,867 million in 1Q22, mainly as a result of a lower unit cost of sales in cement that offset the higher volume sold and the increase in depreciations due to the impact of the new production line in L'Amalí.

Gross Profit decreased 13.0% YoY to Ps. 6,443 million in 1Q22, from Ps. 7,407 million in 1Q21, with a gross profit margin that contracted 288 basis points year-on-year to 33.4%, mainly reflecting the impact of a drop in total sales.

Selling and Administrative Expenses

Selling and administrative expenses (SG&A) in 1Q22 increased by 9.2% YoY to Ps. 1,827 million, from Ps. 1,674 million in 1Q21, mainly as a result of higher expenses in marketing, IT and insurances compared with the previous year. As a percentage of sales, SG&A showed an increase against 1Q21 of 127 basis points, reaching 9.5%.

Adjusted EBITDA & Margin

Table 4: Adjusted EBITDA Reconciliation & Margin

(amounts expressed in millions of pesos, unless otherwise noted)

Three-months ended
March 31,

2022

2021

% Chg.

Adjusted EBITDA reconciliation:

Net profit (Loss)

3,134

3,983

-21.3%

(+) Depreciation and amortization

1,838

1,499

22.6%

(+) Tax on debits and credits to bank accounts

191

194

-1.4%

(+) Income tax expense

1,542

1,843

-16.3%

(+) Financial interest, net

357

584

-38.8%

(+) Exchange rate differences, net

153

(33)

n/a

(+) Other financial expenses, net

117

95

22.7%

(+) Gain on net monetary position

(849)

(866)

-2.0%

(+) Share of profit (loss) of associates

-

-

n/a

(+) Impairment of property, plant and equipment

-

-

n/a

Adjusted EBITDA

6,484

7,299

-11.2%

Adjusted EBITDA Margin

33.6%

35.7%

-214 bps

Adjusted EBITDA decreased 11.2% YoY in the first quarter of 2022 to Ps. 6,484 million from 7,299 in the same period last year.

Likewise, the Adjusted EBITDA margin contracted 214 basis points to 33.6% compared to 35.7% in 1Q21, mainly due to cement margin compression.

In particular, the Adjusted EBITDA margin of the Cement, Masonry and Lime segment decreased 332 bps to 37.4%, primarily due to lower price performance partially offset by lower cost of sales.

The Adjusted EBITDA margin for Concrete showed a significant improvement compared to 1Q21, but remaining in negative values, reaching -0.8%, from a negative margin of 10.1% in 1Q21, supported by price recovery and higher operating leverage.

The adjusted EBITDA margin of the Aggregates segment was negative at 4.6% but showing an improvement of 656 basis points compared to 1Q21, due to a strong recovery in revenues on the back of solid price performance and a positive sales mix.

Finally, the Railroad adjusted EBITDA margin improved 351 bps to 5.9% in the first quarter, from 2.4%, mainly due to the improvement in transported volume and a positive price performance.

Finance Costs-Net

Table 5: Finance Gain (Cost), net

(amounts expressed in millions of pesos, unless otherwise noted)

Three-months ended
March 31,

2022

2021

% Chg.

Exchange rate differences

(153)

33

n/a

Financial income

18

65

-71.5%

Financial expense

(493)

(744)

-33.8%

Gain on net monetary position

849

866

-2.0%

Total Finance Gain (Cost), Net

221

219

0.8%

During 1Q22, the Company reported a total net financial gain of Ps. 221 million compared to a total net financial gain of Ps. 219 million in 1Q21, primarily explained because of a lower net financial expense that offset the exchange rate negative effect.

Net Profit and Net Profit Attributable to Owners of the Company

Net Profit for 1Q22 reached Ps. 3,134 million compared to Ps. 3,983 million in the same period last year, mainly due to the decrease in the operational result.

Net Profit Attributable to Owners of the Company reached Ps. 3.168 million. During the quarter, the Company reported earnings per common share of Ps. 5,4066 and an ADR gain of Ps. 27.0332, compared to earnings per common share of Ps. 6.7716 and an ADR gain of Ps. 33.8579 in 1Q21.

Capitalization

Table 6: Capitalization and Debt Ratio

(amounts expressed in millions of pesos, unless otherwise noted)

As of March 31,

As of December, 31

2022

2021

2021

Total Debt

993

10,373

2,915

- Short-Term Debt

669

9,404

2,452

- Long-Term Debt

323

969

463

Cash, Cash Equivalents and Investments

(5,138)

(9,380)

6,118

Total Net Debt

(4,145)

993

(3,203)

Shareholder's Equity

86,721

83,110

84,162

Capitalization

87,713

93,483

87,077

LTM Adjusted EBITDA

27,855

23,639

26,840

Net Debt /LTM Adjusted EBITDA

-0.15x

0.04x

-0.12x

As of March 31, 2022, total Cash, Cash Equivalents, and Investments were Ps. 5,138 million compared with Ps. 9,380 million as of the March 31, 2021. Total debt at the close of the quarter stood at Ps. 993 million, composed by Ps. 669 million in short-term borrowings, including the current portion of long-term borrowings (or 67.4% of total borrowings), and Ps. 323 million in long-term borrowings (or 32.6% of total borrowings).

As of March 31, 2022, 76.7% (or Ps. 761 million) of Loma Negra’s total debt was denominated in U.S. dollars and 23.3% (or Ps. 232 million) was in Argentine pesos. The average duration of Loma Negra’s total debt was 0.7 years.

As of March 31, 2022, the total of the Company's consolidated debt accrued interest at a variable rate. The debt in US dollars bore interest at rates based on Libor, while the debt in Argentine pesos bore interest at the short-term market rate.

The Net Debt to Adjusted EBITDA (LTM) ratio decreased to -0.15x as of March 31, 2022, from -0.12x as of December 31, 2021, as a result of strong cash generation and debt reduction.

Cash Flows

Table 7: Condensed Interim Consolidated Statement of Cash Flows

(amounts expressed in millions of pesos, unless otherwise noted)

Three-months ended
March 31,

2022

2021

CASH FLOWS FROM OPERATING ACTIVITIES

Net Profit (Loss)

3,134

3,983

Adjustments to reconcile net profit (loss) to net cash provided by operating activities

3,458

3,250

Changes in operating assets and liabilities

(4,285)

(2,690)

Net cash generated by operating activities

2,307

4,543

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from disposal of Yguazú Cementos S.A.

55

146

Property, plant and equipment, Intangible Assets, net

(631)

(1,585)

Contributions to Trust

(33)

(31)

Investments, net

-

(2,595)

Net cash (used in) investing activities

(609)

(4,066)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds / Repayments from borrowings, Interest paid

(1,860)

(688)

Share repurchase plan

(609)

(396)

Net cash generated by (used in) by financing activities

(2,469)

(1,084)

Net increase (decrease) in cash and cash equivalents

(771)

(606)

Cash and cash equivalents at the beginning of the year

3,837

7,666

Effect of the re-expression in homogeneous cash currency ("Inflation-Adjusted")

(115)

(56)

Effects of the exchange rate differences on cash and cash equivalents in foreign currency

65

(238)

Cash and cash equivalents at the end of the period

3,015

6,766

In 1Q22, our operating cash generation stood at Ps. 2,547 million, compared to Ps. 4,543 million in the same period of the previous year, reflecting a lower level of profitability and higher working capital requirements. During this quarter, we increased our Clinker stock to minimize the impact of natural gas shortages in the winter months and take advantage of cost reduction opportunities.

During 1Q22, the Company used cash in financing and investing activities for a total of Ps. 2,469 and Ps. 603 million, respectively. The completion of the L'Amalí expansion project significantly reduced the cash allocations for investment.

Share Repurchase Plan.

On December 21, 2021, the Company announced the approval of the fourth 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 attractive value of the share with the additional possibility of allocating part of the shares acquired to implement specific compensation plans.

The plan became effective as from December 23, 2021, for an amount to invest up to Ps. 900 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 the Share Repurchase Program that ended on February 18, 2022, is shown below:

Repurchase Program IV

Maximum amount for repurchase

Ps 900 million

Maximum price

Ps. 310/ordinary share or US$ 7.5/ADR

Period in force

60 days since December 23, 2021

Repurchase under the program until its completion

Ps. 643 million

Progress

71.5%

Recent Events

Dividends Distribution

On April 14, 2022, the board of directors approved the payment of dividends for a total amount of Ps. 5,150 million equivalents to Ps. 8.80 per outstanding share (Ps. 43.99 per ADS), through the partial allocation of funds from the Reserve for Future Dividends. As of the date of the presentation of this earnings release, the total amount of dividends was distributed.

1Q22 Earnings Conference Call

When:

4:00 p.m. U.S. ET (5:00 p.m. BAT), May 9, 2022

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 Call

Webcast:

https://services.choruscall.com/mediaframe/webcast.html?webcastid=NKQChLSM

Replay:

A telephone replay of the conference call will be available between May 10, 2022, at 1:00 pm U.S. E.T. and ending on May 16, 2022. 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.

--- Financial Tables Follow ---

Table 8: Condensed Interim Consolidated Statements of Financial Position

(amounts expressed in millions of pesos, unless otherwise noted)

As of March 31,

As of December 31,

2022

2021

ASSETS

Non-current assets

Property, plant and equipment

92,953

94,359

Right to use assets

335

360

Intangible assets

304

336

Investments

6

6

Goodwill

61

61

Inventories

3,815

3,580

Other receivables

800

807

Total non-current assets

98,274

99,508

Current assets

Inventories

11,370

10,095

Other receivables

1,243

1,382

Trade accounts receivable

4,578

4,597

Investments

4,868

5,734

Cash and banks

270

384

Total current assets

22,329

22,193

TOTAL ASSETS

120,603

121,700

SHAREHOLDER'S EQUITY

Capital stock and other capital related accounts

23,065

23,641

Reserves

52,683

52,683

Retained earnings

10,813

7,644

Accumulated other comprehensive income

-

-

Equity attributable to the owners of the Company

86,560

83,968

Non-controlling interests

160

195

TOTAL SHAREHOLDER'S EQUITY

86,721

84,162

LIABILITIES

Non-current liabilities

Borrowings

323

463

Accounts payables

-

-

Provisions

636

659

Salaries and social security payables

45

59

Debts for leases

241

273

Other liabilities

158

166

Deferred tax liabilities

16,261

16,612

Total non-current liabilities

17,665

18,230

Current liabilities

Borrowings

669

2,452

Accounts payable

7,937

9,142

Advances from customers

732

1,191

Salaries and social security payables

2,329

2,361

Tax liabilities

4,313

3,883

Debts for leases

79

92

Other liabilities

160

186

Total current liabilities

16,218

19,308

TOTAL LIABILITIES

33,882

37,538

TOTAL SHAREHOLDER'S EQUITY AND LIABILITIES

120,603

121,700

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
March 31,

2022

2021

% Change

Net revenue

19,310

20,436

-5.5%

Cost of sales

(12,867)

(13,029)

-1.2%

Gross Profit

6,443

7,407

-13.0%

Share of loss of associates

-

-

n/a

Selling and administrative expenses

(1,827)

(1,674)

9.2%

Other gains and losses

30

66

-54.6%

Impairment of property, plant and equipment

-

-

n/a

Tax on debits and credits to bank accounts

(191)

(194)

-1.4%

Finance gain (cost), net

Gain on net monetary position

849

866

-2.0%

Exchange rate differences

(153)

33

n/a

Financial income

18

65

-71.5%

Financial expenses

(493)

(744)

-33.8%

Profit (loss) before taxes

4,676

5,825

-19.7%

Income tax expense

Current

(1,892)

(2,412)

-21.5%

Deferred

351

569

-38.3%

Net Profit (Loss)

3,134

3,983

-21.3%

Net Profit (Loss) for the period attributable to:

Owners of the Company

3,168

4,034

-21.5%

Non-controlling interests

(34)

(51)

-33.1%

NET PROFIT (LOSS) FOR THE PERIOD

3,134

3,983

-21.3%

Earnings per share (basic and diluted):

5.4066

6.7716

-20.2%

Table 10: Condensed Interim Consolidated Statement of Cash Flows

(amounts expressed in millions of pesos, unless otherwise noted)

Three-months ended
March 31,

2022

2021

CASH FLOWS FROM OPERATING ACTIVITIES

Net Profit (Loss)

3,134

3,983

Adjustments to reconcile net profit to net cash provided by operating activities

Income tax expense

1,542

1,843

Depreciation and amortization

1,838

1,499

Provisions

42

(1)

Exchange rate differences

(179)

(235)

Interest expense

165

154

Share of loss of associates

-

-

Gain on disposal of property, plant and equipment

(15)

(30)

Gain on disposal of shareholding of Yguazú Cementos S.A.

-

-

Impairment of property, plant and equipment

-

-

Impairment of trust fund

32

20

Share-based payment

33

-

Changes in operating assets and liabilities

Inventories

(1,163)

(812)

Other receivables

19

(423)

Trade accounts receivable

(709)

(624)

Advances from customers

(389)

(34)

Accounts payable

(523)

261

Salaries and social security payables

291

255

Provisions

(40)

(14)

Tax liabilities

120

177

Other liabilities

(32)

(84)

Gain on net monetary position

(849)

(866)

Income tax paid

(1,011)

(526)

Net cash generated by (used in) operating activities

2,307

4,543

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from disposal of Yguazú Cementos S.A.

55

146

Proceeds from disposal of Property, plant and equipment

1

58

Payments to acquire Property, plant and equipment

(632)

(1,643)

Payments to acquire Intangible Assets

(0)

-

Acquire investments

-

(2,595)

Proceeds from maturity investments

-

-

Contributions to Trust

(33)

(31)

Net cash generated by (used in) investing activities

(609)

(4,066)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from borrowings

888

137

Interest paid

(138)

(274)

Dividends paid

-

0

Debts for leases

(28)

(60)

Repayment of borrowings

(2,581)

(491)

Share repurchase plan

(609)

(396)

Net cash generated by (used in) financing activities

(2,469)

(1,084)

Net increase (decrease) in cash and cash equivalents

(771)

(606)

Cash and cash equivalents at the beginning of the period

3,837

7,666

Effect of the re-expression in homogeneous cash currency ("Inflation-Adjusted")

(115)

(56)

Effects of the exchange rate differences on cash and cash equivalents in foreign currency

65

(238)

Cash and cash equivalents at the end of the period

3,015

6,766

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 March 31,

2022

%

2021

%

Net revenue

18,263

100.0%

12,635

100.0%

Cement, masonry cement and lime

16,180

88.6%

11,317

89.6%

Concrete

1,379

7.6%

1,086

8.6%

Railroad

1,548

8.5%

914

7.2%

Aggregates

376

2.1%

129

1.0%

Others

151

0.8%

72

0.6%

Eliminations

(1,370)

-7.5%

(883)

-7.0%

Cost of sales

10,847

100.0%

7,403

100.0%

Cement, masonry cement and lime

8,958

82.6%

6,043

81.6%

Concrete

1,312

12.1%

1,160

15.7%

Railroad

1,478

13.6%

906

12.2%

Aggregates

375

3.5%

132

1.8%

Others

94

0.9%

44

0.6%

Eliminations

(1,370)

-12.6%

(883)

-11.9%

Selling, admin. expenses and other gains & losses

1,667

100.0%

943

100.0%

Cement, masonry cement and lime

1,467

88.0%

840

89.1%

Concrete

67

4.0%

22

2.4%

Railroad

84

5.0%

55

5.8%

Aggregates

4

0.2%

2

0.2%

Others

45

2.7%

24

2.6%

Depreciation and amortization

594

100.0%

343

100.0%

Cement, masonry cement and lime

454

76.4%

253

73.6%

Concrete

11

1.8%

17

4.9%

Railroad

122

20.5%

67

19.5%

Aggregates

7

1.1%

6

1.7%

Others

1

0.2%

1

0.3%

Adjusted EBITDA

6,343

100.0%

4,632

100.0%

Cement, masonry cement and lime

6,208

97.9%

4,687

101.2%

Concrete

11

0.2%

(80)

-1.7%

Railroad

107

1.7%

20

0.4%

Aggregates

3

0.0%

1

0.0%

Others

14

0.2%

5

0.1%

Reconciling items:

Effect by translation in homogeneous cash currency ("Inflation-Adjusted")

141

2,667

Depreciation and amortization

(1,838)

(1,499)

Tax on debits and credits banks accounts

(191)

(194)

Finance gain (cost), net

221

219

Income tax

(1,542)

(1,843)

Share of profit of associates

-

-

Impairment of property, plant and equipment

-

-

NET PROFIT (LOSS) FOR THE PERIOD

3,134

3,983