|
|
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________
FORM 6‑K
_______________
_______________
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 under the
Securities Exchange Act of 1934
Securities Exchange Act of 1934
For the month of November, 2022
Commission File Number: 001-38262
_______________
LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA
SOCIEDAD ANÓNIMA
(Exact Name of Registrant as Specified in its Charter)
(Exact Name of Registrant as Specified in its Charter)
LOMA NEGRA CORPORATION
(Translation of Registrant’s name into English)
(Translation of Registrant’s name into English)
_______________
|
Cecilia Grierson 355, 4th Floor
Zip Code C1107CPG – Capital Federal
Republic of Argentina
|
|
(Address of principal executive
offices)
|
_______________
Indicate by check mark whether the registrant files or will
file annual reports under cover Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
Table of Contents
|
Item
|
Description
|
|
|
1
|
Relevant event
|
SIGNATURES
Loma Negra Compañía Industrial Argentina Sociedad Anónima
| Date: November 9, 2022 | By: |
/s/ |
Marcos I. Gradin |
|
|
Name: |
Marcos I. Gradin | |
|
|
Title: |
Chief Financial Officer |
3Q22-Results Conference Call
Disclaimer and Forward-Looking Statement This presentation may contain 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 Company’s Annual Report on Form 20-F, as well as periodic filings made on Form 6-K, which are filed with or furnished to the United States Securities and Exchange Commission. 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. The Company presented some figures converted from Argentine 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. Note: Loma Negra’s financial information has been prepared in accordance with the Argentine Securities Commission (Comisión Nacional de Valores-CNV) and with International Financial Reporting Standards. Following the
categorization of Argentina as a country with a three-year cumulative inflation rate greater than 100%, the country is considered highly inflationary in accordance with IFRS. Consequently, starting July 1, 2018, the Company is reporting
results applying IFRS rule IAS 29. IAS 29 requires that results of operations in hyperinflationary economies are reported as if these economies were highly inflationary as of January 1, 2018, and thus year-to-date, together with comparable
results, should be restated adjusting for the change in general purchasing power of the local currency, using official indices. For comparison purposes and a better understanding of our underlying performance, in addition to presenting ‘As
Reported’ results, we are also disclosing selected figures as previously reported excluding rule IAS 29. Additional information in connection with the application of rule IAS 29 can be found in our earnings report. 1
Cement business achieving record quarter level in terms of volume and EBITDA generation in US$ on the
back of solid demand momentum As reported results Net revenues increased 4.2% to Ps. 33.9 billion (US$ 236 million; +33.7%) Adjusted EBITDA down 12.7% to Ps. 7.5 billion (US$ 68 million; +33.9%) Net Loss of Ps. 12.2 billion Consolidated
Adjusted EBITDA margin reached 22.1%, contracting 426 bps YoY Increase in leverage maintaining a solid balance sheet with Net Debt to LTM Adj. EBITDA ratio of 0.54x Returning value to our shareholders. Dividend distribution in the quarter
of US$ 81 million, totalizing US$ 126 million for the year. New shares repurchase program in progress Note: Figures in US dollars result from the calculation of figures expressed in Argentine pesos, as previously reported (without the
application of IAS29) and the average exchange rate for each reporting period. Solid quarter while construction remains strong 2
Macro & Industry context Revenues and Volumes 3
GDP Growth1 (YoY Growth, %) Construction Activity2 & Monthly Industry Cement Sales3 (YoY Growth,
%) Monthly Industry Cement Sales3 (‘000 tons) Industry Cement Sales by Type3 (%) Source INDEC and BCRA (Argentina Central Bank) Market Expectations (REM) Source INDEC: Construction activity indicator, ISAC (Indicador Sintético de la
Actividad) . Based on AFCP which reports standalone cement sales, while Loma Negra reports Cement, Masonry and lime sales Sep & Oct’ 22 : As of the date of this presentation, ISAC figures were not released Industry on track for its
strongest year 4 Nov’21 Oct’21 Dic’21 Ene’22 May’22 Feb’22 mar’22 Apr’22 Jun’22 Jul’22 Ago’22 Sep’22 Oct’22 Cement Industry ISAC Apr Feb Jan Mar May Jul Nov Jun Aug Dec Sep Oct 2018 2021 2019 2020 2022 4 4
Revenue Performance: Cement, masonry & lime: increased 4.8% YoY, with volumes expanding 12.9% with
a softer pricing dynamic Concrete: up 40.7% YoY. Volumes up 35.6% coupled with good pricing performance Railroad: decreased by 7.0% YoY. Volumes expanding by 5.5%, with pricing performance affected by product mix Aggregates: increased
54.7% YoY. Volume surged 65.0% with pricing performance affected by product mix Sales Volumes (1) Revenues (AR$ million) (2) Total Net Revenues 33,942 32,580 4.2% Sales volumes include inter-segment sales Sales revenues include
inter-segment sales and Other segments 3Q22 3Q21 % Chg. Cement, masonry & lime MM Tn 1.88 1.66 12.9% Concrete MM m3 0.17 0.12 35.6% Railroad MM Tn 1.21 1.15 5.5% Aggregates MM
Tn 0.34 0.21 65.0% 3Q22 3Q21 % Chg. 30,114 28,742 4.8% 2,964 2,106 40.7% 2,571 2,765 (7.0%) 832 538 54.7% Cement volumes setting new record Revenue up 4% 5
Business Performance 6
Consolidated gross profit declines 13.9% YoY, with gross margin contracting 448 bps to 21.3% mainly
affected by price dynamics, higher costs related to the winter period that mainly impact energy inputs, the high inflation scenario and higher depreciation in relation to the completion of the second L'Amalí line Compression in Cement and
Railroad margins partially offset by an improvement in Concrete and Aggregates SG&A increased by 5.6% YoY, reaching 7.8% as % of sales increasing 11 bps YoY Gross profit declines Margin tightens in 3Q 7 Gross Profit &
Margin Gross Margin 21.3% 25.8% -13.9% Selling, General & Administrative As a % of Sales 7.6% 7.8% +5.6% AR$ Million AR$ Million
Adjusted EBITDA & Margin AR$ Million Consolidated Adjusted EBITDA Margin reached 22.1%, down 426
bps YoY, mainly due to cement margin contraction By segments Cement, masonry cement and lime segment Adjusted EBITDA margin stood at 24.3%, contracting 516 bps YoY primarily due to lower price performance and higher energy inputs Concrete
Adjusted EBITDA margin surged 637 bps reaching 2.4% from -4.0% in 3Q21 Railroad Adjusted EBITDA margin contracted 740 bps YoY to -0.1% due to lower pricing affected by product mix, partially compensated by growth in transported
volumes. Aggregates Adjusted EBITDA margin improved 1,192 bps reaching 12,2% from 0.3% in 3Q21 51 US$ million 26.4% Adjusted EBITDA Margin Consolidated Adjusted EBITDA of US$ 68 million in the 3Q22, down 12.7% when measured in
Ps. 68 -12.7% Note: Figures in US dollars result from the calculation of figures expressed in Argentine pesos, as previously reported (without the application of IAS29) and the average exchange rate for each reporting period. EBITDA
generation remains strong Record quarter reaching US$ 68 million 8 22.1%
Bottom line Financial performance 9
Net Profit Attributable to Owners AR$ Million Net Profit breakdown: Adjusted EBITDA decreased by
12.7% YoY Total finance cost of Ps. 15,276 million in 3Q22 compared to a net cost of Ps. 589 million in 3Q21 Foreign exchange loss of Ps. 885 million in 3Q22, compared to Ps. 276 million loss in 3Q21 Gain on net monetary position was Ps.
3,687 million in 3Q22 compared to Ps. 38 million in 3Q21 Net Financial expense, stood at Ps. 18,183 million compared to Ps. 510 million YoY, primarily due to the cancellation of dollar denominated debt with local funding coupled with the
increase of the total debt position Net Loss Attributable to Owners of the Company in 3Q22 was Ps. 12.1 billion, down from Ps. 2.8 billion in 3Q21. Finance Gain (Costs), net AR$ Million 49 2 Note: Figures in US dollars result from the
calculation of figures expressed in Argentine pesos, as previously reported (without the application of IAS29) and the average exchange rate for each reporting period. Net Profit affected by extraordinary financial cost 10
Debt by Currency Debt Maturity schedule Cash position and Investments of Ps. 3.5 billion and total
debt at Ps. 23.2 billion as of end of 3Q22 Net Debt of Ps. 19.7 billion (US$ 134 MM) with a Debt increased of US$ 48 million in the quarter Net Debt/ LTM Adj. EBITDA ratio of 0.54x in 3Q22 compared with -0.12x in FY21 In 3Q22, Operating
cash generation reached Ps. 11.4 billion from Ps. 10.4 billion in 3Q21 due to the positive effect of the variation of tax payments compensated by seasonal working capital requirements Capital expenditures of Ps.1.6 billion in 3Q22, showing a
strong reduction after the completion of L’Amalí expansion Dividend distributed in 3Q22 amounted Ps.10.3 billion, Ps.17.6 per share outstanding (Ps. 88.0 per ADR) amounts expressed in millions of pesos 3Q22 3Q21 Net cash generated by
operating activities 11,443 10,314 Net cash generated by (used in) investing activities 774 (2,679) Net cash used in by financing activities (19,452) (4,351) Cash and cash equivalents at the end of the period 3,465 3,305
Note: Figures in US dollars result from the calculation of figures expressed in Argentine pesos, as previously reported (without the application of IAS29) and the average exchange rate for each reporting period. US$ Million 72 Cash
Position 4Q 2022 1Q 2023 2Q 2023 2023/2024 22 Ps. USD Mild leverage increase maintaining a robust balance sheet Strong dividend distribution US$ 157 MM 11 Cash Flow Highlights
2022 Outlook 12
The robustness shown by the cement demand in the first ten month of the year is leading the industry to
the best year in our history, and LOMA, given the recent investments in capacity, is supporting this momentum consolidating our leadership. Even though we face challenging times y terms of political and macro economic tensions, we are
confident that the tendency of growth is going to continue. Regarding energy inputs, we saw in the 3Q22 the impact of higher “winter” thermal and electric costs, and we should expect this effect to soften in the next quarters. This month,
LOMA celebrates its 5-year listing anniversary, a huge milestone in our almost centennial history. 2022 Outlook 13
Financial Tables 14
Adjusted EBITDA Reconciliation & Margin
Balance Sheet
Income Statement
Statement of Cash Flows
Thank you! IR Contact Marcos I. Gradin Chief Financial Officer and Investor Relations Diego M.
Jalón Head of Investor Relations +54 (11 ) 4319-3050 investorrelations@lomanegra.com