\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n Three-months ended
\n
<\/span>June 30,<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Six-months ended
\n
<\/span>June 30,<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n 2021<\/b><\/p>\n<\/td>\n | \n 2020<\/b><\/p>\n<\/td>\n | \n \n% Chg.\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 2021<\/b><\/p>\n<\/td>\n | \n 2020<\/b><\/p>\n<\/td>\n | \n \n% Chg.\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nNet revenue\n<\/p>\n<\/td>\n | \n \n14,269\n<\/p>\n<\/td>\n | \n \n9,735\n<\/p>\n<\/td>\n | \n \n46.6%\n<\/p>\n<\/td>\n | | \n\n \n28,888\n<\/p>\n<\/td>\n | \n \n20,536\n<\/p>\n<\/td>\n | \n \n40.7%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nGross Profit\n<\/p>\n<\/td>\n | \n \n4,299\n<\/p>\n<\/td>\n | \n \n2,286\n<\/p>\n<\/td>\n | \n \n88.0%\n<\/p>\n<\/td>\n | | \n\n \n9,598\n<\/p>\n<\/td>\n | \n \n5,578\n<\/p>\n<\/td>\n | \n \n72.1%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Gross Profit margin<\/i><\/p>\n<\/td>\n | \n 30.1%<\/i><\/p>\n<\/td>\n | \n 23.5%<\/i><\/p>\n<\/td>\n | \n +664bps<\/i><\/p>\n<\/td>\n | | \n\n 33.2%<\/i><\/p>\n<\/td>\n | \n 27.2%<\/i><\/p>\n<\/td>\n | \n +606bps<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \nAdjusted EBITDA\n<\/p>\n<\/td>\n | \n \n4,354\n<\/p>\n<\/td>\n | \n \n2,501\n<\/p>\n<\/td>\n | \n \n74.1%\n<\/p>\n<\/td>\n | | \n\n \n9,576\n<\/p>\n<\/td>\n | \n \n5,990\n<\/p>\n<\/td>\n | \n \n59.9%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Adjusted EBITDA Mg.<\/i><\/p>\n<\/td>\n | \n 30.5%<\/i><\/p>\n<\/td>\n | \n 25.7%<\/i><\/p>\n<\/td>\n | \n +483bps<\/i><\/p>\n<\/td>\n | | \n\n 33.1%<\/i><\/p>\n<\/td>\n | \n 29.2%<\/i><\/p>\n<\/td>\n | \n +398bps<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \nNet Profit\n<\/p>\n<\/td>\n | \n \n(1,265)\n<\/p>\n<\/td>\n | \n \n166\n<\/p>\n<\/td>\n | \n \nn\/a\n<\/p>\n<\/td>\n | | \n\n \n1,583\n<\/p>\n<\/td>\n | \n \n1,560\n<\/p>\n<\/td>\n | \n \n1.5%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nNet Profit attributable to owners of the Company\n<\/p>\n<\/td>\n | \n \n(1,235)\n<\/p>\n<\/td>\n | \n \n123\n<\/p>\n<\/td>\n | \n \nn\/a\n<\/p>\n<\/td>\n | | \n\n \n1,651\n<\/p>\n<\/td>\n | \n \n1,480\n<\/p>\n<\/td>\n | \n \n11.6%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nEPS\n<\/p>\n<\/td>\n | \n \n(2.0747)\n<\/p>\n<\/td>\n | \n \n0.2060\n<\/p>\n<\/td>\n | \n \nn\/a\n<\/p>\n<\/td>\n | | \n\n \n2.7770\n<\/p>\n<\/td>\n | \n \n2.0022\n<\/p>\n<\/td>\n | \n \n38.7%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nShares outstanding at eop\n<\/p>\n<\/td>\n | \n \n596\n<\/p>\n<\/td>\n | \n \n596\n<\/p>\n<\/td>\n | \n \n-0.1%\n<\/p>\n<\/td>\n | | \n\n \n596\n<\/p>\n<\/td>\n | \n \n596\n<\/p>\n<\/td>\n | \n \n-0.1%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nNet Debt\n<\/p>\n<\/td>\n | \n \n2,484\n<\/p>\n<\/td>\n | \n \n18,853\n<\/p>\n<\/td>\n | \n \n-86.8%\n<\/p>\n<\/td>\n | | \n\n \n2,484\n<\/p>\n<\/td>\n | \n \n18,853\n<\/p>\n<\/td>\n | \n \n-86.8%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nNet Debt \/LTM Adjusted EBITDA\n<\/p>\n<\/td>\n | \n \n0.13x\n<\/p>\n<\/td>\n | \n \n1.30x\n<\/p>\n<\/td>\n | \n \n-1.17x\n<\/p>\n<\/td>\n | | \n\n \n0.13x\n<\/p>\n<\/td>\n | \n \n1.30x\n<\/p>\n<\/td>\n | \n \n-1.17x\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n\n| \n Table 1b: Financial Highlights in Ps and in U.S. dollars (figures exclude the impact of IAS 29)<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n In million Ps.<\/b><\/p>\n<\/td>\n | \n Three-months ended
\n
<\/span>June 30,<\/b><\/p>\n<\/td>\n | | \n\n Six-months ended
\n
<\/span>June 30,<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n 2021<\/b><\/p>\n<\/td>\n | \n 2020<\/b><\/p>\n<\/td>\n | \n \n% Chg.\n<\/p>\n<\/td>\n | | \n\n 2021<\/b><\/p>\n<\/td>\n | \n 2020<\/b><\/p>\n<\/td>\n | \n \n% Chg.\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nNet revenue\n<\/p>\n<\/td>\n | \n \n13,829\n<\/p>\n<\/td>\n | \n \n6,382\n<\/p>\n<\/td>\n | \n \n116.7%\n<\/p>\n<\/td>\n | | \n\n \n26,464\n<\/p>\n<\/td>\n | \n \n12,990\n<\/p>\n<\/td>\n | \n \n103.7%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nAdjusted EBITDA\n<\/p>\n<\/td>\n | \n \n4,484\n<\/p>\n<\/td>\n | \n \n1,729\n<\/p>\n<\/td>\n | \n \n159.3%\n<\/p>\n<\/td>\n | | \n\n \n9,116\n<\/p>\n<\/td>\n | \n \n3,934\n<\/p>\n<\/td>\n | \n \n131.7%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Adjusted EBITDA Mg.<\/i><\/p>\n<\/td>\n | \n 32.4%<\/i><\/p>\n<\/td>\n | \n 27.1%<\/i><\/p>\n<\/td>\n | \n +528bps<\/i><\/p>\n<\/td>\n | | \n\n 34.4%<\/i><\/p>\n<\/td>\n | \n 30.3%<\/i><\/p>\n<\/td>\n | \n +414bps<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \nNet Profit\n<\/p>\n<\/td>\n | \n \n4,628\n<\/p>\n<\/td>\n | \n \n137\n<\/p>\n<\/td>\n | \n \n3276.2%\n<\/p>\n<\/td>\n | | \n\n \n7,888\n<\/p>\n<\/td>\n | \n \n781\n<\/p>\n<\/td>\n | \n \n909.3%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nNet Debt\n<\/p>\n<\/td>\n | \n \n2,484\n<\/p>\n<\/td>\n | \n \n18,853\n<\/p>\n<\/td>\n | \n \n-86.8%\n<\/p>\n<\/td>\n | | \n\n \n2,484\n<\/p>\n<\/td>\n | \n \n18,853\n<\/p>\n<\/td>\n | \n \n-86.8%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nNet Debt \/LTM Adjusted EBITDA\n<\/p>\n<\/td>\n | \n \n0.13x\n<\/p>\n<\/td>\n | \n \n1.30x\n<\/p>\n<\/td>\n | \n \n-1.17x\n<\/p>\n<\/td>\n | | \n\n \n0.13x\n<\/p>\n<\/td>\n | \n \n1.30x\n<\/p>\n<\/td>\n | \n \n-1.17x\n<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| \n In million US$<\/b><\/p>\n<\/td>\n | \n Three-months ended
\n
<\/span>June 30,<\/b><\/p>\n<\/td>\n | | \n\n Six-months ended
\n
<\/span>June 30,<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n 2021<\/b><\/p>\n<\/td>\n | \n 2020<\/b><\/p>\n<\/td>\n | \n \n% Chg.\n<\/p>\n<\/td>\n | | \n\n 2021<\/b><\/p>\n<\/td>\n | \n 2020<\/b><\/p>\n<\/td>\n | \n \n% Chg.\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nPs.\/US$, av\n<\/p>\n<\/td>\n | \n \n94.09\n<\/p>\n<\/td>\n | \n \n67.71\n<\/p>\n<\/td>\n | \n \n39.0%\n<\/p>\n<\/td>\n | | \n\n \n91.37\n<\/p>\n<\/td>\n | \n \n64.59\n<\/p>\n<\/td>\n | \n \n41.5%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nPs.\/US$, eop\n<\/p>\n<\/td>\n | \n \n95.73\n<\/p>\n<\/td>\n | \n \n70.46\n<\/p>\n<\/td>\n | \n \n35.9%\n<\/p>\n<\/td>\n | | \n\n \n95.73\n<\/p>\n<\/td>\n | \n \n70.46\n<\/p>\n<\/td>\n | \n \n35.9%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nNet revenue\n<\/p>\n<\/td>\n | \n \n147\n<\/p>\n<\/td>\n | \n \n94\n<\/p>\n<\/td>\n | \n \n55.9%\n<\/p>\n<\/td>\n | | \n\n \n290\n<\/p>\n<\/td>\n | \n \n201\n<\/p>\n<\/td>\n | \n \n44.0%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nAdjusted EBITDA\n<\/p>\n<\/td>\n | \n \n48\n<\/p>\n<\/td>\n | \n \n26\n<\/p>\n<\/td>\n | \n \n86.3%\n<\/p>\n<\/td>\n | | \n\n \n100\n<\/p>\n<\/td>\n | \n \n61\n<\/p>\n<\/td>\n | \n \n63.7%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Adjusted EBITDA Mg.<\/i><\/p>\n<\/td>\n | \n 32.4%<\/i><\/p>\n<\/td>\n | \n 27.1%<\/i><\/p>\n<\/td>\n | \n +528bps<\/i><\/p>\n<\/td>\n | | \n\n 34.4%<\/i><\/p>\n<\/td>\n | \n 30.3%<\/i><\/p>\n<\/td>\n | \n +414bps<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \nNet Profit\n<\/p>\n<\/td>\n | \n \n49\n<\/p>\n<\/td>\n | \n \n2\n<\/p>\n<\/td>\n | \n \n2329.4%\n<\/p>\n<\/td>\n | | \n\n \n86\n<\/p>\n<\/td>\n | \n \n12\n<\/p>\n<\/td>\n | \n \n613.5%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nNet Debt\n<\/p>\n<\/td>\n | \n \n26\n<\/p>\n<\/td>\n | \n \n268\n<\/p>\n<\/td>\n | \n \n-90.3%\n<\/p>\n<\/td>\n | | \n\n \n26\n<\/p>\n<\/td>\n | \n \n268\n<\/p>\n<\/td>\n | \n \n-90.3%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nNet Debt \/LTM Adjusted EBITDA\n<\/p>\n<\/td>\n | \n \n0.13x\n<\/p>\n<\/td>\n | \n \n1.30x\n<\/p>\n<\/td>\n | \n \n-1.17x\n<\/p>\n<\/td>\n | | \n\n \n0.13x\n<\/p>\n<\/td>\n | \n \n1.30x\n<\/p>\n<\/td>\n | \n \n-1.17x\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nOverview of Operations<\/span><\/b><\/p>\n\nSales Volumes\n<\/p>\n \n\n| \n Table 2: Sales Volumes2<\/sup><\/b><\/p>\n<\/td>\n<\/tr>\n\n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Three-months ended
\n
<\/span>June 30,<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Six-months ended
\n
<\/span>June 30,<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 2021<\/b><\/p>\n<\/td>\n | \n 2020<\/b><\/p>\n<\/td>\n | \n \n% Chg.\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 2021<\/b><\/p>\n<\/td>\n | \n 2020<\/b><\/p>\n<\/td>\n | \n \n% Chg.\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nCement, masonry & lime\n<\/p>\n<\/td>\n | \n \nMM Tn\n<\/p>\n<\/td>\n | \n \n1.40\n<\/p>\n<\/td>\n | \n \n1.01\n<\/p>\n<\/td>\n | \n \n39.5%\n<\/p>\n<\/td>\n | | \n\n \n2.79\n<\/p>\n<\/td>\n | \n \n2.01\n<\/p>\n<\/td>\n | \n \n38.7%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nConcrete\n<\/p>\n<\/td>\n | \n \nMM m3\n<\/p>\n<\/td>\n | \n \n0.12\n<\/p>\n<\/td>\n | \n \n0.02\n<\/p>\n<\/td>\n | \n \n583.6%\n<\/p>\n<\/td>\n | | \n\n \n0.27\n<\/p>\n<\/td>\n | \n \n0.09\n<\/p>\n<\/td>\n | \n \n191.5%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nRailroad\n<\/p>\n<\/td>\n | \n \nMM Tn\n<\/p>\n<\/td>\n | \n \n1.06\n<\/p>\n<\/td>\n | \n \n0.63\n<\/p>\n<\/td>\n | \n \n69.2%\n<\/p>\n<\/td>\n | | \n\n \n2.05\n<\/p>\n<\/td>\n | \n \n1.57\n<\/p>\n<\/td>\n | \n \n30.8%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nAggregates\n<\/p>\n<\/td>\n | \n \nMM Tn\n<\/p>\n<\/td>\n | \n \n0.20\n<\/p>\n<\/td>\n | \n \n0.03\n<\/p>\n<\/td>\n | \n \n620.1%\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n0.38\n<\/p>\n<\/td>\n | \n \n0.15\n<\/p>\n<\/td>\n | \n \n145.4%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n 2 <\/sup>Sales volumes include inter-segment sales\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n\nSales 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.\n<\/p>\n \nLikewise, 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.\n<\/p>\n \nRailroad 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.\n<\/p>\n Review of Financial Results<\/b><\/p>\n\n\n| \n Table 3: Condensed Interim Consolidated Statements of Profit or Loss and Other Comprehensive Income <\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n (amounts expressed in millions of pesos, unless otherwise noted)<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n Three-months ended
\n
<\/span>June 30,<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Six-months ended
\n
<\/span>June 30,<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n 2021<\/b><\/p>\n<\/td>\n | \n 2020<\/b><\/p>\n<\/td>\n | \n \n% Chg.\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 2021<\/b><\/p>\n<\/td>\n | \n 2020<\/b><\/p>\n<\/td>\n | \n \n% Chg.\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nNet revenue\n<\/p>\n<\/td>\n | \n \n14,269\n<\/p>\n<\/td>\n | \n \n9,735\n<\/p>\n<\/td>\n | \n \n46.6%\n<\/p>\n<\/td>\n | | \n\n \n28,888\n<\/p>\n<\/td>\n | \n \n20,536\n<\/p>\n<\/td>\n | \n \n40.7%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nCost of sales\n<\/p>\n<\/td>\n | \n \n(9,971)\n<\/p>\n<\/td>\n | \n \n(7,449)\n<\/p>\n<\/td>\n | \n \n33.8%\n<\/p>\n<\/td>\n | | \n\n \n(19,290)\n<\/p>\n<\/td>\n | \n \n(14,958)\n<\/p>\n<\/td>\n | \n \n29.0%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Gross Profit<\/b><\/p>\n<\/td>\n | \n 4,299<\/b><\/p>\n<\/td>\n | \n 2,286<\/b><\/p>\n<\/td>\n | \n 88.0%<\/b><\/p>\n<\/td>\n | | \n\n 9,598<\/b><\/p>\n<\/td>\n | \n 5,578<\/b><\/p>\n<\/td>\n | \n 72.1%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nSelling and administrative expenses\n<\/p>\n<\/td>\n | \n \n(1,231)\n<\/p>\n<\/td>\n | \n \n(920)\n<\/p>\n<\/td>\n | \n \n33.7%\n<\/p>\n<\/td>\n | | \n\n \n(2,428)\n<\/p>\n<\/td>\n | \n \n(1,866)\n<\/p>\n<\/td>\n | \n \n30.1%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nOther gains and losses\n<\/p>\n<\/td>\n | \n \n85\n<\/p>\n<\/td>\n | \n \n3\n<\/p>\n<\/td>\n | \n \n2440.9%\n<\/p>\n<\/td>\n | | \n\n \n132\n<\/p>\n<\/td>\n | \n \n73\n<\/p>\n<\/td>\n | \n \n81.6%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nImpairment of property, plant and equipment\n<\/p>\n<\/td>\n | \n \n–\n<\/p>\n<\/td>\n | \n \n–\n<\/p>\n<\/td>\n | \n \nn\/a\n<\/p>\n<\/td>\n | | \n\n \n–\n<\/p>\n<\/td>\n | \n \n–\n<\/p>\n<\/td>\n | \n \nn\/a\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nTax on debits and credits to bank accounts\n<\/p>\n<\/td>\n | \n \n(158)\n<\/p>\n<\/td>\n | \n \n(103)\n<\/p>\n<\/td>\n | \n \n53.1%\n<\/p>\n<\/td>\n | | \n\n \n(297)\n<\/p>\n<\/td>\n | \n \n(265)\n<\/p>\n<\/td>\n | \n \n12.0%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Finance gain (cost), net<\/b><\/p>\n<\/td>\n | | \n | \n | \n | \n | \n | \n | <\/tr>\n \n| \n \nGain on net monetary position\n<\/p>\n<\/td>\n | \n \n552\n<\/p>\n<\/td>\n | \n \n102\n<\/p>\n<\/td>\n | \n \n442.1%\n<\/p>\n<\/td>\n | | \n\n \n1,171\n<\/p>\n<\/td>\n | \n \n297\n<\/p>\n<\/td>\n | \n \n293.7%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nExchange rate differences\n<\/p>\n<\/td>\n | \n \n193\n<\/p>\n<\/td>\n | \n \n(864)\n<\/p>\n<\/td>\n | \n \nn\/a\n<\/p>\n<\/td>\n | | \n\n \n217\n<\/p>\n<\/td>\n | \n \n(1,129)\n<\/p>\n<\/td>\n | \n \nn\/a\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nFinancial income\n<\/p>\n<\/td>\n | \n \n414\n<\/p>\n<\/td>\n | \n \n15\n<\/p>\n<\/td>\n | \n \n2661.4%\n<\/p>\n<\/td>\n | | \n\n \n135\n<\/p>\n<\/td>\n | \n \n41\n<\/p>\n<\/td>\n | \n \n232.7%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nFinancial expense\n<\/p>\n<\/td>\n | \n \n(868)\n<\/p>\n<\/td>\n | \n \n(850)\n<\/p>\n<\/td>\n | \n \n2.1%\n<\/p>\n<\/td>\n | | \n\n \n(1,074)\n<\/p>\n<\/td>\n | \n \n(1,439)\n<\/p>\n<\/td>\n | \n \n-25.3%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Profit before taxes<\/b><\/p>\n<\/td>\n | \n 3,286<\/b><\/p>\n<\/td>\n | \n (331)<\/b><\/p>\n<\/td>\n | \n n\/a<\/b><\/p>\n<\/td>\n | | \n\n 7,453<\/b><\/p>\n<\/td>\n | \n 1,289<\/b><\/p>\n<\/td>\n | \n 478.1%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Income tax expense<\/b><\/p>\n<\/td>\n | | \n | \n | \n | \n | \n | \n | <\/tr>\n \n| \n \nCurrent\n<\/p>\n<\/td>\n | \n \n(1,537)\n<\/p>\n<\/td>\n | \n \n111\n<\/p>\n<\/td>\n | \n \nn\/a\n<\/p>\n<\/td>\n | | \n\n \n(3,262)\n<\/p>\n<\/td>\n | \n \n(293)\n<\/p>\n<\/td>\n | \n \n1013.3%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nDeferred\n<\/p>\n<\/td>\n | \n \n(3,015)\n<\/p>\n<\/td>\n | \n \n109\n<\/p>\n<\/td>\n | \n \nn\/a\n<\/p>\n<\/td>\n | | \n\n \n(2,608)\n<\/p>\n<\/td>\n | \n \n2\n<\/p>\n<\/td>\n | \n \nn\/a\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Net profit from continuing operations<\/b><\/p>\n<\/td>\n | \n (1,265)<\/b><\/p>\n<\/td>\n | \n (111)<\/b><\/p>\n<\/td>\n | \n 1042.5%<\/b><\/p>\n<\/td>\n | | \n\n 1,583<\/b><\/p>\n<\/td>\n | \n 998<\/b><\/p>\n<\/td>\n | \n 58.6%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nIncome from discontinued operations\n<\/p>\n<\/td>\n | \n \n–\n<\/p>\n<\/td>\n | \n \n277\n<\/p>\n<\/td>\n | \n \nn\/a\n<\/p>\n<\/td>\n | | \n\n \n–\n<\/p>\n<\/td>\n | \n \n561\n<\/p>\n<\/td>\n | \n \nn\/a\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Net profit<\/b><\/p>\n<\/td>\n | \n (1,265)<\/b><\/p>\n<\/td>\n | \n 166<\/b><\/p>\n<\/td>\n | \n n\/a<\/b><\/p>\n<\/td>\n | | \n\n 1,583<\/b><\/p>\n<\/td>\n | \n 1,560<\/b><\/p>\n<\/td>\n | \n 1.5%<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nNet Revenues<\/b><\/p>\n Net revenue<\/b> 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.\n<\/p>\n \nCement, masonry cement and lime segment was up 43.4%, with volumes expanding 39.5% and good pricing performance.\n<\/p>\n \nConcrete 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.\n<\/p>\n \nRailroad 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.\n<\/p>\n Cost of sales, and Gross profit<\/b><\/p>\n Cost of sales<\/b> 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.\n<\/p>\n Gross profit<\/b> increased 88.0% YoYto 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.\n<\/p>\n Selling and Administrative Expenses<\/b><\/p>\n Selling and administrative expenses<\/b> (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\u00b4s 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.\n<\/p>\n Adjusted EBITDA & Margin<\/b><\/p>\n\n\n| \n Table 4: Adjusted EBITDA Reconciliation & Margin<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n (amounts expressed in millions of pesos, unless otherwise noted)<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n Three-months ended
\n
<\/span>June 30,<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Six-months ended
\n
<\/span>June 30,<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n 2021<\/b><\/p>\n<\/td>\n | \n 2020<\/b><\/p>\n<\/td>\n | \n \n% Chg.\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 2021<\/b><\/p>\n<\/td>\n | \n 2020<\/b><\/p>\n<\/td>\n | \n \n% Chg.\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Adjusted EBITDA reconciliation:<\/b><\/p>\n<\/td>\n | | \n | \n | \n | \n | \n | \n | <\/tr>\n \n| \n \nNet profit\n<\/p>\n<\/td>\n | \n \n(1,265)\n<\/p>\n<\/td>\n | \n \n166\n<\/p>\n<\/td>\n | \n \nn\/a\n<\/p>\n<\/td>\n | | \n\n \n1,583\n<\/p>\n<\/td>\n | \n \n1,560\n<\/p>\n<\/td>\n | \n \n1.5%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n(+) Depreciation and amortization\n<\/p>\n<\/td>\n | \n \n1,201\n<\/p>\n<\/td>\n | \n \n1,132\n<\/p>\n<\/td>\n | \n \n6.2%\n<\/p>\n<\/td>\n | | \n\n \n2,274\n<\/p>\n<\/td>\n | \n \n2,206\n<\/p>\n<\/td>\n | \n \n3.1%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n(+) Tax on debits and credits to bank accounts\n<\/p>\n<\/td>\n | \n \n158\n<\/p>\n<\/td>\n | \n \n103\n<\/p>\n<\/td>\n | \n \n53.1%\n<\/p>\n<\/td>\n | | \n\n \n297\n<\/p>\n<\/td>\n | \n \n265\n<\/p>\n<\/td>\n | \n \n12.0%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n(+) Income tax expense\n<\/p>\n<\/td>\n | \n \n4,551\n<\/p>\n<\/td>\n | \n \n(220)\n<\/p>\n<\/td>\n | \n \nn\/a\n<\/p>\n<\/td>\n | | \n\n \n5,870\n<\/p>\n<\/td>\n | \n \n291\n<\/p>\n<\/td>\n | \n \n1917.8%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n(+) Financial interest, net\n<\/p>\n<\/td>\n | \n \n420\n<\/p>\n<\/td>\n | \n \n711\n<\/p>\n<\/td>\n | \n \n-40.9%\n<\/p>\n<\/td>\n | | \n\n \n837\n<\/p>\n<\/td>\n | \n \n1,134\n<\/p>\n<\/td>\n | \n \n-26.2%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n(+) Exchange rate differences, net\n<\/p>\n<\/td>\n | \n \n(193)\n<\/p>\n<\/td>\n | \n \n864\n<\/p>\n<\/td>\n | \n \nn\/a\n<\/p>\n<\/td>\n | | \n\n \n(217)\n<\/p>\n<\/td>\n | \n \n1,129\n<\/p>\n<\/td>\n | \n \nn\/a\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n(+) Other financial expenses, net\n<\/p>\n<\/td>\n | \n \n34\n<\/p>\n<\/td>\n | \n \n124\n<\/p>\n<\/td>\n | \n \n-72.9%\n<\/p>\n<\/td>\n | | \n\n \n102\n<\/p>\n<\/td>\n | \n \n264\n<\/p>\n<\/td>\n | \n \n-61.6%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n(+) Gain on net monetary position\n<\/p>\n<\/td>\n | \n \n(552)\n<\/p>\n<\/td>\n | \n \n(102)\n<\/p>\n<\/td>\n | \n \n442.1%\n<\/p>\n<\/td>\n | | \n\n \n(1,171)\n<\/p>\n<\/td>\n | \n \n(297)\n<\/p>\n<\/td>\n | \n \n293.7%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n(-) Income from discontinued operations\n<\/p>\n<\/td>\n | \n \n–\n<\/p>\n<\/td>\n | \n \n277\n<\/p>\n<\/td>\n | \n \nn\/a\n<\/p>\n<\/td>\n | | \n\n \n–\n<\/p>\n<\/td>\n | \n \n561\n<\/p>\n<\/td>\n | \n \nn\/a\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Adjusted EBITDA<\/b><\/p>\n<\/td>\n | \n 4,354<\/b><\/p>\n<\/td>\n | \n 2,501<\/b><\/p>\n<\/td>\n | \n 74.1%<\/b><\/p>\n<\/td>\n | | \n\n 9,576<\/b><\/p>\n<\/td>\n | \n 5,990<\/b><\/p>\n<\/td>\n | \n 59.9%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Adjusted EBITDA Margin <\/i><\/p>\n<\/td>\n | \n 30.5%<\/i><\/p>\n<\/td>\n | \n 25.7%<\/i><\/p>\n<\/td>\n | \n +483bps<\/i><\/p>\n<\/td>\n | | \n\n 33.1%<\/i><\/p>\n<\/td>\n | \n 29.2%<\/i><\/p>\n<\/td>\n | \n +398bps<\/i><\/p>\n<\/td>\n<\/tr>\n<\/table>\n Adjusted EBITDA<\/b> 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.\n<\/p>\n \nIn 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.\n<\/p>\n \nConcrete 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.\n<\/p>\n \nRailroad 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.\n<\/p>\n \nFinally, Aggregates Adjusted EBITDA margin improved to 7.7%, as strong volume recovery coupled with better pricing mix and higher operational leverage.\n<\/p>\n \nFinance Costs-Net <\/b><\/p>\n\n\n| \n Table 5: Finance Gain (Cost), net <\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n (amounts expressed in millions of pesos, unless otherwise noted)<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Three-months ended
\n
<\/span>June 30,<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Six-months ended
\n
<\/span>June 30,<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 2021<\/b><\/p>\n<\/td>\n | \n 2020<\/b><\/p>\n<\/td>\n | \n \n% Chg.\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 2021<\/b><\/p>\n<\/td>\n | \n 2020<\/b><\/p>\n<\/td>\n | \n \n% Chg.\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nExchange rate differences\n<\/p>\n<\/td>\n | | \n\n \n193\n<\/p>\n<\/td>\n | \n \n(864)\n<\/p>\n<\/td>\n | \n \nn\/a\n<\/p>\n<\/td>\n | | \n\n \n217\n<\/p>\n<\/td>\n | \n \n(1,129)\n<\/p>\n<\/td>\n | \n \nn\/a\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nFinancial income\n<\/p>\n<\/td>\n | | \n\n \n414\n<\/p>\n<\/td>\n | \n \n15\n<\/p>\n<\/td>\n | \n \n2661.4%\n<\/p>\n<\/td>\n | | \n\n \n135\n<\/p>\n<\/td>\n | \n \n41\n<\/p>\n<\/td>\n | \n \n232.7%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nFinancial expense\n<\/p>\n<\/td>\n | | \n\n \n(868)\n<\/p>\n<\/td>\n | \n \n(850)\n<\/p>\n<\/td>\n | \n \n2.1%\n<\/p>\n<\/td>\n | | \n\n \n(1,074)\n<\/p>\n<\/td>\n | \n \n(1,439)\n<\/p>\n<\/td>\n | \n \n-25.3%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nGain on net monetary position\n<\/p>\n<\/td>\n | | \n\n \n552\n<\/p>\n<\/td>\n | \n \n102\n<\/p>\n<\/td>\n | \n \n442.1%\n<\/p>\n<\/td>\n | | \n\n \n1,171\n<\/p>\n<\/td>\n | \n \n297\n<\/p>\n<\/td>\n | \n \n293.7%\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Total Finance Gain (Cost), Net<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 292<\/b><\/p>\n<\/td>\n | \n (1,597)<\/b><\/p>\n<\/td>\n | \n \nn\/a\n<\/p>\n<\/td>\n | | \n\n 449<\/b><\/p>\n<\/td>\n | \n (2,230)<\/b><\/p>\n<\/td>\n | \n \nn\/a\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nDuring 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.\n<\/p>\n Net Profit and Net Profit Attributable to Owners of the Company<\/b><\/p>\n Net Profit<\/b> 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.\n<\/p>\n Net Profit Attributable to Owners of the Company<\/b> 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.\n<\/p>\n Capitalization<\/b><\/p>\n\n\n| \n Table 6: Capitalization and Debt Ratio<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n (amounts expressed in millions of pesos, unless otherwise noted)<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n As of June 30,<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n As of
\n
December, 31<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0\n<\/p>\n<\/td>\n | \n 2021<\/b><\/p>\n<\/td>\n | \n 2020<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 2020<\/b><\/p>\n<\/td>\n<\/tr>\n\n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| \n \nTotal Debt\n<\/p>\n<\/td>\n | \n \n5,398\n<\/p>\n<\/td>\n | \n \n22,245\n<\/p>\n<\/td>\n | | \n\n \n8,072\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n– Short-Term Debt\n<\/p>\n<\/td>\n | \n \n4,841\n<\/p>\n<\/td>\n | \n \n14,766\n<\/p>\n<\/td>\n | | \n\n \n5,729\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n– Long-Term Debt\n<\/p>\n<\/td>\n | \n \n557\n<\/p>\n<\/td>\n | \n \n7,478\n<\/p>\n<\/td>\n | | \n\n \n2,343\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nCash, Cash Equivalents, and Investments\n<\/p>\n<\/td>\n | \n \n2,915\n<\/p>\n<\/td>\n | \n \n3,392\n<\/p>\n<\/td>\n | | \n\n \n5,484\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Total Net Debt<\/b><\/p>\n<\/td>\n | \n 2,484<\/b><\/p>\n<\/td>\n | \n 18,853<\/b><\/p>\n<\/td>\n | | \n\n 2,588<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nShareholders’ Equity\n<\/p>\n<\/td>\n | \n \n57,675\n<\/p>\n<\/td>\n | \n \n51,461\n<\/p>\n<\/td>\n | | \n\n \n56,886\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n Capitalization<\/b><\/p>\n<\/td>\n | \n 63,073<\/b><\/p>\n<\/td>\n | \n 73,706<\/b><\/p>\n<\/td>\n | | \n\n 64,957<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nLTM Adjusted EBITDA\n<\/p>\n<\/td>\n | \n 18,493<\/b><\/p>\n<\/td>\n | \n 14,495<\/b><\/p>\n<\/td>\n | | \n\n 16,640<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nNet Debt \/LTM Adjusted EBITDA\n<\/p>\n<\/td>\n | \n \n0.13x\n<\/p>\n<\/td>\n | \n \n1.30x\n<\/p>\n<\/td>\n | | \n\n \n0.16x\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nAs 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).\n<\/p>\n \nAs of June 30, 2021, 82.5% (or Ps. 4,452 million) Loma Negra\u2019s 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\u2019s total debt was 0.5 years.\n<\/p>\n \nAs of June 30, 2021, Ps. 4,473 million, or 82.9%, of the Company\u2019s total consolidated borrowings bore interest at rates based on Libor, and Ps. 926 million of borrowings bore interest at a fixed rate.\n<\/p>\n \nThe 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.\n<\/p>\n \nCash Flows <\/b><\/p>\n | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |