<\/p>\n
Loma Negra Reports 1Q23 results<\/b><\/p>\n
BUENOS AIRES–(BUSINESS WIRE<\/a>)–Loma Negra, (NYSE: LOMA; BYMA: LOMA),<\/b> (\u201cLoma Negra\u201d or the \u201cCompany\u201d), the leading cement producer in Argentina, today announced results for the three-month period ended March 31, 2023 (our \u201c1Q23 Results\u201d).<\/p>\n 1Q23 Key Highlights<\/b><\/p>\n \nThe 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.<\/p>\n Commenting on the financial and operating performance for the first quarter of 2023, Sergio Faifman, Loma Negra\u2019s Chief Executive Officer, noted<\/b>: \u201cWe started the year in a very good shape, with solid operating result and cash flow generation together with a very robust financial position.<\/i><\/p>\n Despite the challenging macro scenario and the economic disorders, the cement demand remains strong, posting a 3.1% growth in spite of the high base of comparison, and LOMA showed even higher growth figures.<\/i><\/p>\n During the quarter, we continued optimizing value for our shareholders, with a dividend payment of US$ 19.5 million. Moreover, we recently approved a second dividend payment, to be distributed in kind for the equivalent of Ps.22.2 billion. We also completed our first issuance of corporate bonds with high success and with great support from the market, which demonstrates the confidence that investors place in our company. This gave us the possibility of refinancing our short-term debt in Pesos and further strengthening our balance sheet.<\/i><\/p>\n For the remainder of the year, we are cautiously optimistic that we will continue to see healthy dynamics in our markets although at slower rates as we approach the presidential elections.\u201d<\/i><\/p>\n Table 1: Financial Highlights<\/b><\/p>\n<\/td>\n<\/tr>\n (amounts expressed in millions of pesos, unless otherwise noted)<\/i><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n Three-months ended \n\u00a0<\/p>\n<\/td>\n 2023<\/b><\/p>\n<\/td>\n 2022<\/b><\/p>\n<\/td>\n \n% Chg.<\/p>\n<\/td>\n<\/tr>\n \nNet revenue<\/p>\n<\/td>\n \n40,590<\/p>\n<\/td>\n \n39,449<\/p>\n<\/td>\n \n2.9%<\/p>\n<\/td>\n<\/tr>\n \nGross Profit<\/p>\n<\/td>\n \n11,143<\/p>\n<\/td>\n \n13,162<\/p>\n<\/td>\n \n-15.3%<\/p>\n<\/td>\n<\/tr>\n Gross Profit margin<\/i><\/p>\n<\/td>\n 27.5%<\/i><\/p>\n<\/td>\n 33.4%<\/i><\/p>\n<\/td>\n -591 bps<\/i><\/p>\n<\/td>\n<\/tr>\n \nAdjusted EBITDA<\/p>\n<\/td>\n \n10,636<\/p>\n<\/td>\n \n13,247<\/p>\n<\/td>\n \n-19.7%<\/p>\n<\/td>\n<\/tr>\n Adjusted EBITDA Mg.<\/i><\/p>\n<\/td>\n 26.2%<\/i><\/p>\n<\/td>\n 33.6%<\/i><\/p>\n<\/td>\n -738 bps<\/i><\/p>\n<\/td>\n<\/tr>\n \nNet Profit (Loss)<\/p>\n<\/td>\n \n5,208<\/p>\n<\/td>\n \n6,403<\/p>\n<\/td>\n \n-18.7%<\/p>\n<\/td>\n<\/tr>\n \nNet Profit (Loss) attributable to owners of the Company<\/p>\n<\/td>\n \n5,272<\/p>\n<\/td>\n \n6,473<\/p>\n<\/td>\n \n-18.6%<\/p>\n<\/td>\n<\/tr>\n \nEPS<\/p>\n<\/td>\n \n9.0337<\/p>\n<\/td>\n \n11.0456<\/p>\n<\/td>\n \n-18.2%<\/p>\n<\/td>\n<\/tr>\n \nAverage outstanding shares (*)<\/p>\n<\/td>\n \n584<\/p>\n<\/td>\n \n586<\/p>\n<\/td>\n \n-0.4%<\/p>\n<\/td>\n<\/tr>\n \nNet Debt<\/p>\n<\/td>\n \n22,858<\/p>\n<\/td>\n \n(8,075)<\/p>\n<\/td>\n \nn\/a<\/p>\n<\/td>\n<\/tr>\n \nNet Debt \/LTM Adjusted EBITDA<\/p>\n<\/td>\n \n0.46x<\/p>\n<\/td>\n \n-0.15x<\/p>\n<\/td>\n \nn\/a<\/p>\n<\/td>\n<\/tr>\n \n(*) Net of shares repurchased<\/p>\n<\/td>\n<\/tr>\n<\/table>\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 In million Ps.<\/b><\/p>\n<\/td>\n Three-months ended \n\u00a0<\/p>\n<\/td>\n 2023<\/b><\/p>\n<\/td>\n 2022<\/b><\/p>\n<\/td>\n \n% Chg.<\/p>\n<\/td>\n<\/tr>\n \nNet revenue<\/p>\n<\/td>\n \n37,955<\/p>\n<\/td>\n \n18,263<\/p>\n<\/td>\n \n107.8%<\/p>\n<\/td>\n<\/tr>\n \nAdjusted EBITDA<\/p>\n<\/td>\n \n12,118<\/p>\n<\/td>\n \n6,343<\/p>\n<\/td>\n \n91.1%<\/p>\n<\/td>\n<\/tr>\n Adjusted EBITDA Mg.<\/i><\/p>\n<\/td>\n 31.9%<\/i><\/p>\n<\/td>\n 34.7%<\/i><\/p>\n<\/td>\n -280 bps<\/i><\/p>\n<\/td>\n<\/tr>\n \nNet Profit (Loss)<\/p>\n<\/td>\n \n6,921<\/p>\n<\/td>\n \n6,043<\/p>\n<\/td>\n \n14.5%<\/p>\n<\/td>\n<\/tr>\n \nNet Debt<\/p>\n<\/td>\n \n22,858<\/p>\n<\/td>\n \n(8,075)<\/p>\n<\/td>\n \nn\/a<\/p>\n<\/td>\n<\/tr>\n \nNet Debt \/LTM Adjusted EBITDA<\/p>\n<\/td>\n \n0.46x<\/p>\n<\/td>\n \n-0.15x<\/p>\n<\/td>\n \nn\/a<\/p>\n<\/td>\n<\/tr>\n In million US$<\/b><\/p>\n<\/td>\n Three-months ended \n\u00a0<\/p>\n<\/td>\n 2023<\/b><\/p>\n<\/td>\n 2022<\/b><\/p>\n<\/td>\n \n% Chg.<\/p>\n<\/td>\n<\/tr>\n \nPs.\/US$, av<\/p>\n<\/td>\n \n192.45<\/p>\n<\/td>\n \n106.59<\/p>\n<\/td>\n \n80.5%<\/p>\n<\/td>\n<\/tr>\n \nPs.\/US$, eop<\/p>\n<\/td>\n \n208.99<\/p>\n<\/td>\n \n110.98<\/p>\n<\/td>\n \n88.3%<\/p>\n<\/td>\n<\/tr>\n \nNet revenue<\/p>\n<\/td>\n \n197<\/p>\n<\/td>\n \n171<\/p>\n<\/td>\n \n15.1%<\/p>\n<\/td>\n<\/tr>\n \nAdjusted EBITDA<\/p>\n<\/td>\n \n63<\/p>\n<\/td>\n \n60<\/p>\n<\/td>\n \n5.8%<\/p>\n<\/td>\n<\/tr>\n Adjusted EBITDA Mg.<\/i><\/p>\n<\/td>\n 31.9%<\/i><\/p>\n<\/td>\n 34.7%<\/i><\/p>\n<\/td>\n -280 bps<\/i><\/p>\n<\/td>\n<\/tr>\n \nNet Profit (Loss)<\/p>\n<\/td>\n \n36<\/p>\n<\/td>\n \n57<\/p>\n<\/td>\n \n-36.6%<\/p>\n<\/td>\n<\/tr>\n \nNet Debt<\/p>\n<\/td>\n \n109<\/p>\n<\/td>\n \n(73)<\/p>\n<\/td>\n \nn\/a<\/p>\n<\/td>\n<\/tr>\n \nNet Debt \/LTM Adjusted EBITDA<\/p>\n<\/td>\n \n0.46x<\/p>\n<\/td>\n \n-0.15x<\/p>\n<\/td>\n \nn\/a<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Overview of Operations<\/b><\/p>\n \nSales Volumes<\/p>\n Table 2: Sales Volumes2<\/sup><\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n Three-months ended \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 2023<\/b><\/p>\n<\/td>\n 2022<\/b><\/p>\n<\/td>\n \n% Chg.<\/p>\n<\/td>\n<\/tr>\n \nCement, masonry & lime<\/p>\n<\/td>\n \nMM Tn<\/p>\n<\/td>\n \n1.54<\/p>\n<\/td>\n \n1.48<\/p>\n<\/td>\n \n4.3%<\/p>\n<\/td>\n<\/tr>\n \nConcrete<\/p>\n<\/td>\n \nMM m3<\/p>\n<\/td>\n \n0.15<\/p>\n<\/td>\n \n0.12<\/p>\n<\/td>\n \n26.2%<\/p>\n<\/td>\n<\/tr>\n \nRailroad<\/p>\n<\/td>\n \nMM Tn<\/p>\n<\/td>\n \n0.97<\/p>\n<\/td>\n \n1.05<\/p>\n<\/td>\n \n-7.4%<\/p>\n<\/td>\n<\/tr>\n \nAggregates<\/p>\n<\/td>\n \nMM Tn<\/p>\n<\/td>\n \n0.36<\/p>\n<\/td>\n \n0.24<\/p>\n<\/td>\n \n47.1%<\/p>\n<\/td>\n<\/tr>\n 2 <\/sup>Sales volumes include inter-segment sales<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nSales volumes of Cement, masonry, and lime during 1Q23 increased by 4.3% to 1.5 million tons, mainly leveraged by the significant growth of bulk cement that maintain the positive trend on the back of Concrete and Distributors growth supported by private construction and public works. Sales of bagged cement showed a contraction YoY in the quarter, although maintaining a solid level.<\/p>\n \nRegarding the volume of the Concrete segment, it registered an increase of 26.2% YoY. The volume of concrete continues the upwards trend. The segment remains as one of the pillars of the growth in bulk cement shipments. The Concrete segment growth was mainly supported by demand from the private sector, coupled with an increase in public works. Likewise, Aggregates segment showed a sharp increase of 47.1% YoY, driven mainly by the Concrete sector and sustained by the good production and logistics performance.<\/p>\n \nOn the other hand, the volumes of the Railway segment experienced a contraction of 7.4% compared to the same quarter of 2022, where the strong transported volumes of aggregates partially offset the decrease in cement and fracsand.<\/p>\n Review of Financial Results<\/b><\/p>\n Table 3: Condensed Interim Consolidated Statements of Profit or Loss and Other Comprehensive Income<\/b><\/p>\n<\/td>\n<\/tr>\n (amounts expressed in millions of pesos, unless otherwise noted)<\/i><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n Three-months ended \n\u00a0<\/p>\n<\/td>\n 2023<\/b><\/p>\n<\/td>\n 2022<\/b><\/p>\n<\/td>\n \n% Chg.<\/p>\n<\/td>\n<\/tr>\n \nNet revenue<\/p>\n<\/td>\n \n40,590<\/p>\n<\/td>\n \n39,449<\/p>\n<\/td>\n \n2.9%<\/p>\n<\/td>\n<\/tr>\n \nCost of sales<\/p>\n<\/td>\n \n(29,447)<\/p>\n<\/td>\n \n(26,287)<\/p>\n<\/td>\n \n12.0%<\/p>\n<\/td>\n<\/tr>\n Gross profit<\/b><\/p>\n<\/td>\n 11,143<\/b><\/p>\n<\/td>\n 13,162<\/b><\/p>\n<\/td>\n -15.3%<\/b><\/p>\n<\/td>\n<\/tr>\n \nShare of loss of associates<\/p>\n<\/td>\n \n–<\/p>\n<\/td>\n \n–<\/p>\n<\/td>\n \nn\/a<\/p>\n<\/td>\n<\/tr>\n \nSelling and administrative expenses<\/p>\n<\/td>\n \n(3,660)<\/p>\n<\/td>\n \n(3,732)<\/p>\n<\/td>\n \n-1.9%<\/p>\n<\/td>\n<\/tr>\n \nOther gains and losses<\/p>\n<\/td>\n \n(102)<\/p>\n<\/td>\n \n61<\/p>\n<\/td>\n \nn\/a<\/p>\n<\/td>\n<\/tr>\n \nImpairment of property, plant and equipment<\/p>\n<\/td>\n \n–<\/p>\n<\/td>\n \n–<\/p>\n<\/td>\n \nn\/a<\/p>\n<\/td>\n<\/tr>\n \nTax on debits and credits to bank accounts<\/p>\n<\/td>\n \n(434)<\/p>\n<\/td>\n \n(391)<\/p>\n<\/td>\n \n11.0%<\/p>\n<\/td>\n<\/tr>\n Finance gain (cost), net<\/b><\/p>\n<\/td>\n \nGain on net monetary position<\/p>\n<\/td>\n \n7,337<\/p>\n<\/td>\n \n1,212<\/p>\n<\/td>\n \n505.6%<\/p>\n<\/td>\n<\/tr>\n \nExchange rate differences<\/p>\n<\/td>\n \n(3,125)<\/p>\n<\/td>\n \n(690)<\/p>\n<\/td>\n \n352.7%<\/p>\n<\/td>\n<\/tr>\n \nFinancial income<\/p>\n<\/td>\n \n1,311<\/p>\n<\/td>\n \n642<\/p>\n<\/td>\n \n104.3%<\/p>\n<\/td>\n<\/tr>\n \nFinancial expense<\/p>\n<\/td>\n \n(5,542)<\/p>\n<\/td>\n \n(711)<\/p>\n<\/td>\n \n679.0%<\/p>\n<\/td>\n<\/tr>\n Profit (Loss) before taxes<\/b><\/p>\n<\/td>\n 6,928<\/b><\/p>\n<\/td>\n 9,552<\/b><\/p>\n<\/td>\n -27.5%<\/b><\/p>\n<\/td>\n<\/tr>\n Income tax expense<\/b><\/p>\n<\/td>\n \nCurrent<\/p>\n<\/td>\n \n(1,537)<\/p>\n<\/td>\n \n(3,866)<\/p>\n<\/td>\n \n-60.2%<\/p>\n<\/td>\n<\/tr>\n \nDeferred<\/p>\n<\/td>\n \n(183)<\/p>\n<\/td>\n \n717<\/p>\n<\/td>\n \nn\/a<\/p>\n<\/td>\n<\/tr>\n Net profit (Loss)<\/b><\/p>\n<\/td>\n 5,208<\/b><\/p>\n<\/td>\n 6,403<\/b><\/p>\n<\/td>\n -18.7%<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n Net Revenues<\/b><\/p>\n Net revenue <\/b>increased 2.9% to Ps. 40,590 million in 1Q23, from Ps. 39,449 million in the comparable quarter last year, where the good top line performance of Concrete and Aggregates was partially offset with the decline in Cement and Railroad.<\/p>\n \nCement, masonry cement and lime segment was down 3.5% YoY, with volumes expanding 4.3% that partially offset the softer price dynamics.<\/p>\n \nConcrete registered an increase in its topline of 32.8% compared with 1Q22, sustained by a 26.2% increase in volume, coupled with an improvement in prices. The Aggregates segment recorded a sharp increase in revenues of 65.3%, supported by a volume increase of 47.1% YoY and positive price performance.<\/p>\n \nRailroad revenues decreased 5.7% in 1Q23 compared to the same quarter of 2022, where the transported volume decreased 7.4% in the quarter, affected by the decrease in transported volumes of fracsand and cement, partially compensated by the better performance of aggregates. The effect of lower volumes was partially compensated by a positive price performance, despite the effect of the decrease in transported volumes of fracsand that affects the price performance due to its impact on the average transported distance.<\/p>\n Cost of sales, and Gross profit<\/b><\/p>\n Cost of sales<\/b> increased 12.0% YoY, reaching Ps. 29,447 million in 1Q23, mainly due to the increase in sales volumes of the Cement and Concrete segments. Regarding Cement cost of sales, the increase was mainly because of higher thermal energy costs driven by the stimulus plans to increase natural gas production and higher freights. These effects saw their impact softened by lower electrical energy inputs and lower depreciation.<\/p>\n Gross Profit<\/b> registered a decline of 15.3% YoY to Ps. 11,143 million in 1Q21, from Ps. 13,162 million in 1Q22, with a gross profit margin that contracted 591 basis points YoY to 27.5%.<\/p>\n Selling and Administrative Expenses<\/b><\/p>\n Selling and administrative expenses<\/b> (SG&A) in 1Q23 decreased by 1.9% YoY to Ps. 3,660 million, from Ps. 3,732 million in 1Q22, mainly due to a decrease in salaries and freights, partially compensated with an increase in marketing expenses. As a percentage of sales, SG&A showed a decrease against 1Q22 of 44 basis points, reaching 9.0%.<\/p>\n Adjusted EBITDA & Margin<\/b><\/p>\n Table 4: Adjusted EBITDA Reconciliation & Margin<\/b><\/p>\n<\/td>\n<\/tr>\n (amounts expressed in millions of pesos, unless otherwise noted)<\/i><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n Three-months ended \n\u00a0<\/p>\n<\/td>\n 2023<\/b><\/p>\n<\/td>\n 2022<\/b><\/p>\n<\/td>\n \n% Chg.<\/p>\n<\/td>\n<\/tr>\n Adjusted EBITDA reconciliation:<\/b><\/p>\n<\/td>\n \nNet profit (Loss)<\/p>\n<\/td>\n \n5,208<\/p>\n<\/td>\n \n6,403<\/p>\n<\/td>\n \n-18.7%<\/p>\n<\/td>\n<\/tr>\n \n(+) Depreciation and amortization<\/p>\n<\/td>\n \n3,254<\/p>\n<\/td>\n \n3,756<\/p>\n<\/td>\n \n-13.4%<\/p>\n<\/td>\n<\/tr>\n \n(+) Tax on debits and credits to bank accounts<\/p>\n<\/td>\n \n434<\/p>\n<\/td>\n \n391<\/p>\n<\/td>\n \n11.0%<\/p>\n<\/td>\n<\/tr>\n \n(+) Income tax expense<\/p>\n<\/td>\n \n1,721<\/p>\n<\/td>\n \n3,149<\/p>\n<\/td>\n \n-45.4%<\/p>\n<\/td>\n<\/tr>\n \n(+) Financial interest, net<\/p>\n<\/td>\n \n3,279<\/p>\n<\/td>\n \n(429)<\/p>\n<\/td>\n \nn\/a<\/p>\n<\/td>\n<\/tr>\n \n(+) Exchange rate differences, net<\/p>\n<\/td>\n \n3,125<\/p>\n<\/td>\n \n690<\/p>\n<\/td>\n \n352.7%<\/p>\n<\/td>\n<\/tr>\n \n(+) Other financial expenses, net<\/p>\n<\/td>\n \n952<\/p>\n<\/td>\n \n498<\/p>\n<\/td>\n \n91.0%<\/p>\n<\/td>\n<\/tr>\n \n(+) Gain on net monetary position<\/p>\n<\/td>\n \n(7,337)<\/p>\n<\/td>\n \n(1,212)<\/p>\n<\/td>\n \n505.6%<\/p>\n<\/td>\n<\/tr>\n \n(+) Share of profit (loss) of associates<\/p>\n<\/td>\n \n–<\/p>\n<\/td>\n \n–<\/p>\n<\/td>\n \nn\/a<\/p>\n<\/td>\n<\/tr>\n \n(+) Impairment of property, plant and equipment<\/p>\n<\/td>\n \n–<\/p>\n<\/td>\n \n–<\/p>\n<\/td>\n \nn\/a<\/p>\n<\/td>\n<\/tr>\n Adjusted EBITDA<\/b><\/p>\n<\/td>\n 10,636<\/b><\/p>\n<\/td>\n 13,247<\/b><\/p>\n<\/td>\n -19.7%<\/b><\/p>\n<\/td>\n<\/tr>\n Adjusted EBITDA Margin<\/i><\/p>\n<\/td>\n 26.2%<\/i><\/p>\n<\/td>\n 33.6%<\/i><\/p>\n<\/td>\n -738 bps<\/i><\/p>\n<\/td>\n<\/tr>\n<\/table>\n Adjusted EBITDA <\/b>decreased 19.7% YoY in the first quarter of 2023 to Ps. 10,636 million from 13,247 million in the same period of the previous year, mainly affected by lower adjusted EBITDA generated by our cement business. The better performance of the Aggregates segment partially compensated the decrease of the other businesses.<\/p>\n \nLikewise, the Adjusted EBITDA margin contracted 738 basis points to 26.2% compared to 33.6% in 1Q22, mainly due to the compression of the cement margin and the higher incidence of other businesses with lower margins, due to the increase in their activity levels.<\/p>\n \nIn particular, the Adjusted EBITDA margin of the Cement, Masonry and Lime segment contracted 625 bps to 31.2%, mainly due to a lower price performance and an increase in costs driven by higher thermal energy inputs and higher freights costs, partially compensated by lower electrical energy inputs.<\/p>\n \nConcrete Adjusted EBITDA margin contracted 33 bps, and stood in a negative 1.2%, from negative 0.8% in 1Q22, where the good performance in price and volumes couldn\u2019t compensate the increase in costs, mainly impacted by aggregates and freights.<\/p>\n \nThe Adjusted EBITDA margin of Aggregates jumped to 17.6%, from a negative 4.6% in 1Q22, mainly leveraged on the strong increase in volume that allowed a better dilution of fixed costs and a good price performance.<\/p>\n \nFinally, the Adjusted EBITDA margin of the Railroad segment contracted 715 bps to negative 1.2% in the first quarter, from 5.9% in 1Q22, principally affected by costs increase and lower transported volumes, partially compensated by positive price performance.<\/p>\n Finance Costs-Net<\/b><\/p>\n Table 5: Finance Gain (Cost), net<\/b><\/p>\n<\/td>\n (amounts expressed in millions of pesos, unless otherwise noted)<\/i><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n Three-months ended \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 2023<\/b><\/p>\n<\/td>\n 2022<\/b><\/p>\n<\/td>\n \n% Chg.<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nExchange rate differences<\/p>\n<\/td>\n \n(3,125)<\/p>\n<\/td>\n \n(690)<\/p>\n<\/td>\n \n352.7%<\/p>\n<\/td>\n \nFinancial income<\/p>\n<\/td>\n \n1,311<\/p>\n<\/td>\n \n642<\/p>\n<\/td>\n \n104.3%<\/p>\n<\/td>\n \nFinancial expense<\/p>\n<\/td>\n \n(5,542)<\/p>\n<\/td>\n \n(711)<\/p>\n<\/td>\n \n679.0%<\/p>\n<\/td>\n \nGain on net monetary position<\/p>\n<\/td>\n \n7,337<\/p>\n<\/td>\n \n1,212<\/p>\n<\/td>\n \n505.6%<\/p>\n<\/td>\n Total Finance Gain (Cost), Net<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n (19)<\/b><\/p>\n<\/td>\n 452<\/b><\/p>\n<\/td>\n \nn\/a<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nDuring 1Q23, the Company reported a total net financial cost of Ps. 19 million compared to a total net financial gain of Ps. 452 million in 1Q22, where the positive effect of the result on the monetary position partially compensated the increase of the net financial expense, due to the higher debt position, and the higher negative effect of the exchange rate.<\/p>\n Net Profit and Net Profit Attributable to Owners of the Company<\/b><\/p>\n Net Gain <\/b>of Ps. 5,208 million in 1Q23 compared to a Net Gain of Ps. 6,403 million in the same period of the previous year, where the lower operational result and the higher financial cost was partially compensated by positive income tax effect.<\/p>\n Net Gain Attributable to Owners of the Company<\/b> stood at Ps. 5,272 million. During the quarter, the Company reported a gain per common share of Ps. 9.0337 and an ADR gain of Ps. 45.1686, compared to earnings per common share of Ps. 11.0456 and earnings per ADR of Ps. 55.2280 in 1Q23.<\/p>\n Capitalization<\/b><\/p>\n Table 6: Capitalization and Debt Ratio<\/b><\/p>\n<\/td>\n<\/tr>\n (amounts expressed in millions of pesos, unless otherwise noted)<\/i><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n As of March 31,<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n As of December, 31<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n 2023<\/b><\/p>\n<\/td>\n 2022<\/b><\/p>\n<\/td>\n 2022<\/b><\/p>\n<\/td>\n<\/tr>\n \nTotal Debt<\/p>\n<\/td>\n \n42,277<\/p>\n<\/td>\n \n1,934<\/p>\n<\/td>\n \n25,284<\/p>\n<\/td>\n<\/tr>\n \n– Short-Term Debt<\/p>\n<\/td>\n \n8,870<\/p>\n<\/td>\n \n1,304<\/p>\n<\/td>\n \n13,257<\/p>\n<\/td>\n<\/tr>\n \n– Long-Term Debt<\/p>\n<\/td>\n \n33,406<\/p>\n<\/td>\n \n630<\/p>\n<\/td>\n \n12,027<\/p>\n<\/td>\n<\/tr>\n \nCash, Cash Equivalents and Investments<\/p>\n<\/td>\n \n(19,419)<\/p>\n<\/td>\n \n(10,009)<\/p>\n<\/td>\n \n(5,978)<\/p>\n<\/td>\n<\/tr>\n Total Net Debt<\/b><\/p>\n<\/td>\n 22,858<\/b><\/p>\n<\/td>\n (8,075)<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 19,306<\/b><\/p>\n<\/td>\n<\/tr>\n \nShareholder’s Equity<\/p>\n<\/td>\n \n146,384<\/p>\n<\/td>\n \n168,926<\/p>\n<\/td>\n \n141,145<\/p>\n<\/td>\n<\/tr>\n Capitalization<\/b><\/p>\n<\/td>\n 188,661<\/b><\/p>\n<\/td>\n 170,860<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 166,430<\/b><\/p>\n<\/td>\n<\/tr>\n \nLTM Adjusted EBITDA<\/p>\n<\/td>\n 50,154<\/b><\/p>\n<\/td>\n 53,168<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 52,765<\/b><\/p>\n<\/td>\n<\/tr>\n \nNet Debt \/LTM Adjusted EBITDA<\/p>\n<\/td>\n \n0.46x<\/p>\n<\/td>\n \n-0.15x<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.37x<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nAs of March 31, 2023, total Cash, Cash Equivalents, and Investments were Ps. 19,419 million compared with Ps. 10,009 million as of March 31, 2022. Total debt at the close of the quarter stood at Ps. 42,277 million, composed by Ps. 8,870 million in short-term borrowings, including the current portion of long-term borrowings (or 21.0% of total borrowings), and Ps. 33,406 million in long-term borrowings (or 79.0% of total borrowings). In the quarter the company issued a domestic bond in the total principal amount of Ps. 25.6 billion with maturity in 3Q24. The proceeds of the issuance were primarily used for refinancing the debt in Pesos and working capital.<\/p>\n \nAt the close of the first quarter of 2023, 30.1% (or Ps. 12,725 million) of Loma Negra\u2019s total debt was denominated in U.S. dollars (and a not material amount in Euros), and 69.7% (or Ps. 9,925 million) was in Pesos. The average duration of Loma Negra\u2019s total debt was 1.2 years.<\/p>\n \nAs of March 31, 2023, 99.6% of the Company’s consolidated loans accrued interest at a variable rate. The debt denominated in dollars with rates based on Libor, while the portion in Argentine pesos principally accrued interest based on BADLAR. The remaining 0.4% accrues interest at a fixed rate in foreign currency.<\/p>\n \nThe Net Debt to Adjusted EBITDA (LTM) ratio increased to 0.46x as of March 31, 2023, from 0.37x as of December 31, 2022, as a result of an increase in the debt, partially compensated by our strong cash generation.<\/p>\n Cash Flows<\/b><\/p>\n Table 7: Condensed Interim Consolidated Statement of Cash Flows<\/b><\/p>\n<\/td>\n<\/tr>\n (amounts expressed in millions of pesos, unless otherwise noted)<\/i><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n Three-months ended \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 2023<\/b><\/p>\n<\/td>\n 2022<\/b><\/p>\n<\/td>\n<\/tr>\n CASH FLOWS FROM OPERATING ACTIVITIES<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \nNet Profit (Loss)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n5,208<\/p>\n<\/td>\n \n6,403<\/p>\n<\/td>\n<\/tr>\n \nAdjustments to reconcile net profit (loss) to net cash provided by operating activities<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n11,674<\/p>\n<\/td>\n \n7,316<\/p>\n<\/td>\n<\/tr>\n \nChanges in operating assets and liabilities<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(12,239)<\/p>\n<\/td>\n \n(8,109)<\/p>\n<\/td>\n<\/tr>\n Net cash generated by operating activities<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 4,643<\/b><\/p>\n<\/td>\n 5,611<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n CASH FLOWS FROM INVESTING ACTIVITIES<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \nProceeds from disposal of Yguaz\u00fa Cementos S.A.<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n101<\/p>\n<\/td>\n \n113<\/p>\n<\/td>\n<\/tr>\n \nProperty, plant and equipment, Intangible Assets, net<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(1,764)<\/p>\n<\/td>\n \n(1,289)<\/p>\n<\/td>\n<\/tr>\n \nContributions to Trust<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(95)<\/p>\n<\/td>\n \n(68)<\/p>\n<\/td>\n<\/tr>\n Net cash (used in) investing activities<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n (1,759)<\/b><\/p>\n<\/td>\n (1,243)<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n CASH FLOWS FROM FINANCING ACTIVITIES<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \nProceeds \/ Repayments from borrowings, Interest paid<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n16,730<\/p>\n<\/td>\n \n(3,800)<\/p>\n<\/td>\n<\/tr>\n \nDividends paid<\/p>\n<\/td>\n \n(4,262)<\/p>\n<\/td>\n \n–<\/p>\n<\/td>\n<\/tr>\n \nShare repurchase plan<\/p>\n<\/td>\n \n–<\/p>\n<\/td>\n \n(1,244)<\/p>\n<\/td>\n<\/tr>\n Net cash generated by (used in) by financing activities<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 12,467<\/b><\/p>\n<\/td>\n (5,044)<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n Net increase (decrease) in cash and cash equivalents<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 15,352<\/b><\/p>\n<\/td>\n (677)<\/b><\/p>\n<\/td>\n<\/tr>\n \nCash and cash equivalents at the beginning of the year<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n5,978<\/p>\n<\/td>\n \n7,839<\/p>\n<\/td>\n<\/tr>\n \nEffect of the re-expression in homogeneous cash currency (“Inflation-Adjusted”)<\/p>\n<\/td>\n \n(2,059)<\/p>\n<\/td>\n \n(1,070)<\/p>\n<\/td>\n<\/tr>\n \nEffects of the exchange rate differences on cash and cash equivalents in foreign currency<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n147<\/p>\n<\/td>\n \n966<\/p>\n<\/td>\n<\/tr>\n Cash and cash equivalents at the end of the period<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 19,419<\/b><\/p>\n<\/td>\n 7,058<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nIn 1Q23, our operating cash generation stood at Ps. 4,354 million, compared to Ps. 5,611 million in the same period of the previous year, where the increase in the net profit adjusted to reconcile to net cash provided by operating activities partially compensated the negative effect of the changes in operating assets and liabilities.<\/p>\n \nDuring 1Q23, the Company generated cash in financing activities for Ps. 12,467 million, mainly due to the issuance of the Class 1 bond with the consequent cancellation of the short-term debt in Pesos, and the dividend payment. Regarding cash used in investing activities, the Company used a total of Ps. 1,470 million, mainly due to maintenance capex.<\/p>\n Dividends Distribution<\/b><\/p>\n \nOn December 27, 2022, the board of directors approved the payment of dividends for a total amount of Ps. 3,500 million equivalents to Ps. 5.99 per outstanding share (Ps. 29.98 per ADS), through the partial allocation of funds from the Reserve for Future Dividends. The total amount of dividends was distributed in January 2023.<\/p>\n Domestic Bond Issuance<\/b><\/p>\n \nOn February 22, 2023, the Company issued its Class 1 of domestic bonds in the total principal amount of Ps. 25.6 billion. Terms of the issue are as outlined below.<\/p>\n\n
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