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Published: 2021-11-12 06:00:55 ET
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6-K 1 a52529318.htm LOMA NEGRA CORPORATION 6-K

UNITED STATES
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
 
For the month of November, 2021
 
Commission File Number: 001-38262
_______________
 
LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
(Exact Name of Registrant as Specified in its Charter)
 
LOMA NEGRA CORPORATION
(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 ☐
 
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 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Loma Negra Compañía Industrial Argentina Sociedad Anónima












Date: November 11, 2021
By: /s/
Marcos I. Gradin


Name:
Marcos I. Gradin


Title:
Chief Financial Officer

Buenos Aires, November 11, 2021 – 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 September 30, 2021 (our “3Q21 Results”).
 
3Q21 Key Highlights
 
◾
Net revenue increased by 8.5% YoY to Ps. 17,800 million (US$176 million), mainly explained by the recovery in Concrete, the increase in Cement and the improvement in the Railway segment
◾
Decrease in our Consolidated Adjusted EBITDA of 9.1% YoY to Ps. 4,696 million (US$51 million)
◾
The Consolidated Adjusted EBITDA margin decreased 512 basis points YoY from 31.5% to 26.4%, mainly due to the normalization of seasonal costs. For the 9-month period ending in September, the margin expanded 55 basis points to 30.7% from 30.2% in the same period of 2020
◾
Net Profit of Ps. 1,490 million, showing a reduction of 84.9% versus the same period of the previous year, mainly explained by the extraordinary result in 3Q20 due to the divestment in Paraguay
◾
Net Debt /LTM Adjusted EBITDA ratio of -0.02x from 0.27x in 3Q20 and 0.16x in FY20
 
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 third quarter of 2021, Sergio Faifman, Loma Negra’s Chief Executive Officer, noted: “We are pleased to announce a very good quarter in which we observe a consolidation of cement demand close to historical highs, with world-class profitability margins supported by our high operating standards and a recovery in the other business segments.
 
The post-pandemic operational normalization and the sustained recovery of demand, led to this quarter, unlike what happened in the same period last year, to include the usual annual maintenance costs, as well as an increase in energy inputs, typical of the winter months.
 
Despite the seasonal effects on margins, our EBITDA in dollars was US $ 51MM, exceeding what was achieved, both in the same period of 2020 and in the previous quarter.
 
As for the L’Amalí expansion project, it already shipped cement during the month of October. We are very satisfied with the first results that already show its operating benefits and we hope to begin to see its impact in the coming quarters. This new line, with its production capacity and operational efficiency, provides us with a robust platform on which Loma can support its development. Likewise, it will allow us to advance on the path of sustainability, maximizing the use of energy with low environmental impact.
 
Finally, I would like to highlight the committed contribution of all our people and stakeholders, which they make to the operational excellence of Loma and without which these results would not have been possible. Together with the support of our strong productive structure and a solid balance, they are the pillars to keep Loma on a prosperous path of growth. "
Table 1: Financial Highlights
(amounts expressed in millions of pesos, unless otherwise noted)
 
Three-months ended
September 30,
 
Nine-months ended
September 30,
 
2021
2020
% Chg.
 
2021
2020
% Chg.
Net revenue
17,800
16,399
8.5%
  
49,370
38,842
27.1%
Gross Profit
4,587
4,590
-0.1%
  
15,076
10,685
41.1%
Gross Profit margin
25.8%
28.0%
-222bps
  
30.5%
27.5%
+303bps
Adjusted EBITDA
4,696
5,167
-9.1%
  
15,161
11,713
29.4%
Adjusted EBITDA Mg.
26.4%
31.5%
-512bps
  
30.7%
30.2%
+55bps
Net Profit (Loss)
1,490
9,833
-84.9%
  
3,220
11,538
-72.1%
Net Profit (Loss) attributable to owners of the
Company
1,364
9,813
-86.1%
  
3,322
11,430
-70.9%
EPS
2.3081
16.4634
-86.0%
  
5.6000
7.9704
-29.7%
Average outstanding shares (*)
591
596
-0.9%
  
593
596
-0.5%
Net Debt
(330)
2,587
n/a
  
(330)
2,587
n/a
Net Debt /LTM Adjusted EBITDA
-0.02x
0.27x
n/a
  
-0.02x
0.27x
n/a
(*) Net of repurchased shares


Table 1b: Financial Highlights in Ps and in U.S. dollars (figures exclude the impact of IAS 29)
In million Ps.
Three-months ended
September 30,
  
Nine-months ended
September 30,
 
2021
2020
% Chg.
  
2021
2020
% Chg.
Net revenue
17,137
10,487
63.4%
  
43,601
23,477
85.7%
Adjusted EBITDA
4,957
3,511
41.2%
  
14,073
7,445
89.0%
Adjusted EBITDA Mg.
28.9%
33.5%
-455bps
  
32.3%
31.7%
+57bps
Net Profit (Loss)
3,466
8,258
-58.0%
  
11,354
9,039
25.6%
Net Debt
(330)
2,587
n/a
  
(330)
2,587
n/a
Net Debt /LTM Adjusted EBITDA
-0.02x
0.27x
n/a
  
-0.02x
0.27x
n/a
               
In million US$
Three-monthsended
September30,
  
Nine-monthsended
September30,
 
2021
2020
%Chg.
  
2021
2020
%Chg.
Ps./US$, av
97.26
73.35
32.6%
  
93.42
67.62
38.1%
Ps./US$, eop
98.74
76.18
29.6%
  
98.74
76.18
29.6%
Net revenue
176
143
23.2%
  
467
347
34.4%
Adjusted EBITDA
51
48
6.5%
  
151
110
36.8%
Adjusted EBITDA Mg.
28.9%
33.5%
-455bps
  
32.3%
31.7%
+57bps
Net Profit (Loss)
36
113
-68.3%
  
122
134
-9.1%
Net Debt
(3)
34
n/a
  
(3)
34
n/a
Net Debt /LTM Adjusted EBITDA
-0.02x
0.27x
n/a
  
-0.02x
0.27x
n/a
Overview of Operations
Sales Volumes

Table 2: Sales Volumes2
                 
 
 
Three-months ended
September 30,
 
Nine-months ended
September 30,
 
 
2021
2020
% Chg.
 
2021
2020
% Chg.
Cement, masonry & lime
MM Tn
1.66
1.53
8.4%
  
4.45
3.54
25.6%
Concrete
MM m3
0.12
0.06
110.8%
  
0.39
0.15
160.5%
Railroad
MM Tn
1.15
1.06
8.2%
  
3.20
2.63
21.7%
Aggregates
MM Tn
0.21
0.19
7.2%
  
0.58
0.35
68.3%
2 Sales volumes include inter-segment sales
            

Sales volumes of cement, masonry, and lime in Argentina during 3Q21 increased 8.4% to 1.7 million tons mainly leveraged by the recovery of bulk cement, a segment that had been more restricted during the pandemic. Bagged cement sales remain strong due to sustained demand from the retail sector. Considering that bagged products had a more accelerated recovery in 3Q20, in this quarter there is a normalization of the share in this dispatch mode compared with bulk.
 
Likewise, the volume of concrete showed strong YoY growth of 110.8%, still below pre-pandemic levels, mainly due to the lack of large infrastructure projects, both private and public. Aggregates had an increase of 7.2% with a more moderate growth due to the fact that in 3Q20 it already showed some recovery.
 
The volumes of the Railway segment experienced an increase of 8.2% compared to the same quarter of 2020, mainly explained by the recovery in the transported volumes of granite stone and 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
September 30,
 
Nine-months ended
September 30,
 
2021
2020
% Chg.
 
2021
2020
% Chg.
Net revenue
17,800
16,399
8.5%
  
49,370
38,842
27.1%
Cost of sales
(13,213)
(11,810)
11.9%
  
(34,294)
(28,157)
21.8%
Gross profit
4,587
4,590
-0.1%
  
15,076
10,685
41.1%
Share of loss of associates
-
(553)
n/a
  
-
(553)
n/a
Selling and administrative expenses
(1,361)
(1,262)
7.8%
  
(4,014)
(3,302)
21.6%
Other gains and losses
35
8
309.9%
  
179
88
103.6%
Impairment of property, plant and equipment
(141)
(1,297)
n/a
  
(141)
(1,297)
-89.1%
Tax on debits and credits to bank accounts
(174)
(203)
-14.3%
  
(498)
(492)
1.2%
Finance gain (cost), net
              
Gain on net monetary position
342
163
110.0%
  
1,622
488
232.4%
Exchange rate differences
(341)
3,131
n/a
  
(105)
1,898
n/a
Financial income
21
165
-87.4%
  
(1,438)
(1,874)
-23.3%
Financial expense
(343)
(408)
-15.8%
  
89
103
-13.0%
Profit (Loss) before taxes
2,624
4,334
-39.5%
  
10,769
5,743
87.5%
Income tax expense
              
Current
(1,047)
(1,471)
-28.8%
  
(4,612)
(1,792)
157.4%
Deferred
(87)
560
n/a
  
(2,937)
562
n/a
Net profit (loss) from continuing operations
1,490
3,423
-56.5%
  
3,220
4,514
-28.7%
Income from discontinued operations
-
6,411
n/a
  
-
7,024
n/a
Net profit (loss)
1,490
9,833
-84.9%
  
3,220
11,538
-72.1%
Net Revenues
 
Net revenue increased 8.5% to Ps. 17,800 million in 3Q21, from Ps. 16,399 million in the comparable quarter last year, driven by the recovery of the Concrete segment, the growth in cement and the recovery of the Railway and Aggregates segment.
 
Cement, masonry cement and lime segment was up 2.4%, with volumes expanding 8.4% impacted by price dynamics.
 
Concrete posted a revenue increase of 116.6% because the recovery in volume was coupled by an improvement in prices. The Aggregates segment registered a strong increase in revenues of 47.5% due to the fact that the higher volume was combined with a good price performance and a positive sales mix.
 
Railroad revenues increased 25.4% in 3Q21 compared to the same quarter of 2020, mainly explained by an increase in transported volumes of granite stone, and frac-sand that positively boosts sales due to their impact on average transported distance.
 
Cost of sales, and Gross profit
 
Cost of sales increased 11.9% YoY reaching Ps. 13,213 million in 3Q21, mainly as a result of the higher volumes, impacted by higher seasonal costs of thermal and electrical inputs and higher maintenance costs in line with normalized third quarter operation. Typically, during the winter season, we undertake our annual scheduled maintenance, which last year was abnormally affected by the pandemic situation.
 
Gross profit decreased slightly 0.1% YoY to Ps. 4,587 million in 3Q21, from Ps. 4,590 million in 3Q20, with a gross profit margin that contracted 222 basis points year-on-year to 25.8%, reflecting the impact of higher winter production costs and the maintenance period, together with lower price dynamics.
 
Selling and Administrative Expenses
 
Selling and administrative expenses (SG&A) in 2Q21 increased by 7.8% YoY to Ps. 1,361 million, from Ps. 1,262 million in 3Q20, mainly as a consequence of the higher impact of sales on taxes and freight, and higher labor costs compared to last year. As a percentage of sales, SG&A show a slight improvement compared to 3Q20, reaching 7.6%.
 
Adjusted EBITDA & Margin
 
Table 4: Adjusted EBITDA Reconciliation & Margin
            
(amounts expressed in millions of pesos, unless otherwise noted)
          
 
Three-months ended
September 30,
 
Nine-months ended
September 30,
 
2021
2020
% Chg.
 
2021
2020
% Chg.
Adjusted EBITDA reconciliation:
              
Net profit (loss)
1,490
9,833
-84.9%
  
3,220
11,538
-72.1%
(+) Depreciation and amortization
1,435
1,831
-21.6%
  
3,920
4,242
-7.6%
(+) Tax on debits and credits to bank accounts
174
203
-14.3%
  
498
492
1.2%
(+) Income tax expense
1,134
911
24.5%
  
7,549
1,229
514.1%
(+) Financial interest, net
231
(13)
n/a
  
1,146
1,226
-6.5%
(+) Exchange rate differences, net
341
(3,131)
n/a
  
105
(1,898)
n/a
(+) Other financial expenses, net
92
256
-64.2%
  
203
545
-62.8%
(+) Gain on net monetary position
(342)
(163)
110.0%
  
(1,622)
(488)
232.4%
(+) Share of profit (loss) of associates
-
553
n/a
  
-
553
n/a
(+) Impairment of property, plant and equipment
141
1,297
-89.1%
  
141
1,297
-89.1%
(-) Income from discontinued operations
-
6,411
n/a
  
-
7,024
n/a
Adjusted EBITDA
4,696
5,167
-9.1%
  
15,161
11,713
29.4%
Adjusted EBITDA Margin
26.4%
31.5%
-512bps
  
30.7%
30.2%
+55bps
 

Adjusted EBITDA decreased 9.1% YoY in the third quarter of 2021 to Ps. 4,696 million. Typically, in the third quarters we have the incidence of higher production costs, as we incurred in winter energy costs and we undertake most of our annual schedule maintenance. These effects were abnormally softer in 3Q20 due to the pandemic situation.
 
Likewise, the Adjusted EBITDA margin decreased 512 basis points to 26.4% compared to 31.5% in 3Q20, mainly due to the impact of cement margins. For the 9-month cumulative period, the margin expanded 55 bps to 30.7 from 30.2 in the same period last year.
 
In particular, the Adjusted EBITDA margin of the Cement, Masonry and Lime segment decreased 484 bps to 29.5%, mainly due to the seasonal increase in costs and lower price performance.
The Adjusted EBITDA margin for Concrete recovered considerably compared to 3Q20, but still registering a negative margin of 4.0%, as the recovery of volumes is still below pre-pandemic levels.
 
The adjusted EBITDA margin of the Railroad segment improved 97 basis points, mainly supported by an increase in transported volumes and a positive effect from the product mix.
 
Finally, the aggregates adjusted EBITDA margin improved to 0.3% from a negative margin in 3Q20, due to a strong recovery in revenues as a result of a better sales mix and higher operating leverage.
 

Finance Costs-Net

Table 5: Finance Gain (Cost), net
            
(amounts expressed in millions of pesos, unless otherwise noted)
        
 
 
Three-months ended
September 30,
 
Nine-months ended
September 30,
 
 
2021
2020
% Chg.
 
2021
2020
% Chg.
Exchange rate differences
  
(341)
3,131
n/a
  
(105)
1,898
n/a
Financial income
  
21
165
-87.4%
  
(1,438)
(1,874)
-23.3%
Financial expense
  
(343)
(408)
-15.8%
  
89
103
-13.0%
Gain on net monetary position
  
342
163
110.0%
  
1,622
488
232.4%
Total Finance Gain (Cost), Net
 
(322)
3,051
n/a
  
168
614
-72.6%

During 3Q21, the Company reported a total net financial cost of Ps. 322 million compared to a total net financial gain of Ps. 3,051 million in 3Q20, this variation is primarily due to an extraordinary exchange rate difference gain in the third quarter of 2020.
 
 
Net Profit and Net Profit Attributable to Owners of the Company
 
Net Profit for 3Q21 it reached Ps. 1,490 million compared to Ps. 9,833 million in the same period of the previous year. 3Q20 was strongly impacted by the sale of the Company's stake in Yguazú Cementos.
 
Additionally, considering the start-up of the new L’Amalí line and taking into account other factors, a non-monetary loss was recognized on the assets of the Sierras Bayas Plant that amounted to Ps. 141 million.
 
Net Profit Attributable to Owners of the Company reached Ps. 1.4 billion. During the quarter, the Company reported earnings per common share of Ps. 2,3081 and an ADR gain of Ps. 11.5407, compared to earnings per common share of Ps. 16.4634 and an ADR gain of Ps. 82.3171 in 3Q20.
 
 
Capitalization
 
Table 6: Capitalization and Debt Ratio
      
(amounts expressed in millions of pesos, unless otherwise noted)
    
 
As of September 30,
 
As of December, 31
 
2021
2020
 
2020
         
Total Debt
3,959
9,170
  
8,072
- Short-Term Debt
3,480
5,906
  
5,729
- Long-Term Debt
479
3,265
  
2,343
Cash, Cash Equivalents  and Investments
4,289
6,583
  
5,484
Total Net Debt
(330)
2,587
  
2,588
Shareholders' Equity
63,888
57,250
  
56,886
Capitalization
67,848
66,420
  
64,957
LTM Adjusted EBITDA
17,756
9,762
  
16,640
Net Debt /LTM Adjusted EBITDA
-0.02x
0.27x
  
0.16x


As of September 30, 2021, total cash and cash equivalents were Ps. 4,289 million compared with Ps. 6,583 million as of the September 30, 2020. Total debt at the close of the quarter stood at Ps. 3,959 million, composed by Ps. 3,480 million in short-term borrowings, including the current portion of long-term borrowings (or 87.9% of total borrowings), and Ps. 479 million in long-term borrowings (or 12.1% of total borrowings).
As of September 30, 2021, 83.2% (or Ps. 3,295 million) Loma Negra’s total debt was denominated in U.S. dollars, 9.5% (or Ps. 377 million) in Euros, and 7.3% (or Ps. 288 million) in argentine pesos. The average duration of Loma Negra’s total debt was 0.4 years.
 
As of September 30, 2021, Ps. 3,280 million, or 82.9%, of the Company’s total consolidated borrowings bore interest at rates based on Libor, and Ps. 679 million of borrowings bore interest at a fixed rate.
 
The Net Debt to Adjusted EBITDA (LTM) ratio decreased to -0.02x as of September 30, 2021 from 0.16x as of December 31, 2020 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
September 30,
Nine-months ended
September 30,
 
 
2021
2020
2021
2020
CASH FLOWS FROM OPERATING ACTIVITIES
  
 
 
 
 
Net profit (loss)
 
1,490
9,833
3,220
11,538
Adjustments to reconcile net profit (loss) to net cash provided by operating activities
  
2,889
(5,744)
11,524
(1,737)
 
 
        
Changes in operating assets and liabilities
  
1,012
1,300
(5,832)
311
Net cash generated by operating activities
  
5,391
5,389
8,912
10,112
 
  
        
CASH FLOWS FROM INVESTING ACTIVITIES
  
        
Proceeds from disposal of Yguazú Cementos S.A.
  
(250)
-
-
-
Property, plant and equipment, Intangible Assets, net
  
(1,544)
(2,382)
(4,249)
(10,928)
Contributions to Trust
  
(20)
(40)
(66)
(76)
Investments
  
373
11,428
(1,656)
11,428
Net cash (used in) investing activities
  
(1,441)
9,006
(5,971)
423
 
  
        
CASH FLOWS FROM FINANCING ACTIVITIES
  
        
Proceeds / Repayments from borrowings, Interest paid
  
(1,748)
(15,238)
(4,192)
(10,029)
Share repurchase plan
  
(630)
-
(1,498)
-
Net cash generated by (used in) by financing activities
  
(2,377)
(15,238)
(5,689)
(10,029)
 
  
        
Net increase (decrease) in cash and cash equivalents
  
1,573
(843)
(2,748)
506
Cash and cash equivalents at the beginning of the year
  
1,245
3,707
5,993
2,432
Effect of the re-expression in homogeneous cash currency ("Inflation-
Adjusted")
  
(38)
(50)
(141)
(152)
Effects of the exchange rate differences on cash and cash equivalents in
foreign currency
  
(300)
4,279
(624)
4,307
Cash and cash equivalents at the end of the period
  
2,480
7,092
2,480
7,092

In 3Q21, our operating cash generation was Ps. 5,391 million, benefited by lower seasonal working capital requirements.
 
During 3Q21, the Company used cash in financing and investing activities for a total of Ps. 2,377 and Ps. 1,441 million, respectively. Cash allocations to the expansion of production capacity of L’Amalí plant accounted for a total of Ps. 552 million, or 36% of total capital expenditures.
Expansion of L’Amalí Plant.
 
Loma Negra is moving ahead with the capital expenditure at its L’Amalí plant, which will add 2.7 million tons annually and drive higher profitability. This expansion involves a total capital expenditure, originally estimated at approximately US$350 million.
 
Having already completed the start-up of the main stages of the new line, at the end of September 2021, it is practically completed, going through the final fine-tuning process satisfactorily.
 
Share Repurchase Plan.
 
On September 24, 2021, the Company announced the approval of the third 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 current attractive value of the share.
 
The plan became effective as from September 28, 2021, the amount to invest will be up to AR$ 700.000.000 (Argentine Pesos Seven Hundred 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 current Share Repurchase Programs is shown below:
 
 
Repurchase Program III
Maximum amount for repurchase
AR$ 700 million
Maximum price
AR$ 340/ordinary share or US$ 9.5/ADR
Period in force
60 days since September 28, 2021
Repurchase under the program until November 10,
2021
AR$ 465 million
Progress
66.5%
3Q21 Earnings Conference Call
 
When:
10:00 a.m. U.S. ET (12:00 a.m. BAT), November 12, 2021
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/links/loma211112msXWsvGS.html
Replay:
A telephone replay of the conference call will be available between November 13, 2021 at 1:00 pm U.S. E.T. and ending on November 19, 2021. 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.
 
IR Contacts

Marcos I. Gradin, Chief Financial Officer and Investor Relations

Diego M. Jalón, Investor Relations Manager

+54-11-4319-3050

investorrelations@lomanegra.com

--- Financial Tables Follow ---
Table 8: Condensed Interim Consolidated Statements of Financial Position
(amounts expressed in millions of pesos, unless otherwise noted)
 
 
 
As of September 30,
 
 
As of December 31,
 
 
 
2021
 
 
2020
ASSETS
 
 
 
 
 
 
Non-current assets
 
 
 
 
 
 
Property, plant and equipment
  
 
72,497
    
73,351
Right to use assets
  
 
304
    
613
Intangible assets
  
 
214
    
263
Investments
  
 
5
    
5
Goodwill
  
 
48
    
48
Inventories
  
 
2,694
    
2,953
Other receivables
  
 
766
    
659
Total non-current assets
 
 
76,527
    
77,891
Current assets
 
 
        
Inventories
  
 
7,727
    
7,521
Other receivables
  
 
1,217
    
1,667
Trade accounts receivable
  
 
4,133
    
4,094
Investments
  
 
3,887
    
5,627
Cash and banks
    
403
    
365
Total current assets
 
 
17,367
    
19,275
TOTAL ASSETS
    
93,893
    
97,166
SHAREHOLDERS' EQUITY
 
 
        
Capital stock and other capital related accounts
  
 
19,113
    
20,611
Reserves
  
 
41,184
    
25,638
Retained earnings
  
 
3,322
    
15,546
Equity attributable to the owners of the Company
  
 
63,619
    
61,795
Non-controlling interests
    
269
    
371
TOTAL SHAREHOLDERS' EQUITY
 
 
63,888
    
62,166
LIABILITIES
 
 
        
Non-current liabilities
  
 
        
Borrowings
  
 
479
    
2,561
Accounts payables
  
 
-
    
140
Provisions
  
 
570
    
668
Salaries and social security payables
  
 
69
    
52
Debts for leases
    
234
    
535
Other liabilities
  
 
78
    
153
Deferred tax liabilities
    
12,902
    
9,965
Total non-current liabilities
 
 
14,332
    
14,074
Current liabilities
            
Borrowings
  
 
3,480
    
6,261
Accounts payable
  
 
6,345
    
7,386
Advances from customers
  
 
798
    
1,002
Salaries and social security payables
  
 
1,873
    
1,947
Tax liabilities
  
 
2,933
    
3,950
Debts for leases
    
86
    
192
Other liabilities
    
157
    
187
Total current liabilities
 
 
15,673
    
20,926
TOTAL LIABILITIES
 
 
30,005
    
35,000
TOTAL SHAREHOLDERS' EQUITY AND
LIABILITIES
 
 
93,893
    
97,166
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
September 30,
 
Nine-months ended
September 30,
 
 
2021
2020
% Change
 
2021
2020
% Change
Net revenue
  
17,800
16,399
8.5%
  
49,370
38,842
27.1%
Cost of sales
  
(13,213)
(11,810)
11.9%
  
(34,294)
(28,157)
21.8%
Gross profit
 
4,587
4,590
-0.1%
  
15,076
10,685
41.1%
Share of loss of associates
  
-
(553)
n/a
  
-
(553)
n/a
Selling and administrative expenses
  
(1,361)
(1,262)
7.8%
  
(4,014)
(3,302)
21.6%
Other gains and losses
  
35
8
309.9%
  
179
88
103.6%
Impairment of property, plant and equipment
  
(141)
(1,297)
n/a
  
(141)
(1,297)
n/a
Tax on debits and credits to bank accounts
  
(174)
(203)
-14.3%
  
(498)
(492)
1.2%
Finance gain (cost), net
                
Gain on net monetary position
  
342
163
110.0%
  
1,622
488
232.4%
Exchange rate differences
  
(341)
3,131
n/a
  
(105)
1,898
n/a
Financial income
  
21
165
-87.4%
  
(1,438)
(1,874)
-23.3%
Financial expenses
  
(343)
(408)
-15.8%
  
89
103
-13.0%
Profit (loss) before taxes
 
2,624
4,334
-39.5%
  
10,769
5,743
87.5%
Income tax expense
                
Current
  
(1,047)
(1,471)
-28.8%
  
(4,612)
(1,792)
157.4%
Deferred
  
(87)
560
n/a
  
(2,937)
562
n/a
Net profit (loss) from continuing operations
 
1,490
3,423
-56.5%
  
3,220
4,514
-28.7%
Income from discontinued operations
  
-
6,411
n/a
  
-
7,024
n/a
Net profit (loss)
 
1,490
9,833
-84.9%
  
3,220
11,538
-72.1%
Other Comprehensive Income (Loss)
                
Items to be reclassified through profit and loss:
                
Exchange differences on translating foreign operations
  
-
(243)
n/a
  
-
(392)
n/a
Total other comprehensive income (loss)
 
-
(243)
n/a
  
-
(392)
n/a
TOTAL COMPREHENSIVE INCOME (LOSS)
 
1,490
9,590
-84.5%
  
3,220
11,146
-71.1%
Net Profit (loss) for the period attributable to:
 
            
Owners of the Company
  
1,364
9,813
-86.1%
  
3,322
11,430
-70.9%
Non-controlling interests
  
126
21
508.3%
  
(102)
108
n/a
NET PROFIT (LOSS) FOR THE PERIOD
 
1,490
9,833
-84.9%
  
3,220
11,538
-72.1%
Total comprehensive income (loss) attributable to:
 
            
Owners of the Company
  
1,518
9,689
-84.3%
  
3,322
11,230
-70.4%
Non-controlling interests
  
(29)
(98)
-70.9%
  
(102)
(84)
21.9%
TOTAL COMPREHENSIVE INCOME (LOSS)
 
1,490
9,590
-84.5%
  
3,220
11,146
-71.1%
Earnings per share (basic and diluted):
 
2.3081
16.4634
-86.0%
  
5.6000
7.9704
-29.7%
Table 10: Condensed Interim Consolidated Statement of Cash Flows
(amounts expressed in millions of pesos, unless otherwise noted)
 
 
 
 
 
Three-months ended
September 30,
Nine-months ended
September 30,
 
 
2021
2020
2021
2020
CASH FLOWS FROM OPERATING ACTIVITIES
  
 
 
 
 
Net profit (loss) from continuing operations
  
1,490
3,423
3,220
4,514
Income from discontinued operations
  
-
6,411
-
7,024
Net profit (loss)
  
1,490
9,833
3,220
11,538
Adjustments to reconcile net profit to net cash provided
by operating activities
  
        
Income tax expense
  
1,134
2,918
7,549
3,307
Depreciation and amortization
  
1,435
1,831
3,920
4,242
Provisions
  
5
(42)
(18)
(58)
Interest expense
  
66
25
307
1,426
Exchange rate differences
  
4
(4,107)
(550)
(3,626)
Share of loss of associates
  
(0)
553
(0)
553
Interest income
  
108
-
219
-
Gain on disposal of property, plant and equipment
  
(20)
34
(102)
60
Impairment of property, plant and equipment
  
141
1,297
141
1,297
Gain on disposal of shareholding of Yguazú Cementos S.A.
  
-
(8,417)
-
(9,102)
Impairment of trust fund
  
16
164
58
164
Changes in operating assets and liabilities
  
        
Inventories
  
1,057
1,501
320
1,032
Other receivables
  
(56)
236
(424)
116
Trade accounts receivable
  
(301)
(838)
(1,227)
(346)
Advances from customers
  
155
367
(57)
522
Accounts payable
  
978
892
1,323
926
Salaries and social security payables
  
172
445
502
10
Provisions
  
(47)
(16)
(73)
(57)
Tax liabilities
  
348
(420)
270
(158)
Other liabilities
  
15
11
(100)
(36)
Gain on net monetary position
  
(342)
(163)
(1,622)
(488)
Income tax paid
  
(967)
(715)
(4,744)
(1,210)
Net cash generated by (used in) operating activities
  
5,391
5,389
8,912
10,112
 
  
        
CASH FLOWS FROM INVESTING ACTIVITIES
  
        
Proceeds from disposal of Yguazú Cementos S.A.
  
(250)
-
-
-
Proceeds from disposal of Property, plant and equipment
  
37
22
114
54
Payments to acquire Property, plant and equipment
  
(1,561)
(2,403)
(4,343)
(10,976)
Payments to acquire Intangible Assets
  
(20)
(1)
(20)
(6)
Investments
  
373
11,428
(1,656)
11,428
Contributions to Trust
  
(20)
(40)
(66)
(76)
Net cash generated by (used in) investing activities
  
(1,441)
9,006
(5,971)
423
 
  
        
CASH FLOWS FROM FINANCING ACTIVITIES
  
        
Proceeds from borrowings
  
497
(0)
1,010
17,319
Interest paid
  
(157)
(1,630)
(447)
(3,874)
Debts for leases
  
(39)
(56)
(125)
(149)
Repayment of borrowings
  
(2,049)
(13,552)
(4,630)
(23,325)
Share repurchase plan
  
(630)
-
(1,498)
-
Net cash generated by (used in) financing activities
  
(2,377)
(15,238)
(5,689)
(10,029)
Net increase (decrease) in cash and cash equivalents
  
1,573
(843)
(2,748)
506
Cash and cash equivalents at the beginning of the period
  
1,245
3,707
5,993
2,432
Effect of the re-expression in homogeneous cash currency
("Inflation-Adjusted")
  
(38)
(50)
(141)
(152)
Effects of the exchange rate differences on cash and cash
equivalents in foreign currency
  
(300)
4,279
(624)
4,307
 
  
        
Cash and cash equivalents at the end of the period
  
2,480
7,092
2,480
7,092
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
September 30,
 
Nine-months ended
September 30,
 
 
2021
%
2020
%
 
2021
%
2020
%
Net revenue
 
17,137
100.0%
10,487
100.0%
  
43,601
100.0%
23,477
100.0%
Cement, masonry cement and lime
  
15,320
89.4%
9,801
93.5%
  
39,029
89.5%
21,433
91.3%
Concrete
  
1,115
6.5%
340
3.2%
  
3,147
7.2%
917
3.9%
Railroad
  
1,465
8.5%
770
7.3%
  
3,572
8.2%
2,167
9.2%
Aggregates
  
285
1.7%
128
1.2%
  
604
1.4%
202
0.9%
Others
  
106
0.6%
29
0.3%
  
246
0.6%
114
0.5%
Eliminations
  
(1,153)
-6.7%
(581)
-5.5%
  
(2,997)
-6.9%
(1,356)
-5.8%
Cost of sales
 
11,416
100.0%
6,688
100.0%
  
27,487
100.0%
15,192
100.0%
Cement, masonry cement and lime
  
9,770
85.6%
5,799
86.7%
  
23,081
84.0%
12,831
84.5%
Concrete
  
1,136
9.9%
531
7.9%
  
3,322
12.1%
1,260
8.3%
Railroad
  
1,328
11.6%
753
11.3%
  
3,350
12.2%
2,101
13.8%
Aggregates
  
272
2.4%
162
2.4%
  
574
2.1%
278
1.8%
Others
  
64
0.6%
24
0.4%
  
157
0.6%
78
0.5%
Eliminations
 
(1,153)
-10.1%
(581)
-8.7%
  
(2,997)
-10.9%
(1,356)
-8.9%
Selling, admin. expenses and
other gains & losses
 
1,223
100.0%
728
100.0%
  
3,214
100.0%
1,774
100.0%
Cement, masonry cement and lime
  
1,052
86.1%
687
94.4%
  
2,841
88.4%
1,606
90.5%
Concrete
  
27
2.2%
(8)
-1.0%
  
49
1.5%
1
0.0%
Railroad
  
101
8.2%
30
4.1%
  
228
7.1%
120
6.8%
Aggregates
  
3
0.3%
1
0.2%
  
7
0.2%
(2)
-0.1%
Others
 
39
3.2%
17
2.3%
  
88
2.7%
50
2.8%
Depreciation and amortization
 
459
100.0%
440
100.0%
  
1,173
100.0%
935
100.0%
Cement, masonry cement and lime
  
356
77.4%
237
53.9%
  
885
75.4%
570
61.0%
Concrete
  
16
3.4%
134
30.4%
  
47
4.0%
168
17.9%
Railroad
  
78
17.0%
62
14.1%
  
215
18.3%
178
19.0%
Aggregates
  
9
1.9%
6
1.3%
  
22
1.9%
16
1.7%
Others
 
1
0.3%
1
0.2%
  
4
0.3%
3
0.4%
Adjusted EBITDA
 
4,957
100.0%
3,511
100.0%
  
14,073
100.0%
7,445
100.0%
Cement, masonry cement and lime
  
4,853
97.9%
3,552
101.2%
  
13,992
99.4%
7,566
101.6%
Concrete
  
(32)
-0.7%
(50)
-1.4%
  
(177)
-1.3%
(176)
-2.4%
Railroad
  
114
2.3%
49
1.4%
  
209
1.5%
123
1.7%
Aggregates
  
18
0.4%
(30)
-0.8%
  
45
0.3%
(57)
-0.8%
Others
 
4
0.1%
(10)
-0.3%
  
4
0.0%
(11)
-0.1%
Reconciling items:
                    
Effect by translation in
homogeneous cash currency
("Inflation-Adjusted")
  
(261)
  
1,656
    
1,087
  
4,268
  
Depreciation and amortization
  
(1,435)
  
(1,831)
    
(3,920)
  
(4,242)
  
Tax on debits and credits banks
accounts
  
(174)
  
(203)
    
(498)
  
(492)
  
Finance gain (cost), net
  
(322)
  
3,051
    
168
  
614
  
Income tax
  
(1,134)
  
(911)
    
(7,549)
  
(1,229)
  
Share of profit of associates
  
-
  
(553)
    
-
  
(553)
  
Impairment of property, plant
and equipment
  
(141)
  
(1,297)
    
(141)
  
(1,297)
  
Income (loss) from
discontinued operations
  
-
  
6,411
    
-
  
7,024
  
NET PROFIT (LOSS) FOR THE
PERIOD
 
1,490
  
9,833
    
3,220
  
11,538