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Published: 2021-08-11 16:46:21 ET
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6-K 1 a52475597.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 August, 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: August 11, 2021
 
By: /s/
Marcos I. Gradin
 
 
Name:
Marcos I. Gradin
 
 
Title:
Chief Financial Officer

Buenos Aires, August 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 June 30, 2021 (our “2Q21 Results”).
 
 
2Q21 Key HighligShts
 
◾
Net revenue increased by 46.6% YoY to Ps. 14,269 million (US$147 million), mostly explained by our core cement segment
◾
Strong increase in our Consolidated Adjusted EBITDA of 74.1% YoY to Ps. 4,354 million (US$48 million)
◾
Consolidated Adjusted EBITDA margin expanded by 483 basis points YoY from 25.7% to 30.5%, driven by higher sales of cement, masonry, and lime together with higher operational leverage
◾
Net loss of Ps. 1,265 million as a consequence of a one-off effect in deferred taxes as a result of the recent tax reform
◾
Net Debt /LTM Adjusted EBITDA ratio of 0.13x from 1.30x in 2Q20 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 second quarter of 2021, Sergio Faifman, Loma Negra’s Chief Executive Officer, noted: “We are pleased to announce another quarter with an excellent performance. Demand continues with a strong momentum, and after several quarters of recovery is now exceeding pre-pandemic levels.
 
On the back of our revenues growth and a higher operational leverage is that we increased our EBITDA by 74%YoY and expanded our margin by 483 bps, reaching one of the best second quarters in recent years with Adjusted EBITDA in the quarter of US$ 48 million.
 
Additionally, during the quarter, we posted a net loss impacted by one-off income tax effect derived from the recent tax reform. Still, for the first half of the year, Net profit stood at Ps. 1,583 million.
 
Regarding our expansion project, last June we inaugurated the new kiln and is now producing clinker and contributing to our world-class operation. Additionally, the new Cement mill and dispatch center are close to commissioning.
 
For the second half, we expect strong recovery to continue and an expansion vis-à-vis pre-pandemic levels, as seasonality and public works should begin to contribute positively. Yet we remain cautious as macroeconomic context could affect the recovery and some degree of uncertainty remains in relation to the pandemic.
 
Last but not least, I would like to thank all our people, and stakeholders, for their commitment to Loma´s operational excellence, without whom this set of solid results would have been much harder to achieve. Supported by a robust and efficient productive footprint, a solid capital structure, and a dedicated team, Loma has the base to continue thriving in the years to come.”
Table 1: Financial Highlights
 
(amounts expressed in millions of pesos, unless otherwise noted)
  
       Three-months ended
June 30, 		          Six-months ended
June 30,
 
2021
  
2020
  
% Chg.
    
2021
  
2020
  
% Chg.
  
Net revenue
14,269
    
9,735
    
46.6
%
  
28,888
    
20,536
    
40.7
%
Gross Profit
4,299
    
2,286
    
88.0
%
  
9,598
    
5,578
    
72.1
%
Gross Profit margin
30.1
%
  
23.5
%
+664bps
    
33.2
%
  
27.2
%
+606bps
  
Adjusted EBITDA
4,354
    
2,501
    
74.1
%
  
9,576
    
5,990
    
59.9
%
Adjusted EBITDA Mg.
30.5
%
  
25.7
%
+483bps
    
33.1
%
  
29.2
%
+398bps
  
Net Profit
(1,265
)
  
166
    
n/a
    
1,583
    
1,560
    
1.5
%
Net Profit attributable to owners of the Company
(1,235
)
  
123
    
n/a
    
1,651
    
1,480
    
11.6
%
EPS
(2.0747
)
  
0.2060
    
n/a
    
2.7770
    
2.0022
    
38.7
%
Shares outstanding at eop
596
    
596
    
-0.1
%
  
596
    
596
    
-0.1
%
Net Debt
2,484
    
18,853
    
-86.8
%
  
2,484
    
18,853
    
-86.8
%
Net Debt /LTM Adjusted EBITDA
0.13
x
  
1.30
x
  
-1.17
x
  
0.13
x
  
1.30
x
  
-1.17
x


Table 1b: Financial Highlights in Ps and in U.S. dollars (figures exclude the impact of IAS 29)
  
In million Ps.
Three-months ended
June 30,
    
Six-months ended
June 30,
  
 
2021
  
2020
  
% Chg.
    
2021
  
2020
  
% Chg.
  
Net revenue
  
13,829
    
6,382
    
116.7
%
    
26,464
    
12,990
    
103.7
%
Adjusted EBITDA
  
4,484
    
1,729
    
159.3
%
    
9,116
    
3,934
    
131.7
%
Adjusted EBITDA Mg.
  
32.4
%
  
27.1
%
+528bps
      
34.4
%
  
30.3
%
+414bps
  
Net Profit
  
4,628
    
137
    
3276.2
%
    
7,888
    
781
    
909.3
%
Net Debt
  
2,484
    
18,853
    
-86.8
%
    
2,484
    
18,853
    
-86.8
%
Net Debt /LTM Adjusted EBITDA
  
0.13
x
  
1.30
x
  
-1.17
x
    
0.13
x
  
1.30
x
  
-1.17
x
                                       
In million US$
Three-months ended
June 30,
    
Six-months ended
June 30,
  
 
  
2021
    
2020
  
% Chg.
      
2021
    
2020
  
% Chg.
  
Ps./US$, av
  
94.09
    
67.71
    
39.0
%
    
91.37
    
64.59
    
41.5
%
Ps./US$, eop
  
95.73
    
70.46
    
35.9
%
    
95.73
    
70.46
    
35.9
%
Net revenue
  
147
    
94
    
55.9
%
    
290
    
201
    
44.0
%
Adjusted EBITDA
  
48
    
26
    
86.3
%
    
100
    
61
    
63.7
%
Adjusted EBITDA Mg.
  
32.4
%
  
27.1
%
+528bps
      
34.4
%
  
30.3
%
+414bps
  
Net Profit
  
49
    
2
    
2329.4
%
    
86
    
12
    
613.5
%
Net Debt
  
26
    
268
    
-90.3
%
    
26
    
268
    
-90.3
%
Net Debt /LTM Adjusted EBITDA
  
0.13
x
  
1.30
x
  
-1.17
x
    
0.13
x
  
1.30
x
  
-1.17
x
Overview of Operations
Sales Volumes
 
Table 2: Sales Volumes2
  
                           
 
  
Three-months ended
June 30,
  
Six-months ended
June 30,
  
 
 
2021
  
2020
  
% Chg.
  
2021
  
2020
  
% Chg.
  
Cement, masonry & lime
MM Tn
  
1.40
    
1.01
    
39.5
%
  
2.79
    
2.01
    
38.7
%
Concrete
MM m3
  
0.12
    
0.02
    
583.6
%
  
0.27
    
0.09
    
191.5
%
Railroad
MM Tn
  
1.06
    
0.63
    
69.2
%
  
2.05
    
1.57
    
30.8
%
Aggregates
MM Tn
  
0.20
    
0.03
    
620.1
%
  
0.38
    
0.15
    
145.4
%
2 Sales volumes include inter-segment sales
                                

Sales 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.
 
Likewise, 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.
 
Railroad 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.
 
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
June 30,
    
Six-months ended
June 30,
  
 
2021
  
2020
  
% Chg.
    
2021
  
2020
  
% Chg.
  
Net revenue
  
14,269
    
9,735
    
46.6
%
    
28,888
    
20,536
    
40.7
%
Cost of sales
  
(9,971
)
  
(7,449
)
  
33.8
%
    
(19,290
)
  
(14,958
)
  
29.0
%
Gross Profit
  
4,299
    
2,286
    
88.0
%
    
9,598
    
5,578
    
72.1
%
Selling and administrative expenses
  
(1,231
)
  
(920
)
  
33.7
%
    
(2,428
)
  
(1,866
)
  
30.1
%
Other gains and losses
  
85
    
3
    
2440.9
%
    
132
    
73
    
81.6
%
Impairment of property, plant and equipment
  
-
    
-
    
n/a
      
-
    
-
    
n/a
  
Tax on debits and credits to bank accounts
  
(158
)
  
(103
)
  
53.1
%
    
(297
)
  
(265
)
  
12.0
%
Finance gain (cost), net
                                      
Gain on net monetary position
  
552
    
102
    
442.1
%
    
1,171
    
297
    
293.7
%
Exchange rate differences
  
193
    
(864
)
  
n/a
      
217
    
(1,129
)
  
n/a
  
Financial income
  
414
    
15
    
2661.4
%
    
135
    
41
    
232.7
%
Financial expense
  
(868
)
  
(850
)
  
2.1
%
    
(1,074
)
  
(1,439
)
  
-25.3
%
Profit before taxes
  
3,286
    
(331
)
  
n/a
      
7,453
    
1,289
    
478.1
%
Income tax expense
                                      
Current
  
(1,537
)
  
111
    
n/a
      
(3,262
)
  
(293
)
  
1013.3
%
Deferred
  
(3,015
)
  
109
    
n/a
      
(2,608
)
  
2
    
n/a
  
Net profit from continuing operations
  
(1,265
)
  
(111
)
  
1042.5
%
    
1,583
    
998
    
58.6
%
Income from discontinued operations
  
-
    
277
    
n/a
      
-
    
561
    
n/a
  
Net profit
  
(1,265
)
  
166
    
n/a
      
1,583
    
1,560
    
1.5
%
Net Revenues
 
Net revenue 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.
 
Cement, masonry cement and lime segment was up 43.4%, with volumes expanding 39.5% and good pricing performance.
 
Concrete 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.
 
Railroad 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.

Cost of sales, and Gross profit
 
Cost of sales 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.
 
Gross profit increased 88.0% YoY to 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.

Selling and Administrative Expenses
 
Selling and administrative expenses (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´s 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.

Adjusted EBITDA & Margin
 
Table 4: Adjusted EBITDA Reconciliation & Margin
                        
(amounts expressed in millions of pesos, unless otherwise noted)
                
 
Three-months ended
June 30,
    
Six-months ended
June 30,
  
 
2021
  
2020
  
% Chg.
    
2021
  
2020
  
% Chg.
  
Adjusted EBITDA reconciliation:
                          
Net profit
  
(1,265
)
  
166
    
n/a
      
1,583
    
1,560
    
1.5
%
(+) Depreciation and amortization
  
1,201
    
1,132
    
6.2
%
    
2,274
    
2,206
    
3.1
%
(+) Tax on debits and credits to bank accounts
  
158
    
103
    
53.1
%
    
297
    
265
    
12.0
%
(+) Income tax expense
  
4,551
    
(220
)
  
n/a
      
5,870
    
291
    
1917.8
%
(+) Financial interest, net
  
420
    
711
    
-40.9
%
    
837
    
1,134
    
-26.2
%
(+) Exchange rate differences, net
  
(193
)
  
864
    
n/a
      
(217
)
  
1,129
    
n/a
  
(+) Other financial expenses, net
  
34
    
124
    
-72.9
%
    
102
    
264
    
-61.6
%
(+) Gain on net monetary position
  
(552
)
  
(102
)
  
442.1
%
    
(1,171
)
  
(297
)
  
293.7
%
(-) Income from discontinued operations
  
-
    
277
    
n/a
      
-
    
561
    
n/a
  
Adjusted EBITDA
  
4,354
    
2,501
    
74.1
%
    
9,576
    
5,990
    
59.9
%
Adjusted EBITDA Margin
  
30.5
%
  
25.7
%
+483bps
      
33.1
%
  
29.2
%
+398bps
  


Adjusted EBITDA 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.
 
In 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.
 
Concrete 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.
 
Railroad 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.
 
Finally, Aggregates Adjusted EBITDA margin improved to 7.7%, as strong volume recovery coupled with better pricing mix and higher operational leverage.
Finance Costs-Net

Table 5: Finance Gain (Cost), net
                        
(amounts expressed in millions of pesos, unless otherwise noted)
                
 
Three-months ended
June 30,
    
Six-months ended
June 30,
  
 
2021
  
2020
  
% Chg.
    
2021
  
2020
  
% Chg.
  
Exchange rate differences
  
193
    
(864
)
  
n/a
      
217
    
(1,129
)
  
n/a
  
Financial income
  
414
    
15
    
2661.4
%
    
135
    
41
    
232.7
%
Financial expense
  
(868
)
  
(850
)
  
2.1
%
    
(1,074
)
  
(1,439
)
  
-25.3
%
Gain on net monetary position
  
552
    
102
    
442.1
%
    
1,171
    
297
    
293.7
%
Total Finance Gain (Cost), Net
  
292
    
(1,597
)
  
n/a
      
449
    
(2,230
)
  
n/a
  

During 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.


Net Profit and Net Profit Attributable to Owners of the Company
 
Net Profit 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.
 
Net Profit Attributable to Owners of the Company 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.


Capitalization

Table 6: Capitalization and Debt Ratio
            
(amounts expressed in millions of pesos, unless otherwise noted)
        
 
As of June 30,
    
As of December, 31
  
 
2021
  
2020
    
2020
  
               
Total Debt
  
5,398
    
22,245
      
8,072
  
- Short-Term Debt
  
4,841
    
14,766
      
5,729
  
- Long-Term Debt
  
557
    
7,478
      
2,343
  
Cash, Cash Equivalents, and Investments
  
2,915
    
3,392
      
5,484
  
Total Net Debt
  
2,484
    
18,853
      
2,588
  
Shareholders' Equity
  
57,675
    
51,461
      
56,886
  
Capitalization
  
63,073
    
73,706
      
64,957
  
LTM Adjusted EBITDA
  
18,493
    
14,495
      
16,640
  
Net Debt /LTM Adjusted EBITDA
  
0.13
x
  
1.30
x
    
0.16
x


As 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).
 
As of June 30, 2021, 82.5% (or Ps. 4,452 million) Loma Negra’s 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’s total debt was 0.5 years.
 
As of June 30, 2021, Ps. 4,473 million, or 82.9%, of the Company’s total consolidated borrowings bore interest at rates based on Libor, and Ps. 926 million of borrowings bore interest at a fixed rate.
 
The 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.
Cash Flows

Table 7: Condensed Interim Consolidated Statement of Cash Flows
  
(amounts expressed in millions of pesos, unless otherwise noted)
                  
 
Three-months ended
June 30,
    
Six-months ended
June 30,
  
 
2021
  
2020
    
2021
  
2020
  
CASH FLOWS FROM OPERATING ACTIVITIES
                  
Net profit
  
(1,265
)
  
166
      
1,583
    
1,560
  
Adjustments to reconcile net profit to net cash provided by operating activities
  
5,577
    
1,766
      
7,902
    
3,666
  
                           
Changes in operating assets and liabilities
  
(4,339
)
  
2,212
      
(6,263
)
  
(905
)
Net cash generated by operating activities
  
(28
)
  
4,144
      
3,222
    
4,322
  
                           
CASH FLOWS FROM INVESTING ACTIVITIES
                          
Proceeds from disposal of Yguazú Cementos S.A.
  
156
    
-
      
250
    
-
  
Property, plant and equipment, Intangible Assets, net
  
(1.341
)
  
(1.464
)
    
(2.475
)
  
(7.820
)
Contributions to Trust
  
(20
)
  
(0
)
    
(42
)
  
(33
)
Investments
  
(0
)
  
-
      
(1.856
)
  
-
  
Net cash (used in) investing activities
  
(1,205
)
  
(1,464
)
    
(4,124
)
  
(7,853
)
                           
CASH FLOWS FROM FINANCING ACTIVITIES
                          
Proceeds / Repayments from borrowings, Interest paid
  
(1,745
)
  
(1,632
)
    
(2,236
)
  
4,766
  
Share repurchase plan
  
(511
)
  
-
      
(794
)
  
-
  
Net cash generated by (used in) by financing activities
  
(2,256
)
  
(1,632
)
    
(3,031
)
  
4,766
  
                           
Net increase (decrease) in cash and cash equivalents
  
(3,488
)
  
1,049
      
(3,932
)
  
1,234
  
Cash and cash equivalents at the beginning of the year
  
4,829
    
2,347
      
5,484
    
2,225
  
Effect of the re-expression in homogeneous cash currency ("Inflation-Adjusted")
  
(55
)
  
(29
)
    
(95
)
  
(94
)
Effects of the exchange rate differences on cash and cash equivalents in foreign currency
  
(126
)
  
25
      
(297
)
  
26
  
Cash and cash equivalents at the end of the period
  
1,160
    
3,392
      
1,160
    
3,392
  

In the 2Q21, our operating cash generation was largely dedicated to income tax payments and to seasonal working capital requirements. Typically, in the second quarter previous year´s income tax payment are scheduled, in particular, 2Q21 payment of 3.0 billion pesos included 1.5 billion pesos charge related to last year´s divestment in Paraguay.
 
By contrast, last year´s second quarter working capital levels were very low as several initiatives aiming to preserve liquidity under the pandemic uncertainty were taken.
 
During 2Q21, the Company had used cash in financing and investing activities for a total of Ps. 2,256 and Ps. 1,205 million, respectively. Cash allocations to the expansion of production capacity of L’Amalí plant accounted for a total of Ps. 292 million, or 22% 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.
 
As of the end of June 2021, the project presents an overall Progress of 99%. All detailed engineering is completed, all equipment and materials supplies has been delivered to site. In previous quarters, commissioning and start-up had been completed at crushing department and raw mill department. Last June it was inaugurated the new kiln, which is now operational and producing clinker.
 
Additionally, new Cement mill and dispatch center are planned to start up by end of September.
 
 
Share Repurchase Plan.
 
On July 2, 2021, the Company announced the approval of the second 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 July 6, 2021, the amount to invest will be up to AR$ 975.000.000 (Argentine Pesos Nine Hundred Seventy Five 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 II
Maximum amount for repurchase
AR$ 975 million
Maximum price
AR$ 310/ordinary share or US$ 9/ADR
Period in force
60 days since July 6, 2021
Repurchase under the program until August 11,
2021
AR$ 320 million
Progress
32.8%
2Q21 Earnings Conference Call

When:         10:00 a.m. U.S. ET (11:00 a.m. BAT), August 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 Earnings Call
 
Webcast:    https://services.choruscall.com/links/loma210812gcV4Odjo.html
 
Replay:       A telephone replay of the conference call will be available between August 13, 2021 at 1:00 pm U.S. E.T. and ending on August 17, 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
 
Gastón Pinnel, 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 June 30,
  
As of December 31,
  
 
2021
  
2020
  
ASSETS
        
Non-current assets
        
Property, plant and equipment
  
66,464
    
67,120
  
Right to use assets
  
314
    
561
  
Intangible assets
  
198
    
241
  
Investments
  
4
    
4
  
Goodwill
  
44
    
44
  
Inventories
  
2,587
    
2,702
  
Other receivables
  
609
    
603
  
Total non-current assets
  
70,220
    
71,274
  
Current assets
            
Inventories
  
7,909
    
6,883
  
Other receivables
  
1,195
    
1,525
  
Trade accounts receivable
  
3,819
    
3,746
  
Investments
  
2,576
    
5,149
  
Cash and banks
  
338
    
334
  
Total current assets
  
15,838
    
17,638
  
TOTAL ASSETS
  
86,059
    
88,912
  
SHAREHOLDERS' EQUITY
            
Capital stock and other capital related accounts
  
18,066
    
18,860
  
Reserves
  
37,686
    
23,460
  
Retained earnings
  
1,651
    
14,226
  
Equity attributable to the owners of the Company
  
57,402
    
56,546
  
Non-controlling interests
  
272
    
340
  
TOTAL SHAREHOLDERS' EQUITY
  
57,675
    
56,886
  
LIABILITIES
            
Non-current liabilities
            
Borrowings
  
557
    
2,343
  
Accounts payables
  
-
    
128
  
Provisions
  
562
    
611
  
Salaries and social security payables
  
68
    
48
  
Debts for leases
  
242
    
489
  
Other liabilities
  
67
    
140
  
Deferred tax liabilities
  
11,727
    
9,119
  
Total non-current liabilities
  
13,223
    
12,878
  
Current liabilities
            
Borrowings
  
4,841
    
5,729
  
Accounts payable
  
5,261
    
6,759
  
Advances from customers
  
615
    
917
  
Salaries and social security payables
  
1,694
    
1,782
  
Tax liabilities
  
2,523
    
3,614
  
Debts for leases
  
91
    
176
  
Other liabilities
  
136
    
171
  
Total current liabilities
  
15,160
    
19,149
  
TOTAL LIABILITIES
  
28,384
    
32,027
  
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES
  
86,059
    
88,912
  
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
June 30,
  
Six-months ended
June 30,
  
 
2021
  
2020
  
%
Change
  
2021
  
2020
  
%
Change
  
Net revenue
  
14,269
    
9,735
    
46.6
%
  
28,888
    
20,536
    
40.7
%
Cost of sales
  
(9,971
)
  
(7,449
)
  
33.8
%
  
(19,290
)
  
(14,958
)
  
29.0
%
Gross profit
  
4,299
    
2,286
    
88.0
%
  
9,598
    
5,578
    
72.1
%
Selling and administrative expenses
  
(1,231
)
  
(920
)
  
33.7
%
  
(2,428
)
  
(1,866
)
  
30.1
%
Other gains and losses
  
85
    
3
    
2440.9
%
  
132
    
73
    
81.6
%
Tax on debits and credits to bank accounts
  
(158
)
  
(103
)
  
53.1
%
  
(297
)
  
(265
)
  
12.0
%
Finance gain (cost), net
                                    
Gain on net monetary position
  
552
    
102
    
442.1
%
  
1,171
    
297
    
293.7
%
Exchange rate differences
  
193
    
(864
)
  
n/a
    
217
    
(1,129
)
  
n/a
  
Financial income
  
414
    
15
    
2661.4
%
  
135
    
41
    
232.7
%
Financial expenses
  
(868
)
  
(850
)
  
2.1
%
  
(1,074
)
  
(1,439
)
  
-25.3
%
Profit (loss) before taxes
  
3,286
    
(331
)
  
n/a
    
7,453
    
1,289
    
478.1
%
Income tax expense
                                    
Current
  
(1,537
)
  
111
    
n/a
    
(3,262
)
  
(293
)
  
1013.3
%
Deferred
  
(3,015
)
  
109
    
n/a
    
(2,608
)
  
2
    
n/a
  
Net profit (loss) from continuing operations
  
(1,265
)
  
(111
)
  
1042.5
%
  
1,583
    
998
    
58.6
%
Income from discontinued operations
  
-
    
277
    
n/a
    
-
    
561
    
n/a
  
Net profit (loss)
  
(1,265
)
  
166
    
n/a
    
1,583
    
1,560
    
1.5
%
Other Comprehensive Income (Loss)
                                    
Items to be reclassified through profit and loss:
                                    
Exchange differences on translating foreign operations
  
-
    
48
    
n/a
    
-
    
(137
)
  
n/a
  
Total other comprehensive income (loss)
  
-
    
48
    
n/a
    
-
    
(137
)
  
n/a
  
TOTAL COMPREHENSIVE INCOME
(LOSS)
  
(1,265
)
  
214
    
n/a
    
1,583
    
1,423
    
11.3
%
Net Profit (loss) for the period attributable to:
                                    
Owners of the Company
  
(1,235
)
  
123
    
n/a
    
1,651
    
1,480
    
11.6
%
Non-controlling interests
  
(31
)
  
43
    
n/a
    
(67
)
  
80
    
n/a
  
NET PROFIT (LOSS) FOR THE
PERIOD
  
(1,265
)
  
166
    
n/a
    
1,583
    
1,560
    
1.5
%
Total comprehensive income (loss) attributable to:
                                    
Owners of the Company
  
(1,235
)
  
147
    
n/a
    
1,651
    
1,410
    
17.1
%
Non-controlling interests
  
(31
)
  
67
    
n/a
    
(67
)
  
13
    
n/a
  
TOTAL COMPREHENSIVE INCOME
(LOSS)
  
(1,265
)
  
214
    
n/a
    
1,583
    
1,423
    
11.3
%
Earnings per share (basic and
diluted):
  
(2.0747
)
  
0.2060
    
n/a
    
2.7770
    
2.0022
    
38.7
%
Table 10: Condensed Interim Consolidated Statement of Cash Flows
  
(amounts expressed in millions of pesos, unless otherwise noted)
              
 
Three-months ended
June 30,
  
Six-months ended
June 30,
  
 
2021
  
2020
  
2021
  
2020
  
CASH FLOWS FROM OPERATING ACTIVITIES
                
Net profit (loss) from continuing operations
  
(1,265
)
  
(111
)
  
1,583
    
998
  
Income from discontinued operations
  
-
    
277
    
-
    
561
  
Net profit (loss)
  
(1,265
)
  
166
    
1,583
    
1,560
  
Adjustments to reconcile net profit to net cash provided
by operating activities
                        
Income tax expense
  
4,551
    
(184
)
  
5,870
    
356
  
Depreciation and amortization
  
1,201
    
1,132
    
2,274
    
2,206
  
Provisions
  
(20
)
  
(99
)
  
(21
)
  
(14
)
Interest expense
  
96
    
760
    
220
    
1,282
  
Exchange rate differences
  
(339
)
  
458
    
(507
)
  
440
  
Interest income
  
116
    
-
    
102
    
-
  
Gain on disposal of property, plant and equipment
  
(53
)
  
13
    
(75
)
  
23
  
Gain on disposal of shareholding of Yguazú Cementos S.A.
  
-
    
(313
)
  
-
    
(626
)
Depreciation value of trust
  
24
    
-
    
38
    
-
  
Changes in operating assets and liabilities
                        
Inventories
  
(94
)
  
699
    
(675
)
  
(429
)
Other receivables
  
(34
)
  
205
    
(337
)
  
(110
)
Trade accounts receivable
  
(402
)
  
242
    
(848
)
  
450
  
Advances from customers
  
(170
)
  
91
    
(194
)
  
142
  
Accounts payable
  
129
    
825
    
315
    
31
  
Salaries and social security payables
  
120
    
(317
)
  
302
    
(398
)
Provisions
  
(14
)
  
51
    
(24
)
  
(37
)
Tax liabilities
  
(198
)
  
676
    
(71
)
  
240
  
Other liabilities
  
(45
)
  
(29
)
  
(105
)
  
(43
)
Gain on net monetary position
  
(552
)
  
(102
)
  
(1,171
)
  
(297
)
Income tax paid
  
(3,080
)
  
(128
)
  
(3,456
)
  
(453
)
Net cash generated by (used in) operating activities
  
(28
)
  
4,144
    
3,222
    
4,322
  
                         
CASH FLOWS FROM INVESTING ACTIVITIES
                        
Proceeds from disposal of Yguazú Cementos S.A.
  
156
    
-
    
250
    
-
  
Proceeds from disposal of Property, plant and equipment
  
30
    
8
    
71
    
30
  
Payments to acquire Property, plant and equipment
  
(1,371
)
  
(1,471
)
  
(2,546
)
  
(7,845
)
Payments to acquire Intangible Assets
  
-
    
(1
)
  
-
    
(4
)
Investments
  
(0
)
  
-
    
(1,856
)
  
-
  
Contributions to Trust
  
(20
)
  
(0
)
  
(42
)
  
(33
)
Net cash generated by (used in) investing activities
  
(1,205
)
  
(1,464
)
  
(4,124
)
  
(7,853
)
                         
CASH FLOWS FROM FINANCING ACTIVITIES
                        
Proceeds from borrowings
  
372
    
6,981
    
470
    
15,848
  
Interest paid
  
(69
)
  
(974
)
  
(265
)
  
(2,054
)
Debts for leases
  
(36
)
  
(37
)
  
(79
)
  
(85
)
Repayment of borrowings
  
(2,011
)
  
(7,601
)
  
(2,362
)
  
(8,943
)
Share repurchase plan
  
(511
)
  
-
    
(794
)
  
-
  
Net cash generated by (used in) financing activities
  
(2,256
)
  
(1,632
)
  
(3,031
)
  
4,766
  
Net increase (decrease) in cash and cash equivalents
  
(3,488
)
  
1,049
    
(3,932
)
  
1,234
  
Cash and cash equivalents at the beginning of the period
  
4,829
    
2,347
    
5,484
    
2,225
  
Effect of the re-expression in homogeneous cash currency ("Inflation-Adjusted")
  
(55
)
  
(29
)
  
(95
)
  
(94
)
Effects of the exchange rate differences on cash and cash equivalents in foreign currency
  
(126
)
  
25
    
(297
)
  
26
  
                         
Cash and cash equivalents at the end of the period
  
1,160
    
3,392
    
1,160
    
3,392
  
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 June 30,
    
Six-months ended June 30,
  
 
2021
  
%
  
2020
  
%
    
2021
  
%
  
2020
  
%
  
Net revenue
  
13,829
    
100.0
%
  
6,382
    
100.0
%
    
26,464
    
100.0
%
  
12,990
    
100.0
%
Cement, masonry cement and lime
  
12,392
    
89.6
%
  
5,844
    
91.6
%
    
23,709
    
89.6
%
  
11,632
    
89.5
%
Concrete
  
947
    
6.8
%
  
109
    
1.7
%
    
2,033
    
7.7
%
  
577
    
4.4
%
Railroad
  
1,194
    
8.6
%
  
655
    
10.3
%
    
2,108
    
8.0
%
  
1,397
    
10.8
%
Aggregates
  
190
    
1.4
%
  
12
    
0.2
%
    
318
    
1.2
%
  
74
    
0.6
%
Others
  
68
    
0.5
%
  
37
    
0.6
%
    
140
    
0.5
%
  
85
    
0.7
%
Eliminations
  
(961
)
  
-6.9
%
  
(276
)
  
-4.3
%
    
(1,844
)
  
-7.0
%
  
(775
)
  
-6.0
%
Cost of sales
  
8,668
    
100.0
%
  
4,335
    
100.0
%
    
16,071
    
100.0
%
  
8,504
    
100.0
%
Cement, masonry cement and lime
  
7,268
    
83.8
%
  
3,735
    
86.2
%
    
13,311
    
82.8
%
  
7,031
    
82.7
%
Concrete
  
1,026
    
11.8
%
  
205
    
4.7
%
    
2,186
    
13.6
%
  
729
    
8.6
%
Railroad
  
1,117
    
12.9
%
  
609
    
14.1
%
    
2,022
    
12.6
%
  
1,348
    
15.9
%
Aggregates
  
169
    
2.0
%
  
38
    
0.9
%
    
302
    
1.9
%
  
116
    
1.4
%
Others
  
49
    
0.6
%
  
24
    
0.6
%
    
93
    
0.6
%
  
55
    
0.6
%
Eliminations
  
(961
)
  
-11.1
%
  
(276
)
  
-6.4
%
    
(1,844
)
  
-11.5
%
  
(775
)
  
-9.1
%
Selling, admin. expenses and other gains & losses
  
1,048
    
100.0
%
  
559
    
100.0
%
    
1,992
    
100.0
%
  
1,047
    
100.0
%
Cement, masonry cement and lime
  
949
    
90.5
%
  
473
    
84.6
%
    
1,789
    
89.8
%
  
919
    
87.8
%
Concrete
  
0
    
0.0
%
  
12
    
2.1
%
    
22
    
1.1
%
  
8
    
0.8
%
Railroad
  
72
    
6.9
%
  
60
    
10.7
%
    
127
    
6.4
%
  
90
    
8.6
%
Aggregates
  
2
    
0.2
%
  
(0
)
  
0.0
%
    
4
    
0.2
%
  
(4
)
  
-0.4
%
Others
  
25
    
2.4
%
  
15
    
2.7
%
    
49
    
2.5
%
  
33
    
3.2
%
Depreciation and amortization
  
371
    
100.0
%
  
241
    
100.0
%
    
714
    
100.0
%
  
495
    
100.0
%
Cement, masonry cement and lime
  
277
    
74.7
%
  
158
    
65.7
%
    
530
    
74.2
%
  
332
    
67.2
%
Concrete
  
15
    
3.9
%
  
17
    
7.1
%
    
31
    
4.4
%
  
34
    
6.8
%
Railroad
  
70
    
19.0
%
  
59
    
24.5
%
    
137
    
19.2
%
  
115
    
23.3
%
Aggregates
  
7
    
2.0
%
  
5
    
2.2
%
    
13
    
1.8
%
  
11
    
2.2
%
Others
  
1
    
0.4
%
  
1
    
0.5
%
    
3
    
0.4
%
  
2
    
0.4
%
Adjusted EBITDA
  
4,484
    
100.0
%
  
1,729
    
100.0
%
    
9,116
    
100.0
%
  
3,934
    
100.0
%
Cement, masonry cement and lime
  
4,452
    
99.3
%
  
1,795
    
103.8
%
    
9,139
    
100.3
%
  
4,014
    
102.0
%
Concrete
  
(65
)
  
-1.4
%
  
(90
)
  
-5.2
%
    
(145
)
  
-1.6
%
  
(126
)
  
-3.2
%
Railroad
  
75
    
1.7
%
  
45
    
2.6
%
    
95
    
1.0
%
  
74
    
1.9
%
Aggregates
  
26
    
0.6
%
  
(20
)
  
-1.2
%
    
26
    
0.3
%
  
(28
)
  
-0.7
%
Others
  
(5
)
  
-0.1
%
  
(1
)
  
0.0
%
    
0
    
0.0
%
  
(1
)
  
0.0
%
Reconciling items:
                                                  
Effect by translation in homogeneous cash currency ("Inflation-Adjusted")
  
(130
)
        
772
            
459
          
2,057
        
Depreciation and amortization
  
(1,201
)
        
(1,132
)
          
(2,274
)
        
(2,206
)
      
Tax on debits and credits banks accounts
  
(158
)
        
(103
)
          
(297
)
        
(265
)
      
Finance gain (cost), net
  
292
          
(1,597
)
          
449
          
(2,230
)
      
Income tax
  
(4,551
)
        
220
            
(5,870
)
        
(291
)
      
Income (loss) from discontinued operations
  
-
          
277
            
-
          
561
        
NET PROFIT (LOSS) FOR THE
PERIOD
  
(1,265
)
        
166
            
1,583
          
1,560