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Published: 2021-03-12 09:40:44 ET
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6-K 1 a52394962.htm LOMA NEGRA CORP. 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 March, 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
  
Loma Negra 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: March 11, 2021 By:
 /s/ Marcos I. Gradin
 
 Name:
 Marcos I. Gradin
 
 Title:
 Chief Financial Officer



 4Q20 Results Conference Call 
 
 Disclaimer and Forward-Looking Statement  This presentation may contain forward-looking statements within the meaning of federal securities law that are subject to risks and uncertainties. These statements are only predictions based upon our current expectations and projections about possible or assumed future results of our business, financial condition, results of operations, liquidity, plans and objectives. In some cases, you can identify forward-looking statements by terminology such as “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “expect,” “predict,” “potential,” “seek,” “forecast,” or the negative of these terms or other similar expressions. The forward-looking statements are based on the information currently available to us. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including, among others things: changes in general economic, political, governmental and business conditions globally and in Argentina, changes in inflation rates, fluctuations in the exchange rate of the peso, the level of construction generally, changes in cement demand and prices, changes in raw material and energy prices, changes in business strategy and various other factors. You should not rely upon forward-looking statements as predictions of future events. Although we believe in good faith that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Any or all of Loma Negra’s forward-looking statements in this release may turn out to be wrong. You should consider these forward-looking statements in light of other factors discussed under the heading “Risk Factors” in Company’s Annual Report on Form 20-F, as well as periodic filings made on Form 6-K, which are filed with or furnished to the United States Securities and Exchange Commission.Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason after the date of this release to conform these statements to actual results or to changes in our expectations.The Company presented some figures converted from Argentine pesos to U.S. dollars for comparison purposes. The exchange rate used to convert Pesos to U.S. dollars was the reference exchange rate (Communication “A” 3500) reported by the Central Bank for U.S. dollars. The information presented in U.S. dollars is for the convenience of the reader only. Certain figures included in this report have been subject to rounding adjustments. Accordingly, figures shown as totals in certain tables may not be arithmetic aggregations of the figures presented in previous quarters.Note: Loma Negra’s financial information has been prepared in accordance with the Argentine Securities Commission (Comisión Nacional de Valores-CNV) and with International Financial Reporting Standards.  Following the categorization of Argentina as a country with a three-year cumulative inflation rate greater than 100%, the country is considered highly inflationary in accordance with IFRS. Consequently, starting July 1, 2018, the Company is reporting results applying IFRS rule IAS 29. IAS 29 requires that results of operations in hyperinflationary economies are reported as if these economies were highly inflationary as of January 1, 2018, and thus year-to-date, together with comparable results, should be restated adjusting for the change in general purchasing power of the local currency, using official indices. For comparison purposes and a better understanding of our underlying performance, in addition to presenting ‘As Reported’ results, we are also disclosing selected figures as previously reported excluding rule IAS 29. Additional information in connection with the application of rule IAS 29 can be found in our earnings report. 
 
 Loma Negra continues to deliver strong adjusted EBITDA with margin expansion in 4Q20  Core business continues to deliver strong results with encouraging momentum As reported resultsNet revenues 20.6% to Ps. 13.3 billion (US$ 160 million)Adjusted EBITDA 40.8% to Ps. 4.7 billion (US$ 58 million)Net majority income 111.3% to Ps.3.0 billion (US$ 46 million)Consolidated Adjusted EBITDA margin expanded 513 bps to 35.6% YoYDividend payment of USD 31 million from sale of Paraguayan operationFY20 EBITDA of US$ 171 million and margin of 33.4% and Net profit of US$ 181 millionSolid balance sheet with Net Debt to LTM Adj. EBITDA ratio of 0.16xExpansion of L´Amalí plant advancing towards completion Note: Figures in US dollars result from the calculation of figures expressed in Argentine pesos, as previously reported (without the application of IAS29) and the average exchange rate for each reporting period.  3 
 
 Clearer recovery momentum for the industry, yet overall economic turn around still uncertain  Source INDEC and BCRA (Argentina Central Bank) Market Expectations (REM) Survey as of February 2021Source INDEC: Construction activity indicator, ISAC (Indicador Sintético de la Actividad) . Based on AFCP which reports standalone cement sales, while Loma Negra reports Cement, Masonry and lime salesFeb 21 : As of the date of this presentation, ISAC figures were not released    GDP Growth1 (YoY Growth, %)    Construction Activity2 & Monthly Industry Cement Sales3 (YoY Growth, %)    Monthly Industry Cement Sales3 (‘000 tons)  Industry Cement Sales by Type3 (%)        4  Jun’20  Feb’20  Dec’20  Nov’20  Mar’20  Ago’20  Jul’20  Apr’20  May’20  Sep’20  Feb’214  Oct’20  Jan’21      ISAC  Cement Industry  Apr  Jan  Feb  Nov  Mar  Aug  May  Jun  Jul  Sep  Oct  Dec    2017  2019  2020  2018  2021     
 
     Revenues up 20.6% YoY in the back of our core business  Revenue Performance:Cement, masonry & lime: increased 26.9% YoY, with volumes expanding 26.9% with stable pricingConcrete: down by 17.0% YoY. Volumes up 12.8% but outweighed by softer pricingRailroad: decreased by 19.1% YoY. Volumes increase of 4.5% were negatively impacted by pricing mixAggregates: down 4.7% YoY. Better pricing partially compensated the volume decline of 9.5%  Sales Volumes (1)  Revenues (AR$ million) (2)  Total Net Revenues  13,263  11,002  20.6%  5  41,623  47,753  -12.8%   Sales volumes include inter-segment salesSales volumes include inter-segment sales and Other segments        4Q20  4Q19  % Chg.     FY20  FY19  % Chg.  Cement, masonry & lime  MM Tn  1.62  1.28  26.9%    5.16  5.47  -5.6%  Concrete  MM m3  0.15  0.13  12.8%    0.30  0.80  -62.5%  Railroad  MM Tn  1.17  1.12  4.5%    3.79  4.47  -15.2%  Aggregates  MM Tn  0.22  0.25  -9.5%     0.57  1.09  -47.8%                    4Q20  4Q19  % Chg.     FY20  FY19  % Chg.  12,142   9,567   26.9%     37,999   39,891   -4.7%  905   1,089   -17.0%    2,035   6,775   -70.0%  955   1,181   -19.1%    3,596   4,964   -27.6%  161   169   -4.7%     402   843   -52.4% 
 
 Gross Profit up 46.1%, with margin expansion of 632 bps  Gross Profit & Margin    AR$ Million  Consolidated gross profit up 46.1% YoY, with gross margin expanding 631 bps to 36.2% driven by our core Cement businessCement gross margin expanded in the back of higher sales volumes and positive input costsSG&A increased by 5.2% YoY due to higher sales volume, yet as a % of revenues decreased by 115 bps YoY, to 7.9%  Selling, General & Administrative    AR$ Million  As a % of Sales  8.0%  9.0%  +5.2%    Gross Margin  36.2%  29.8%  +46.1%    6  27.3%  30.3%    -3.4%  8.3%  7.9%    -9.2% 
 
 Adjusted EBITDA up 40.8% YoY with solid margin expansion of 513 bps  Adjusted EBITDA & Margin    AR$ Million  Consolidated Adjusted EBITDA Margin expanded 513 bps to 35.6% from 30.5% in 4Q19By segmentsArgentine Cement, masonry cement and lime segment Adjusted EBITDA margin expanded 604 bps to 40.4%Concrete Adjusted EBITDA margin worsened to -19.2% from -5.4%Railroad Adjusted EBITDA margin deteriorated to -0.6% from 11.6%Aggregates Adjusted EBITDA margin decreased to -9.0% from -4.6%FY20 EBITDA of US$171 million, with EBITDA margin of 33.3% compared to US$172 million and 28.7% in FY19  +2.5%        44  58  US$ million  35.6%  30.5%  Adjusted EBITDA Margin    7  Consolidated Adjusted EBITDA up 40.8% YoY reflecting a strong momentum in our core cement businessEBITDA of US$58 million in the 4Q20, compared to US$44 million in 4Q19  172  171    +40.8%  27.1%  31.9%  Note: Figures in US dollars result from the calculation of figures expressed in Argentine pesos, as previously reported (without the application of IAS29) and the average exchange rate for each reporting period. 
 
 Net profit surged 93.9% benefiting from EBITDA growth and net finance gain   Net Profit Attributable to Owners     AR$ Million      46  181  US$ million  +111.3%    Net Profit breakdown:Adjusted EBITDA increased by 40.8% YoYTotal finance gain of Ps.638 million in 4Q20 compared to a net loss of Ps.189 million in 4Q19Foreign exchange gain of Ps. 289 million in 4Q20, compared to a Ps. 480 million in 4Q19, due to lower debt denominated in foreign currency and real depreciation of the Ps.Net Financial expense, declined by Ps. 656 million compared to same quarter las year driven by lower total Financial DebtGain on net monetary was Ps.483 million in 4Q20 compared to Ps.120 million on 4Q19Effective tax rate in 4Q20 was 31.6% from 37.6% in 4Q19Net Profit Attributable to Owners of the Company in 4Q20 increased 111.3% YoY  Finance Costs, net   AR$ Million    8  +117.4%    50  17  Note: Figures in US dollars result from the calculation of figures expressed in Argentine pesos, as previously reported (without the application of IAS29) and the average exchange rate for each reporting period. 
 
 Robust balance sheet and sound debt profile  Debt by Currency    Debt Maturity schedule    Cash position of Ps. 4.4 billion and total debt at Ps. 6.5 billion in December’20Net Debt of Ps. 2.0 billion (US$ 24 mm) at Dec’20 compared to Ps. 11,2 billion (US$ 187 mm) at Dec’19Net Debt/ LTM Adj. EBITDA ratio of 0.16x in FY20 compared with 0.83x in FY19In 4Q20, Operating cash flow for 4Q20 increased 52% YoY, mainly due to higher profitability partially offset by higher working capital needs, and Capital expenditures of Ps.1.7 billion (45% L´Amalí expansion)Extraordinary dividend of US$ 31 million from sale of Paraguayan operationShare Repurchase plan launched in February 2021 for up to Ps. 750 million   Cash Flow Highlights     4Q20  4Q19  FY20  FY19  Net cash generated by operating activities   3,974    2,611    11,356    9,326             Net cash used in investing activities   (1,707)   (3,133)   (1,398)   (15,973)            Net cash (used in) generated by financing activities   (3,162)   1,066    (10,485)   3,498             Cash and cash equivalents at the end of the period   4,394    1,776    4,494    1,776   9  Note: Figures in US dollars result from the calculation of figures expressed in Argentine pesos, as previously reported (without the application of IAS29) and the average exchange rate for each reporting period.  US$ Million        4Q 2021  3Q 2021  Cash Position  1Q 2021  2Q 2021  18  3  17  14  1Q 2022  22        EUR  USD  Ps. 
 
 Looking into 2021  Covid-19 continues to be a source of uncertainty, yet in a significantly lower degree than in 2020Persistent strong momentum for Cement demand encourage us for the remainder of the yearAmid an expected challenging scenario, we remain focused on delivering strong results Expansion of L´Amalí plant at 97% of execution and advancing towards completionHealthy cash flow generation and solid balance sheet   L´Amalí expansión project  L´Amalí: Control room  10  Lomaser: Blending and distribution center 
 
   Questions & Answers 
 
 Exhibit: Summary Financial Statements   
 
 Adjusted EBITDA Reconciliation & Margin  13 
 
 Balance Sheet  14 
 
 Income Statement  15 
 
 Statement of Cash Flows  16 
 
 IR Contact  Marcos I. GradinChief Financial Officer and Investor RelationsGaston PinnelInvestor Relations Manager+54-11-4319-3050investorrelations@lomanegra.com