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Published: 2023-05-05 18:29:24 ET
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6-K 1 a53395022.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 May, 2023
 
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




Loma Negra Reports 1Q23 results
 
Buenos Aires, May 5, 2023 – 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 March 31, 2023 (our “1Q23 Results”).
 
1Q23 Key Highlights
 
◾
Net sales revenues increased by 2.9% YoY to Ps. 40,590 million (US$ 197 million), mainly explained by the good top line performance of the Concrete and Aggregates segments that compensated the decrease of the Cement segment.
◾
Consolidated Adjusted EBITDA reached Ps. 10,636 million, decreasing 19.7% YoY in adjusted pesos, while in dollars it reached 63 million, with an increase of 5.8% YoY.
◾
The Consolidated Adjusted EBITDA margin stood at 26.2%, contracting 738 basis points YoY from 33.6%.
◾
Net Profit of Ps. 5,208 million, showing a reduction of 18.7% versus the same period of the previous year, mainly explained by the decrease in the operating result and a higher financial cost.
◾
During the quarter, the Company distributed a dividend payment of Ps. 3,500 million (US$ 19.5 million), Ps. 6.00 per outstanding share (Ps. 29.92 per ADR).
◾
The Company issued its Class 1 of domestic bonds in the total principal amount of Ps. 25.6 billion with maturity in August 2024.
◾
Net Debt /LTM Adjusted EBITDA ratio of 0.46x compared with 0.37x in FY22.
 
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 first quarter of 2023, Sergio Faifman, Loma Negra’s Chief Executive Officer, noted: “We started the year in a very good shape, with solid operating result and cash flow generation together with a very robust financial position.
 
Despite the challenging macro scenario and the economic disorders, the cement demand remains strong, posting a 3.1% growth in spite of the high base of comparison, and LOMA showed even higher growth figures.
 
During the quarter, we continued optimizing value for our shareholders, with a dividend payment of US$ 19.5 million. Moreover, we recently approved a second dividend payment, to be distributed in kind for the equivalent of Ps.22.2 billion. We also completed our first issuance of corporate bonds with high success and with great support from the market, which demonstrates the confidence that investors place in our company. This gave us the possibility of refinancing our short-term debt in Pesos and further strengthening our balance sheet.
 
For the remainder of the year, we are cautiously optimistic that we will continue to see healthy dynamics in our markets although at slower rates as we approach the presidential elections.”
Table 1: Financial Highlights
      
(amounts expressed in millions of pesos, unless otherwise noted)
 
Three-months ended
March 31,
 
2023
2022
% Chg.
Net revenue
40,590
39,449
2.9%
Gross Profit
11,143
13,162
-15.3%
Gross Profit margin
27.5%
33.4%
-591 bps
Adjusted EBITDA
10,636
13,247
-19.7%
Adjusted EBITDA Mg.
26.2%
33.6%
-738 bps
Net Profit (Loss)
5,208
6,403
-18.7%
Net Profit (Loss) attributable to owners of the Company
5,272
6,473
-18.6%
EPS
9.0337
11.0456
-18.2%
Average outstanding shares (*)
584
586
-0.4%
Net Debt
22,858
(8,075)
n/a
Net Debt /LTM Adjusted EBITDA
0.46x
-0.15x
n/a
(*) Net of shares repurchased
 

Table 1b: Financial Highlights in Ps and in U.S. dollars (figures exclude the impact of IAS 29)
In million Ps.
Three-months ended
March 31,
 
2023
2022
% Chg.
Net revenue
    37,955
    18,263
107.8%
Adjusted EBITDA
    12,118
      6,343
91.1%
Adjusted EBITDA Mg.
31.9%
34.7%
-280 bps
Net Profit (Loss)
      6,921
      6,043
14.5%
Net Debt
    22,858
     (8,075)
n/a
Net Debt /LTM Adjusted EBITDA
0.46x
-0.15x
n/a
       
In million US$
Three-months ended
March 31,
 
2023
2022
% Chg.
Ps./US$, av
    192.45
    106.59
80.5%
Ps./US$, eop
    208.99
    110.98
88.3%
Net revenue
         197
         171
15.1%
Adjusted EBITDA
          63
          60
5.8%
Adjusted EBITDA Mg.
31.9%
34.7%
-280 bps
Net Profit (Loss)
          36
          57
-36.6%
Net Debt
         109
         (73)
n/a
Net Debt /LTM Adjusted EBITDA
0.46x
-0.15x
n/a

Overview of Operations
Sales Volumes
 
Table 2: Sales Volumes2
         
 
 
Three-months ended
March 31,
 
 
2023
2022
% Chg.
Cement, masonry & lime
MM Tn
1.54
1.48
4.3%
Concrete
MM m3
0.15
0.12
26.2%
Railroad
MM Tn
0.97
1.05
-7.4%
Aggregates
MM Tn
0.36
0.24
47.1%
2 Sales volumes include inter-segment sales
    

Sales volumes of Cement, masonry, and lime during 1Q23 increased by 4.3% to 1.5 million tons, mainly leveraged by the significant growth of bulk cement that maintain the positive trend on the back of Concrete and Distributors growth supported by private construction and public works. Sales of bagged cement showed a contraction YoY in the quarter, although maintaining a solid level.
 
Regarding the volume of the Concrete segment, it registered an increase of 26.2% YoY. The volume of concrete continues the upwards trend. The segment remains as one of the pillars of the growth in bulk cement shipments. The Concrete segment growth was mainly supported by demand from the private sector, coupled with an increase in public works. Likewise, Aggregates segment showed a sharp increase of 47.1% YoY, driven mainly by the Concrete sector and sustained by the good production and logistics performance.
 
On the other hand, the volumes of the Railway segment experienced a contraction of 7.4% compared to the same quarter of 2022, where the strong transported volumes of aggregates partially offset the decrease in cement and fracsand.
 
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
March 31,
 
2023
2022
% Chg.
Net revenue
40,590
39,449
2.9%
Cost of sales
(29,447)
(26,287)
12.0%
Gross profit
11,143
13,162
-15.3%
Share of loss of associates
-
-
n/a
Selling and administrative expenses
(3,660)
(3,732)
-1.9%
Other gains and losses
(102)
61
n/a
Impairment of property, plant and equipment
-
-
n/a
Tax on debits and credits to bank accounts
(434)
(391)
11.0%
Finance gain (cost), net
      
Gain on net monetary position
7,337
1,212
505.6%
Exchange rate differences
(3,125)
(690)
352.7%
Financial income
1,311
642
104.3%
Financial expense
(5,542)
(711)
679.0%
Profit (Loss) before taxes
6,928
9,552
-27.5%
Income tax expense
      
Current
(1,537)
(3,866)
-60.2%
Deferred
(183)
717
n/a
Net profit (Loss)
5,208
6,403
-18.7%

Net Revenues
 
Net revenue increased 2.9% to Ps. 40,590 million in 1Q23, from Ps. 39,449 million in the comparable quarter last year, where the good top line performance of Concrete and Aggregates was partially offset with the decline in Cement and Railroad.
 
Cement, masonry cement and lime segment was down 3.5% YoY, with volumes expanding 4.3% that partially offset the softer price dynamics.
 
Concrete registered an increase in its topline of 32.8% compared with 1Q22, sustained by a 26.2% increase in volume, coupled with an improvement in prices. The Aggregates segment recorded a sharp increase in revenues of 65.3%, supported by a volume increase of 47.1% YoY and positive price performance.
 
Railroad revenues decreased 5.7% in 1Q23 compared to the same quarter of 2022, where the transported volume decrased 7.4% in the quarter, affected by the decrease in transported volumes of fracsand and cement, partially compensated by the better performance of aggregates. The effect of lower volumes was partially compensated by a positive price performance, despite the effect of the decrease in transported volumes of fracsand that affects the price performance due to its impact on the average transported distance.
 
Cost of sales, and Gross profit
 
Cost of sales increased 12.0% YoY, reaching Ps. 29,447 million in 1Q23, mainly due to the increase in sales volumes of the Cement and Concrete segments. Regarding Cement cost of sales, the increase was mainly because of higher thermal energy costs driven by the stimulus plans to increase natural gas production and higher freights. These effects saw their impact softened by lower electrical energy inputs and lower depreciation.
 
Gross Profit registered a decline of 15.3% YoY to Ps. 11,143 million in 1Q21, from Ps. 13,162 million in 1Q22, with a gross profit margin that contracted 591 basis points YoY to 27.5%.
 
Selling and Administrative Expenses
 
Selling and administrative expenses (SG&A) in 1Q23 decreased by 1.9% YoY to Ps. 3,660 million, from Ps. 3,732 million in 1Q22, mainly due to a decrease in salaries and freights, partially compensated with an increase in marketing expenses. As a percentage of sales, SG&A showed a decrease against 1Q22 of 44 basis points, reaching 9.0%.
 
Adjusted EBITDA & Margin
 
Table 4: Adjusted EBITDA Reconciliation & Margin
    
(amounts expressed in millions of pesos, unless otherwise noted)
  
 
Three-months ended
March 31,
 
2023
2022
% Chg.
Adjusted EBITDA reconciliation:
      
Net profit (Loss)
    5,208
    6,403
-18.7%
(+) Depreciation and amortization
    3,254
    3,756
-13.4%
(+) Tax on debits and credits to bank accounts
       434
       391
11.0%
(+) Income tax expense
    1,721
    3,149
-45.4%
(+) Financial interest, net
    3,279
     (429)
n/a
(+) Exchange rate differences, net
    3,125
       690
352.7%
(+) Other financial expenses, net
       952
       498
91.0%
(+) Gain on net monetary position
   (7,337)
   (1,212)
505.6%
(+) Share of profit (loss) of associates
        -
        -
n/a
(+) Impairment of property, plant and equipment
        -
        -
n/a
Adjusted EBITDA
  10,636
  13,247
-19.7%
Adjusted EBITDA Margin
26.2%
33.6%
-738 bps
 
Adjusted EBITDA decreased 19.7% YoY in the first quarter of 2023 to Ps. 10,636 million from 13,247 million in the same period of the previous year, mainly affected by lower adjusted EBITDA generated by our cement business. The better performance of the Aggregates segment partially compensated the decrease of the other businesses.
 
Likewise, the Adjusted EBITDA margin contracted 738 basis points to 26.2% compared to 33.6% in 1Q22, mainly due to the compression of the cement margin and the higher incidence of other businesses with lower margins, due to the increase in their activity levels.
 
In particular, the Adjusted EBITDA margin of the Cement, Masonry and Lime segment contracted 625 bps to 31.2%, mainly due to a lower price performance and an increase in costs driven by higher thermal energy inputs and higher freights costs, partially compensated by lower electrical energy inputs.

Concrete Adjusted EBITDA margin contracted 33 bps, and stood in a negative 1.2%, from negative 0.8% in 1Q22, where the good performance in price and volumes couldn’t compensate the increase in costs, mainly impacted by aggregates and freights.
 
The Adjusted EBITDA margin of Aggregates jumped to 17.6%, from a negative 4.6% in 1Q22, mainly leveraged on the strong increase in volume that allowed a better dilution of fixed costs and a good price performance.
 
Finally, the Adjusted EBITDA margin of the Railroad segment contracted 715 bps to negative 1.2% in the first quarter, from 5.9% in 1Q22, principally affected by costs increase and lower transported volumes, partially compensated by positive price performance.
 
Finance Costs-Net

Table 5: Finance Gain (Cost), net
    
(amounts expressed in millions of pesos, unless otherwise noted)
 
Three-months ended
March 31,
 
2023
2022
% Chg.
Exchange rate differences
     (3,125)
       (690)
352.7%
Financial income
      1,311
         642
104.3%
Financial expense
     (5,542)
       (711)
679.0%
Gain on net monetary position
      7,337
      1,212
505.6%
Total Finance Gain (Cost), Net
          (19)
          452
n/a
 
During 1Q23, the Company reported a total net financial cost of Ps. 19 million compared to a total net financial gain of Ps. 452 million in 1Q22, where the positive effect of the result on the monetary position partially compensated the increase of the net financial expense, due to the higher debt position, and the higher negative effect of the exchange rate.
 
Net Profit and Net Profit Attributable to Owners of the Company
 
Net Gain of Ps. 5,208 million in 1Q23 compared to a Net Gain of Ps. 6,403 million in the same period of the previous year, where the lower operational result and the higher financial cost was partially compensated by positive income tax effect.
 
Net Gain Attributable to Owners of the Company stood at Ps. 5,272 million. During the quarter, the Company reported a gain per common share of Ps. 9.0337 and an ADR gain of Ps. 45.1686, compared to earnings per common share of Ps. 11.0456 and earnings per ADR of Ps. 55.2280 in 1Q23.
 
Capitalization
 
Table 6: Capitalization and Debt Ratio
    
(amounts expressed in millions of pesos, unless otherwise noted)
  
 
As of March 31,
As of December, 31
 
2023
2022
2022
       
Total Debt
            42,277
             1,934
            25,284
- Short-Term Debt
             8,870
             1,304
            13,257
- Long-Term Debt
            33,406
                630
            12,027
Cash, Cash Equivalents  and Investments
          (19,419)
          (10,009)
            (5,978)
Total Net Debt
             22,858
             (8,075)
             19,306
Shareholder's Equity
          146,384
          168,926
          141,145
Capitalization
           188,661
           170,860
           166,430
LTM Adjusted EBITDA
             50,154
             53,168
             52,765
Net Debt /LTM Adjusted EBITDA
0.46x
-0.15x
0.37x
 
As of March 31, 2023, total Cash, Cash Equivalents, and Investments were Ps. 19,419 million compared with Ps. 10,009 million as of March 31, 2022. Total debt at the close of the quarter stood at Ps. 42,277 million, composed by Ps. 8,870 million in short-term borrowings, including the current portion of long-term borrowings (or 21.0% of total borrowings), and Ps. 33,406 million in long-term borrowings (or 79.0% of total borrowings). In the quarter the company issued a domestic bond in the total principal amount of Ps. 25.6 billion with maturity in 3Q24. The proceeds of the issuance were primarily used for refinancing the debt in Pesos and working capital.

At the close of the first quarter of 2023, 30.1% (or Ps. 12,725 million) of Loma Negra’s total debt was denominated in U.S. dollars (and a not material amount in Euros), and 69.7% (or Ps. 9,925 million) was in Pesos. The average duration of Loma Negra’s total debt was 1.2 years.
 
As of March 31, 2023, 99.6% of the Company's consolidated loans accrued interest at a variable rate. The debt denominated in dollars with rates based on Libor, while the portion in Argentine pesos principally accrued interest based on BADLAR. The remaining 0.4% accrues interest at a fixed rate in foreign currency.
 
The Net Debt to Adjusted EBITDA (LTM) ratio increased to 0.46x as of March 31, 2023, from 0.37x as of December 31, 2022, as a result of an increase in the debt, partially compensated by our strong cash generation.
 
Cash Flows
 
Table 7: Condensed Interim Consolidated Statement of Cash Flows
    
(amounts expressed in millions of pesos, unless otherwise noted)
    
 
Three-months ended
March 31,
 
2023
2022
CASH FLOWS FROM OPERATING ACTIVITIES
    
Net Profit (Loss)
5,208
6,403
Adjustments to reconcile net profit (loss) to net cash provided by operating activities
11,674
7,316
Changes in operating assets and liabilities
(12,239)
(8,109)
Net cash generated by operating activities
4,643
5,611
     
CASH FLOWS FROM INVESTING ACTIVITIES
    
Proceeds from disposal of Yguazú Cementos S.A.
101
113
Property, plant and equipment, Intangible Assets, net
(1,764)
(1,289)
Contributions to Trust
(95)
(68)
Net cash (used in) investing activities
(1,759)
(1,243)
     
CASH FLOWS FROM FINANCING ACTIVITIES
    
Proceeds / Repayments from borrowings, Interest paid
16,730
(3,800)
Dividends paid
(4,262)
-
Share repurchase plan
-
(1,244)
Net cash generated by (used in) by financing activities
12,467
(5,044)
     
Net increase (decrease) in cash and cash equivalents
15,352
(677)
Cash and cash equivalents at the beginning of the year
5,978
7,839
Effect of the re-expression in homogeneous cash currency ("Inflation-Adjusted")
(2,059)
(1,070)
Effects of the exchange rate differences on cash and cash equivalents in foreign currency
147
966
Cash and cash equivalents at the end of the period
19,419
7,058
 
In 1Q23, our operating cash generation stood at Ps. 4,354 million, compared to Ps. 5,611 million in the same period of the previous year, where the increase in the net profit adjusted to reconcile to net cash provided by operating activities partially compensated the negative effect of the changes in operating assets and liabilities.
 
During 1Q23, the Company generated cash in financing activities for Ps. 12,467 million, mainly due to the issuance of the Class 1 bond with the consequent cancellation of the short-term debt in Pesos, and the dividend payment. Regarding cash used in investing activities, the Company used a total of Ps. 1,470 million, mainly due to maintenance capex.
 
Dividends Distribution
 
On December 27, 2022, the board of directors approved the payment of dividends for a total amount of Ps. 3,500 million equivalents to Ps. 5.99 per outstanding share (Ps. 29.98 per ADS), through the partial allocation of funds from the Reserve for Future Dividends. The total amount of dividends was distributed in January 2023.
 
Domestic Bond Issuance
 
On February 22, 2023, the Company issued its Class 1 of domestic bonds in the total principal amount of Ps. 25.6 billion. Terms of the issue are as outlined below.
 
Amount of Issue
Ps. 25,636 million
Issue Price
100% of principal amount
Interest rate
BADLAR +2% per annum
Interest payments
quarterly
Maturity
Bullet - 18 months

 
 
Recent Events
 
Dividends Distribution
 
On May 2, 2023, the board of directors approved the partial withdraw of the Reserve for Future Dividends in the amount of Ps. 22,200 million and to distribute dividends in kind as follows: 25,590,778,098 National Treasury Bills of the Argentine Republic in Pesos at a discount maturing on July 30, 2023 (“LEDE” S30J3 – ISIN ARARGE520D98), at a ratio of 43.86 Treasury Bills per outstanding share (219.29 Treasury Bills per ADR). The dividend distribution will be made available pursuant to the terms detailed in the Notice of Payment.

1Q23 Earnings Conference Call
 
When:        10:00 a.m. U.S. ET (11:00 a.m. BAT), May 8, 2023
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://event.choruscall.com/mediaframe/webcast.html?webcastid=fq8RnRst
Replay:       A telephone replay of the conference call will be available between May 9, 2023, at 1:00 pm U.S. E.T. and ending on May 15, 2023. 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 2353704. 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 March 31,
 
2023
2022
ASSETS
 
 
Non-current assets
 
 
Property, plant and equipment
185,303
186,824
Right to use assets
1,202
1,279
Intangible assets
553
572
Investments
12
12
Goodwill
124
124
Inventories
9,553
7,767
Other receivables
1,159
1,365
Total non-current assets
197,907
197,943
Current assets
    
Inventories
24,980
24,838
Other receivables
5,802
7,121
Trade accounts receivable
11,304
11,106
Investments
18,139
5,169
Cash and banks
1,279
809
Total current assets
61,504
49,044
TOTAL ASSETS
259,412
246,987
SHAREHOLDER'S EQUITY
    
Capital stock and other capital related accounts
46,217
46,186
Reserves
92,362
92,362
Retained earnings
7,632
2,360
Accumulated other comprehensive income
-
-
Equity attributable to the owners of the Company
146,211
140,908
Non-controlling interests
173
237
TOTAL SHAREHOLDER'S EQUITY
146,384
141,145
LIABILITIES
    
Non-current liabilities
    
Borrowings
33,406
12,027
Accounts payables
-
-
Provisions
1,604
1,591
Salaries and social security payables
69
115
Debts for leases
876
953
Other liabilities
167
200
Deferred tax liabilities
40,318
40,135
Total non-current liabilities
76,442
55,022
Current liabilities
    
Borrowings
8,870
13,257
Accounts payable
17,299
21,546
Advances from customers
1,793
2,144
Salaries and social security payables
5,000
5,413
Tax liabilities
3,018
3,549
Debts for leases
324
344
Other liabilities
282
4,567
Total current liabilities
36,586
50,820
TOTAL LIABILITIES
113,027
105,842
TOTAL SHAREHOLDER'S EQUITY AND LIABILITIES
259,412
246,987

 
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
March 31,
 
2023
2022
% Change
Net revenue
40,590
39,449
2.9%
Cost of sales
(29,447)
(26,287)
12.0%
Gross Profit
11,143
13,162
-15.3%
Share of loss of associates
-
-
n/a
Selling and administrative expenses
(3,660)
(3,732)
-1.9%
Other gains and losses
(102)
61
n/a
Impairment of property, plant and equipment
-
-
n/a
Tax on debits and credits to bank accounts
(434)
(391)
11.0%
Finance gain (cost), net
      
Gain on net monetary position
7,337
1,212
505.6%
Exchange rate differences
(3,125)
(690)
352.7%
Financial income
1,311
642
104.3%
Financial expenses
(5,542)
(711)
679.0%
Profit (loss) before taxes
6,928
9,552
-27.5%
Income tax expense
      
Current
(1,537)
(3,866)
-60.2%
Deferred
(183)
717
n/a
Net Profit (Loss)
5,208
6,403
-18.7%
Net Profit (Loss) for the period attributable to:
      
Owners of the Company
5,272
6,473
-18.6%
Non-controlling interests
(64)
(70)
-8.5%
NET PROFIT (LOSS) FOR THE PERIOD
5,208
6,403
-18.7%
Earnings per share (basic and diluted):
9.0337
11.0456
-18.2%

 
Table 10: Condensed Interim Consolidated Statement of Cash Flows
(amounts expressed in millions of pesos, unless otherwise noted)
 
 
Three-months ended
March 31,
 
2023
2022
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
Net Profit (Loss)
5,208
6,403
Adjustments to reconcile net profit to net cash provided by operating activities
    
Income tax expense
1,721
3,149
Depreciation and amortization
3,254
3,756
Provisions
457
248
Exchange rate differences
2,178
270
Interest expense
4,199
(140)
Loss on transactions with securities
-
-
Gain on disposal of property, plant and equipment
29
(31)
Impairment of property, plant and equipment
-
-
Impairment of trust fund
(194)
65
Share-based payment
31
-
Changes in operating assets and liabilities
    
Inventories
(1,867)
(2,375)
Other receivables
1,479
69
Trade accounts receivable
(2,483)
(1,449)
Advances from customers
(157)
(795)
Accounts payable
(532)
(1,050)
Salaries and social security payables
430
595
Provisions
(65)
(81)
Tax liabilities
(890)
246
Other liabilities
269
10
Gain on net monetary position
(7,337)
(1,212)
Income tax paid
(1,086)
(2,066)
Net cash generated by (used in) operating activities
4,643
5,611
     
CASH FLOWS FROM INVESTING ACTIVITIES
    
Proceeds from disposal of Yguazú Cementos S.A.
101
113
Proceeds from disposal of Property, plant and equipment
74
3
Payments to acquire Property, plant and equipment
(1,806)
(1,292)
Payments to acquire Intangible Assets
(32)
(0)
Acquire investments
-
-
Proceeds from maturity investments
-
-
Contributions to Trust
(95)
(68)
Net cash generated by (used in) investing activities
(1,759)
(1,243)
     
CASH FLOWS FROM FINANCING ACTIVITIES
    
Proceeds from non-convertible negotiable obligations
27,604
-
Proceeds from borrowings
1,873
1,813
Interest paid
(2,836)
(283)
Dividends paid
(4,262)
-
Debts for leases
(95)
(57)
Repayment of borrowings
(9,817)
(5,273)
Share repurchase plan
-
(1,244)
Net cash generated by (used in) financing activities
12,467
(5,044)
Net increase (decrease) in cash and cash equivalents
15,352
(677)
Cash and cash equivalents at the beginning of the period
5,978
7,839
Effect of the re-expression in homogeneous cash currency ("Inflation-Adjusted")
(2,059)
(1,070)
Effects of the exchange rate differences on cash and cash equivalents in foreign currency
147
966
     
Cash and cash equivalents at the end of the period
19,419
7,058

 
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 March 31,
 
2023
%
2022
%
Net revenue
37,955
100.0%
18,263
100.0%
Cement, masonry cement and lime
33,145
87.3%
16,180
88.6%
Concrete
3,688
9.7%
1,379
7.6%
Railroad
2,960
7.8%
1,548
8.5%
Aggregates
1,247
3.3%
376
2.1%
Others
173
0.5%
151
0.8%
Eliminations
(3,257)
-8.6%
(1,370)
-7.5%
Cost of sales
23,312
100.0%
10,847
100.0%
Cement, masonry cement and lime
19,049
81.7%
8,958
82.6%
Concrete
3,572
15.3%
1,312
12.1%
Railroad
2,827
12.1%
1,478
13.6%
Aggregates
990
4.2%
375
3.5%
Others
131
0.6%
94
0.9%
Eliminations
(3,257)
-14.0%
(1,370)
-12.6%
Selling, admin. expenses and other gains & losses
3,322
100.0%
1,667
100.0%
Cement, masonry cement and lime
2,878
86.6%
1,467
88.0%
Concrete
147
4.4%
67
4.0%
Railroad
213
6.4%
84
5.0%
Aggregates
10
0.3%
4
0.2%
Others
73
2.2%
45
2.7%
Depreciation and amortization
797
100.0%
594
100.0%
Cement, masonry cement and lime
666
83.5%
454
76.4%
Concrete
16
2.0%
11
1.8%
Railroad
89
11.2%
122
20.5%
Aggregates
25
3.2%
7
1.1%
Others
1
0.1%
1
0.2%
Adjusted EBITDA
12,118
100.0%
6,343
100.0%
Cement, masonry cement and lime
11,883
98.1%
6,208
97.9%
Concrete
(16)
-0.1%
11
0.2%
Railroad
9
0.1%
107
1.7%
Aggregates
271
2.2%
3
0.0%
Others
(29)
-0.2%
14
0.2%
Reconciling items:
        
Effect by translation in homogeneous cash currency ("Inflation-Adjusted")
(1,483)
  
6,904
  
Depreciation and amortization
(3,254)
  
(3,756)
  
Tax on debits and credits banks accounts
(434)
  
(391)
  
Finance gain (cost), net
(19)
  
452
  
Income tax
(1,721)
  
(3,149)
  
Share of profit of associates
-
  
-
  
Impairment of property, plant and equipment
-
  
-
  
NET PROFIT (LOSS) FOR THE PERIOD
5,208
  
6,403
  

 
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: May 5, 2023
 
By:
/s/
Marcos I. Gradin
 
 
 
Name:
 Marcos I. Gradin
 
 
 
Title:
 Chief Financial Officer