Item
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Description
|
|
1
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Press release, dated May 8, 2018, announcing first quarter 2018 results for Loma Negra C.I.A.S.A
|
§
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Cement, masonry & lime sales volume in Argentina up 9.5% YoY reflecting continued market growth
|
§
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Net revenue up 41.6% YoY to Ps.4,534 million (US$230 million) driven by volume and favourable price environment.
|
§
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Adjusted EBITDA up 40.6% YoY to Ps.1,166 million (US$59 million). Adjusted EBITDA margin of 25.7%, remaining almost flat.
|
§
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The Cement, Masonry, and Lime segment in Argentina posted a 52.1% YoY increase in Adjusted EBITDA with Adjusted EBITDA margin expanding 207 basis points to 28.7%
|
§
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Net Debt /LTM Adjusted EBITDA ratio of 0.53x from 1.48x in 1Q17 and 0.30x in 4Q17
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Table 1: Financial Highlights
|
|||
(amounts expressed in millions of pesos, unless otherwise noted)
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|||
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Three-months ended
March 31, |
||
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2018
|
2017
|
% Chg.
|
Net revenue
|
4,534
|
3,202
|
41.6%
|
Gross Profit
|
1,301
|
943
|
38.0%
|
Gross Profit margin
|
28.7%
|
29.4%
|
-74 bps
|
Adjusted EBITDA
|
1,166
|
829
|
40.6%
|
Adjusted EBITDA Mg.
|
25.7%
|
25.9%
|
-18 bps
|
Net Profit
|
549
|
399
|
37.4%
|
Net Profit attributable to owners of the Company
|
526
|
354
|
48.6%
|
EPS
|
0.88
|
0.63
|
41.1%
|
Shares outstanding at eop
|
596
|
566
|
5.3%
|
Net Debt
|
2,265
|
3,954
|
-42.7%
|
Net Debt /LTM Adjusted EBITDA
|
0.53
|
1.48
|
-0.95x
|
Table 1b: Financial Highlights in U.S. Dollars
|
|||
(amounts expressed in millions of U.S. dollars, unless otherwise noted)
|
|||
|
Three-months ended
March 31, |
||
|
2018
|
2017
|
% Change
|
Ps./US$, av
|
19.68
|
15.68
|
25.5%
|
Ps./US$, eop
|
20.14
|
15.38
|
31.0%
|
Net revenue
|
230
|
204
|
12.9%
|
Adjusted EBITDA
|
59
|
53
|
12.1%
|
Net Profit
|
28
|
25
|
9.5%
|
Net Profit attributable to owners of the Company
|
27
|
23
|
18.4%
|
Net Debt
|
112
|
257
|
-56.3%
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Net Debt /LTM Adjusted EBITDA
|
0.53
|
1.48
|
-0.95x
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Table 2: Loma Negra Sales Volumes
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||||
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Three-months ended
March 31,
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|||
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2018
|
2017
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% Change
|
|
Cement, masonry & lime
|
||||
Argentina
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MM Tn
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1.58
|
1.45
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9.5%
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Paraguay
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MM Tn
|
0.14
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0.15
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-5.2%
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Cement, masonry & lime total
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1.72
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1.59
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8.1%
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Argentina:
|
||||
Concrete
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MM m3
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0.25
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0.17
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44.8%
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Railroad
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MM Tn
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1.17
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1.23
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-4.9%
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Aggregates
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MM Tn
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0.29
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0.23
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22.9%
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Table 3: Condensed Interim Consolidated Statement of Profit or Loss
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|||
(amounts expressed in millions of pesos, unless otherwise noted)
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|||
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Three-months ended
March 31, |
||
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2018
|
2017
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% Change
|
Net revenue
|
4,534
|
3,202
|
41.6%
|
Cost of sales
|
(3,233)
|
(2,259)
|
43.1%
|
Gross Profit
|
1,301
|
943
|
38.0%
|
Selling and administrative expenses
|
(327)
|
(269)
|
21.7%
|
Other gains and losses
|
4
|
0
|
1,233.1%
|
Tax on debits and credits to bank accounts
|
(65)
|
(40)
|
62.1%
|
Finance costs, net
|
|||
Exchange rate differences
|
(109)
|
87
|
n/a
|
Financial income
|
108
|
4
|
2,795.3%
|
Financial expenses
|
(150)
|
(142)
|
5.5%
|
Profit before tax
|
762
|
583
|
30.6%
|
Income tax expense
|
|||
Current
|
(199)
|
(182)
|
9.6%
|
Deferred
|
(13)
|
(2)
|
607.4%
|
Net profit
|
549
|
399
|
37.4%
|
Net Profit attributable to owners of the Company
|
526
|
354
|
48.6%
|
Table 4: Adjusted EBITDA Reconciliation & Margin
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|||
(amounts expressed in millions of pesos, unless otherwise noted)
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|||
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Three-months ended
March 31, |
||
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2018
|
2017
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% Change
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Adjusted EBITDA reconciliation:
|
|||
Net profit
|
549
|
399
|
37.4%
|
(+) Financial interest, net
|
15
|
114
|
-86.8%
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(+) Income tax expense
|
213
|
184
|
15.7%
|
(+) Depreciation and amortization
|
189
|
155
|
21.5%
|
(+) Exchange rate differences
|
109
|
(87)
|
n/a
|
(+) Other financial expenses, net
|
26
|
24
|
11.9%
|
(+) Tax on debits and credits to bank accounts
|
65
|
40
|
62.1%
|
Adjusted EBITDA
|
1,166
|
829
|
40.6%
|
Adjusted EBITDA Margin
|
25.7%
|
25.9%
|
-18 bps
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Table 5: Finance Costs, net
|
|||
(amounts expressed in millions of pesos, unless otherwise noted)
|
|||
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Three-months ended
March 31, |
||
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2018
|
2017
|
% Change
|
Exchange rate differences
|
(109)
|
87
|
-225.5%
|
Financial income
|
108
|
4
|
2,795.3%
|
Financial expenses
|
(150)
|
(142)
|
5.5%
|
Total Finance Costs, Net
|
(151)
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(51)
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197.7%
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Table 6: Capitalization and Debt Ratio
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|||
(amounts expressed in millions of pesos, unless otherwise noted)
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|||
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As of March 31,
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As of December 31,
|
|
|
2018
|
2017
|
2017
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Total Debt
|
4,559
|
4,220
|
4,364
|
- Short-Term Debt
|
1,941
|
2,508
|
1,760
|
- Long-Term Debt
|
2,618
|
1,712
|
2,604
|
Cash and Cash Equivalents
|
2,294
|
265
|
3,180
|
Total Net Debt
|
2,265
|
3,954
|
1,184
|
Shareholders' Equity
|
5,048
|
1,099
|
4,416
|
Capitalization
|
9,607
|
5,318
|
8,780
|
Adjusted EBITDA
|
1,166
|
829
|
3,942
|
Net Debt /LTM Adjusted EBITDA
|
0.53x
|
1.48x
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0.30x
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Table 7: Condensed Interim Consolidated Statement of Cash Flows for the three months ended March 31, 2018 and 2017 (Unaudited)
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||
(amounts expressed in millions of pesos, unless otherwise noted)
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||
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Quarter ended March 31,
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|
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2018
|
2017
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
Net profit for the year
|
549
|
399
|
Adjustments to reconcile net profit to net cash provided by operating activities
|
617
|
388
|
Changes in operating assets and liabilities:
|
(1,080)
|
(703)
|
Net cash generated by operating activities
|
86
|
84
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
||
Property, plant and equipment, Intangible Assets, net
|
(854)
|
(469)
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Others
|
(9)
|
27
|
Net cash used in investing activities
|
(862)
|
(441)
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CASH FLOWS FROM FINANCING ACTIVITIES
|
||
Proceeds from / Repayments off borrowings, Interest paid
|
(156)
|
(185)
|
Dividends paid
|
-
|
-
|
Proceeds from initial public offering, net of issuance costs
|
-
|
|
Net cash generated by (used in) financing activities
|
(156)
|
(185)
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Net decrease in cash and cash equivalents
|
(932)
|
(542)
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Cash and cash equivalents at the beginning of the year
|
3,180
|
803
|
Effects of the exchange rate differences on cash and cash equivalents in foreign currency
|
46
|
4
|
Cash and cash equivalents at the end of the period
|
2,294
|
265
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When: |
10:00 a.m. U.S. ET (11:00 a.m. BAT), May 9, 2018
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Dial-in:
Password:
Webcast:
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0800-444-2930 (Argentina), 1-866-807-9684 (U.S.), 1-866-605-3852 (Canada), 1-412-317-5415 (International)
Loma Negra Earnings Call
https://services.choruscall.com/links/loma180509B4mAYyn3.html
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Replay: |
A telephone replay of the conference call will be available between May 9, 2018 at 1:00 pm U.S. E.T. and ending on May 16, 2018. 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 10120036. The audio of the conference call will also be archived on the Company’s website at www.lomanegra.com
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IR Contacts
Marcos I. Gradin, Chief Financial Officer and Investor Relations
Gastón Pinnel, Investor Relations Manager
+54-11-4319-3050
investorrelations@lomanegra.com
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Table 8: Condensed Interim Consolidated Statements of Financial Position as of March 31, 2018 and December 31, 2017 (Unaudited)
|
||||||||
(amounts expressed in millions of pesos, unless otherwise noted)
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||||||||
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As of March 31,
|
As of December 31,
|
||||||
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2018
|
2017
|
||||||
ASSETS
|
||||||||
Non-Current assets
|
||||||||
Property, plant and equipment
|
6,283
|
5,979
|
||||||
Intangible assets
|
73
|
75
|
||||||
Investments
|
0
|
0
|
||||||
Goodwill
|
39
|
39
|
||||||
Inventories
|
219
|
215
|
||||||
Other receivables
|
615
|
145
|
||||||
Trade accounts receivable
|
-
|
-
|
||||||
Total non-current assets
|
7,230
|
6,454
|
||||||
Current assets
|
||||||||
Inventories
|
2,227
|
1,834
|
||||||
Other receivables
|
362
|
242
|
||||||
Trade accounts receivable
|
1,555
|
1,263
|
||||||
Investments
|
2,060
|
2,991
|
||||||
Cash and banks
|
234
|
189
|
||||||
Total current assets
|
6,438
|
6,519
|
||||||
TOTAL ASSETS
|
13,668
|
12,972
|
||||||
SHAREHOLDERS' EQUITY
|
||||||||
Capital stock and other capital related accounts
|
1,922
|
1,922
|
||||||
Reserves
|
59
|
59
|
||||||
Retained earnings
|
2,117
|
1,591
|
||||||
Accumulated other comprehensive income
|
293
|
250
|
||||||
Equity attributable to the owners of the Company
|
4,391
|
3,823
|
||||||
Non-controlling interests
|
657
|
593
|
||||||
TOTAL SHAREHOLDERS' EQUITY
|
5,048
|
4,416
|
||||||
LIABILITIES
|
||||||||
Non-current liabilities
|
||||||||
Borrowings
|
2,618
|
2,604
|
||||||
Accounts payable
|
60
|
71
|
||||||
Provisions
|
175
|
161
|
||||||
Tax liabilities
|
0
|
0
|
||||||
Other liabilities
|
14
|
16
|
||||||
Deferred tax liabilities
|
243
|
229
|
||||||
Total non-current liabilities
|
3,110
|
3,082
|
||||||
Current liabilities
|
||||||||
Borrowings
|
1,941
|
1,760
|
||||||
Accounts payable
|
2,134
|
2,362
|
||||||
Advances from customers
|
146
|
206
|
||||||
Salaries and social security payables
|
562
|
542
|
||||||
Tax liabilities
|
697
|
573
|
||||||
Other liabilities
|
30
|
32
|
||||||
Total current liabilities
|
5,510
|
5,474
|
||||||
TOTAL LIABILITIES
|
8,620
|
8,556
|
||||||
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES
|
13,668
|
12,972
|
Table 9: Condensed Interim Consolidated Statements of Profit or Loss and Other Comprehensive Income for the three months ended March 31, 2018 and 2017 (Unaudited)
|
(amounts expressed in millions of pesos, unless otherwise noted)
|
|
Three-months ended
March 31, |
|||||||||||
|
2018
|
2017
|
% Change
|
|||||||||
Net revenue
|
4,534
|
3,202
|
41.6
|
%
|
||||||||
Cost of sales
|
(3,233
|
)
|
(2,259
|
)
|
43.1
|
%
|
||||||
Gross profit
|
1,301
|
943
|
38.0
|
%
|
||||||||
Selling and administrative expenses
|
(327
|
)
|
(269
|
)
|
21.7
|
%
|
||||||
Other gains and losses
|
4
|
0
|
1233.1
|
%
|
||||||||
Tax on debits and credits to bank accounts
|
(65
|
)
|
(40
|
)
|
62.1
|
%
|
||||||
Finance costs, net
|
||||||||||||
Exchange rate differences
|
(109
|
)
|
87
|
n/a
|
||||||||
Financial income
|
108
|
4
|
2795.3
|
%
|
||||||||
Financial expenses
|
(150
|
)
|
(142
|
)
|
5.5
|
%
|
||||||
Profit before tax
|
762
|
583
|
30.6
|
%
|
||||||||
Income tax expense
|
||||||||||||
Current
|
(199
|
)
|
(182
|
)
|
9.6
|
%
|
||||||
Deferred
|
(13
|
)
|
(2
|
)
|
607.4
|
%
|
||||||
Net profit
|
549
|
399
|
37.4
|
%
|
||||||||
Other Comprehensive Income
|
||||||||||||
Items to be reclassified through profit and loss:
|
||||||||||||
Exchange differences on translating foreign operations
|
84
|
17
|
389.6
|
%
|
||||||||
Cash flow hedges
|
-
|
-
|
n/a
|
|||||||||
Total other comprehensive (loss) income
|
84
|
17
|
389.6
|
%
|
||||||||
TOTAL COMPREHENSIVE INCOME
|
632
|
416
|
51.9
|
%
|
||||||||
Net Profit (loss) attributable to:
|
||||||||||||
Owners of the Company
|
526
|
354
|
48.6
|
%
|
||||||||
Non-controlling interests
|
23
|
45
|
-49.8
|
%
|
||||||||
NET PROFIT
|
549
|
399
|
37.4
|
%
|
||||||||
Total comprehensive income (loss) attributable to:
|
||||||||||||
Owners of the Company
|
569
|
363
|
56.8
|
%
|
||||||||
Non-controlling interests
|
64
|
45
|
40.8
|
%
|
||||||||
TOTAL COMPREHENSIVE INCOME
|
632
|
408
|
55.0
|
%
|
||||||||
Earnings per share (basic and diluted):
|
0.88
|
0.63
|
41.1
|
%
|
Table 10: Condensed Interim Consolidated Statements of Cash Flow for the Three-Months Ended March 31, 2018 and 2017 (Unaudited)
|
||||||||
(amounts expressed in millions of pesos, unless otherwise noted)
|
||||||||
|
Three-Months ended March 31,
|
|||||||
|
2018
|
2017
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||||||
Net profit for the year
|
549
|
399
|
||||||
Adjustments to reconcile net profit to net cash provided by operating activities
|
||||||||
Income tax expense
|
213
|
184
|
||||||
Depreciation and amortization
|
189
|
155
|
||||||
Provisions
|
7
|
12
|
||||||
Interest
|
120
|
122
|
||||||
Share of profit (loss) of associates
|
-
|
-
|
||||||
Investment income recognized in profit
|
88
|
(86
|
)
|
|||||
Exchange rate differences
|
-
|
1
|
||||||
Gain on disposal of Property, plant and equipment
|
-
|
0
|
||||||
Changes in operating assets and liabilities
|
||||||||
Inventories
|
(374
|
)
|
(267
|
)
|
||||
Other receivables
|
(82
|
)
|
21
|
|||||
Trade accounts receivable
|
(281
|
)
|
(309
|
)
|
||||
Advances from customers
|
(60
|
)
|
81
|
|||||
Accounts payable
|
(216
|
)
|
(221
|
)
|
||||
Salaries and social security payables
|
19
|
30
|
||||||
Provisions
|
(5
|
)
|
(2
|
)
|
||||
Tax liabilities
|
(0
|
)
|
8
|
|||||
Other liabilities
|
(3
|
)
|
(2
|
)
|
||||
Income tax paid
|
(76
|
)
|
(42
|
)
|
||||
Net cash generated by operating activities
|
86
|
84
|
||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||
Proceeds from disposal of Property, plant and equipment
|
2
|
-
|
||||||
Payments to acquire Property, plant and equipment
|
(360
|
)
|
(462
|
)
|
||||
Payment of advances of Property, plant and equipment
|
(495
|
)
|
-
|
|||||
Payments to acquire Intangible Assets
|
(1
|
)
|
(7
|
)
|
||||
Interest received
|
-
|
27
|
||||||
Contributions to F.F.F.S.F.I.
|
(9
|
)
|
-
|
|||||
Net cash used in investing activities
|
(862
|
)
|
(441
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||
Proceeds from borrowings
|
182
|
183
|
||||||
Interest paid
|
(158
|
)
|
(157
|
)
|
||||
Dividends paid
|
-
|
-
|
||||||
Repayment of borrowings
|
(180
|
)
|
(212
|
)
|
||||
Proceeds from initial public offering, net of issuance costs
|
-
|
-
|
||||||
Net cash used in financing activities
|
(156
|
)
|
(185
|
)
|
||||
Net decrease in cash and cash equivalents
|
(932
|
)
|
(542
|
)
|
||||
Cash and cash equivalents at the beginning of the year
|
3,180
|
803
|
||||||
Effects of the exchange rate differences on cash and cash equivalents in foreign currency
|
46
|
4
|
||||||
Cash and cash equivalents at the end of the period
|
2,294
|
265
|
Table 11: Financial Data by Segment
|
||||||||||||||||
(amounts expressed in millions of pesos, unless otherwise noted)
|
||||||||||||||||
|
Three-Month ended March 31,
|
|||||||||||||||
|
2018
|
|
%
|
2017
|
|
%
|
||||||||||
Net revenue
|
4,534
|
100.0
|
%
|
3,202
|
100.0
|
%
|
||||||||||
Cement, masonry cement and lime—Argentina
|
3,400
|
75.0
|
%
|
2,409
|
75.3
|
%
|
||||||||||
Cement—Paraguay
|
346
|
7.6
|
%
|
281
|
8.8
|
%
|
||||||||||
Concrete
|
707
|
15.6
|
%
|
360
|
11.2
|
%
|
||||||||||
Railroad
|
441
|
9.7
|
%
|
358
|
11.2
|
%
|
||||||||||
Aggregates
|
68
|
1.5
|
%
|
52
|
1.6
|
%
|
||||||||||
Others
|
25
|
0.6
|
%
|
30
|
0.9
|
%
|
||||||||||
Eliminations
|
(453
|
)
|
-10.0
|
%
|
(288
|
)
|
-9.0
|
%
|
||||||||
Cost of sales
|
3,233
|
100.0
|
%
|
2,259
|
100.0
|
%
|
||||||||||
Cement, masonry cement and lime—Argentina
|
2,278
|
70.5
|
%
|
1,668
|
73.8
|
%
|
||||||||||
Cement—Paraguay
|
237
|
7.3
|
%
|
184
|
8.1
|
%
|
||||||||||
Concrete
|
676
|
20.9
|
%
|
334
|
14.8
|
%
|
||||||||||
Railroad
|
414
|
12.8
|
%
|
301
|
13.3
|
%
|
||||||||||
Aggregates
|
68
|
2.1
|
%
|
50
|
2.2
|
%
|
||||||||||
Others
|
14
|
0.4
|
%
|
12
|
0.6
|
%
|
||||||||||
Eliminations
|
(453
|
)
|
-14.0
|
%
|
(288
|
)
|
-12.8
|
%
|
||||||||
Selling, admin. expenses and other gains & losses
|
323
|
100.0
|
%
|
269
|
100.0
|
%
|
||||||||||
Cement, masonry cement and lime—Argentina
|
243
|
75.3
|
%
|
197
|
73.3
|
%
|
||||||||||
Cement—Paraguay
|
13
|
4.1
|
%
|
10
|
3.6
|
%
|
||||||||||
Concrete
|
24
|
7.4
|
%
|
17
|
6.3
|
%
|
||||||||||
Railroad
|
32
|
10.0
|
%
|
35
|
13.1
|
%
|
||||||||||
Aggregates
|
1
|
0.4
|
%
|
1
|
0.5
|
%
|
||||||||||
Others
|
9
|
2.8
|
%
|
9
|
3.2
|
%
|
||||||||||
Depreciation and amortization
|
189
|
100.0
|
%
|
155
|
100.0
|
%
|
||||||||||
Cement, masonry cement and lime—Argentina
|
97
|
51.4
|
%
|
96
|
62.0
|
%
|
||||||||||
Cement—Paraguay
|
55
|
28.9
|
%
|
34
|
22.1
|
%
|
||||||||||
Concrete
|
8
|
4.1
|
%
|
4
|
2.3
|
%
|
||||||||||
Railroad
|
27
|
14.3
|
%
|
18
|
11.5
|
%
|
||||||||||
Aggregates
|
2
|
0.9
|
%
|
3
|
1.7
|
%
|
||||||||||
Others
|
1
|
0.3
|
%
|
1
|
0.3
|
%
|
||||||||||
Adjusted EBITDA
|
1,166
|
100.0
|
%
|
829
|
100.0
|
%
|
||||||||||
Cement, masonry cement and lime—Argentina
|
975
|
83.6
|
%
|
641
|
77.3
|
%
|
||||||||||
Cement—Paraguay
|
150
|
12.9
|
%
|
122
|
14.7
|
%
|
||||||||||
Concrete
|
15
|
1.3
|
%
|
13
|
1.5
|
%
|
||||||||||
Railroad
|
22
|
1.9
|
%
|
40
|
4.9
|
%
|
||||||||||
Aggregates
|
1
|
0.1
|
%
|
3
|
0.4
|
%
|
||||||||||
Others
|
3
|
0.3
|
%
|
9
|
1.1
|
%
|
||||||||||
Depreciation and amortization
|
||||||||||||||||
Reconciling items:
|
||||||||||||||||
Depreciation and amortization
|
(189
|
)
|
(155
|
)
|
||||||||||||
Tax on debits and credits banks accounts
|
(65
|
)
|
(40
|
)
|
||||||||||||
Finance costs, net
|
(151
|
)
|
(51
|
)
|
||||||||||||
Income tax
|
(213
|
)
|
(184
|
)
|
||||||||||||
NET PROFIT FOR THE YEAR
|
549
|
100.0
|
%
|
399
|
100.0
|
%
|
|
Loma Negra Compañía Industrial Argentina Sociedad Anónima
|
||
|
|
|
|
|
|
|
|
Date: May 8, 2018
|
|
By: /s/
|
Marcos I. Gradin
|
|
|
Name:
|
Marcos I. Gradin
|
|
|
Title:
|
Chief Financial Officer
|
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