0001157523-18-001048.txt : 20180509 0001157523-18-001048.hdr.sgml : 20180509 20180508201825 ACCESSION NUMBER: 0001157523-18-001048 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20180508 FILED AS OF DATE: 20180509 DATE AS OF CHANGE: 20180508 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Loma Negra Compania Industrial Argentina Sociedad Anonima CENTRAL INDEX KEY: 0001711375 STANDARD INDUSTRIAL CLASSIFICATION: CEMENT, HYDRAULIC [3241] IRS NUMBER: 000000000 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-38262 FILM NUMBER: 18816387 BUSINESS ADDRESS: STREET 1: RECONQUISTA 1088, 7TH FLOOR CITY: BUENOS AIRES STATE: C1 ZIP: C1003ABQ BUSINESS PHONE: 54 114-319-3000 MAIL ADDRESS: STREET 1: RECONQUISTA 1088, 7TH FLOOR CITY: BUENOS AIRES STATE: C1 ZIP: C1003ABQ 6-K 1 a51802986.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, 2018
 
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)

Reconquista 1088, 7th Floor
Zip Code C1003ABQ – Ciudad Autónoma de Buenos Aires
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   
 
Press release, dated May 8, 2018, announcing first quarter 2018 results for Loma Negra C.I.A.S.A
 

 
 
 
Buenos Aires, May 8, 2018 – 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, 2018.
 
1Q18 Key Highlights
 
§
Cement, masonry & lime sales volume in Argentina up 9.5% YoY reflecting continued market growth
 
§
Net revenue up 41.6% YoY to Ps.4,534 million (US$230 million) driven by volume and favourable price environment.
 
§
Adjusted EBITDA up 40.6% YoY to Ps.1,166 million (US$59 million). Adjusted EBITDA margin of 25.7%, remaining almost flat.
 
§
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%
 
§
Net Debt /LTM Adjusted EBITDA ratio of 0.53x from 1.48x in 1Q17 and 0.30x in 4Q17
 
Commenting on the financial and operating performance for the first quarter of 2018, Sergio Faifman, Loma Negra’s Chief Executive Officer, noted:  "We reported solid results in the first quarter, with volume and revenue growth principally driven by continued momentum in public infrastructure and private construction in Argentina reflecting ongoing economic growth.”
 
“Loma Negra’s cement, masonry and lime segment in Argentina, our core business, posted a 9.5% year-on-year increase in volumes during 1Q18. Volume growth, along with positive price environment resulted in Adjusted EBITDA for this segment increasing 52% during the period achieving a margin expansion of 207 basis points. On a consolidated basis, Consolidated Adjusted EBITDA margin remains almost unchanged.”
 
“For the remainder of the year, we are confident that we will continue to see healthy dynamics in our markets with increasing demand for cement and concrete, although at slower rates following the significant recovery experienced in the prior year, supporting our expansion plans. We are also making headway in the expansion of our L’Amali plant that will add to capacity as well as drive profitability gains.”
 

Table 1: Financial Highlights
(amounts expressed in millions of pesos, unless otherwise noted)
 
Three-months ended
March 31,
 
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%
Net Debt /LTM Adjusted EBITDA
0.53
1.48
-0.95x

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Overview of Operations

Sales Volumes
 
Table 2: Loma Negra Sales Volumes
 
 
Three-months ended
March 31,
 
 
2018
2017
% Change
Cement, masonry & lime
       
Argentina
MM Tn
1.58
1.45
9.5%
Paraguay
MM Tn
0.14
0.15
-5.2%
Cement, masonry & lime total
 
1.72
1.59
8.1%
Argentina:
       
Concrete
MM m3
0.25
0.17
44.8%
Railroad
MM Tn
1.17
1.23
-4.9%
Aggregates
MM Tn
0.29
0.23
22.9%
 
Supported by continued momentum in private construction and infrastructure and reflecting the Company’s balanced approach of growing the topline while preserving gross margins, sales volumes of cement, masonry and lime in Argentina were up 9.5% YoY reaching 1.58 million tons in 1Q18. Sales volumes in Paraguay fell 5.2% in the period to 0.14 million tons compared with an 8% decline for the industry, due to a slow start to the year. As a result, consolidated total sales volumes of cement, masonry and lime for the quarter increased 8.1% YoY to 1.72 million tons.
 
Concrete volumes in Argentina, increased 44.8% YoY to 0.25  million m3 driven by continued robust growth in public infrastructure in the Company’s markets - the city of Buenos Aires and Greater Buenos Aires and the city of Rosario, province of Santa Fe.
 
Aggregate volumes were up 22.9% YoY to 0.29 million tons, benefiting from strong demand. The new crusher is already mounted and began operations in April which contributed to alleviate capacity constraints and is anticipated to double production capacity of aggregates once it’s fully operational. By contrast, sales volumes at Loma Negra’s railroad subidiary, Ferrosur, declined 4.9% to 1.17 million tons mostly due to lower transported volumes of third-party aggregates.
 

Review of Financial Results
 
Table 3: Condensed Interim Consolidated Statement of Profit or Loss
(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
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%
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Revenues
 
Net revenue increased 41.6% to Ps.4,534 million in 1Q18, from Ps.3,202 million in the year-ago quarter, principally reflecting strong growth in Argentina – mainly in the Cement, masonry and lime segment and the Concrete segment.
 
Cement, masonry and lime revenues in Argentina were up 41.1% YoY, to Ps.3,400 million driven by both higher volumes and price increases. Revenues in Paraguay rose 23.1%, reaching Ps.346 million in the quarter as the 5.2% YoY decline in volume was more than compensated by the depreciation of the Argentine peso.
 
Concrete revenues in Argentina, rose 96.5% YoY to Ps.707 million reflecting volume growth and increased prices. In addition, Railroad revenues increased 22.9% to Ps.441 million despite lower volumes, while Aggregate revenues were up 31.3% reaching Ps.68 million during the period.
 
Cost of sales rose 43.1% YoY to Ps.3,233 million in 1Q18, as a result of cost inflation, greater sales volume, and  a higher share of Concrete sales. Cost of sales in the quarter was also impacted by a temporary increase in supply costs.
 
As a result, Gross profit increased 38.0% YoY reaching Ps.1,301 million in 1Q18 from Ps.943 million in 1Q17, with gross margin contracting 74 basis points YoY to 28.7%. While Gross profit margin in the Cement, masonry and lime segment in Argentina increased 221 basis points in the period, this improvement was more than offset mostly by robust growth in the lower-margin Concrete segment and lower transported volumes in the Railroad segment.
 
Selling and Administrative Expenses
 
Selling and administrative expenses (SG&A) in the first quarter of 2018 rose 21.7% YoY in absolute values to Ps.327 million, from Ps.269 million in 1Q17. As a percentage of revenues, SG&A declined 118 basis points to 7.2% in 1Q18 from 8.4% in the year-ago period mainly driven by higher cost dilution along with a reduction in the effective sales tax rate.
 

Adjusted EBITDA & Margin
 
Table 4: Adjusted EBITDA Reconciliation & Margin
(amounts expressed in millions of pesos, unless otherwise noted)
 
Three-months ended
March 31,
 
2018
2017
% Change
Adjusted EBITDA reconciliation:
     
Net profit
          549
          399
37.4%
(+) Financial interest, net
           15
          114
-86.8%
(+) 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

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted EBITDA increased 40.6% year-over-year in 1Q18 to Ps.1,166 million, driven principally by continued growth in volumes and prices.
 
Adjusted EBITDA Margin, in turn, showed a slight decline of 18 basis points to 25.7%, from 25.9% in 1Q17, reflecting the strong growth of Concrete revenues during the period.
 
The Cement segment in Argentina, which represented 84% of the consolidated adjusted EBITDA in 1Q18, reported a 52.1% YoY increase in Adjusted EBITDA reaching Ps.975 million with Adjusted EBITDA margin expanding by 207 basis points during the period.
 
Adjusted EBITDA for the Cement segment in Paraguay was up 22.9% YoY, to Ps.150 million, with Adjusted EBITDA margin relatively flat at 43.4%. In addition, while the Concrete segment posted 19.3% increase in Adjusted EBITDA reaching Ps.15 million, the margin contracted 138 basis points mostly as a result of a temporary increase in the supply cost of raw materials.
 
By contrast, Adjusted EBITDA for the Railroad segment declined 46.4% to Ps.22 million in 1Q18, with Adjusted EBITDA margin contracting to 4.9% from 11.3% in the year-ago quarter reflecting  lower dilution of fixed costs given a decline in transported volumes of aggregates.
 
 
Finance Costs, Net
 
During 1Q18, total finance costs, net increased by 197.7% YoY, or Ps.100 million, reaching a net cost of Ps.151 million, mainly due to foreign exchange differences.
 
The Company reported a foreign exchange loss of Ps.109 million in 1Q18, as a result of the 7.3% peso depreciation as compared to an Ps.87 million gain in 1Q17 when the peso appreciated 3.0%.
 
Financial income, in turn increased by Ps.104 million reflecting a higher cash balance, while financial expenses rose by Ps.8 million.
 

 
Table 5: Finance Costs, net
(amounts expressed in millions of pesos, unless otherwise noted)
 
Three-months ended
March 31,
 
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)
     (51)
197.7%
 
 
 
 
 
 
 
 
 
 
 
Net Profit and Net Profit Attributable to Owners of the Company
 
For 1Q18, Loma Negra reported Net Profit of Ps.549 million, up 37.4% from Ps.399 million in the year-ago period. The effective tax rate declined to 28% in 1Q18 from 32% in 1Q17, as a result of the adjustment in deferred taxes in Argentina from the recent Tax Reform which reduced the income tax rate from 35% to 30% in 2018 and 2019, and to 25% thereafter.
 
Net Profit Attributable to Owners of the Company for the quarter increased 48.6% YoY, or Ps.172 million, to Ps.526 million. During 1Q18, the Company reported earnings per common share of Ps.0.88 and earnings per ADR of Ps.4.41, compared with earnings per share of Ps.0.63 and earnings per ADR of Ps.3.13 in 1Q17.
 
Capitalization
 
Table 6: Capitalization and Debt Ratio 
(amounts expressed in millions of pesos, unless otherwise noted) 
 
As of March 31,
As of December 31,
 
2018
2017
2017
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
0.30x
 
As of March 31, 2018, total cash and cash equivalents were Ps.2,294 million. Total debt at the close of the quarter was Ps.4,559 million, composed by Ps.1,941 million in short-term borrowings, including the current portion of long-term borrowings (or 43% of total borrowings), and Ps.2,618 million in long-term borrowings (or 57% of total borrowings). This compares with a 27.8% QoQ reduction in cash and cash equivalents from Ps.3,180 million as of December 31, 2017, while total debt increased by 8.0% sequentially from Ps.4,364 million during the same period, as a result of seasonally higher working capital needs, along with increased capex investments.
 
As of March 31, 2018, 43.4%, or Ps.1,979 million, Loma Negra’s total debt was denominated in U.S. dollars, 33.7% (or Ps.1,537 million) in Guaraníes, and 22.9% (or Ps.1,043 million) in Argentine pesos, with an average duration of 0.8 years.
 
At the close of 1Q18, Ps.2,643 million, or 58.0%, of the Company’s total consolidated borrowings bore interest at floating rates, including Ps.296 million of Peso-denominated borrowings that bore interest at rates based on the Buenos Aires Deposits of Large Amount Rate, or BADLAR, Ps.1,916 million of foreign currency-denominated borrowings that bore interest at rates based on Libor, and Ps.431 million of borrowings with other floating interest rate.
 

The Net Debt to Adjusted EBITDA (LTM) ratio declined to 0.53x in 1Q18 from 1.48x as of March 31, 2017 reflecting the proceeds for the recent IPO, but increased from 0.30x at the close of FY17.
 
Cash Flows
 
Table 7: Condensed Interim Consolidated Statement of Cash Flows for the three months ended March 31, 2018 and 2017 (Unaudited)
(amounts expressed in millions of pesos, unless otherwise noted)
 
Quarter 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
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)
Others
(9)
27
Net cash used in investing activities
(862)
(441)
     
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)
     
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
 
During 1Q18, the Company made capital expenditures for Ps.854 million, 32% of which were related to maintenance of existing capacity and 68% directed to the modernization and expansion of production capacity of L´Amalí plant. Cash flow from operations increased to Ps.86 million in 1Q18 from Ps.84 million in the year ago quarter reflecting the strong operating performance which was partially offset by the increase in working capital.
 
Expansion of L’Amalí Plant
 
Loma Negra is moving ahead with increasing installed capacity at its L’Amalí plant by 2.7 million tons annually. This expansion involves a capital expenditure of approximately US$350 million, and is expected to be completed early 2020.
 
The Company hired Sinoma International Engineering Co. Ltd. (“Sinoma”) for the construction of a new cement plant with a capacity of 5,800 tons per day of clinker. The agreement includes the engineering, provision and shipment of all the equipment for the plant and its construction.
 
Basic engineering of the new plant and study of soil in situ was completed in 4Q17. In 1Q18, the Company started detailed engineering, selected the civil works subcontractor. On-site civil works have been iniated and main equipment is being ordered. On-site activities are progressing according to -schedule. Additions to Property, Plant and Equipment related to this project during 1Q18 were Ps.155 million.
 

Recent Events

Loma Negra Holds General Annual Shareholders’ Meeting

On April 25, 2018 Loma Negra held its General Annual Shareholders Meeting. At the meeting, among other items of the agenda, shareholders of the Company approved the full re-investment of Loma Negra’s 2017 earnings. Shareholders also approved the appointment of Mr. Franklin Feder as President of the Board and Mr. Paulo Nigro as Director. Mr. Sergio Faifman, Mr. Paulo Diniz, Mr. Carlos Boero Hughes, Mr. Sergio Alonso, and Ms. Diana Mondino were ratified as Board members.

 
1Q18 Earnings Conference Call

 
When:
10:00 a.m. U.S. ET (11:00 a.m. BAT), May 9, 2018
 
Dial-in:
 
Password:
 
Webcast:
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
 
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

 
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. 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 and cash equivalents.
 
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.  The Company also owns a 51% equity stake in an integrated cement production plant in Paraguay, which is one of two leading cement producers in that country.  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.
 
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 as of March 31, 2018 and December 31, 2017 (Unaudited)
 
(amounts expressed in millions of pesos, unless otherwise noted)
 
 
 
As of March 31,
   
As of December 31,
 
 
 
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
%




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 8, 2018
 
By: /s/
Marcos I. Gradin
 
 
Name:
Marcos I. Gradin
 
 
Title:
Chief Financial Officer
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