0001157523-19-001310.txt : 20190529 0001157523-19-001310.hdr.sgml : 20190529 20190528184049 ACCESSION NUMBER: 0001157523-19-001310 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20190528 FILED AS OF DATE: 20190529 DATE AS OF CHANGE: 20190528 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: 19859120 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 a51990939.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 May, 2019
 
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, 3th Floor
Zip Code 1107 – 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
 
Condensed Interim Financial Statements as of March 31, 2019 and for the three months periods ended March 31, 2019 and 2018









Loma Negra Compañía Industrial Argentina Sociedad Anónima.

Condensed Interim Financial Statements as of March 31, 2019 and for the three months periods ended March 31, 2019 and 2018











Loma Negra Compañía Industrial Argentina Sociedad Anónima.


Condensed Interim Consolidated Financial Statements as of March 31, 2019 and for the three months periods ended March 31, 2019 and 2018






LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2019 AND 2018

CONTENTS

Unaudited condensed interim consolidated comprehensive income statement
Unaudited condensed interim consolidated balance sheet
Unaudited condensed interim consolidated statement of changes in shareholders’ equity
Unaudited condensed interim consolidated statement of cash flows
Notes to the unaudited condensed interim consolidated financial statements:
1 Legal information
2 Basis of preparation
3 Critical accounting opinions and key sources used for estimating uncertainty
4 Net revenues from sales
5 Cost of sales
6 Selling and administrative expenses
7 Other net income and expenses
8 Tax on bank debits and credits
9 Financial income/(loss)
10 Income tax
11 Earnings per share
12 Property, plant and equipment
13 Inventories
14 Balances and transactions with related parties
15 Other receivables
16 Right to use assets and liabilities for leases
17 Trade accounts receivable
18 Investments
19 Capital stock and other related accounts
20 Accumulated other comprehensive income
21 Loans
22 Accounts payable
23 Provisions
24 Tax liabilities
25 Cash and cash equivalents
26 Financial instruments
27 Nonmonetary transactions
28 Segment reporting
29 Security granted to controlled companies
30 Commitments
31 Subsequent events

Information Report



LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
UNAUDITED CONDENSED INTERIM CONSOLIDATED COMPREHENSIVE INCOME STATEMENT AS OF MARCH 31, 2019 AND 2018
(All amounts are stated in Argentine Pesos - $ - unless otherwise stated)

           
   
Notes
   
03.31.2019
     
03.31.2018
 
                     
Net revenues from sales
 
4
   
7,437,581,594
     
7,175,980,991
 
Cost of sales
 
5
   
(5,292,981,940
)
   
(5,508,879,803
)
                     
Gross income
       
2,144,599,654
     
1,667,101,188
 
                     
Selling and administrative expenses
 
6
   
(626,027,610
)
   
(550,617,795
)
Other net income and expenses
 
7
   
(2,098,128
)
   
5,827,531
 
                     
Tax on bank debits and credits
 
8
   
(110,997,236
)
   
(102,225,618
)
                     
NET FINANCIAL INCOME/(LOSS)
                   
Exchange difference
 
9
   
(160,878,941
)
   
(68,708,600
)
Income/(loss) for monetary position
       
203,085,597
     
137,620,893
 
Financial income
 
9
   
24,838,662
     
2,987,263
 
Financial expenses
 
9
   
(201,469,881
)
   
(144,748,564
)
                     
Income/(loss) before income tax
       
1,271,052,117
     
947,236,298
 
                     
INCOME TAX
                   
Current
 
10
   
(342,192,821
)
   
(315,343,594
)
Deferred
 
10
   
138,364,416
     
90,713,801
 
                     
NET INCOME FOR THE PERIOD
       
1,067,223,712
     
722,606,505
 
                     
OTHER COMPREHENSIVE INCOME
                   
Items to be reclassified through profit and loss:
                   
Due to exchange differences
       
(9,483,210
)
   
10,099,565
 
                     
TOTAL OTHER COMPREHENSIVE INCOME/(LOSS)
       
(9,483,210
)
   
10,099,565
 
                     
TOTAL COMPREHENSIVE INCOME/(LOSS)
       
1,057,740,502
     
732,706,070
 
                     
Net income from:
                   
  Owners of the parent company
       
1,013,880,370
     
670,866,044
 
  Non-controlling interests
       
53,343,342
     
51,740,461
 
NET INCOME FOR THE PERIOD
       
1,067,223,712
     
722,606,505
 
                     
Comprehensive income from:
                   
  Owners of the parent company
       
1,009,043,771
     
676,016,991
 
  Non-controlling interests
       
48,696,731
     
56,689,079
 
TOTAL COMPREHENSIVE INCOME/(LOSS)
       
1,057,740,502
     
732,706,070
 
Earnings per share (basic and diluted)
 
11
   
1.7011
     
1.1256
 

The Notes are an integral part of these condensed interim consolidated financial statements.

1


LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
UNAUDITED CONDENSED INTERIM CONSOLIDATED BALANCE SHEET AS OF MARCH 31, 2019, COMPARATIVE WITH DECEMBER 31, 2018
(All amounts are stated in Argentine Pesos - $ - unless otherwise stated)

   
Notes
   
03.31.2019
     
12.31.2018
 
ASSETS
                   
Non-current assets
                   
Property, plant, and equipment
 
12
   
26,603,753,797
     
24,454,759,160
 
Intangible assets
       
237,675,394
     
244,274,092
 
Investments
 
18
   
1,857,735
     
1,857,735
 
Capital gain
       
18,529,747
     
18,529,747
 
Inventories
 
13
   
747,215,445
     
757,037,023
 
Other receivables
 
15
   
938,513,073
     
1,053,214,582
 
Right to use assets
 
16
   
308,636,371
     
-
 
Trade accounts receivable
 
17
   
4,004,904
     
4,526,281
 
Total non-current assets
       
28,860,186,466
     
26,534,198,620
 
                     
Current assets
                   
Inventories
 
13
   
4,824,247,183
     
4,222,752,956
 
Other receivables
 
15
   
473,940,108
     
428,434,120
 
Trade accounts receivable
 
17
   
2,678,689,462
     
2,307,803,308
 
Investments
 
18
   
636,272,119
     
2,341,921,435
 
Cash and banks
       
860,254,707
     
901,723,964
 
Total current assets
       
9,473,403,579
     
10,202,635,783
 
Total assets
       
38,333,590,045
     
36,736,834,403
 

The Notes are an integral part of these condensed interim consolidated financial statements.

2


LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
UNAUDITED CONDENSED INTERIM CONSOLIDATED BALANCE SHEET AS OF MARCH 31, 2019, COMPARATIVE WITH DECEMBER 31, 2018
(All amounts are stated in Argentine Pesos - $ - unless otherwise stated)

   
Notes
   
03.31.2019
     
12.31.2018
 
SHAREHOLDERS’ EQUITY AND LIABILITIES
                   
Capital stock and other capital related accounts
 
19
   
8,032,074,437
     
8,032,074,437
 
Reserves
       
2,548,908,593
     
2,548,908,593
 
Retained earnings
       
7,092,497,598
     
6,078,617,228
 
Accumulated other comprehensive income
 
20
   
301,982,963
     
306,819,562
 
Shareholders’ equity attributable to owners of the parent company
       
17,975,463,591
     
16,966,419,820
 
                     
Non-controlling interests
       
1,585,175,054
     
1,536,478,323
 
                     
Total shareholders’ equity
       
19,560,638,645
     
18,502,898,143
 
                     
LIABILITIES
                   
Non-current liabilities
                   
Loans
 
21
   
2,831,317,359
     
2,914,458,913
 
Accounts payable
 
22
   
98,358,970
     
432,762,539
 
Provisions
 
23
   
299,636,572
     
327,102,345
 
Other payables
       
24,008,843
     
8,830,580
 
Lease payables
 
16
   
272,867,959
     
-
 
Deferred tax liabilities
       
3,422,837,730
     
3,561,363,582
 
                     
Total non-current liabilities
       
6,949,027,433
     
7,244,517,959
 
                     
Current liabilities
                   
Loans
 
21
   
3,572,791,607
     
3,750,513,098
 
Accounts payable
 
22
   
6,457,199,804
     
5,424,846,726
 
Customer advances
       
167,891,343
     
188,520,193
 
Payroll and social security contributions
       
720,730,992
     
708,576,211
 
Tax liabilities
 
24
   
854,841,941
     
871,367,044
 
Lease payables
 
16
   
5,451,374
     
-
 
Other payables
       
45,016,906
     
45,595,029
 
                     
Total current liabilities
       
11,823,923,967
     
10,989,418,301
 
                     
Total liabilities
       
18,772,951,400
     
18,233,936,260
 
                     
Total shareholders’ equity and liabilities
       
38,333,590,045
     
36,736,834,403
 

The Notes are an integral part of these condensed interim consolidated financial statements.

3


LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
UNAUDITED CONDENSED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERSEQUITY AS OF MARCH 31, 2019
(All amounts are stated in Argentine Pesos - $ - unless otherwise stated)

   
Owners contributions
 
                         
Other comprehensive income
 
                       
   
Capital
 
 
Capital
adjustments
 
 
Share premium
 
 
Merger premium
 
 
Legal reserve
 
 
Environmental reserve
 
 
Optional reserve
 
 
Future dividends reserve
 
 
Exchange income/(loss)
 
 
Accumulated income/(loss)
 
 
Shareholdersequity attributable to owners of the parent company
 
 
Non-controlling interests
 
 
Total
 
Balances as of January 1, 2019
   
59,602,649
     
2,505,050,499
     
4,630,891,823
     
836,529,466
     
116,211,941
     
4,003,835
     
2,395,018,905
     
33,673,912
     
306,819,562
     
6,078,617,228
     
16,966,419,820
     
1,536,478,323
     
18,502,898,143
 
                                                                                                         
Other comprehensive income
                                                                   
(4,836,599
)
           
(4,836,599
)
   
(4,646,611
)
   
(9,483,210
)
Income/(loss) for the period
                                                                           
1,013,880,370
     
1,013,880,370
     
53,343,342
     
1,067,223,712
 
Balances as of March 31, 2019
   
59,602,649
     
2,505,050,499
     
4,630,891,823
     
836,529,466
     
116,211,941
     
4,003,835
     
2,395,018,905
     
33,673,912
     
301,982,963
     
7,092,497,598
     
17,975,463,591
     
1,585,175,054
     
19,560,638,645
 

The Notes are an integral part of these condensed interim consolidated financial statements.

4


LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
UNAUDITED CONDENSED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERSEQUITY AS OF MARCH 31, 2018
(All amounts are stated in Argentine Pesos - $ - unless otherwise stated)

   
Owners contributions
 
                   
Other comprehensive income
 
                       
   
Capital
 
 
Capital
adjustments
 
 
Share premium
 
 
Other capital adjustments
 
 
Merger premium
 
 
Legal reserve
 
 
Environmental reserve
 
 
Future dividends reserve
 
 
Exchange income/(loss)
 
 
Accumulated income/(loss)
 
 
Shareholdersequity attributable to owners of the parent company
 
 
Non-controlling interests
 
 
Total
 
Balances as of January 1, 2018
   
59,602,649
     
2,505,050,498
     
5,523,505,450
     
(892,613,628
)
   
836,529,465
     
115,308,297
     
4,003,835
     
33,673,912
     
37,903,788
     
6,462,675,723
     
14,685,639,989
     
1,109,664,944
     
15,795,304,933
 
                                                                                                         
Other comprehensive income
                                                                   
5,150,947
             
5,150,947
     
4,948,618
     
10,099,565
 
Income/(loss) for the period
                                                                           
670,866,044
     
670,866,044
     
51,740,461
     
722,606,504
 
Balances as of March 31, 2018
   
59,602,649
     
2,505,050,498
     
5,523,505,450
     
(892,613,628
)
   
836,529,465
     
115,308,297
     
4,003,835
     
33,673,912
     
43,054,735
     
7,133,541,767
     
15,361,656,980
     
1,166,354,023
     
16,528,011,002
 

The Notes are an integral part of these condensed interim consolidated financial statements.

5


LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
UNAUDITED CONDENSED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS AS OF MARCH 31, 2019 AND 2018
(All amounts are stated in Argentine Pesos - $ - unless otherwise stated)

     
03.31.2019
     
03.31.2018
 
CASH FLOWS FROM OPERATING ACTIVITIES
               
Net income for the period
   
1,067,223,712
     
722,606,505
 
Adjustments to calculate cash flows from operating activities
               
Income tax recognized in results
   
203,828,405
     
224,629,793
 
Depreciation and amortizations
   
619,344,405
     
689,655,455
 
Provisions
   
16,265,614
     
11,492,313
 
Interest lost
   
287,496,656
     
65,605,964
 
Exchange difference
   
44,029,353
     
(55,862,379
)
Other
   
(7,840,125
)
   
5,827,623
 
Changes in operating assets and liabilities
               
Inventories
   
(559,459,679
)
   
(344,393,690
)
Other receivables
   
(53,900,915
)
   
(167,338,154
)
Trade accounts receivable
   
(576,003,481
)
   
(422,160,085
)
Customer advances
   
(259,346
)
   
(100,107,388
)
Accounts payable
   
(103,229,099
)
   
(489,303,459
)
Lease payables
   
(17,756,077
)
   
-
 
Payroll and social security contributions
   
41,229,739
     
36,438,174
 
Provisions
   
(43,665,370
)
   
(7,182,649
)
Tax liabilities
   
(105,924,848
)
   
(13,186,227
)
Other payables
   
169,591,874
     
(6,750,743
)
Effect of restatement in homogeneous currency
   
(281,857,202
)
   
(113,162,735
)
Income tax paid
   
(141,542,330
)
   
(120,651,380
)
Net cash flows generated from/(applied to) operations
   
557,571,286
     
(83,843,062
)
                 
CASH FLOWS FROM INVESTING ACTIVITIES
               
Income from the sale of property, plant, and equipment
   
6,496,885
     
2,995,049
 
Acquisition of property, plant and equipment
   
(1,893,397,155
)
   
(1,395,377,102
)
Acquisition of intangible assets
   
(924,739
)
   
(2,216,634
)
Contributions to the F.F.F.S.F.I Trust
   
(16,538,659
)
   
(13,221,195
)
Net cash flows used in investing activities
   
(1,904,363,668
)
   
(1,407,819,882
)
                 
CASH FLOWS FROM FINANCING ACTIVITIES
               
New loans
   
248,125,570
     
287,737,941
 
Interest paid
   
(256,642,596
)
   
(249,931,745
)
Repayment of loans
   
(413,103,327
)
   
(284,697,401
)
Net cash flows applied to financing activities
   
(421,620,353
)
   
(246,891,205
)
 
Net changes in cash and cash equivalents
   
(1,768,412,735
)
   
(1,738,554,149
)
Cash and cash equivalents at the beginning of the year
   
3,243,645,399
     
5,247,614,980
 
Effect of reinstatement in homogeneous currency of cash and equivalents
   
(24,042,794
)
   
(17,500,945
)
Effects of exchange differences on cash and cash equivalents held in foreign currency
   
45,336,956
     
58,353,520
 
                 
Cash and cash equivalents at the closing of the period
   
1,496,526,826
     
3,549,913,406
 

The Notes are an integral part of these condensed interim consolidated financial statements.

6


LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(All amounts are stated in Argentine Pesos - $ - unless otherwise stated)


1.            LEGAL INFORMATION

Registered office:

Boulevard Cecilia Grierson 355– 4th. Floor, Ciudad Autónoma de Buenos Aires, Argentina.

Fiscal year:

Fiscal year No. 95, beginning January 1, 2019.

Business of the Company:

The main business of the Company is the manufacturing and marketing of cement and its by-products, and also exploration of the mineral resources used in the production process.

The Company owns 9 factories in Argentina, in the provinces of Buenos Aires, Neuquén, San Juan and Catamarca. The Company also owns 21 concrete production plants.

In addition, the Company, through its subsidiary Cofesur S.A.U., has a controlling interest in Ferrosur Roca S.A., a company operating the rail freight network of the Roca Railroad under a concession granted by the Argentine government in 1993 for a period of 30 years, which allows access from several of Loma Negra’s cement production plants to the rail network. On March 8, 2018 and with the due approval of its majority shareholder (Cofesur S.A.U.), Ferrosur Roca S.A. requested the Enforcement Authority an extension of the concession for an additional term of 10 years, pursuant to the provisions in the Bidding Terms and Conditions and the Concession Agreement.

The Company also has a controlling interest in Recycomb S.A.U.U., a company engaged in the treatment and recycling of industrial waste intended to be used as fuel or raw material, and a controlling interest in Yguazú Cementos S.A., a company organized in Paraguay engaged in the manufacture and marketing of cement.

Date of registration with the Argentine Public Registry of Commerce and the Supervisory Board of Companies [IGJ]:

-
Of the bylaws: August 5, 1926 under No 38, on Page 46
-
Last amendment recorded: August 29, 2017, under No 17,557, on Book 85 of Joint-stock companies
-
No. of Registration with the Supervisory Board of Companies [IGJ]: 1,914,357.
-
Taxpayer's ID Number [CUIT]: 30-50053085-1
-
Date of expiration: July 3, 2116.


Parent company:

Cauê Austria Holding GmbH with 51.0437% of the Company’s shares and votes.

7


LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(All amounts are stated in Argentine Pesos - $ - unless otherwise stated)


Capital structure:
 
The subscribed for and paid in capital amounts to $59,602,649, represented by 596,026,490 book-entry common shares with a nominal value of $ 0.10 each, and each entitling to one vote.


2.            BASIS OF PREPARATION
 
2.1 Basis of preparation
 
The accompanying condensed interim consolidated balance sheet as of March 31, 2019, the condensed interim consolidated comprehensive income statement, condensed interim consolidated statement of changes in shareholders’ equity and of cash flows for the three months periods ended March 31, 2019 and 2018 and the notes to the condensed interim consolidated financial statements (hereinafter, the “Interim financial statements”) are unaudited and have been prepared as interim financial information. These interim financial statements are prepared in accordance with International Accounting Standard (“IAS”) 34, Interim Financial Reporting, pursuant to the provisions in Technical Resolution No. 26 (as amended) issued by the Argentine Federation of Professional Councils of Economic Sciences [FACPCE] and the Regulations issued by the Argentine Securities Commission [“Comisión Nacional de Valores” (CNV)].
 
Consequently, not all of the disclosures required in accordance with International Financial Reporting Standards (IFRS) for annual financial statements are included herein, hence, these interim financial statements shall be read in conjunction with the Company’s consolidated financial statements for the fiscal years ended December 31, 2018 and 2017 issued on March 7, 2019. In the opinion of Management, these unaudited condensed interim consolidated financial statements reflect all normal recurring adjustments, which are necessary for a fair representation of financial results for the interim periods presented.
 
The financial information as of December 31, 2018 presented in these unaudited condensed interim consolidated financial statements arise from our audited consolidated financial statements for the year ended December 31, 2018 restated in closing currency of the reported period, following the guidelines in IAS 29. Such guidelines have been described in Note 2.2 to our consolidated financial statements as of December 31, 2018.
 
The results of operations for the three months periods ended March 31, 2019 and 2018 do not necessarily reflect the results for the full years. The Company believes that the disclosures are adequate to consider that the information presented is not misleading.
 
These condensed interim consolidated financial statements were approved for issue by the Board of Directors on May 9, 2019, the date when the condensed interim financial statements were available for issuance.

2.2 Basis of consolidation
 
These interim financial statements include the unaudited condensed interim consolidated financial position, results of operations and cash flows of the Company and its consolidated subsidiaries. The basis of consolidation and the subsidiaries are the same as for the Company’s audited consolidated financial statements for the year ended December 31, 2018, issued on March 7, 2019.
 
8


LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(All amounts are stated in Argentine Pesos - $ - unless otherwise stated)


The consolidated information disclosed in these condensed interim financial statements include the following subsidiaries:

 
Main activity
 
Country
 
% of direct and indirect ownership as of
         
 03.31.2019
12.31.2018
03.31.2018
Controlled:
             
Cofesur S.A.U.
Investment
 
Argentina
 
100.00
100.00
100.00
Ferrosur Roca S.A. (1)
Rail freight transportation
 
Argentina
 
80.00
80.00
80.00
Recycomb S.A.U.
Waste recycling
 
Argentina
 
100.00
100.00
100.00
Yguazú Cementos S.A.
Marketing and manufacture of construction materials
 
Paraguay
 
51.00
51.00
51.00

(1)
Directly controlled by Cofesur S.A.U.


Below is a summary of the financial information for subsidiaries with material non-controlling ownership interests. The summarized information does not include intragroup deletions due to consolidation.

a)   Yguazú Cementos S.A.

     
03.31.2019
     
12.31.2018
 
Current assets (1)
   
1,531,756,749
     
1,428,890,771
 
Non-current assets
   
4,464,051,132
     
4,603,271,401
 
Current liabilities (2)
   
874,328,427
     
839,375,788
 
Non-current liabilities (2)
   
2,183,752,909
     
2,394,238,662
 
Shareholders’ equity attributable to owners of the parent company
   
1,498,289,582
     
1,427,306,060
 
Non-controlling interests
   
1,439,436,963
     
1,371,241,660
 

(1)
Includes 522,233,953 and 638,165,332 of cash and cash equivalents as of March 31, 2019 and December 31, 2018, respectively.
(2)
Includes the financial loans described in Note 21.


     
03.31.2019
     
03.31.2018
 
Net revenues from sales
   
733,273,957
     
547,803,379
 
Financial income/(loss)
   
(55,287,162
)
   
(48,199,610
)
Depreciations
   
(109,935,770
)
   
(86,325,242
)
Income tax
   
(13,673,193
)
   
(7,617,603
)
Net income
   
148,662,025
     
95,667,927
 

     
03.31.2019
     
03.31.2018
 
Net cash flows from operating activities
   
272,155,288
     
64,847,992
 
Net cash flows used in investment activities
   
(2,592,939
)
   
(1,538,517
)
Net cash flows applied to financing activities
   
(381,283,788
)
   
(101,436,386
)

9


LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(All amounts are stated in Argentine Pesos - $ - unless otherwise stated)


The figures presented for Yguazú Cementos S.A. arise from the information provided by that company, adjusted to conform to the Company's accounting policies and in compliance with IFRS.

b)   Ferrosur Roca S.A.

             
     
03.31.2019
     
03.31.2018
 
                 
Current assets
   
787,627,479
     
791,294,510
 
Non-current assets
   
1,967,202,286
     
2,021,029,457
 
Current liabilities
   
1,852,115,675
     
1,804,840,206
 
Non-current liabilities
   
169,125,737
     
135,420,427
 
Shareholders’ equity attributable to owners of the parent company
   
586,870,682
     
665,759,590
 
Non-controlling interests
   
146,717,671
     
166,439,897
 

Three months period
   
03.31.2019
     
03.31.2018
 
Net revenues from sales
   
685,748,204
     
697,076,718
 
Financial income/(loss)
   
(52,804,013
)
   
(19,630,376
)
Depreciations
   
109,295,570
     
97,360,275
 
Income tax
   
3,320,572
     
120,037,191
 
Net income/(loss) for the period
   
(98,611,134
)
   
24,323,883
 

Three months period
   
03.31.2019
     
03.31.2018
 
Net cash flows applied to operations
   
182,804,989
     
(7,763,340
)
Net cash flows applied to investing activities
   
(34,070,609
)
   
(72,924,396
)
Net cash flows from financing activities
   
(109,678,482
)
   
133,965,217
 

 
2.3 Accounting policies
 
These condensed interim consolidated financial statements have been prepared using the same accounting policies and criteria used in the preparation of the audited consolidated financial statements for the fiscal year ended December 31, 2018, except for the adoption of new standards and interpretations effective as of January 1, 2019.

2.3.1 Application of new and revised International Financial Reporting Standards (IFRS)

 Adoption of new and revised IFRS          

The Company has adopted all of the new and revised standards and interpretations issued by the IASB that are relevant to its operations and that are mandatorily effective as of March 31, 2019 as described in note 2.2 to the Company's annual consolidated financial statements as of December 31, 2018. 

10


LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(All amounts are stated in Argentine Pesos - $ - unless otherwise stated)


The Group has not opted for early adoption of any other standard, interpretation or amendment that has been issued but is not yet in force.

New standards

New standards and interpretations issued during the three months period ended March 31, 2019 and the standards and interpretations issued but not mandatory as of that date are described in Note 2.2 to the consolidated financial statements as of December 31, 2018. Note 16 contains a description of the impact of the application of IFRS 16 to these consolidated condensed interim financial statements.

2.3.2 Ferrocarril Roca Management Trust

The interest in the Ferrocarril Roca Management Trust is valued at cost value, taking into account the value of contributions made, net of trust expenses, plus the financial income/(loss) accrued until the closing of the fiscal year/period. The following unconsolidated information is for the entity not controlled by Ferrosur Roca S.A.

As of March 31, 2019 and December 31, 2018, Ferrosur Roca S.A. owns 100% of the following (unconsolidated) assets and liabilities:

     
03.31.2019
     
12.31.2018
 
                 
Current assets
   
77,074,368
     
62,581,344
 
Current liabilities
   
73,810
     
82,503
 
Shareholders’ equity
   
77,000,558
     
62,498,841
 

 
3.            CRITICAL ACCOUNTING OPINIONS AND KEY SOURCES USED FOR ESTIMATING UNCERTAINTY
 
When applying the Group's accounting policies, the directors of the Company are required to make assessments, estimates and assumptions regarding the carrying amounts of assets and liabilities. The estimates and related assumptions are based on past experience and other factors that are considered relevant. Actual results may differ from these estimates.
 
The unaudited condensed interim consolidated financial statements reflect all adjustments which are, in the opinion of Management, necessary to make a fair statement of the results for the interim periods presented.
 
There are no significant changes to the critical judgements used by Management in applying accounting policies to the critical judgements disclosed in the annual consolidated financial statements for the year ended December 31, 2018.
 
As a consequence of the activities in which the Company is engaged, the transactions of the Company do not have a significant cyclical or seasonal character. Nevertheless, during the second half of the year, historically the volume of sales in Argentina has showed a slight increase.

11


LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(All amounts are stated in Argentine Pesos - $ - unless otherwise stated)
 

4.            NET REVENUES FROM SALES
 
     
03.31.2019
     
03.31.2018
 
Three months period
               
Sale of products
   
7,437,463,690
     
7,087,304,978
 
Domestic market
   
7,431,937,919
     
7,083,154,577
 
External market
   
5,525,771
     
4,150,401
 
                 
Services rendered
   
394,588,603
     
415,037,164
 
                 
(-) Bonuses / Discounts
   
(394,470,699
)
   
(326,361,151
)
Total
   
7,437,581,594
     
7,175,980,991
 

Net revenues from sales increased by 3.6% mainly due to a marked increase in the concrete and cement channel in Paraguay, offset by a decrease in the volume of cement sold in Argentina.
 

5.            COST OF SALES
 
           
03.31.2019
           
03.31.2018
 
Three months period
                           
Inventories at the beginning of the year
         
4,979,789,979
           
4,281,792,365
 
Finished products
   
433,059,255
             
230,607,880
         
Products in progress
   
1,203,531,110
             
1,027,466,205
         
Raw materials, materials, fuels and inventory in transit
   
3,343,199,614
             
3,023,718,280
         
                                 
Exchange difference
           
26,449,584
             
(84,970,728
)
                                 
Production purchases and expenses of the period
           
5,858,205,005
             
5,979,417,452
 
                                 
Inventories at the end of the period
           
5,571,462,628
             
4,667,359,286
 
Finished products
   
368,681,473
             
359,991,440
         
Products in progress
   
1,570,130,584
             
1,173,226,057
         
Raw materials, materials, fuels and inventory in transit
   
3,632,650,571
             
3,134,141,789
         
                                 
Cost of sales
           
5,292,981,940
             
5,508,879,803
 

The cost of sales mainly decreased as a result of the lower volume sold in Argentina.

12


LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(All amounts are stated in Argentine Pesos - $ - unless otherwise stated)


The breakdown of production expenses is as follows:

     
03.31.2019
     
03.31.2018
 
Three months period
               
Fees and service fees
   
97,549,444
     
97,737,024
 
Salaries, wages and social security contributions
   
897,380,450
     
931,440,602
 
Personnel transport and travel expenses
   
37,114,535
     
38,997,941
 
Data processing
   
5,054,259
     
2,264,618
 
Taxes, contributions and commissions
   
105,557,577
     
91,376,844
 
Depreciation and amortizations
   
613,030,741
     
684,578,911
 
Preservation and maintenance
   
594,000,837
     
532,392,035
 
Communications
   
5,106,118
     
4,419,247
 
Rent
   
19,797,075
     
14,614,867
 
Personnel benefits
   
18,927,141
     
18,927,576
 
Electricity, gas and water services
   
1,472,301
     
1,379,402
 
Freight
   
398,070,455
     
586,329,462
 
Fuels
   
783,938,190
     
843,286,377
 
Insurance
   
14,317,625
     
10,135,324
 
Packaging
   
169,563,939
     
170,647,353
 
Electricity
   
600,345,085
     
512,675,877
 
Contractors
   
434,736,328
     
395,367,838
 
Tolls
   
768,010
     
1,321,513
 
Royalties
   
5,073,106
     
5,801,418
 
Surveillance
   
30,811,137
     
38,520,757
 
Other
   
69,652,447
     
56,383,106
 
Total
   
4,902,266,800
     
5,038,598,092
 

The decrease in production expenses is mainly due to the decrease in volume sold, offset by the increase of thermal and electricity costs, resulting from the devaluation of the Argentine peso in relation to the US dollar.

13


LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(All amounts are stated in Argentine Pesos - $ - unless otherwise stated)


6.            SELLING AND ADMINISTRATIVE EXPENSES
 
     
03.31.2019
     
03.31.2018
 
Three months period
               
Managers, directors and statutory auditors’ fees
   
72,604,694
     
31,476,931
 
Fees and service fees
   
54,009,262
     
30,201,277
 
Salaries, wages and social security contributions
   
207,462,136
     
169,637,873
 
Personnel transport and travel expenses
   
6,087,923
     
6,648,084
 
Data processing
   
6,740,269
     
7,381,444
 
Advertising expenses
   
12,345,161
     
9,228,452
 
Taxes, contributions and commissions
   
140,637,974
     
145,941,091
 
Depreciation and amortizations
   
32,314,922
     
39,202,636
 
Preservation and maintenance
   
2,760,306
     
1,813,500
 
Communications
   
5,999,865
     
4,646,626
 
Rent
   
6,289,983
     
7,994,087
 
Personnel benefits
   
3,377,382
     
8,138,431
 
Electricity, gas and water services
   
876,685
     
729,269
 
Freight
   
53,451,624
     
67,903,124
 
Insurance
   
8,366,679
     
7,397,821
 
Allowance for bad debts
   
341,771
     
(8,171
)
Surveillance
   
1,220,069
     
1,143,769
 
Other
   
11,140,905
     
11,141,551
 
Total
   
626,027,610
     
550,617,795
 

The increase in selling and administrative expenses is mainly due to the costs of non-recurring administrative structure partially offset by a decrease in the effective rate of the tax on sales and freights resulting from the decreased volume.
 

7.            OTHER NET INCOME AND EXPENSES
 
     
03.31.2019
     
03.31.2018
 
Three months period
               
Donations
   
(3,164,045
)
   
(2,105,025
)
Contingencies
   
(6,895,738
)
   
(2,252,086
)
Rent
   
9,598,997
     
10,654,326
 
Miscellaneous
   
(1,637,342
)
   
(469,684
)
Total
   
(2,098,128
)
   
5,827,531
 

14


LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(All amounts are stated in Argentine Pesos - $ - unless otherwise stated)


8.            TAX ON BANK DEBITS AND CREDITS
 
The general tax rate for bank debits and credits is 0.6% for amounts credited or debited to or from the Company's bank accounts. For credited and debited amounts, 33% of both items may be used as payment of account of other taxes. 67% on credits and debits is included in this line of the comprehensive income statement.
 
Under Argentine Law No. 27,432, the Argentine Executive may provide that the percentage of the aforesaid tax that is not computable as payment on account of income tax be progressively reduced by up to an annual twenty percent (20%) as from January 1, 2018, with an option to establish that, in 2022, the tax provided for under Argentine Law No. 25,413, as amended, be fully considered as payment on account of income tax. On May 7, 2018 Decree 409/2018 published in the Official Gazette established that taxpayers subject to the general rate of twelve per thousand may use the 33% on debits and credits to the related bank accounts on account of income tax payable.

 
9.            FINANCIAL INCOME/(LOSS)
 
Three months period
   
03.31.2019
     
03.31.2018
 
From exchange differences
               
Income from exchange differences
   
9,321,852
     
-
 
Expenses for exchange differences
   
(170,200,793
)
   
(68,708,600
)
Total
   
(160,878,941
)
   
(68,708,600
)
Financial income
               
Interest from temporary investments
   
-
     
2,987,263
 
Interest from leases
   
4,956,603
     
-
 
Updates
   
19,882,059
     
-
 
Total
   
24,838,662
     
2,987,263
 
Financial expenses
               
Interest expenses
   
(99,195,418
)
   
(119,468,810
)
Tax interest
   
(31,162,215
)
   
(209,543
)
Interest from temporary investments
   
(23,828,059
)
   
-
 
Interest from loans to related parties
   
-
     
(4,573,773
)
Restatement on liabilities
   
(9,229,555
)
   
(1,997,579
)
Other
   
(38,054,634
)
   
(18,498,859
)
Total
   
(201,469,881
)
   
(144,748,564
)

Exchange difference losses are mainly due to the net changes in the valuation of assets and liabilities denominated in US Dollars as a consequence of a devaluation of the Argentine Peso against the US Dollar in the three months period ended March 31, 2019, compared with such variation of the exchange rate during the same period in 2018.

15


LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(All amounts are stated in Argentine Pesos - $ - unless otherwise stated)

 
10.            INCOME TAX
 
Income tax expense is recognized on the basis of the actual expenses and the statutory rate expected at year-end.

This criterion does not significantly differ from the criterion established in IAS 34, which requires income tax expense to be recognized in each interim period based on the best estimate of the effective tax rate expected as of year-end.

The reconciliation of income tax expense for the three months periods ended March 31, 2019 and 2018 and that which would result from applying the statutory rate in force on the net income before income tax for the condensed interim comprehensive income statement for each period is as follows:

     
03.31.2019
     
03.31.2018
 
                 
Income/(loss) before income tax
   
1,271,052,117
     
947,236,298
 
Statutory rate (*)
   
30
%
   
30
%
Income tax at statutory rate
   
(381,315,635
)
   
(284,170,889
)
Adjustments for calculation of the effective income tax:
               
Effect of different rates of foreign subsidiaries (*)
   
32,467,043
     
20,657,106
 
Effect of tax revaluation
   
291,635,196
     
-
 
Effect of change in deferred tax rate
   
(10,672,035
)
   
91,396,081
 
Restatement in homogeneous currency
   
(139,082,136
)
   
(54,611,178
)
Other permanent differences
   
3,139,162
     
2,099,087
 
Total income tax
   
(203,828,405
)
   
(224,629,793
)
                 
INCOME TAX
               
Current
   
(342,192,821
)
   
(315,343,594
)
Deferred
   
138,364,416
     
90,713,801
 
Total
   
(203,828,405
)
   
(224,629,793
)

(*) The statutory rate in force in Argentina is 30 % while in Paraguay the statutory rate is 10 %.

Likewise, the breakdown of deferred income as of March 31, 2019 and December 31, 2018 is as follows:

     
03.31.2019
     
12.31.2018
 
Assets
               
Tax losses
   
149,765,726
     
152,393,594
 
Provisions
   
-
     
17,528,564
 
Accounts payable
   
3,527,401
     
-
 
Trade accounts receivable
   
-
     
1,050,762
 
Other
   
13,316,995
     
6,493,251
 
Total assets
   
166,610,122
     
177,466,171
 

16


LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(All amounts are stated in Argentine Pesos - $ - unless otherwise stated)


Liabilities
           
Investments
   
(3,438,051
)
   
(3,258,609
)
Property, plant, and equipment
   
(3,192,987,015
)
   
(3,374,069,485
)
Other receivables
   
(34,402,649
)
   
(23,875,447
)
Inventories
   
(343,615,519
)
   
(317,991,054
)
Other
   
(15,004,618
)
   
(19,635,160
)
Total liabilities
   
(3,589,447,852
)
   
(3,738,829,755
)
Total deferred liabilities
   
(3,422,837,730
)
   
(3,561,363,584
)

The effective tax rates calculated for the three months periods ended March 31, 2019 and 2018 were 16% and 23.7%, respectively. During the three months period ended March 31, 2019, the Company adhered to the tax Revaluation prescribed by law No. 27,430, which resulted in a deferred tax profit of $357.8 million, as well as a higher current tax of $ 66 million.
 

11.            EARNINGS PER SHARE
 
Basic and diluted earnings per share

The earnings and weighted average number of common shares used in the calculation of basic and diluted earnings per share are as follows:

       
     
03.31.2019
     
03.31.2018
 
Net profit attributable to owners of the parent used in the calculation of basic and diluted earnings per share
   
1,013,880,370
     
670,866,044
 
                 
Weighted average number of common shares for the purposes of basic and diluted earnings per share (all measurements)
   
596,026,490
     
596,026,490
 
                 
Basic and diluted earnings per share
   
1.7011
     
1.1256
 

17


LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(All amounts are stated in Argentine Pesos - $ - unless otherwise stated)
 
 
12.            PROPERTY, PLANT AND EQUIPMENT
 
     
03.31.2019
     
12.31.2018
 
                 
Cost
   
61,363,017,771
     
58,596,479,882
 
Accumulated depreciation
   
(34,759,263,974
)
   
(34,141,720,722
)
Total
   
26,603,753,797
     
24,454,759,160
 
                 
Land
   
365,492,321
     
365,593,422
 
Buildings
   
5,685,347,713
     
5,728,365,546
 
Machinery and equipment
   
10,914,309,831
     
11,050,361,494
 
Transport and freight vehicles
   
1,303,739,068
     
1,358,593,675
 
Furniture and fixtures
   
41,594,980
     
45,336,457
 
Quarries
   
2,252,366,423
     
2,192,954,550
 
Tools
   
29,635,902
     
30,259,029
 
Works in progress
   
6,011,267,559
     
3,683,294,987
 
Total
   
26,603,753,797
     
24,454,759,160
 


The Group acquired assets amounting to $2,806,786,337 during the three months period ended March 31, 2019. The most significant increases during the period ended March 31, 2019 were due to the progress of the L’Amali construction work.
 

13.            INVENTORIES
 
     
03.31.2019
     
12.31.2018
 
Non-current
               
Spare parts
   
780,805,655
     
789,270,824
 
Allowance for obsolete inventories
   
(33,590,210
)
   
(32,233,801
)
Total
   
747,215,445
     
757,037,023
 
                 
Current
               
Finished products
   
368,681,473
     
433,059,255
 
Products in progress
   
1,570,130,584
     
1,203,531,110
 
Raw materials, materials and spare parts
   
2,241,828,033
     
2,084,530,422
 
Fuels
   
643,607,093
     
501,632,169
 
Total
   
4,824,247,183
     
4,222,752,956
 

Changes in inventories are mainly due to the increase in the stock levels of clinker, coal and stone.

18

 
LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(All amounts are stated in Argentine Pesos - $ - unless otherwise stated)


14.            BALANCES AND TRANSACTIONS WITH RELATED PARTIES
 
Balances and transactions between the Company and its subsidiaries have been eliminated and are not disclosed in this note.

The outstanding balances between the Group and related parties as of March 31, 2019 and December 31, 2018 are as follows:

     
03.31.2019
     
12.31.2018
 
Other related parties:
               
InterCement Brasil S.A.
               
  Accounts payable
   
(48,103,518
)
   
(79,050,966
)
Cimpor Trading e Inversiones S.A.
               
  Other receivables
   
17,442,200
     
4,684,300
 
  Accounts payable
   
(9,126,878
)
   
(8,966,822
)
InterCement Portugal S.A.
               
  Accounts payable
   
(204,837,429
)
   
(211,659,752
)
Loma Negra Holding GmbH
               
  Other receivables
   
4,897,103
     
5,473,892
 

The total balances with related parties by item as of March 31, 2019 and December 31, 2018 is as follows:

     
03.31.2019
     
12.31.2018
 
                 
Other receivables
   
22,339,303
     
10,158,192
 
Accounts payable
   
(262,067,825
)
   
(299,677,540
)

The amounts outstanding as of March 31, 2019 are unsecured and will be settled in cash.

The breakdown of transactions between the Group and related parties during the periods ended March 31, 2019 and 2018, respectively, is as follows:

     
03.31.2019
     
12.31.2018
 
InterCement Brasil S.A. – interest and exchange differences
   
2,946,015
     
-
 
InterCement Brasil S.A. – purchase of goods and services
   
(14,132,376
)
   
(15,572,848
)
Cimpor Trading e Inversiones S.A. - exchange differences
   
827,028
     
(5,026,074
)
Cimpor Trading e Inversiones S.A. - purchase of goods and services
   
-
     
(55,479,304
)
Cimpor Trading e Inversiones S.A. – sale of services
   
11,743,015
     
-
 
InterCement Portugal S.A. – exchange differences
   
(2,907,797
)
   
11,603,952
 
InterCement Portugal S.A.– services received
   
(64,473,258
)
   
(61,974,736
)
Sacopor S.A. – exchange difference
   
-
     
(255,537
)

19


LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(All amounts are stated in Argentine Pesos - $ - unless otherwise stated)


The amount charged for fixed and variable compensation of key personnel amounts to $65,492,586 and $20,652,312 for the three months periods ended March 31, 2019 and 2018, respectively. On January 24, 2018, the Board of Directors of the Company approved an incentive program for certain hierarchical personnel calculated based on the value of the shares. As of the date of closing of these condensed interim consolidated financial statements that program has been implemented.

No expense has been recognized in the current period or in prior periods for bad or doubtful accounts related to the amounts owed by related parties.

 
15.            OTHER RECEIVABLES
 
     
03.31.2019
     
12.31.2018
 
Non-current
               
Tax credits
   
61,706,496
     
96,832,480
 
Contributions to the trust “Fondo Fiduciario para el Fortalecimiento del Sistema Ferroviario Interurbano” (F.F.F.S.F.I.)
   
77,000,559
     
62,498,841
 
Expenses paid in advance
   
65,587,334
     
52,977,100
 
Advance to suppliers
   
729,393,319
     
835,556,427
 
Security deposits
   
4,825,365
     
5,349,734
 
Total
   
938,513,073
     
1,053,214,582
 


     
03.31.2019
     
12.31.2018
 
Current
               
Tax credits
   
158,463,156
     
145,350,106
 
Receivables from related parties (Note 14)
   
22,339,303
     
10,158,192
 
Expenses paid in advance
   
117,519,803
     
85,073,303
 
Security deposits
   
1,393,412
     
5,496,021
 
Reimbursement receivable
   
21,409,988
     
21,388,698
 
Advances to suppliers
   
17,814,459
     
28,700,554
 
Personnel loans
   
6,404,862
     
9,132,969
 
Balance receivable from ADSs program
   
87,183,958
     
85,983,212
 
Receivables from sale of property, plant and equipment
   
20,321,044
     
26,817,929
 
Miscellaneous
   
21,090,123
     
10,333,136
 
Total
   
473,940,108
     
428,434,120
 

 
16.            RIGHT TO USE ASSETS AND LIABILITIES FOR LEASES
 
On January 13, 2016, the International Accounting Standards Board (IASB) published IFRS 16, a new standard on leases to replace IAS 17, IFRIC 4, SIC-15 and SIC-27, effective for fiscal years beginning on or after January 1, 2019.

20


LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(All amounts are stated in Argentine Pesos - $ - unless otherwise stated)


Said IFRS introduces that most lease agreements (and sub-lease agreements) are recognized in the accounting of the lease under a single model eliminating the distinction between operating and financial leases, and requires recognizing an asset for the right to use the leased asset and a liability reflecting the obligation to make future payments for the lease. There are no significant changes for the accounting of the lessor in relation to IAS 17.

The Company applied IFRS 16 using the modified retrospective method pursuant to paragraphs C5(b) and C8(b)(ii) as of the date of initial application. Under this method, IFRS 16 is retroactively adopted with the accumulated effect of the initial application recognized as of the date of initial application and the comparative information is not restated.

The Company has executed lease agreements, mainly for offices and land.

As from the application of IFRS 16, the Company has adopted an accounting method for recognition and measurement of all leases.

For leases previously classified as operating leases, the Company has recognized assets for the right to use and liabilities for leases, except for agreements for a term of less than twelve months (short term leases), for those associated to the exploitation of natural resources and for those where the underlying asset has low value. Assets and liabilities are initially measured on the basis of current value. Assets for the right to use have been recognized for an amount equivalent to liabilities for leases. Lease liabilities have been measured at current value of lease payments not paid yet, using the incremental rate for loans of the Company (the lessee) to the date of initial application.

Summary of the new accounting policies

Assets for right to use

The Company recognizes an asset for the right to use at the beginning of each lease (date when the asset is available for use). The assets for the right to use is measured at cost, net of accumulated depreciation and impairments, and adjusted for any remeasurement of liabilities and to recognize changes in the purchasing power of the currency. The cost of assets for the right to use includes the amount of liabilities for lease recognized, initial direct costs incurred and payments made before the date of commencement of the lease, minus any incentives received. Unless the Company is certain that it will acquire the asset at the end of the lease, assets for the right to use are depreciated in a lineal manner throughout the term of the estimated useful life and the period of the lease, whichever is shorter. Assets for the right to use are subject to impairment.

Lease payables

Liabilities for leases are measured at current value of future lease payments to be made throughout the lease period. Lease payments include fixed payments minus any incentives to be received, variable payments depending on an index or rate and values expected to be paid as security of residual value. Payments also include the value of the exercise of any option to purchase the underlying asset leased and any penalties for termination of the lease, provided it is reasonably possible that the Company will exercise such options. Variable payments not depending on an index or rate are recognized in the results of the period when the condition they are subject to takes place.

21


LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(All amounts are stated in Argentine Pesos - $ - unless otherwise stated)


Significant judgments to determine the lease period

The Company determines the periods of leases as the period during which the lease cannot be cancelled, together with any period covered by an option to extend or terminate the lease, provided the Company is reasonably certain that it will exercise such option.

The Company applies judgment in determining whether it will renew its leases, taking into consideration all relevant factors creating an economic incentive for the Company to exercise such options.

Amounts recognized in the financial statements

The effects of the application of IFRS 16 as of January 1, 2019 (date of initial application) and as of March 31, 2019 are as follows:

     
03.31.2019
     
01.01.2019
 
                 
Assets for right to use
   
308,636,371
     
322,087,805
 
Lease payables
   
278,319,333
     
322,087,805
 

 
17.            TRADE ACCOUNTS RECEIVABLE
 
     
03.31.2019
     
12.31.2018
 
Non-current
               
Regular debtors
   
9,732,669
     
10,013,666
 
Allowance for bad debts
   
(5,727,765
)
   
(5,487,385
)
Total
   
4,004,904
     
4,526,281
 
                 
Current
               
Regular debtors
   
2,534,944,528
     
2,156,218,216
 
Loan with U.E.P.F.P. - Ferrosur Roca S.A.
   
137,081,760
     
148,714,438
 
Accounts receivable in litigation
   
19,739,773
     
22,122,287
 
Notes receivable
   
2,690,607
     
202,258
 
Foreign customers
   
5,247,396
     
3,631,158
 
Subtotal
   
2,699,704,064
     
2,330,888,357
 
Allowance for bad debts
   
(21,014,602
)
   
(23,085,049
)
Total
   
2,678,689,462
     
2,307,803,308
 

The increase in current trade accounts receivable is due to the increase in prices and in the average collection terms.

22

 
LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(All amounts are stated in Argentine Pesos - $ - unless otherwise stated)


18.            INVESTMENTS
 
Non-current
   
03.31.2019
     
12.31.2018
 
Investments in other companies
               
   - Cementos del Plata S.A.
   
1,857,735
     
1,857,735
 
Total
   
1,857,735
     
1,857,735
 
                 
Current
               
Short-term investments:
               
- Mutual investment fund in pesos
   
220,078,939
     
332,832,126
 
- Certificate of deposit in pesos
   
-
     
939,899,592
 
- Investments in foreign currency
   
416,193,180
     
1,067,775,319
 
- Miscellaneous
   
-
     
1,414,398
 
Total
   
636,272,119
     
2,341,921,435
 

The main decrease in investments is due to payments for the investment project of the new L'Amalí plant.

 
19.            CAPITAL STOCK AND OTHER CAPITAL RELATED ACCOUNTS
 
     
03.31.2019
     
12.31.2018
 
                 
Capital
   
59,602,649
     
59,602,649
 
Capital adjustment
   
2,505,050,499
     
2,505,050,499
 
Share premium
   
4,630,891,823
     
4,630,891,823
 
Merger premium
   
836,529,466
     
836,529,466
 
Total
   
8,032,074,437
     
8,032,074,437
 

The breakdown of issued, paid-in and registered capital is as follows:

Common shares with a nominal value of $0.10 each,
           
each entitling to 1 vote, fully paid-in
   
596,026,490
     
596,026,490
 

23


LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(All amounts are stated in Argentine Pesos - $ - unless otherwise stated)
 

20.            ACCUMULATED OTHER COMPREHENSIVE INCOME
 
     
03.31.2019
     
12.31.2018
 
                 
Exchange differences for transactions in foreign currency
               
Balances at the beginning of the year
   
306,819,562
     
37,903,788
 
Difference due to conversion of transactions in foreign currency
   
(4,836,599
)
   
268,915,774
 
Balances at closing
   
301,982,963
     
306,819,562
 


21.            LOANS
 
21.1 Breakdown of loans
 
     
03.31.2019
     
12.31.2018
 
Loans
               
    In foreign currency
   
5,494,854,934
     
5,653,610,349
 
    In local currency
   
909,254,032
     
1,011,361,662
 
Total
   
6,404,108,966
     
6,664,972,011
 
                 
Non-current loans
   
2,831,317,359
     
2,914,458,913
 
Current loans
   
3,572,791,607
     
3,750,513,098
 
Total
   
6,404,108,966
     
6,664,972,011
 

24


LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(All amounts are stated in Argentine Pesos - $ - unless otherwise stated)


21.2 Breakdown of loans
 
 
03.31.2019
 
12.31.2018
 
Company
Ref.
Rate
Maturity
Amount
 
Amount
 
Loans in foreign currency - USD
               
Industrial and Commercial Bank of China
Loma Negra C.I.A.S.A.
(1)
6 Months Libor + 4.25%
Mar-21
103,138,853
 
-
 
Banco Latinoamericano de Comercio Exterior S.A.
Ferrosur Roca S.A.
 
3 Months Libor + 1.95%
Aug-19
659,323,993
 
636,512,139
 
Industrial and Commercial Bank of China (Dubai) Loma Negra C.I.A.S.A.
3 Months Libor + 3.75%
May-20
1,712,683,022
 
1,652,832,033
 
Industrial and Commercial Bank of China (Dubai) Loma Negra C.I.A.S.A.
3 Months Libor + 3.4%
Jun-19
437,061,067
 
421,105,473
 
Loans in foreign currency Guarani
               
Banco Continental S.A.E.C.A.
Yguazú Cementos S.A.
 
8.5%
Aug-25
1,559,126,252
 
1,725,739,873
 
Sudameris Bank S.A.E.C.A.
Yguazú Cementos S.A.
 
9.0%
Aug-25
1,023,521,747
 
1,134,433,999
 
Banco Itaú Paraguay S.A.
Yguazú Cementos S.A.
 
-
-
-
 
82,986,830
 
Total loans in foreign currency
       
5,494,854,934
 
5,653,610,347
 
                 
Loans in local currency
               
Banco Provincia de Buenos Aires
Loma Negra C.I.A.S.A.
 
BADLAR + 2%
Mar-19
-
 
20,116,153
 
Banco Provincia de Buenos Aires
Loma Negra C.I.A.S.A.
 
BADLAR + 2%
Jun-19
18,361,482
 
41,256,483
 
Banco Provincia de Buenos Aires
Loma Negra C.I.A.S.A.
 
BADLAR + 2%
July-19
3,192,840
 
6,253,123
 
HSBC Bank Argentina S.A.
Loma Negra C.I.A.S.A.
 
21.75%
Apr-19
157,686,986
 
176,459,458
 
HSBC Bank Argentina S.A.
Ferrosur Roca S.A.
 
21.75%
Apr-19
157,686,986
 
176,459,458
 
Advances in checking account
Loma Negra C.I.A.S.A.
 
51.80%
Apr-19
7,023,637
 
5,804,088
 
Advances in checking account
Recycomb S.A.U.U.
 
-
-
-
 
7,221,675
 
Advances in checking account
Ferrosur Roca S.A.
 
50.70%
Apr-19
565,302,101
 
577,791,226
 
Total loans in local currency
       
909,254,032
 
1,011,361,664
 
Total
       
6,404,108,966
 
6,664,972,011
 


     
03.31.2019
     
12.31.2018
 
Total of loans by company:
               
Loma Negra C.I.A.S.A.
   
2,439,147,887
     
2,323,826,811
 
Ferrosur Roca S.A.
   
1,382,313,080
     
1,390,762,823
 
Recycomb S.A.U.
   
-
     
7,221,675
 
Yguazú Cementos S.A.
   
2,582,647,999
     
2,943,160,702
 
Total
   
6,404,108,966
     
6,664,972,011
 

25


LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(All amounts are stated in Argentine Pesos - $ - unless otherwise stated)


Loma Negra C.I.A.S.A.:

(1)
In March 2019, Loma Negra executed a loan agreement with the Industrial and Commercial Bank of China for a total amount of USD 2,559,014 to be cancelled in March 2021, accruing a variable nominal rate based on the LIBO rate payable every six months.


21.3 Loan transactions
 
The breakdown of loan transactions for the three months period ended March 31, 2019 is as follows:

       
Balances as of January 1, 2019
   
6,664,972,011
 
New loans and financing
   
248,125,570
 
Interest accrued
   
99,195,418
 
Exchange difference
   
(35,181,172
)
Effects of exchange differences
   
96,743,062
 
Interest payments
   
(256,642,596
)
Principal payments
   
(413,103,327
)
Balances as of March 31, 2019
   
6,404,108,966
 

As of March 31, 2019, the maturity schedule for long-term items is as follows:

Fiscal year
     
2020
   
759,962,834
 
2021
   
502,757,653
 
2022
   
392,149,218
 
2023 onwards
   
1,176,447,654
 
Total
   
2,831,317,359
 

26

 
LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(All amounts are stated in Argentine Pesos - $ - unless otherwise stated)
 

22.            ACCOUNTS PAYABLE
 
     
03.31.2019
     
12.31.2018
 
Non-current
               
Accounts payable for investments in property, plant and equipment
   
98,358,970
     
432,762,539
 
Total
   
98,358,970
     
432,762,539
 
                 
                 
Current
               
Suppliers
   
2,237,010,010
     
2,313,779,222
 
Related parties (Note 14)
   
262,067,825
     
299,677,540
 
Accounts payable for investments in property, plant and equipment and intangible assets
   
3,182,754,660
     
1,855,943,663
 
Provisions for expenses
   
775,367,309
     
955,446,301
 
Total
   
6,457,199,804
     
5,424,846,726
 

The increase is mainly due to the increase in accounts payable for the acquisition of investments in property, plant and equipment resulting from the progress of the L’Amali plant expansion project. Accounts payable for investments in property, plant and equipment include interest payable in accordance with the payment terms agreed.

 
23.            PROVISIONS
 
     
03.31.2019
     
12.31.2018
 
Non-current
               
Labor and social security
   
54,667,029
     
53,439,460
 
Environmental
   
182,787,384
     
208,041,479
 
Civil and others
   
62,182,159
     
65,621,406
 
Total
   
299,636,572
     
327,102,345
 

The activity of provisions items were as follows:

   
Labor and
social security
   
Environmental
   
Civil and others
   
Total
 
                         
Balances as of January 1, 2019
   
53,439,460
     
208,041,479
     
65,621,406
     
327,102,345
 
Increases
   
9,502,463
     
-
     
4,542,549
     
14,045,012
 
Uses (*)
   
(8,274,894
)
   
(25,254,095
)
   
(7,981,796
)
   
(41,510,785
)
Balances as of March 31, 2019
   
54,667,029
     
182,787,384
     
62,182,159
     
299,636,572
 

(*) Includes provisions for specific purposes and the effect of the inflation adjustment.
 
27


LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(All amounts are stated in Argentine Pesos - $ - unless otherwise stated)


24.            TAX LIABILITIES
 
     
03.31.2019
     
12.31.2018
 
Current
               
Income tax
   
542,829,833
     
411,591,751
 
Value added tax
   
115,586,421
     
105,446,860
 
Gross revenues
   
61,183,355
     
52,640,217
 
Other taxes, withholdings and collections
   
135,242,332
     
301,688,216
 
Total
   
854,841,941
     
871,367,044
 

 
25.            CASH AND CASH EQUIVALENTS
 
For the purposes of the condensed interim consolidated statement of cash flows, cash and cash equivalents include cash, bank accounts and short-term high liquidity investments (with maturities less than 90 days from the date of acquisition). Cash and cash equivalents at the end of each reporting fiscal period/year as shown in the condensed interim consolidated statement of cash flows may be reconciled with the related items in the condensed interim consolidated balance sheet as follows:

     
03.31.2019
     
12.31.2018
 
                 
Cash and banks
   
860,254,707
     
901,723,964
 
Short-term investments (Note 18)
   
636,272,119
     
2,341,921,435
 
Cash and cash equivalents
   
1,496,526,826
     
3,243,645,399
 

 
26.            FINANCIAL INSTRUMENTS

26.1 Debt to equity ratio
 
The net debt to equity ratio of the reporting period/year is as follows:

     
03.31.2019
     
12.31.2018
 
                 
Debt (i)
   
6,404,108,966
     
6,664,972,011
 
Cash and cash equivalents
   
1,496,526,826
     
3,243,645,399
 
Net debt
   
4,907,582,140
     
3,421,326,612
 
Shareholders’ equity (ii)
   
19,560,638,645
     
18,502,898,143
 
Net debt to equity ratio and shareholders’ equity
   
0.25
     
0.18
 

(i)
Debt is defined as long and short-term loans.
(ii)
Shareholders’ equity includes all the Group's reserves and capital managed as capital.

28


LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(All amounts are stated in Argentine Pesos - $ - unless otherwise stated)


26.2 Categories of financial instruments
 
     
03.31.2019
     
12.31.2018
 
Financial assets
               
At amortized cost:                
Cash and banks
   
860,254,707
     
901,723,964
 
Investments
   
416,193,015
     
2,009,089,309
 
Accounts receivable
   
2,861,257,559
     
2,477,856,512
 
At fair value through income/(loss):
               
Investments
   
220,079,104
     
332,832,126
 


     
03.31.2019
     
12.31.2018
 
Financial liabilities
               
Amortized cost
   
14,882,585,755
     
14,156,950,139
 


26.3 Financial risks
 
The Group´s activities are exposed to a variety of financial risks: market risk (including foreign currency risk, interest rate risk and price risk considering the current inflation rates), credit risk and liquidity risk. The Group maintains an organizational structure and systems that allow the identification, measurement and control of the risks to which it is exposed.

These condensed interim consolidated financial statements do not include all the information and disclosures on financial risks, therefore, they should be read in conjunction with the Company´s consolidated financial statements for the fiscal years ended December 31, 2018 and 2017 issued on March 7, 2019.

26.4 Fair value measurement
 
Fair value measurement is described in Note 32.9 to the annual consolidated financial statements.

From December 31, 2018 through March 31, 2019, there have been no significant changes in the industry’s economic activity affecting the fair value of the Group´s financial assets and liabilities, either measured at fair value or amortized cost. In addition, there were no transfers among the different levels of fair value hierarchy to assess the fair value of the Company's financial instruments during the three months period ended March 31, 2019.

The carrying amounts of financial assets and liabilities recognized at amortized cost, included in the consolidated financial statements as of March 31, 2019 and December 31, 2018, approximate to their fair values. Borrowings are measured at amortized cost considering the effective interest rate method, which approximate to their fair value given their cancellation period.

29


LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(All amounts are stated in Argentine Pesos - $ - unless otherwise stated)


The Management of the Company considers that the liquidity risk exposure is low since the Company has been generating cash flows from its operating activities, supported on strong profits, and has access to loans and financial resources, as explained in Note 21.

26.5 Exchange risk management
 
The Group carries out transactions in foreign currency and is hence exposed to exchange rate fluctuations. Exposures in the exchange rate are managed within approved policy parameters using foreign exchange contracts.

The carrying amounts of monetary assets and liabilities stated in foreign currency at the end of the reporting period/year are as follows:

     
03.31.2019
     
12.31.2018
 
Liabilities
               
United States Dollars
   
4,655,009,643
     
4,266,842,181
 
Guaraníes
   
2,790,070,151
     
3,148,674,560
 
Euro
   
786,164,644
     
388,467,117
 
Real
   
28,409
     
27,509
 
                 
Assets
               
United States Dollars
   
715,413,862
     
1,257,647,857
 
Guaraníes
   
881,420,350
     
1,010,067,161
 
Euro
   
1,065,152
     
1,219,552
 
Real
   
112,563
     
99,840
 

Foreign currency sensitivity analysis

The Group is mainly exposed to the US Dollar.

The following table shows the sensitivity of the Group to an increase in the US Dollar and Guaraní exchange rates. The sensitivity rate is the one used when the exchange risk is reported internally to key management personnel and represents the management's assessment of a possible reasonable change in exchange rates. The sensitivity analysis only includes outstanding foreign-currency monetary items and adjusts its conversion as of the end of the period/year considering a 25% increase in the exchange rate considering all the items of controlled companies in the calculation.

   
Effect of US Dollars
Effect of the Guaraní
       
   
03.31.2019
03.31.2019
Income/(Loss)
 
984,899
-
Shareholder's Equity
 
984,899
734,432

30

 
LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(All amounts are stated in Argentine Pesos - $ - unless otherwise stated)


27.            NONMONETARY TRANSACTIONS
 
Below is a list of transactions that did not involve cash flows in the three months periods ended March 31, 2019 and 2018, respectively:

     
03.31.2019
     
03.31.2018
 
                 
- Payments of Property, plant and equipment
   
929,003,102
     
13,221,195
 

 
28.            OPERATING SEGMENTS
 
The Company has adopted IFRS 8 - Operating Segments, which requires operating segments to be identified on the basis of internal reports regarding components of the Company that are regularly reviewed by the Executive Committee, the chief operating decision maker, in order to allocate resources and evaluate their performance. Said analysis is based on monthly information on historical figures of the segments identified. The information reviewed by the chief operating decision maker mainly consists of the historical information of each month, accumulated until the closing of the fiscal period under analysis, and therefore defers from the inflation-adjusted figures as stated in Note 2.2.

For the purposes of managing its business both financially and operatively, the Company has classified its businesses segments as follows:

i)            Cement, masonry cement and lime - Argentina: this segment includes the results from the cement, masonry cement and lime business in Argentina, and comprises the procurement of raw materials from quarries, the manufacturing process of clinker/quicklime and their subsequent grinding with certain additions intended to obtain the cement, masonry cement and lime.
 
ii)            Cement - Paraguay: this segment includes the results from the cement business in Paraguay, and comprises the procurement of raw materials from quarries, the manufacturing process of clinker and subsequent grinding with certain aggregates intended to obtain the cement.
 
iii)            Concrete: this segment includes the results from the production and sale of ready-mix concrete. It also includes the delivery of the product at the worksite and, depending on the circumstances, the pumping of concrete up to the place of destination.
 
iv)            Aggregates:  this segment includes the results from the aggregates business, from the procurement of the raw materials to subsequent grinding.
 
v)            Railroad: this segment includes the results from the provision of the railroad transportation service.
 
vi)            Others:  this segment includes the results of the business of treatment and recycling of industrial waste for its use as fuel.
 
31


LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(All amounts are stated in Argentine Pesos - $ - unless otherwise stated)


     
03.31.2019
     
03.31.2018
 
Net revenues from sales
               
Cement, masonry and lime – Argentina
   
5,172,003,628
     
3,399,805,657
 
Cement – Paraguay
   
702,947,120
     
345,910,327
 
Concrete
   
1,185,613,943
     
706,721,507
 
Railroad
   
656,288,571
     
440,596,645
 
Aggregates
   
125,799,016
     
68,301,269
 
Other
   
31,523,545
     
25,132,894
 
Eliminations
   
(742,090,408
)
   
(452,636,842
)
Total
   
7,132,085,415
     
4,533,831,457
 
Reconciliation - Effect of restatement in homogeneous currency
   
305,496,179
     
2,642,149,534
 
Total
   
7,437,581,594
     
7,175,980,991
 


Cost of sales
   
03.31.2019
     
03.31.2018
 
Cement, masonry and lime – Argentina
   
3,251,501,971
     
2,278,017,397
 
Cement – Paraguay
   
471,607,166
     
236,884,823
 
Concrete
   
1,062,291,028
     
675,629,127
 
Railroad
   
586,575,178
     
413,503,603
 
Aggregates
   
136,321,450
     
67,712,692
 
Other
   
18,001,533
     
13,898,413
 
Eliminations
   
(742,090,408
)
   
(452,636,842
)
Total
   
4,784,207,918
     
3,233,009,213
 
Reconciliation - Effect of restatement in homogeneous currency
   
508,774,022
     
2,275,870,590
 
Total
   
5,292,981,940
     
5,508,879,803
 


Selling, administrative expenses and other expenses
   
03.31.2019
     
03.31.2018
 
Cement, masonry and lime – Argentina
   
455,686,625
     
243,486,224
 
Cement – Paraguay
   
22,718,028
     
13,370,246
 
Concrete
   
35,185,606
     
23,779,136
 
Railroad
   
44,991,579
     
32,432,430
 
Aggregates
   
1,833,813
     
1,256,099
 
Other
   
11,238,349
     
8,914,589
 
Total
   
571,654,000
     
323,238,724
 
Reconciliation - Effect of restatement in homogeneous currency
   
56,471,738
     
221,551,540
 
Total
   
628,125,738
     
544,790,264
 

32

 
LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(All amounts are stated in Argentine Pesos - $ - unless otherwise stated)


Depreciation and amortizations
    03.31.2019       03.31.2018  
Cement, masonry and lime – Argentina
   
179,230,011
     
97,170,443
 
Cement – Paraguay
   
105,389,033
     
54,510,055
 
Concrete
   
10,723,294
     
7,793,560
 
Railroad
   
41,583,292
     
27,031,722
 
Aggregates
   
4,362,369
     
1,718,962
 
Other
   
761,640
     
648,252
 
Total
   
342,049,639
     
188,872,994
 
Reconciliation - Effect of restatement in homogeneous currency
   
277,294,766
     
500,782,461
 
Total
   
619,344,405
     
689,655,455
 


Net revenues from sales minus cost of sales, selling and administrative expenses, and other income and expenses
   
03.31.2019
     
03.31.2018
 
Cement, masonry and lime – Argentina
   
1,464,815,032
     
878,302,036
 
Cement – Paraguay
   
208,621,926
     
95,655,258
 
Concrete
   
88,137,309
     
7,313,244
 
Railroad
   
24,721,814
     
(5,339,388
)
Aggregates
   
(12,356,247
)
   
(667,523
)
Other
   
2,283,663
     
2,319,893
 
Total
   
1,776,223,497
     
977,583,520
 
Reconciliation - Effect of restatement in homogeneous currency
   
(259,749,581
)
   
144,727,404
 
Total
   
1,516,473,916
     
1,122,310,924
 
Reconciling items:
               
  Tax on bank debits and credits
   
(110,997,236
)
   
(102,225,618
)
  Net financial income/(loss)
   
(134,424,563
)
   
(72,849,008
)
  Income tax
   
(203,828,405
)
   
(224,629,793
)
Net income
   
1,067,223,712
     
722,606,505
 


Geographical information
   
03.31.2019
     
12.31.2018
 
Non-current assets
               
Argentina
   
24,400,225,302
     
21,930,927,220
 
Paraguay
   
4,459,961,164
     
4,603,271,401
 


For these purposes, non-current assets do not include deferred tax assets.

No single customer contributed 10% or more of the Group´s income for the three months periods ended March 31, 2019 and 2018, respectively.

33


LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(All amounts are stated in Argentine Pesos - $ - unless otherwise stated)

 
29.            SECURITY GRANTED TO CONTROLLED COMPANIES
 
In April 2017, Ferrosur Roca S.A. executed a loan agreement with HSBC Bank Argentina S.A. for an amount of 150,000,000. Loma Negra C.I.A.S.A. granted security for that loan, and the outstanding balance as of March 31, 2019 is 157,686,986.

Ferrosur Roca S.A. took a new 365 days loan for USD 15,000,000 with Banco Latinoamericano de Comercio Exterior S.A. "BLADEX" at a 3 month LIBOR + 1.95% interest rate with quarterly interest payments. Loma Negra granted security and surety in favor of BLADEX for up to the amount of the loan plus interest and expenses, and also signed the promissory notes issued by Ferrosur Roca S.A. in favor of that entity. As of March 31, 2019, Ferrosur Roca owes $659,323,993 under that loan

Furthermore, Loma Negra granted security for the lines of advances in checking account taken by Ferrosur Roca S.A. as part of the usual course of its activity. As of March 31, 2019, Ferrosur Roca owes $565,302,101 for such advances.

 
30.            COMMITMENTS
 
Commitments are described in Note 35 to the annual consolidated financial statements for the fiscal year ended December 31, 2018.

 
31.            SUBSEQUENT EVENTS
 
On April 25, 2019, the Shareholders at an Annual Shareholders’ Meeting discussed the allocation of unappropriated retained earnings as of December 31, 2018 for a total amount of $5,438,107,418. It was decided at that Annual Shareholders’ Meeting to allocate $271,905,371 to increase the legal reserve, up to a total of $375,871,947, and the remaining balance, amounting to $5,166,202,047, to an optional Reserve, as per the Company's investment plan.

34


LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(All amounts are stated in Argentine Pesos - $ - unless otherwise stated)
 

INFORMATION REPORT

1. ACTIVITIES OF THE COMPANY
 
During the current period Loma Negra C.I.A.S.A. and its controlled companies dispatched 1,522,198 tons of cement and lime, and their net sales amounted to $7,437,581,594. Dispatches overall were 11.6% below those for the same period of the prior year.
 
Gross income amounted to $2,144,599,654 and the total comprehensive income for the three months period was $1,057,740,502. Said income accounts for a 44% increase compared to the comprehensive income for the same period of the prior year.
 

2. EQUITY STRUCTURE, COMPARATIVE
 
     
03.31.2019
     
03.31.2018
 
                 
Current assets
   
9,473,403,579
     
10,524,761,292
 
Non-current assets
   
28,860,186,466
     
22,339,527,755
 
Total assets
   
38,333,590,045
     
32,864,289,047
 
                 
Current liabilities
   
11,823,923,967
     
8,526,320,542
 
Non-current liabilities
   
6,949,027,433
     
7,809,957,500
 
Total liabilities
   
18,772,951,400
     
16,336,278,042
 
                 
Non-controlling interests
   
1,585,175,054
     
1,166,354,018
 
Shareholders’ equity attributable to owners of the parent company
   
17,975,463,591
     
15,361,656,987
 
Total shareholders’ equity
   
19,560,638,645
     
16,528,011,005
 
 

3. STRUCTURE OF RESULTS, COMPARATIVE

     
03.31.2019
     
03.31.2018
 
                 
Gross income
   
2,144,599,654
     
1,667,101,188
 
Selling and administrative expenses
   
(626,027,610
)
   
(550,617,795
)
Other net income and expenses
   
(2,098,128
)
   
5,827,531
 
Tax on bank debits and credits
   
(110,997,236
)
   
(102,225,618
)
Net financial income/(loss)
   
(134,424,563
)
   
(72,849,008
)
Income/(loss) before income tax
   
1,271,052,117
     
947,236,298
 
Income tax
   
(203,828,405
)
   
(224,629,793
)
Net income for the period
   
1,067,223,712
     
722,606,505
 
                 
Net income for the period attributable to:
               
Owners of the parent company
   
1,013,880,370
     
670,866,044
 
Non-controlling interests
   
53,343,342
     
51,740,461
 
                 
Other comprehensive income
               
Due to exchange differences
   
(9,483,210
)
   
10,099,565
 
Total other comprehensive income for the period
   
(9,483,210
)
   
10,099,565
 
Total comprehensive income for the period
   
1,057,740,502
     
732,706,070
 

35


LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(All amounts are stated in Argentine Pesos - $ - unless otherwise stated)

 
4. COMPARATIVE CASH FLOWS STRUCTURE

     
03.31.2019
     
03.31.2018
 
                 
Net cash flows generated from/(applied to) operating activities
   
557,571,286
     
(83,843,062
)
Funds allocated to investing activities
   
(1,904,363,668
)
   
(1,407,819,882
)
Funds allocated to financing activities
   
(421,620,353
)
   
(246,891,205
)
Total funds applied during the period
   
(1,768,412,735
)
   
(1,738,554,149
)
 

5. STATISTICAL DATA (In tons)
 
     
03.31.2019
     
03.31.2018
 
                 
Production volume (*)
   
1,521,207
     
1,709,128
 
                 
Sales volume (*)
               
   Argentina
   
1,367,962
     
1,580,773
 
   Paraguay
   
150,621
     
139,753
 
   Abroad
   
1,607
     
1,607
 
Total
   
1,522,190
     
1,722,133
 

(*) Information not examined or covered by the Review Report.


6. INDEXES
 
     
03.31.2019
     
03.31.2018
 
                 
Liquidity
   
0.80
     
1.23
 
Creditworthiness
   
1.04
     
1.01
 
Fixed capital
   
0.75
     
0.68
 

36

 
LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(All amounts are stated in Argentine Pesos - $ - unless otherwise stated)
 

7. FUTURE PROSPECTS
 
Forecasts for the Argentine economy indicate a decrease in the GDP for 2019 in relation to 2018. For the second semester, a change in the trend is expected with regularization of the main economic variables, and the historically positive factor of election years, which will be reflected in the construction industry in general and the cement industry in particular.

Taking into consideration the current scenario and future prospects, the Company is currently working on readapting its production costs and structure expenses to the expected production levels, for the purposes of maintaining the levels of profitability in the current context of the business.


37


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 28, 2019
By:
/s/  Marcos I. Gradin
 
Name:
Marcos I. Gradin
 
Title:
Chief Financial Officer


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