NYSE:LOMA Loma Negra Compañía Industrial Argentina Sociedad Anónima Q4 2023 Earnings Report $10.94 -0.18 (-1.62%) Closing price 03:59 PM EasternExtended Trading$11.00 +0.06 (+0.55%) As of 04:29 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. Earnings HistoryForecast Loma Negra Compañía Industrial Argentina Sociedad Anónima EPS ResultsActual EPS-$0.41Consensus EPS N/ABeat/MissN/AOne Year Ago EPSN/ALoma Negra Compañía Industrial Argentina Sociedad Anónima Revenue ResultsActual Revenue$242.13 millionExpected RevenueN/ABeat/MissN/AYoY Revenue GrowthN/ALoma Negra Compañía Industrial Argentina Sociedad Anónima Announcement DetailsQuarterQ4 2023Date3/6/2024TimeN/AConference Call DateThursday, March 7, 2024Conference Call Time10:00AM ETUpcoming EarningsLoma Negra Compañía Industrial Argentina Sociedad Anónima's Q1 2025 earnings is scheduled for Thursday, May 8, 2025, with a conference call scheduled on Wednesday, May 7, 2025 at 10:00 AM ET. Check back for transcripts, audio, and key financial metrics as they become available.Conference Call ResourcesConference Call AudioConference Call TranscriptSlide DeckPress Release (8-K)Earnings HistoryCompany ProfileSlide DeckFull Screen Slide DeckPowered by Loma Negra Compañía Industrial Argentina Sociedad Anónima Q4 2023 Earnings Call TranscriptProvided by QuartrMarch 7, 2024 ShareLink copied to clipboard.There are 9 speakers on the call. Operator00:00:02Good morning, and welcome to the Loma Negra 4th Quarter 2023 Conference Call and Webcast. All participants will be in a listen only mode. After today's presentation, there will be an opportunity to ask questions. Also, Mr. Sergio Feifman will be responding in Spanish immediately following an English translation. Operator00:00:41Please note this event is being recorded. I would now like to turn the conference over to Mr. Diego Jailan, Head of IR. Please go ahead, Diego. Speaker 100:00:53The conference is now being recorded. The conference is no longer being recorded. Speaker 200:02:33Thank you. Good morning, and welcome to Loma Negra's earnings conference call. By now, everyone should have access to our earnings press release and the presentation for today's call, both of which were distributed yesterday after market close. Joining me on the call this morning will be Sergio Feifman, our CEO and Vice President of the Board of Directors and our CFO, Marco Claudine. Both of them will be available for the Q and A session. Speaker 200:03:02Before we proceed, I would like to make the following safe harbor statements. Today's call will contain forward looking statements, and I refer you to the forward looking statements section of our earnings release and recent filing with the SEC. We resume no obligation to update or revise any forward looking statements to reflect new or changed events or circumstances. This conference call will also include discussion on non GAAP financial measures. The full reconciliation of the corresponding financial measures is included in the earnings press release. Speaker 200:03:41Now I would like to turn the call over to Sergio. Speaker 300:03:45Thank you, Diego. Hello, everyone, and thank you for showing us this morning. I would like to begin my presentation with a discussion of the highlights of the quarter and then Marcos will take you through our market review and financial result. After that, I provide some final remarks and then we will open the call to our questions. Starting with slide 2, I'm delighted to share with you our performance for the final quarter of the year, despite concurrent challenging resulting for the political transition and evolving economic environment, which impacted second semester activity level. Speaker 300:04:27The industry concluded the year with dispatch volume that ranked only behind the record year of 2022. In this context, Ploma has once again demonstrated its resilience, delivering another solid set of results despite the decrease in our top line, which reached Ps. 99,000,000,000, marking a decrease of 13.2%. This decline was primarily due to the volume contraction in our core cement. Assessment EBITDA stood at $61,000,000 for the quarter or ARS22,700,000,000. Speaker 300:05:08The year on year comparison is affected by the sale of non core assets for $19,000,000 in the Q4 of 2022. Excluding this effect, EBITDA decreased by 25.8%. Consolidated adjustment EBITDA margin for the quarter reached 22.8%, contracting by 389 basic points once we eliminated the extraordinary results for the base of comparison. On the other hand, the US dollar EBITDA per ton stood at $39 for the quarter, almost flat year on year once we subtracted the asset sale and improving by 7% in a secondary basis. Looking to our annual figure rates, in 2023, we reached a solid EBITDA of $252,000,000 with an EBITDA margin of 23.8 percent. Speaker 300:06:13On the financial side, we used our Class 4 domestic bond. Throughout the year, we have successfully carried out our local bond insurance, taking advantage of the favorable moment for solid corporate credits. During the quarter, we can sell all the remaining cross border short term debt reaching a net debt of $174,000,000 Please turn to Slide 4 for a review of our ESG highlights for the years. We take great satisfaction utilizing a new addition of the Loma Negra sustainability report, aiming to share our journey and dedication to sustainable development with all stakeholders. Regarding the environmental spec, our total greenhouse gas emission intensity scope 12 stood at 527.36 kilogram of CO2 per ton of centimeter material, increasing 0.75 percent year on year due to the variation of the clinker stock compared to 2022. Speaker 300:07:31However, without considering the clinker stock variation, the performance was positive with a reduction of 1.4% in kilogram of CO2 per ton of cement equivalent. In line with our 20 Seri sustainable commitments, we reduced the water extraction by 15.5% and decreased 10% our solid waste generation. One of our main commitments in term of environmental sustainability is the reduction of our carbon footprint and the goal of achieving carbon neutrality in concrete by 2015. We have a long way to go in pursuit of these objectives that was consolidated in 2023 with the cremated roadmap to 2013. This commitment includes an action and investment plan basis mainly on 4 dimensions: clinker factor, thermal efficiency, electric efficiency and fuel mix. Speaker 300:08:39In pursuit of this goal, we formed inter area and interdisciplinary teams with the purpose of continuing to work on a portfolio of the idea, solution and investment required to achieve the reduction goal set for 2013. On the social side, we are convinced that through a strategic partnership, we can transform a reality to ensure a more inclusive future. We maintain the implementation of our program in different territories of the country, benefit more than 80,000 people. Guided by our principal, we are all Loma, We held the 1st diversity and inclusion week and we reached more than 50,000 hours of training for our employees, specifically in training of diversity, equity and inclusion topic which is 648 hours of training. Regarding the government aspect, we continue training our people of the company interim program where we cover 100% of our employees and reinforcing the commitment to ethical and transparency. Speaker 300:09:51We held the compliant week for the 2nd times, which was an opportunity to reinforce message and share content related to ethical and integrity issue, antitrust, ethical line, ethical behavior and civil security. With different tools and mechanisms, we reached more than 8 hungry employees. We continue to evolve and travel the past commitment to the challenges that the context improves and us. It is a path that we walk through in an ethical, responsible and sustainable leader manner. This report reflects such paths. Speaker 300:10:32I invite you to read it to now the most outstanding results of our company. I will now hand off the call to Marco Gradin, who will walk you through our market review and financial results. Please, Marcos, go ahead. Speaker 400:10:50Thank you, Sergio, and good morning, everyone. Please turn to Slide 6. As you can see on the upper left chart, the most recent estimates indicate a negative performance of the economy for 2023 of around 1.6%. In the same sense, the market expectation report from the Central Bank signals a negative performance for 2024, showing a decrease of 3% and then a recovery in 2025. When we dive into the numbers for our industry, we can see that after a positive October, the construction activity indicator shows a significant drop in the last 2 months of the quarter, deepening the drop in January. Speaker 400:11:34Following this trend, 70s budget showed a double digit decrease in November December and a sharp drop in the 1st month of 2024. After several months of election process volatility, sales in the National Cement Industry are being affected by the political transition and the consequent effects of tighter economic policies. The industry's bulk cement dispatches took a hit due to lower level of activity in the Q4, decreasing by 12% year on year, while bulk cement post a moderate construction of 5%. While looking at the breakdown by dispatch mode for the quarter, bag shipments represents 44% of the total dispatches, in line with the figure reached for the whole year and 2 percentage points above the Q4 of 2022. After the conclusion of the dispel that certainty about the economic direction and find a certain political balance to enable our activation of the industry and lay the foundations for a stage of genuine growth. Speaker 400:12:45Turning to Slide 7 for a review of our top line performance by segment, also followed by the other businesses. The Cement measured in Cement Online segment was down 16% with volumes contracted by 10.1% year on year, mainly due to the impact of the economic environment on bulk mode dispatches. Bulk cement sales also decreased following the trend of previous quarter. Lower volumes were coupled with softer by dynamic, which Spice adjusted for inflation experienced a decline due to elevated monthly inflation figures and the timing of the price adjustments. Concrete revenues decreased by 12.3% in the quarter, mainly due to the 17.5% decrease in dispatches, Major projects, which are the market target for our concrete operation, experienced a slowdown due to macroeconomic uncertainty. Speaker 400:13:53While Public Works entered standby mode after the elections awaiting future definitions. Aggregates segment show a decrease of 9.5% with sales volume down 12.3%, partially offset by a good price performance. In the same day, railroad revenues decreased by 10.5% in the quarter. Transported volumes were down by 9%, primarily affected by the lower level of activity in the construction sector, which impacted our main cargo shippers, especially in aquacades. Additionally, a storm that hit Bahia Blanca in December temporarily knocked out of service the 2 plants from which we transport chemicals to Buenos Aires. Speaker 400:14:37For the FY 2023, consolidated revenues were down 6.3% to ARS422,000,000,000 from ARS452,000,000,000 in 2022, with cement volumes contracted by 4.5% from the record year of 20 22. Moving on to slide 9. Consolidated gross profit for the quarter declined 14.3% with a margin contraction of only 36 basis points to 26.2 percent, mainly due to the cost improvements in the cement segments and lower depreciation. Regarding the cement segment, the reduction of energy inputs was primarily driven by lower consumption of thermal energy per ton, coupled with a decrease in natural gas prices. In the same sense, the cost of electrical energy improved as a proportion of hydraulic energy, which has a lower cost increasing the country's electrical generation metrics. Speaker 400:15:40Finally, while SG and A expenses remain flat with a variation of only 0.1% year on year as a percentage of sales, it show an year over year increase of 132 basis points, reaching 10% due to the decrease in the top line. For the fiscal year 2023, gross profit was down 13.2% with a margin contraction of 192 basis points. Please turn to Slide 10. Our adjusted EBITDA for the quarter stood at $61,000,000 reaching a very robust figure amidst a challenging environment. In pesos, adjusted EBITDA was down 44.7% in the quarter, reaching ARS22.7 billion with a consolidated EBITDA margin of 22.8 percent. Speaker 400:16:34As mentioned earlier, the year on year comparison is affected by a non core asset sale in the Q4 of 2022. Eliminating that effect, adjusted EBITDA in pesos was down 25.8% with the margin contracting by 389 basis points, in line with previous quarterly results. Segment segment adjusted EBITDA stood at 26.6 percent, contracting 217 basis points, excluding the sale of assets. The cost improvement that I mentioned before, mainly in energy inputs, partially offset the lower top line performance. In a per ton basis, EBITDA reached $39 per ton with almost no variation year on year once we subtract the asset sales and improve by 7% from the previous quarter. Speaker 400:17:28Concrete adjusted EBITDA decreased ARS 161,000,000 compared to Q4 of a year ago, with a margin contraction of 129 basis points, reaching 1.5%. Despite the cost and expense control, it couldn't fully offset the lower top line performance. The adjusted EBITDA margin of aggregates contracted to 14.2% from 25.9% in the Q4 of 2020 22, mainly due to higher sales cost and the effect of lower volumes, partially compensated by a positive price performance. Finally, the adjusted EBITDA margin on the railroad contracted 9 22 basis points to minus 4.2% in the Q4 from 5.1% in the Q4 of 2022, principally due to higher costs coupled with lower transported volumes. For the full year 2023 adjusted EBITDA reached the figure of US252 $1,000,000 Moving on to the bottom line on Slide 12. Speaker 400:18:45This quarter, we posted a net loss attributable to owners of the company of ARS19.8 billion compared to a net profit of ARS 22,700,000 in the Q4 of 2022. The higher total financial cost due to December's chart evaluation of the Argentine pesos along with the sale of the non core assets in the Q4 of 2022 are the principal reasons for the evaluation. Total net financial costs stood at ARS 14,300,000,000 this quarter from a total financial gain of ARS 1,200,000,000 the same quarter last year, mainly due to the impact of the devaluation of the peso in the exchange rate difference, partially offset by a gain in the net monetary position. In the same sense, we had an increase in the financial expense due to higher debt position. For the full year, net income attributable to owner of the company increased 70.7 percent year on year to ARS 10,300,000,000 from ARS 6,000,000,000 in fiscal year 2022, mainly as a result of a lower total net financial cost coupled with a lower tax position that compensated a lower operational result. Speaker 400:20:09Moving on to the balance sheet. As you can see on Slide 14, we ended the quarter with a cash position of ARS 6,700,000,000 and a total debt of ARS147.4 billion in this quarter. Consequently, our net debt to EBITDA ratio stood at 1.4x compared to 0.37x at the end of 2022. Our operation cash generation stood at MXN 26,200,000,000, where the decrease in the net profit adjusted to reconcile to net cash provided by operational activities was partially compensated by a positive effect of the working capital, mainly due to lower income tax advances. Regarding capital expenditures, we allocated ARS18 point 2,000,000,000 mostly for maintenance CapEx and ongoing project of adapting our dispatch facilities to use 25 kilograms bags. Speaker 400:21:12During the quarter, the company used cash in financial activities for ARS 31 1,000,000,000 mainly for the repayments of borrowers and interest. We also issued a Class IV bond that along with short term borrowings partially offset these effects. In dollar terms, our total debt reached $182,000,000 standing our net debt up to $174,000,000 at the end of this quarter, with a decrease of $41,000,000 during the quarter. During this period, we canceled all the remaining short term U. S. Speaker 400:21:52Dollar cross border debt, extending the average duration and reducing the financial cost. Now in 2024, we only have maturities of the MXN. Breaking it down by currency, the dollar denominated debt represents 76% of the total debt, while the rest is in pesos. Additionally, as we mentioned before during the quarter, the company issued its Class IV domestic bonds denominated in U. S. Speaker 400:22:20Dollar for a total amount of $10,000,000 with maturity in the Q2 of 2026 and accruing an interest rate of 6% per year. 2023, we paid approximately $120,000,000 in dividends, which represents $1 per early year similar to what we paid in 2022. Now for our final remarks, I would like to hand the call back to Sergio. Thank you. Speaker 300:22:51Thank you, Marcos. Now to finalize the presentation, I please ask you to time to slide 15. We are very proud of the result achieved by Loma in 2023, despite the lower volume of the Q4 that were more affected by the end of the period due to the political transition. We must lose since that 2023 was the 2nd best year for the industry in term of volume, only behind the record achieving in 2022. Thirdly, the electoral process and the subsequent change in administration have induced uncertainty, impacting the level of activity Industry stakeholders are cautioned and awaiting the government's initial action and the stabilization of key economic indicators. Speaker 300:23:48Despite the significant drop in activity level evidence in the 1st months of the year, we remain optimistic but aware that the path to recovery we are winning and full of the challenges. Argentina has great growth potential, which will be unleaded if the country manages to start moving along to the right path. In that scenario, Loma has the capacity to support and bolster the country development, fulfilling and role as industry leaders. Finally, I would like to thank all our employees for the commitment they have showed throughout the year. I also want to express gratitude to the rest of our stakeholders for beginning close to us for another years. Speaker 300:24:42Ambulancely, together, we can't face any change that this new year might bring. This is end of our prepared remarks. We are now ready to take questions. Operator, please open the call for questions. Operator00:25:34If you have additional questions, you may re queue for those questions and they will be addressed. Also, please note that Mr. Sergio Feifman will be responding in Spanish immediately following an English translation. Please hold momentarily while we assemble our roster. Our first question is from Daniel Rojas of Bank of America. Operator00:25:57Please go ahead. Speaker 500:26:00Good morning, gentlemen. Can you hear me? Speaker 600:26:05Hello? Operator00:26:09Yes, sir. We can hear you. Please go ahead. Speaker 500:26:12Hello. Looking at the contraction in margin, the 389 basis points you mentioned that excludes the asset sale. Could you please give us a little bit more details on what's behind this? What factors lie behind the lower margin and what we should expect going forward? Thank you. Speaker 600:26:53Daniel, thank you for your question. I will respond to that, that margins are not descending. Obviously, when compared year on year, they are contracting because Speaker 700:27:06of the Speaker 600:27:06lower volumes and the heating on the top line. But if you saw it on a sequential basis, quarter over quarter, margins are stable. But the principal factor, obviously, is the lower volume. Speaker 500:27:27Okay. And if I may follow-up, now that the new President has been in office for a few months, Can you give us some color on how you're seeing activity going forward? Is his new team already on board? Do you see a faster or lower transition that you might have expected? We just want to get an idea of how we should expect the year to roll out. Speaker 600:28:03Daniela, obviously, the year and the 3rd month are being hit. Yes, the volume is in a level of 20%, 25%. We expect the upcoming month to continue more or less on this pace. But then for the second half of the year, economy began to pick up and that's where we are going to see a pickup of certain volumes. But obviously, the number is going to be negative for the year. Speaker 500:28:45Thank you. Operator00:28:57Our next question is from George Venas of Latin Securities. Please go ahead. Speaker 700:29:05Thank you. Good evening and thank you for the presentation. The concern is about the pricing environment in the current recessionary scenario. Given the deepening of the contraction in these patches, how is the pricing evolving and what should we expect for the next couple of quarters. Speaker 800:29:51Regarding prices, since December is up to date, we are above inflation in the pricing dynamic. Our actual price for is above the one that we had in December. We expect this trend to continue even though if we see some discrete movement of the effects, we will act Speaker 700:30:34accordingly. Thank you very much. Operator00:30:43And this concludes our question and answer session. I would like to turn the conference back over to Diego Geland for any closing remarks. Speaker 800:30:54Thank you for joining us today. We truly appreciate your interest in our company. Allow me to remind you that we issue our 3rd edition of our Sustainability Report, and it's available on our website, and we invite you to have a look at it. As always, we look forward to meeting you again in our next call. And in the meantime, we are available for any questions that you may have. Speaker 800:31:19Thank you, and have a nice Speaker 400:31:23day.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallLoma Negra Compañía Industrial Argentina Sociedad Anónima Q4 202300:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsSlide DeckPress Release(8-K) Loma Negra Compañía Industrial Argentina Sociedad Anónima Earnings HeadlinesB of A Securities Upgrades Loma Negra Compañía Industrial Argentina Sociedad Anónima - Depositary Receipt () (LOMA)April 24, 2025 | msn.comLoma Negra Compania Industrial Argentina Sociedad Anonima ADS (LOMA)April 20, 2025 | nasdaq.comHere’s How to Claim Your Stake in Elon’s Private Company, xAII predict this single breakthrough could make Elon the world’s first trillionaire — and mint more new millionaires than any tech advance in history. And for a limited time, you have the chance to claim a stake in this project, even though it’s housed inside Elon’s private company, xAI.May 5, 2025 | Brownstone Research (Ad)Loma Negra: A Cement Giant Waiting For RecoveryApril 6, 2025 | seekingalpha.comWhat Does Loma Negra Compañía Industrial Argentina Sociedad Anónima's (NYSE:LOMA) Share Price Indicate?April 4, 2025 | finance.yahoo.comMorgan Stanley Sticks to Their Hold Rating for Loma Negra Compania Industrial Argentina Sociedad Anonima (LOMA)March 27, 2025 | markets.businessinsider.comSee More Loma Negra Compañía Industrial Argentina Sociedad Anónima Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Loma Negra Compañía Industrial Argentina Sociedad Anónima? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Loma Negra Compañía Industrial Argentina Sociedad Anónima and other key companies, straight to your email. Email Address About Loma Negra Compañía Industrial Argentina Sociedad AnónimaLoma Negra Compañía Industrial Argentina Sociedad Anónima (NYSE:LOMA), together with its subsidiaries, manufactures and sells cement and its derivatives in Argentina. The company operates through Cement, Masonry Cement and Lime; Concrete; Railroad; Aggregates; and Others segments. It offers masonry cement, aggregates, ready-mix concrete, concrete, and lime to wholesale distributors, concrete producers, industrial customers, and others for use in the construction. The company also provides rail transportation services; and treats and recycles industrial waste for use as fuel and raw material. It markets its products under the Loma Negra, San Martín, Plasticor, Cacique Plus, Cacique Max, Loma Negra Plus, and Lomax brands. The company was founded in 1926 and is based in Buenos Aires, Argentina. Loma Negra Compañía Industrial Argentina Sociedad Anónima is a subsidiary of Intercement Trading E Inversiones Argentina Sociedad Limitada.View Loma Negra Compañía Industrial Argentina Sociedad Anónima ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Is Reddit Stock a Buy, Sell, or Hold After Earnings Release?Warning or Opportunity After Super Micro Computer's EarningsAmazon Earnings: 2 Reasons to Love It, 1 Reason to Be CautiousRocket Lab Braces for Q1 Earnings Amid Soaring ExpectationsMeta Takes A Bow With Q1 Earnings - Watch For Tariff Impact in Q2Palantir Earnings: 1 Bullish Signal and 1 Area of ConcernVisa Q2 Earnings Top Forecasts, Adds $30B Buyback Plan Upcoming Earnings American Electric Power (5/6/2025)Advanced Micro Devices (5/6/2025)Marriott International (5/6/2025)Constellation Energy (5/6/2025)Arista Networks (5/6/2025)Brookfield Asset Management (5/6/2025)Duke Energy (5/6/2025)Energy Transfer (5/6/2025)Mplx (5/6/2025)Ferrari (5/6/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. 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There are 9 speakers on the call. Operator00:00:02Good morning, and welcome to the Loma Negra 4th Quarter 2023 Conference Call and Webcast. All participants will be in a listen only mode. After today's presentation, there will be an opportunity to ask questions. Also, Mr. Sergio Feifman will be responding in Spanish immediately following an English translation. Operator00:00:41Please note this event is being recorded. I would now like to turn the conference over to Mr. Diego Jailan, Head of IR. Please go ahead, Diego. Speaker 100:00:53The conference is now being recorded. The conference is no longer being recorded. Speaker 200:02:33Thank you. Good morning, and welcome to Loma Negra's earnings conference call. By now, everyone should have access to our earnings press release and the presentation for today's call, both of which were distributed yesterday after market close. Joining me on the call this morning will be Sergio Feifman, our CEO and Vice President of the Board of Directors and our CFO, Marco Claudine. Both of them will be available for the Q and A session. Speaker 200:03:02Before we proceed, I would like to make the following safe harbor statements. Today's call will contain forward looking statements, and I refer you to the forward looking statements section of our earnings release and recent filing with the SEC. We resume no obligation to update or revise any forward looking statements to reflect new or changed events or circumstances. This conference call will also include discussion on non GAAP financial measures. The full reconciliation of the corresponding financial measures is included in the earnings press release. Speaker 200:03:41Now I would like to turn the call over to Sergio. Speaker 300:03:45Thank you, Diego. Hello, everyone, and thank you for showing us this morning. I would like to begin my presentation with a discussion of the highlights of the quarter and then Marcos will take you through our market review and financial result. After that, I provide some final remarks and then we will open the call to our questions. Starting with slide 2, I'm delighted to share with you our performance for the final quarter of the year, despite concurrent challenging resulting for the political transition and evolving economic environment, which impacted second semester activity level. Speaker 300:04:27The industry concluded the year with dispatch volume that ranked only behind the record year of 2022. In this context, Ploma has once again demonstrated its resilience, delivering another solid set of results despite the decrease in our top line, which reached Ps. 99,000,000,000, marking a decrease of 13.2%. This decline was primarily due to the volume contraction in our core cement. Assessment EBITDA stood at $61,000,000 for the quarter or ARS22,700,000,000. Speaker 300:05:08The year on year comparison is affected by the sale of non core assets for $19,000,000 in the Q4 of 2022. Excluding this effect, EBITDA decreased by 25.8%. Consolidated adjustment EBITDA margin for the quarter reached 22.8%, contracting by 389 basic points once we eliminated the extraordinary results for the base of comparison. On the other hand, the US dollar EBITDA per ton stood at $39 for the quarter, almost flat year on year once we subtracted the asset sale and improving by 7% in a secondary basis. Looking to our annual figure rates, in 2023, we reached a solid EBITDA of $252,000,000 with an EBITDA margin of 23.8 percent. Speaker 300:06:13On the financial side, we used our Class 4 domestic bond. Throughout the year, we have successfully carried out our local bond insurance, taking advantage of the favorable moment for solid corporate credits. During the quarter, we can sell all the remaining cross border short term debt reaching a net debt of $174,000,000 Please turn to Slide 4 for a review of our ESG highlights for the years. We take great satisfaction utilizing a new addition of the Loma Negra sustainability report, aiming to share our journey and dedication to sustainable development with all stakeholders. Regarding the environmental spec, our total greenhouse gas emission intensity scope 12 stood at 527.36 kilogram of CO2 per ton of centimeter material, increasing 0.75 percent year on year due to the variation of the clinker stock compared to 2022. Speaker 300:07:31However, without considering the clinker stock variation, the performance was positive with a reduction of 1.4% in kilogram of CO2 per ton of cement equivalent. In line with our 20 Seri sustainable commitments, we reduced the water extraction by 15.5% and decreased 10% our solid waste generation. One of our main commitments in term of environmental sustainability is the reduction of our carbon footprint and the goal of achieving carbon neutrality in concrete by 2015. We have a long way to go in pursuit of these objectives that was consolidated in 2023 with the cremated roadmap to 2013. This commitment includes an action and investment plan basis mainly on 4 dimensions: clinker factor, thermal efficiency, electric efficiency and fuel mix. Speaker 300:08:39In pursuit of this goal, we formed inter area and interdisciplinary teams with the purpose of continuing to work on a portfolio of the idea, solution and investment required to achieve the reduction goal set for 2013. On the social side, we are convinced that through a strategic partnership, we can transform a reality to ensure a more inclusive future. We maintain the implementation of our program in different territories of the country, benefit more than 80,000 people. Guided by our principal, we are all Loma, We held the 1st diversity and inclusion week and we reached more than 50,000 hours of training for our employees, specifically in training of diversity, equity and inclusion topic which is 648 hours of training. Regarding the government aspect, we continue training our people of the company interim program where we cover 100% of our employees and reinforcing the commitment to ethical and transparency. Speaker 300:09:51We held the compliant week for the 2nd times, which was an opportunity to reinforce message and share content related to ethical and integrity issue, antitrust, ethical line, ethical behavior and civil security. With different tools and mechanisms, we reached more than 8 hungry employees. We continue to evolve and travel the past commitment to the challenges that the context improves and us. It is a path that we walk through in an ethical, responsible and sustainable leader manner. This report reflects such paths. Speaker 300:10:32I invite you to read it to now the most outstanding results of our company. I will now hand off the call to Marco Gradin, who will walk you through our market review and financial results. Please, Marcos, go ahead. Speaker 400:10:50Thank you, Sergio, and good morning, everyone. Please turn to Slide 6. As you can see on the upper left chart, the most recent estimates indicate a negative performance of the economy for 2023 of around 1.6%. In the same sense, the market expectation report from the Central Bank signals a negative performance for 2024, showing a decrease of 3% and then a recovery in 2025. When we dive into the numbers for our industry, we can see that after a positive October, the construction activity indicator shows a significant drop in the last 2 months of the quarter, deepening the drop in January. Speaker 400:11:34Following this trend, 70s budget showed a double digit decrease in November December and a sharp drop in the 1st month of 2024. After several months of election process volatility, sales in the National Cement Industry are being affected by the political transition and the consequent effects of tighter economic policies. The industry's bulk cement dispatches took a hit due to lower level of activity in the Q4, decreasing by 12% year on year, while bulk cement post a moderate construction of 5%. While looking at the breakdown by dispatch mode for the quarter, bag shipments represents 44% of the total dispatches, in line with the figure reached for the whole year and 2 percentage points above the Q4 of 2022. After the conclusion of the dispel that certainty about the economic direction and find a certain political balance to enable our activation of the industry and lay the foundations for a stage of genuine growth. Speaker 400:12:45Turning to Slide 7 for a review of our top line performance by segment, also followed by the other businesses. The Cement measured in Cement Online segment was down 16% with volumes contracted by 10.1% year on year, mainly due to the impact of the economic environment on bulk mode dispatches. Bulk cement sales also decreased following the trend of previous quarter. Lower volumes were coupled with softer by dynamic, which Spice adjusted for inflation experienced a decline due to elevated monthly inflation figures and the timing of the price adjustments. Concrete revenues decreased by 12.3% in the quarter, mainly due to the 17.5% decrease in dispatches, Major projects, which are the market target for our concrete operation, experienced a slowdown due to macroeconomic uncertainty. Speaker 400:13:53While Public Works entered standby mode after the elections awaiting future definitions. Aggregates segment show a decrease of 9.5% with sales volume down 12.3%, partially offset by a good price performance. In the same day, railroad revenues decreased by 10.5% in the quarter. Transported volumes were down by 9%, primarily affected by the lower level of activity in the construction sector, which impacted our main cargo shippers, especially in aquacades. Additionally, a storm that hit Bahia Blanca in December temporarily knocked out of service the 2 plants from which we transport chemicals to Buenos Aires. Speaker 400:14:37For the FY 2023, consolidated revenues were down 6.3% to ARS422,000,000,000 from ARS452,000,000,000 in 2022, with cement volumes contracted by 4.5% from the record year of 20 22. Moving on to slide 9. Consolidated gross profit for the quarter declined 14.3% with a margin contraction of only 36 basis points to 26.2 percent, mainly due to the cost improvements in the cement segments and lower depreciation. Regarding the cement segment, the reduction of energy inputs was primarily driven by lower consumption of thermal energy per ton, coupled with a decrease in natural gas prices. In the same sense, the cost of electrical energy improved as a proportion of hydraulic energy, which has a lower cost increasing the country's electrical generation metrics. Speaker 400:15:40Finally, while SG and A expenses remain flat with a variation of only 0.1% year on year as a percentage of sales, it show an year over year increase of 132 basis points, reaching 10% due to the decrease in the top line. For the fiscal year 2023, gross profit was down 13.2% with a margin contraction of 192 basis points. Please turn to Slide 10. Our adjusted EBITDA for the quarter stood at $61,000,000 reaching a very robust figure amidst a challenging environment. In pesos, adjusted EBITDA was down 44.7% in the quarter, reaching ARS22.7 billion with a consolidated EBITDA margin of 22.8 percent. Speaker 400:16:34As mentioned earlier, the year on year comparison is affected by a non core asset sale in the Q4 of 2022. Eliminating that effect, adjusted EBITDA in pesos was down 25.8% with the margin contracting by 389 basis points, in line with previous quarterly results. Segment segment adjusted EBITDA stood at 26.6 percent, contracting 217 basis points, excluding the sale of assets. The cost improvement that I mentioned before, mainly in energy inputs, partially offset the lower top line performance. In a per ton basis, EBITDA reached $39 per ton with almost no variation year on year once we subtract the asset sales and improve by 7% from the previous quarter. Speaker 400:17:28Concrete adjusted EBITDA decreased ARS 161,000,000 compared to Q4 of a year ago, with a margin contraction of 129 basis points, reaching 1.5%. Despite the cost and expense control, it couldn't fully offset the lower top line performance. The adjusted EBITDA margin of aggregates contracted to 14.2% from 25.9% in the Q4 of 2020 22, mainly due to higher sales cost and the effect of lower volumes, partially compensated by a positive price performance. Finally, the adjusted EBITDA margin on the railroad contracted 9 22 basis points to minus 4.2% in the Q4 from 5.1% in the Q4 of 2022, principally due to higher costs coupled with lower transported volumes. For the full year 2023 adjusted EBITDA reached the figure of US252 $1,000,000 Moving on to the bottom line on Slide 12. Speaker 400:18:45This quarter, we posted a net loss attributable to owners of the company of ARS19.8 billion compared to a net profit of ARS 22,700,000 in the Q4 of 2022. The higher total financial cost due to December's chart evaluation of the Argentine pesos along with the sale of the non core assets in the Q4 of 2022 are the principal reasons for the evaluation. Total net financial costs stood at ARS 14,300,000,000 this quarter from a total financial gain of ARS 1,200,000,000 the same quarter last year, mainly due to the impact of the devaluation of the peso in the exchange rate difference, partially offset by a gain in the net monetary position. In the same sense, we had an increase in the financial expense due to higher debt position. For the full year, net income attributable to owner of the company increased 70.7 percent year on year to ARS 10,300,000,000 from ARS 6,000,000,000 in fiscal year 2022, mainly as a result of a lower total net financial cost coupled with a lower tax position that compensated a lower operational result. Speaker 400:20:09Moving on to the balance sheet. As you can see on Slide 14, we ended the quarter with a cash position of ARS 6,700,000,000 and a total debt of ARS147.4 billion in this quarter. Consequently, our net debt to EBITDA ratio stood at 1.4x compared to 0.37x at the end of 2022. Our operation cash generation stood at MXN 26,200,000,000, where the decrease in the net profit adjusted to reconcile to net cash provided by operational activities was partially compensated by a positive effect of the working capital, mainly due to lower income tax advances. Regarding capital expenditures, we allocated ARS18 point 2,000,000,000 mostly for maintenance CapEx and ongoing project of adapting our dispatch facilities to use 25 kilograms bags. Speaker 400:21:12During the quarter, the company used cash in financial activities for ARS 31 1,000,000,000 mainly for the repayments of borrowers and interest. We also issued a Class IV bond that along with short term borrowings partially offset these effects. In dollar terms, our total debt reached $182,000,000 standing our net debt up to $174,000,000 at the end of this quarter, with a decrease of $41,000,000 during the quarter. During this period, we canceled all the remaining short term U. S. Speaker 400:21:52Dollar cross border debt, extending the average duration and reducing the financial cost. Now in 2024, we only have maturities of the MXN. Breaking it down by currency, the dollar denominated debt represents 76% of the total debt, while the rest is in pesos. Additionally, as we mentioned before during the quarter, the company issued its Class IV domestic bonds denominated in U. S. Speaker 400:22:20Dollar for a total amount of $10,000,000 with maturity in the Q2 of 2026 and accruing an interest rate of 6% per year. 2023, we paid approximately $120,000,000 in dividends, which represents $1 per early year similar to what we paid in 2022. Now for our final remarks, I would like to hand the call back to Sergio. Thank you. Speaker 300:22:51Thank you, Marcos. Now to finalize the presentation, I please ask you to time to slide 15. We are very proud of the result achieved by Loma in 2023, despite the lower volume of the Q4 that were more affected by the end of the period due to the political transition. We must lose since that 2023 was the 2nd best year for the industry in term of volume, only behind the record achieving in 2022. Thirdly, the electoral process and the subsequent change in administration have induced uncertainty, impacting the level of activity Industry stakeholders are cautioned and awaiting the government's initial action and the stabilization of key economic indicators. Speaker 300:23:48Despite the significant drop in activity level evidence in the 1st months of the year, we remain optimistic but aware that the path to recovery we are winning and full of the challenges. Argentina has great growth potential, which will be unleaded if the country manages to start moving along to the right path. In that scenario, Loma has the capacity to support and bolster the country development, fulfilling and role as industry leaders. Finally, I would like to thank all our employees for the commitment they have showed throughout the year. I also want to express gratitude to the rest of our stakeholders for beginning close to us for another years. Speaker 300:24:42Ambulancely, together, we can't face any change that this new year might bring. This is end of our prepared remarks. We are now ready to take questions. Operator, please open the call for questions. Operator00:25:34If you have additional questions, you may re queue for those questions and they will be addressed. Also, please note that Mr. Sergio Feifman will be responding in Spanish immediately following an English translation. Please hold momentarily while we assemble our roster. Our first question is from Daniel Rojas of Bank of America. Operator00:25:57Please go ahead. Speaker 500:26:00Good morning, gentlemen. Can you hear me? Speaker 600:26:05Hello? Operator00:26:09Yes, sir. We can hear you. Please go ahead. Speaker 500:26:12Hello. Looking at the contraction in margin, the 389 basis points you mentioned that excludes the asset sale. Could you please give us a little bit more details on what's behind this? What factors lie behind the lower margin and what we should expect going forward? Thank you. Speaker 600:26:53Daniel, thank you for your question. I will respond to that, that margins are not descending. Obviously, when compared year on year, they are contracting because Speaker 700:27:06of the Speaker 600:27:06lower volumes and the heating on the top line. But if you saw it on a sequential basis, quarter over quarter, margins are stable. But the principal factor, obviously, is the lower volume. Speaker 500:27:27Okay. And if I may follow-up, now that the new President has been in office for a few months, Can you give us some color on how you're seeing activity going forward? Is his new team already on board? Do you see a faster or lower transition that you might have expected? We just want to get an idea of how we should expect the year to roll out. Speaker 600:28:03Daniela, obviously, the year and the 3rd month are being hit. Yes, the volume is in a level of 20%, 25%. We expect the upcoming month to continue more or less on this pace. But then for the second half of the year, economy began to pick up and that's where we are going to see a pickup of certain volumes. But obviously, the number is going to be negative for the year. Speaker 500:28:45Thank you. Operator00:28:57Our next question is from George Venas of Latin Securities. Please go ahead. Speaker 700:29:05Thank you. Good evening and thank you for the presentation. The concern is about the pricing environment in the current recessionary scenario. Given the deepening of the contraction in these patches, how is the pricing evolving and what should we expect for the next couple of quarters. Speaker 800:29:51Regarding prices, since December is up to date, we are above inflation in the pricing dynamic. Our actual price for is above the one that we had in December. We expect this trend to continue even though if we see some discrete movement of the effects, we will act Speaker 700:30:34accordingly. Thank you very much. Operator00:30:43And this concludes our question and answer session. I would like to turn the conference back over to Diego Geland for any closing remarks. Speaker 800:30:54Thank you for joining us today. We truly appreciate your interest in our company. Allow me to remind you that we issue our 3rd edition of our Sustainability Report, and it's available on our website, and we invite you to have a look at it. As always, we look forward to meeting you again in our next call. And in the meantime, we are available for any questions that you may have. Speaker 800:31:19Thank you, and have a nice Speaker 400:31:23day.Read morePowered by