Loma Negra Reports 3Q24 results Buenos Aires, November 6, 2024 – Loma Negra, (NYSE: LOMA; BYMA: LOMA), (“Loma Negra” or the “Company”), the leading cement producer in Argentina, today announced results for the three-month period ended September 30, 2024 (our “3Q24 Results”). 3Q24 Key Highlights Net sales revenues stood at Ps. 180,686 million (US$ 185 million), and decreased by 21.2% YoY, mainly explained by a decrease of 21,0% in the Cement segment sales volumes. Consolidated Adjusted EBITDA reached Ps. 43,279 million, decreasing 18.5% YoY in pesos, while in dollars it reached 55 million, down 16.5% from 3Q23. The Consolidated Adjusted EBITDA margin stood at 24.0%, with an expansion of 78 basis points YoY from 23.2%, despite the lower volumes. Net Profit of Ps. 21,153 million, down 8.7% from Ps. 23,177 million in the same period of the previous year, where lower operational result was partially compensated with an improvement in the net total finance gain. Net Debt decreased to Ps. 171,888 million (US$177 million), representing a Net Debt/LTM Adjusted EBITDA ratio of 1.03x, compared to 1.40x in FY23, reflecting a reduction in indebtedness of US$40 million during the quarter. The Company has presented certain financial figures, Table 1b and Table 11, in U.S. dollars and Pesos without giving effect to IAS 29. The Company has prepared all other financial information herein by applying IAS 29. Commenting on the financial and operating performance for the third quarter of 2024, Sergio Faifman, Loma Negra’s Chief Executive Officer, noted: “We are pleased to present Loma Negra’s third-quarter results. Industry volumes this quarter showed a strong sequential improvement, rising 25%. While still below last year’s levels, the steady recovery in activity signals that the most challenging period is behind us. While economic challenges persist, we are already seeing encouraging results that give us confidence we are in the final stages of a transitional phase. As macroeconomic factors stabilize and the economic landscape improves, we anticipate a much stronger recovery ahead. Reviewing the numbers, this quarter LOMA achieved an Adjusted EBITDA of US$55 million, with an EBITDA margin expansion of 78 basis points, which is remarkable given the challenging scenario and the sharp drop on demand. It's important to note that third-quarter margins are always lower due to seasonal factors like higher energy costs. Regarding our balance sheet, this quarter we showed substantial deleveraging, where Net Debt stood at US$177 million, down US$40 million from the previous quarter. While we recognize the challenges that lie ahead, we are optimistic about the near-term future of our company and excited by the opportunities on the horizon."
Table 1: Financial Highlights (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended September 30, Nine-months ended September 30, 2024 2023 % Chg. 2024 2023 % Chg. Net revenue 180,686 229,223 -21.2% 485,991 650,629 -25.3% Gross Profit 40,774 53,306 -23.5% 120,569 161,041 -25.1% Gross Profit margin 22.6% 23.3% -69 bps 24.8% 24.8% +6 bps Adjusted EBITDA 43,279 53,113 -18.5% 120,708 156,574 -22.9% Adjusted EBITDA Mg. 24.0% 23.2% +78 bps 24.8% 24.1% +77 bps Net Profit (Loss) 21,153 23,177 -8.7% 121,735 60,210 102.2% Net Profit (Loss) attributable to owners of the Company 20,929 22,861 -8.5% 121,628 60,646 100.6% EPS 35.8696 39.1868 -8.5% 208.4535 103.9400 100.6% Average outstanding shares (*) 583 583 0.0% 583 583 0.0% Net Debt 171,888 232,202 -26.0% 171,888 232,202 -26.0% Net Debt /LTM Adjusted EBITDA 1.03x 0.97x 0.06x 1.03x 0.97x 0.06x (*) Net of shares repurchased Table 1b: Financial Highlights in Ps and in U.S. dollars (figures exclude the impact of IAS 29) In million Ps. Three-months ended September 30, Nine-months ended September 30, 2024 2023 % Chg. 2024 2023 % Chg. Net revenue 174,172 66,249 162.9% 407,229 152,118 167.7% Adjusted EBITDA 52,019 20,687 151.5% 131,554 47,386 177.6% Adjusted EBITDA Mg. 29.9% 31.2% -136 bps 32.3% 31.2% +115 bps Net Profit (Loss) 25,354 2,548 895.1% 63,720 15,558 309.6% Net Debt 171,888 75,146 128.7% 171,888 75,146 128.7% Net Debt /LTM Adjusted EBITDA 1.03x 0.97x 0.06x 1.03x 0.97x 0.06x In million US$ Three-months ended September 30, Nine-months ended September 30, 2024 2023 % Chg. 2024 2023 % Chg. Ps./US$, av 942.54 313.01 201.1% 888.82 247.07 259.7% Ps./US$, eop 970.92 350.01 177.4% 970.92 350.01 177.4% Net revenue 185 212 -12.7% 458 616 -25.6% Adjusted EBITDA 55 66 -16.5% 148 192 -22.8% Adjusted EBITDA Mg. 29.9% 31.2% -136 bps 32.3% 31.2% +115 bps Net Profit (Loss) 27 8 230.4% 72 63 13.9% Net Debt 177 215 -17.5% 177 215 -17.5% Net Debt /LTM Adjusted EBITDA 1.03x 0.97x 0.06x 1.03x 0.97x 0.06x
Overview of Operations Sales Volumes Table 2: Sales Volumes2 Three-months ended September 30, Nine-months ended September 30, 2024 2023 % Chg. 2024 2023 % Chg. Cement, masonry & lime MM Tn 1.44 1.74 -17.1% 3.59 4.89 -26.6% Concrete MM m3 0.12 0.15 -22.2% 0.29 0.46 -36.5% Railroad MM Tn 1.08 1.16 -7.0% 2.61 3.20 -18.6% Aggregates MM Tn 0.24 0.34 -28.7% 0.69 1.00 -31.2% 2 Sales volumes include inter-segment sales Sales volumes of Cement, masonry, and lime during 3Q24 decreased YoY by 17.1% to 1.4 million tons, although showing a significant sequential recovery of 32%, outperforming the industry’s recovery. Bagged cement is demonstrating stronger recovery, with only a single-digit decline year-over-year, while bulk cement dispatches continue to lag, as larger construction projects typically require more time for planning and execution once favorable economic conditions began to show up Similarly, public works continue to show low levels of activity, while the national government and provinces explore new frameworks to redefine public infrastructure investment. Regarding of the volume of the Concrete segment, there was a decrease of 22.2% year-over-year. Segment volumes followed the trend of bulk cement dispatches, showing a slower recovery, even though the sequential comparison showed a solid improvement of 28%. The incidence of the public sector is still very low, while national and provincial governments are discussing future steps. Similarly, volumes for the Aggregates segment declined 28.7% year-over-year. The Railway segment experienced a contraction of 7.0% compared to the same quarter of 2023. The lower transported volume of construction materials was almost fully offset by an improvement in grains, chemicals and fracsand. Review of Financial Results Table 3: Condensed Interim Consolidated Statements of Profit or Loss and Other Comprehensive Income (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended September 30, Nine-months ended September 30, 2024 2023 % Chg. 2024 2023 % Chg. Net revenue 180,686 229,223 -21.2% 485,991 650,629 -25.3% Cost of sales (139,911) (175,918) -20.5% (365,422) (489,589) -25.4% Gross profit 40,774 53,306 -23.5% 120,569 161,041 -25.1% Selling and administrative expenses (16,569) (19,027) -12.9% (48,440) (57,866) -16.3% Other gains and losses 1,198 809 48.1% 1,828 2,010 -9.1% Tax on debits and credits to bank accounts (1,821) (2,455) -25.8% (5,092) (7,246) -29.7% Finance gain (cost), net Gain on net monetary position 34,504 89,582 -61.5% 222,407 169,684 31.1% Exchange rate differences (9,570) (51,104) -81.3% (30,650) (88,817) -65.5% Financial income 567 551 3.0% 1,155 11,176 -89.7% Financial expense (12,902) (43,914) -70.6% (65,395) (109,660) -40.4% Profit (Loss) before taxes 36,182 27,749 30.4% 196,382 80,321 144.5% Income tax expense Current (13,652) 5,485 n/a (51,900) (7,753) 569.5% Deferred (1,377) (10,056) -86.3% (22,746) (12,359) 84.1% Net profit (Loss) 21,153 23,177 -8.7% 121,735 60,210 102.2% Net Revenues Net revenue decreased 21.2% to Ps. 180,686 million in 3Q24, from Ps. 229,223 million in the comparable quarter last year, mainly due to a lower top line performance of the Cement business, followed by the rest of the segments. The Cement, masonry cement, and lime segment was down 21.0% YoY, with volumes contracting by 17.1%. Bagged cement dispatches are showing a quicker recovery, while bulk cement has been more affected by the economic environment, the standstill
in public works, and lower activity levels in larger private projects. This effect is compounded by a softer pricing dynamic. With monthly inflation rates decreasing to low single digits, price increases are now more spaced out over time, allowing a more stable business environment. Concrete registered a decrease in its revenue of 29.7% compared to 3Q23. This was mainly due to lower volumes, which decreased by 22.2% coupled with lower price dynamic. Similarly, the Aggregates segment posted a decrease in revenue of 42.4%, with sales volumes dropping 28.7% coupled with a more competitive scenario that affected price dynamics. Railroad revenues showed a more moderate decrease of 4.7% in 3Q24 compared to the same quarter of 2023, as the lower transported volume, which decreased only 7.0% in the quarter, was partially offset with a positive price dynamic. Cost of sales, and Gross profit Cost of sales decreased by 20.5% YoY, reaching Ps. 139,911 million in 3Q24 compared to the same period of 2023, mainly due to the decrease in sales volumes across all segments, a lower impact of depreciations, and improved energy inputs. Regarding the cost of sales for cement, margins tend to tighten during this time of year due to seasonally higher energy inputs. Although this effect was mitigated by halting production in many of our kilns during the period and utilizing clinker stock, higher thermal and electrical energy costs impacted costs on a sequential basis. On the other hand, the significant improvement in sales volumes contributed to better absorption of fixed costs, offsetting the previously mentioned effect. In terms of electrical energy, the reduced energy requirements due to a longer halt in the limestone grinding phase of cement production increased the share of renewable energy in our energy matrix to 66%, up from 39% in 3Q23, contributing to lower energy costs. Additionally, freight costs and quarry exploitation fees also showed significant reductions compared to the third quarter of 2023. Gross Profit decreased 23.5% YoY to Ps. 40,774 million in 3Q24, from Ps. 53,306 million in 3Q23, with a gross profit margin contraction of 69 basis points YoY to 22.6%. Selling and Administrative Expenses Selling and administrative expenses (SG&A) decreased 12.9% to Ps. 16,569 million in 3Q24, from Ps. 19,027 million in 3Q23. This was mainly due to lower salaries and a decrease in turnover tax and freight costs related to lower volume. As a percentage of sales, SG&A reached 9.2%, up 87 basis points year-over-year, mainly due to the lower top line. Adjusted EBITDA & Margin Table 4: Adjusted EBITDA Reconciliation & Margin (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended September 30, Nine-months ended September 30, 2024 2023 % Chg. 2024 2023 % Chg. Adjusted EBITDA reconciliation: Net profit (Loss) 21,153 23,177 -8.7% 121,735 60,210 102.2% (+) Depreciation and amortization 17,875 18,025 -0.8% 46,751 51,389 -9.0% (+) Tax on debits and credits to bank accounts 1,821 2,455 -25.8% 5,092 7,246 -29.7% (+) Income tax expense 15,029 4,572 228.7% 74,647 20,111 271.2% (+) Financial interest, net 9,757 39,713 -75.4% 47,809 86,888 -45.0% (+) Exchange rate differences, net 9,570 51,104 -81.3% 30,650 88,817 -65.5% (+) Other financial expenses, net 2,578 3,650 -29.4% 16,431 11,597 41.7% (+) Gain on net monetary position (34,504) (89,582) -61.5% (222,407) (169,684) 31.1% Adjusted EBITDA 43,279 53,113 -18.5% 120,708 156,574 -22.9% Adjusted EBITDA Margin 24.0% 23.2% +78 bps 24.8% 24.1% +77 bps Adjusted EBITDA decreased 18.5% YoY in the third quarter of 2024 to Ps. 43,279 million from Ps. 53,113 million in the same period of the previous year, mainly due to lower adjusted EBITDA generated by our cement business, partially offset by better performances in the Railroad and Concrete segments. On the other hand, the Adjusted EBITDA margin expanded 78 basis points to 24.0% compared to 23.2% in 3Q23, despite the volumes drop and with a positive contribution of the Railroad and Concrete segments. In particular, the Adjusted EBITDA margin of the Cement, Masonry and Lime segment contracted 20 bps to 25.5%. Tight cost controls and lower energy inputs partially offset the impact of reduced top line. Concrete Adjusted EBITDA margin expanded 355 bps, and stood at 4.2%, from 0.6% in 3Q23. This improvement was supported by cost control measures and gains from the sale of obsolete assets, which offset the lower top line. The Adjusted EBITDA margin of Aggregates contracted to negative 17.0%, from 4.8% in 3Q23. The low level of activity and a complex competitive environment took a toll on segment’s profitability.
Finally, the Adjusted EBITDA margin of the Railroad segment improved 840 bps to 12.6% in the third quarter, from 4.2% in 3Q23. Transported volumes showed a moderate decline, primarily due to increased grain transport. Prices demonstrated solid growth, that coupled with an effective cost control supported the positive results. Finance Costs-Net Table 5: Finance Gain (Cost), net (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended September 30, Nine-months ended September 30, 2024 2023 % Chg. 2024 2023 % Chg. Exchange rate differences (9,570) (51,104) -81.3% (30,650) (88,817) -65.5% Financial income 567 551 3.0% 1,155 11,176 -89.7% Financial expense (12,902) (43,914) -70.6% (65,395) (109,660) -40.4% Gain on net monetary position 34,504 89,582 -61.5% 222,407 169,684 31.1% Total Finance Gain (Cost), Net 12,599 (4,884) n/a 127,518 (17,617) n/a During 3Q24, the Company reported a total Net Financial Gain of Ps. 12,599 million compared to a total net financial cost of Ps. 4,884 million in 3Q23, primarily due to a lower impact of the exchange rate differences due to a decrease of the devaluation pace, a lower net financial expense mainly due to lower interest rates and a lower debt position. This effects were partially compensated by a lower gain on net monetary position due to a lower passive monetary position during the quarter and a softer effect of inflation adjustments. Net Profit and Net Profit Attributable to Owners of the Company Net Profit of Ps. 21.2 billion in 3Q24 compared to a net profit of Ps. 23.2 billion in the same period of the previous year. The lower operational result, mainly due to the drop in volumes, was partially compensated with a higher total financial gain. On the financial side, the lower impact of the devaluation and the lower net financial expense was partially deflected by a lower gain on the net monetary position due to the lower inflation dynamic. This gain was partially offset by higher income tax expenses. Net Profit Attributable to Owners of the Company stood at Ps. 20.9 billion. During the quarter, the Company reported a gain per common share of Ps. 35.8696 and an ADR gain of Ps. 179.3479, compared to a gain per common share of Ps. 39.1868 and a gain per ADR of Ps. 195.9340 in 3Q23. Capitalization Table 6: Capitalization and Debt Ratio (amounts expressed in millions of pesos, unless otherwise noted) As of September 30, As of December, 31 2024 2023 2023 Total Debt 185,606 296,811 297,070 - Short-Term Debt 50,381 160,268 75,038 - Long-Term Debt 135,225 136,543 222,032 Cash, Cash Equivalents and Investments (13,718) (64,610) (13,575) Total Net Debt 171,888 232,202 283,496 Shareholder's Equity 714,674 633,321 593,095 Capitalization 900,280 930,133 890,165 LTM Adjusted EBITDA 166,422 239,265 202,289 Net Debt /LTM Adjusted EBITDA 1.03x 0.97x 1.40x As of September 30, 2024, total Cash, Cash Equivalents, and Investments were Ps. 13,718 million compared with Ps. 64,610 million as of September 30, 2024. Total debt at the close of the quarter stood at Ps. 185,606 million, composed by Ps. 50,381 million in short-term borrowings, including the current portion of long-term borrowings (or 27% of total borrowings), and Ps. 135,225 million in long-term borrowings (or 73% of total borrowings). At the close of the third quarter of 2024, 77% (or Ps. 143,272 million) of Loma Negra’s total debt was denominated in U.S. dollars, and 23% (or Ps. 42,334 million) was in Pesos.
As of September 30, 2024, 14% of the Company's consolidated loans accrued interest at a variable rate, primarily based on BADLAR, as it is debt in pesos. The remaining 86% accrues interest at a fixed rate. By the end of the quarter, the average duration of Loma Negra’s total debt was 1.0 years. The Net Debt to Adjusted EBITDA (LTM) ratio stood at 1.03x as of September 30, 2024, down from 1.40x as of December 31, 2023. During the quarter, the company addressed the maturity of its Class 1 bond (issued in pesos) and reduced its debt by US$40 million sequentially. The company’s debt maturity profile remains very manageable, with no bond maturities until the fourth quarter of 2025. Cash Flows Table 7: Condensed Interim Consolidated Statement of Cash Flows (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended September 30, Nine-months ended September 30, 2024 2023 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES Net Profit (Loss) 21,153 23,177 121,735 60,210 Adjustments to reconcile net profit (loss) to net cash provided by operating activities 17,177 18,878 (20,765) 71,834 Changes in operating assets and liabilities 25,240 3,099 (29,746) (13,440) Net cash generated by (used in) operating activities 63,570 45,154 71,225 118,603 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from disposal of Yguazú Cementos S.A. - 308 - 1,309 Property, plant and equipment, Intangible Assets, net (17,444) (13,475) (47,004) (35,675) Contributions to Trust (185) (153) (637) (957) Net cash used in investing activities (17,629) (13,321) (47,641) (35,323) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds / Repayments from borrowings, Interest paid (34,767) (7,007) (15,253) 155,727 Dividends paid - (54,199) - (175,038) Share repurchase plan - - (551) - Net cash generated by (used in) by financing activities (34,767) (61,206) (15,804) (19,311) Net increase (decrease) in cash and cash equivalents 11,174 (29,372) 7,780 63,969 Cash and cash equivalents at the beginning of the year 3,454 100,370 13,575 30,828 Effect of the re-expression in homogeneous cash currency ("Inflation- Adjusted") (1,013) (8,821) (8,183) (35,566) Effects of the exchange rate differences on cash and cash equivalents in foreign currency 104 2,432 546 5,379 Cash and cash equivalents at the end of the period 13,718 64,610 13,718 64,610 In 3Q24, the cash generated in operating activities stood at Ps. 63,570 million, compared to a cash generation of Ps. 45,154 million in the same period of the previous year, mainly due to the positive effect of the working capital. During the quarter, clinker production was minimized to reduce energy inputs, resulting in lower inventory levels. This effect was accompanied by reduced accounts receivable and decreased income tax payments. In 3Q24, the Company used cash in financing activities totaling Ps. 34,767 million, primarily for the repayment of borrowings (net of proceeds) and interest payments. Regarding cash used in investing activities, the Company spent a total of Ps. 17,629 million, primarily on maintenance capex and the 25-kilogram bags project.
3Q24 Earnings Conference Call When: 11:00 a.m. U.S. ET (1:00 p.m. BAT), November 7, 2024 Dial-in: 0800-444-2930 (Argentina), 1-833-255-2824 (U.S.), 1-866-605-3852 (Canada), 1-412-902-6701 (International) Password: Loma Negra Call Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=EWyEphAC Replay: A telephone replay of the conference call will be available until November 14, 2024. The replay can be accessed by dialing 1-877-344-7529 (U.S. toll free), or 1-412-317-0088 (International). The passcode for the replay is 4815080. The audio of the conference call will also be archived on the Company’s website at www.lomanegra.com Definitions Adjusted EBITDA is calculated as net profit plus financial interest, net plus income tax expense plus depreciation and amortization plus exchange rate differences plus other financial expenses, net plus tax on debits and credits to bank accounts, plus share of loss of associates, plus net Impairment of Property, plant and equipment, and less income from discontinued operation. Loma Negra believes that excluding tax on debits and credits to bank accounts from its calculation of Adjusted EBITDA is a better measure of operating performance when compared to other international players. Net Debt is calculated as borrowings less cash, cash equivalents and short-term investments. About Loma Negra Founded in 1926, Loma Negra is the leading cement company in Argentina, producing and distributing cement, masonry cement, aggregates, concrete and lime, products primarily used in private and public construction. Loma Negra is a vertically-integrated cement and concrete company, with nationwide operations, supported by vast limestone reserves, strategically located plants, top-of-mind brands and established distribution channels. Loma Negra is listed both on BYMA and on NYSE in the U.S., where it trades under the symbol “LOMA”. One ADS represents five (5) common shares. For more information, visit www.lomanegra.com. Note The Company presented some figures converted from Pesos to U.S. dollars for comparison purposes. The exchange rate used to convert Pesos to U.S. dollars was the reference exchange rate (Communication “A” 3500) reported by the Central Bank for U.S. dollars. The information presented in U.S. dollars is for the convenience of the reader only. Certain figures included in this report have been subject to rounding adjustments. Accordingly, figures shown as totals in certain tables may not be arithmetic aggregations of the figures presented in previous quarters. Rounding: We have made rounding adjustments to reach some of the figures included in this annual report. As a result, numerical figures shown as totals in some tables may not be an arithmetic aggregation of the figures that preceded them. Disclaimer This release contains forward-looking statements within the meaning of federal securities law that are subject to risks and uncertainties. These statements are only predictions based upon our current expectations and projections about possible or assumed future results of our business, financial condition, results of operations, liquidity, plans and objectives. In some cases, you can identify forward-looking statements by terminology such as “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “expect,” “predict,” “potential,” “seek,” “forecast,” or the negative of these terms or other similar expressions. The forward-looking statements are based on the information currently available to us. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including, among others things: changes in general economic, political, governmental and business conditions globally and in Argentina, changes in inflation rates, fluctuations in the exchange rate of the peso, the level of construction generally, changes in cement demand and prices, changes in raw material and energy prices, changes in business strategy and various other factors. You should not rely upon forward-looking statements as predictions of future events. Although we believe in good faith that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Any or all of Loma Negra’s forward-looking statements in this release may turn out to be wrong. You should consider these forward-looking statements in light of other factors discussed under the heading “Risk Factors” in the prospectus filed with the Securities and Exchange Commission on October 31, 2017 in connection with Loma Negra’s initial public offering. Therefore, readers are cautioned not to place undue reliance on these forward- looking statements. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason after the date of this release to conform these statements to actual results or to changes in our expectations. IR Contacts Marcos I. Gradin, Chief Financial Officer and Investor Relations Diego M. Jalón, Investor Relations Manager +54-11-4319-3050 investorrelations@lomanegra.com --- Financial Tables Follow ---
Table 8: Condensed Interim Consolidated Statements of Financial Position (amounts expressed in millions of pesos, unless otherwise noted) As of September 30, As of December, 31 2024 2023 ASSETS Non-current assets Property, plant and equipment 969,733 971,878 Right to use assets 3,038 5,133 Intangible assets 2,655 3,196 Investments 64 64 Goodwill 641 641 Inventories 56,736 45,699 Other receivables 10,703 3,725 Total non-current assets 1,043,571 1,030,337 Current assets Inventories 166,065 154,181 Other receivables 18,789 43,839 Trade accounts receivable 49,737 45,858 Investments 5,793 3,448 Cash and banks 7,925 10,127 Total current assets 248,309 257,453 TOTAL ASSETS 1,291,881 1,287,790 SHAREHOLDER'S EQUITY Capital stock and other capital related accounts 245,724 245,880 Reserves 347,251 333,390 Retained earnings 121,628 13,860 Equity attributable to the owners of the Company 714,603 593,131 Non-controlling interests 71 (36) TOTAL SHAREHOLDER'S EQUITY 714,674 593,095 LIABILITIES Non-current liabilities Borrowings 135,225 222,032 Provisions 8,824 13,590 Salaries and social security payables 199 1,062 Debts for leases 1,829 5,589 Other liabilities 556 963 Deferred tax liabilities 237,631 214,884 Total non-current liabilities 384,262 458,121 Current liabilities Borrowings 50,381 75,038 Accounts payable 70,778 115,416 Advances from customers 5,688 8,833 Salaries and social security payables 13,363 17,888 Tax liabilities 44,788 5,949 Debts for leases 1,212 2,448 Other liabilities 6,735 11,002 Total current liabilities 192,945 236,574 TOTAL LIABILITIES 577,207 694,695 TOTAL SHAREHOLDER'S EQUITY AND LIABILITIES 1,291,881 1,287,790
Table 9: Condensed Interim Consolidated Statements of Profit or Loss and Other Comprehensive Income (unaudited) (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended September 30, Nine-months ended September 30, 2024 2023 % Change 2024 2023 % Change Net revenue 180,686 229,223 -21.2% 485,991 650,629 -25.3% Cost of sales (139,911) (175,918) -20.5% (365,422) (489,589) -25.4% Gross Profit 40,774 53,306 -23.5% 120,569 161,041 -25.1% Selling and administrative expenses (16,569) (19,027) -12.9% (48,440) (57,866) -16.3% Other gains and losses 1,198 809 48.1% 1,828 2,010 -9.1% Tax on debits and credits to bank accounts (1,821) (2,455) -25.8% (5,092) (7,246) -29.7% Finance gain (cost), net Gain on net monetary position 34,504 89,582 -61.5% 222,407 169,684 31.1% Exchange rate differences (9,570) (51,104) -81.3% (30,650) (88,817) -65.5% Financial income 567 551 3.0% 1,155 11,176 -89.7% Financial expenses (12,902) (43,914) -70.6% (65,395) (109,660) -40.4% Profit (loss) before taxes 36,182 27,749 30.4% 196,382 80,321 144.5% Income tax expense Current (13,652) 5,485 n/a (51,900) (7,753) 569.5% Deferred (1,377) (10,056) -86.3% (22,746) (12,359) 84.1% Net Profit (Loss) 21,153 23,177 -8.7% 121,735 60,210 102.2% Net Profit (Loss) for the period attributable to: Owners of the Company 20,929 22,861 -8.5% 121,628 60,646 100.6% Non-controlling interests 224 315 -29.0% 107 (437) n/a NET PROFIT (LOSS) FOR THE PERIOD 21,153 23,177 -8.7% 121,735 60,210 102.2% Earnings per share (basic and diluted): 35.8696 39.1868 -8.5% 208.4535 103.9400 100.6%
Table 10: Condensed Interim Consolidated Statement of Cash Flows (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended September 30, Nine-months ended September 30, 2024 2023 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES Net Profit (Loss) 21,153 23,177 121,735 60,210 Adjustments to reconcile net profit to net cash provided by operating activities Income tax expense 15,029 4,572 74,647 20,111 Depreciation and amortization 17,875 18,025 46,751 51,389 Provisions 254 3,555 3,494 8,502 Exchange rate differences 8,459 40,555 28,318 65,272 Interest expense 10,143 39,992 48,354 95,559 Gain on disposal of property, plant and equipment (420) (591) (953) (1,266) Gain on net monetary position (34,504) (89,582) (222,407) (169,684) Impairment of trust fund 185 52 637 (634) Share-based payment 155 46 394 329 Changes in operating assets and liabilities Inventories 12,700 6,580 (23,348) (13,578) Other receivables (3,114) (14,610) 9,935 1,087 Trade accounts receivable (5,793) (19,957) (36,975) (44,330) Advances from customers 2,026 187 (1,629) 781 Accounts payable 17,941 17,205 30,053 42,401 Salaries and social security payables 2,799 4,230 5,358 7,100 Provisions (318) (791) (755) (1,419) Tax liabilities 893 16,756 (1,483) 9,705 Other liabilities (279) 879 (3,526) 3,668 Income tax paid (1,616) (7,380) (7,376) (18,854) Net cash generated by (used in) operating activities 63,570 45,154 71,225 118,603 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from disposal of Yguazú Cementos S.A. - 308 - 1,309 Proceeds from disposal of Property, plant and equipment 629 2,127 1,189 2,164 Payments to acquire Property, plant and equipment (17,931) (15,427) (47,870) (36,926) Payments to acquire Intangible Assets (142) (175) (323) (913) Contributions to Trust (185) (153) (637) (957) Net cash generated by (used in) investing activities (17,629) (13,321) (47,641) (35,323) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from non-convertible negotiable obligations - 59,423 - 278,383 Proceeds from borrowings 65,411 24,263 287,829 113,822 Loss on transactions with securities - (2,254) - (2,254) Interest paid (10,527) (32,581) (51,293) (78,173) Dividends paid - (54,199) - (175,038) Debts for leases (326) (528) (1,235) (1,454) Repayment of borrowings (89,324) (55,330) (250,554) (154,596) Share repurchase plan - - (551) - Net cash generated by (used in) financing activities (34,767) (61,206) (15,804) (19,311) Net increase (decrease) in cash and cash equivalents 11,174 (29,372) 7,780 63,969 Cash and cash equivalents at the beginning of the period 3,454 100,370 13,575 30,828 Effect of the re-expression in homogeneous cash currency ("Inflation-Adjusted") (1,013) (8,821) (8,183) (35,566) Effects of the exchange rate differences on cash and cash equivalents in foreign currency 104 2,432 546 5,379 Cash and cash equivalents at the end of the period 13,718 64,610 13,718 64,610
Table 11: Financial Data by Segment (figures exclude the impact of IAS 29) (amounts expressed in millions of pesos, unless otherwise noted) Three-months ended September 30, Nine-months ended September 30, 2024 % 2023 % 2024 % 2023 % Net revenue 174,172 100.0% 66,249 100.0% 407,229 100.0% 152,118 100.0% Cement, masonry cement and lime 153,962 88.4% 58,431 88.2% 361,440 88.8% 133,033 87.5% Concrete 14,101 8.1% 6,012 9.1% 32,714 8.0% 14,967 9.8% Railroad 16,606 9.5% 5,240 7.9% 37,626 9.2% 11,934 7.8% Aggregates 4,002 2.3% 2,090 3.2% 10,053 2.5% 4,690 3.1% Others 1,864 1.1% 384 0.6% 3,893 1.0% 831 0.5% Eliminations (16,364) -9.4% (5,908) -8.9% (38,497) -9.5% (13,338) -8.8% Cost of sales 110,611 100.0% 41,856 100.0% 244,738 100.0% 95,750 100.0% Cement, masonry cement and lime 95,182 86.1% 35,172 84.0% 206,245 84.3% 79,350 82.9% Concrete 13,087 11.8% 5,667 13.5% 31,682 12.9% 14,101 14.7% Railroad 13,343 12.1% 4,745 11.3% 32,814 13.4% 10,934 11.4% Aggregates 4,364 3.9% 1,919 4.6% 10,357 4.2% 4,129 4.3% Others 999 0.9% 261 0.6% 2,138 0.9% 573 0.6% Eliminations (16,364) -14.8% (5,908) -14.1% (38,497) -15.7% (13,338) -13.9% Selling, admin. expenses and other gains & losses 13,302 100.0% 4,764 100.0% 35,208 100.0% 11,757 100.0% Cement, masonry cement and lime 11,977 90.0% 4,183 87.8% 31,852 90.5% 10,249 87.2% Concrete 298 2.2% 244 5.1% 1,065 3.0% 594 5.0% Railroad 668 5.0% 205 4.3% 1,302 3.7% 600 5.1% Aggregates 44 0.3% 22 0.5% 108 0.3% 47 0.4% Others 316 2.4% 110 2.3% 881 2.5% 267 2.3% Depreciation and amortization 1,761 100.0% 1,059 100.0% 4,271 100.0% 2,775 100.0% Cement, masonry cement and lime 1,377 78.2% 828 78.2% 3,083 72.2% 2,187 78.8% Concrete 56 3.2% 31 2.9% 160 3.7% 71 2.6% Railroad 244 13.9% 148 14.0% 804 18.8% 380 13.7% Aggregates 82 4.7% 51 4.8% 220 5.1% 132 4.8% Others 1 0.1% 1 0.1% 4 0.1% 4 0.1% Adjusted EBITDA 52,019 100.0% 20,687 100.0% 131,554 100.0% 47,386 100.0% Cement, masonry cement and lime 48,180 92.6% 19,904 96.2% 126,426 96.1% 45,621 96.3% Concrete 773 1.5% 131 0.6% 127 0.1% 343 0.7% Railroad 2,839 5.5% 438 2.1% 4,314 3.3% 780 1.6% Aggregates (324) -0.6% 199 1.0% (193) -0.1% 647 1.4% Others 551 1.1% 15 0.1% 879 0.7% (6) 0.0% Reconciling items: Effect by translation in homogeneous cash currency ("Inflation-Adjusted") (8,740) 32,426 (10,846) 109,188 Depreciation and amortization (17,875) (18,025) (46,751) (51,389) Tax on debits and credits banks accounts (1,821) (2,455) (5,092) (7,246) Finance gain (cost), net 12,599 (4,884) 127,518 (17,617) Income tax (15,029) (4,572) (74,647) (20,111) NET PROFIT (LOSS) FOR THE PERIOD 21,153 23,177 121,735 60,210
