UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 6‑K
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REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 under the
Securities Exchange Act of 1934
Securities Exchange Act of 1934
For the month of March, 2021
Commission File Number: 001-38262
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LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA
SOCIEDAD ANÓNIMA
(Exact Name of Registrant as Specified in its Charter)
SOCIEDAD ANÓNIMA
(Exact Name of Registrant as Specified in its Charter)
LOMA NEGRA CORPORATION
(Translation of Registrant’s name into English)
(Translation of Registrant’s name into English)
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Cecilia Grierson 355, 4th Floor
Zip Code C1107CPG – Capital Federal
Republic of Argentina
(Address of principal executive offices)
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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 ☐
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 | Loma Negra Relevant Event |
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: March 11, 2021 | By: | /s/ Marcos I. Gradin |
Name: | Marcos I. Gradin | |
Title: | Chief Financial Officer |
4Q20 Results Conference Call
Disclaimer and Forward-Looking Statement This presentation may contain 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 Company’s Annual Report on Form 20-F, as well as periodic filings made on Form 6-K, which are filed with or furnished to the United States Securities and Exchange Commission.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.The Company presented some figures converted from Argentine 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.Note: Loma Negra’s financial information has been prepared in accordance with the Argentine Securities Commission (Comisión Nacional de Valores-CNV) and with International Financial Reporting Standards. Following the categorization of Argentina as a country with a three-year cumulative inflation rate greater than 100%, the country is considered highly inflationary in accordance with IFRS. Consequently, starting July 1, 2018, the Company is reporting results applying IFRS rule IAS 29. IAS 29 requires that results of operations in hyperinflationary economies are reported as if these economies were highly inflationary as of January 1, 2018, and thus year-to-date, together with comparable results, should be restated adjusting for the change in general purchasing power of the local currency, using official indices. For comparison purposes and a better understanding of our underlying performance, in addition to presenting ‘As Reported’ results, we are also disclosing selected figures as previously reported excluding rule IAS 29. Additional information in connection with the application of rule IAS 29 can be found in our earnings report.
Loma Negra continues to deliver strong adjusted EBITDA with margin expansion in 4Q20 Core business continues to deliver strong results with encouraging momentum As reported resultsNet revenues 20.6% to Ps. 13.3 billion (US$ 160 million)Adjusted EBITDA 40.8% to Ps. 4.7 billion (US$ 58 million)Net majority income 111.3% to Ps.3.0 billion (US$ 46 million)Consolidated Adjusted EBITDA margin expanded 513 bps to 35.6% YoYDividend payment of USD 31 million from sale of Paraguayan operationFY20 EBITDA of US$ 171 million and margin of 33.4% and Net profit of US$ 181 millionSolid balance sheet with Net Debt to LTM Adj. EBITDA ratio of 0.16xExpansion of L´Amalí plant advancing towards completion Note: Figures in US dollars result from the calculation of figures expressed in Argentine pesos, as previously reported (without the application of IAS29) and the average exchange rate for each reporting period. 3
Clearer recovery momentum for the industry, yet overall economic turn around still uncertain Source INDEC and BCRA (Argentina Central Bank) Market Expectations (REM) Survey as of February 2021Source INDEC: Construction activity indicator, ISAC (Indicador Sintético de la Actividad) . Based on AFCP which reports standalone cement sales, while Loma Negra reports Cement, Masonry and lime salesFeb 21 : As of the date of this presentation, ISAC figures were not released GDP Growth1 (YoY Growth, %) Construction Activity2 & Monthly Industry Cement Sales3 (YoY Growth, %) Monthly Industry Cement Sales3 (‘000 tons) Industry Cement Sales by Type3 (%) 4 Jun’20 Feb’20 Dec’20 Nov’20 Mar’20 Ago’20 Jul’20 Apr’20 May’20 Sep’20 Feb’214 Oct’20 Jan’21 ISAC Cement Industry Apr Jan Feb Nov Mar Aug May Jun Jul Sep Oct Dec 2017 2019 2020 2018 2021
Revenues up 20.6% YoY in the back of our core business Revenue Performance:Cement, masonry & lime: increased 26.9% YoY, with volumes expanding 26.9% with stable pricingConcrete: down by 17.0% YoY. Volumes up 12.8% but outweighed by softer pricingRailroad: decreased by 19.1% YoY. Volumes increase of 4.5% were negatively impacted by pricing mixAggregates: down 4.7% YoY. Better pricing partially compensated the volume decline of 9.5% Sales Volumes (1) Revenues (AR$ million) (2) Total Net Revenues 13,263 11,002 20.6% 5 41,623 47,753 -12.8% Sales volumes include inter-segment salesSales volumes include inter-segment sales and Other segments 4Q20 4Q19 % Chg. FY20 FY19 % Chg. Cement, masonry & lime MM Tn 1.62 1.28 26.9% 5.16 5.47 -5.6% Concrete MM m3 0.15 0.13 12.8% 0.30 0.80 -62.5% Railroad MM Tn 1.17 1.12 4.5% 3.79 4.47 -15.2% Aggregates MM Tn 0.22 0.25 -9.5% 0.57 1.09 -47.8% 4Q20 4Q19 % Chg. FY20 FY19 % Chg. 12,142 9,567 26.9% 37,999 39,891 -4.7% 905 1,089 -17.0% 2,035 6,775 -70.0% 955 1,181 -19.1% 3,596 4,964 -27.6% 161 169 -4.7% 402 843 -52.4%
Gross Profit up 46.1%, with margin expansion of 632 bps Gross Profit & Margin AR$ Million Consolidated gross profit up 46.1% YoY, with gross margin expanding 631 bps to 36.2% driven by our core Cement businessCement gross margin expanded in the back of higher sales volumes and positive input costsSG&A increased by 5.2% YoY due to higher sales volume, yet as a % of revenues decreased by 115 bps YoY, to 7.9% Selling, General & Administrative AR$ Million As a % of Sales 8.0% 9.0% +5.2% Gross Margin 36.2% 29.8% +46.1% 6 27.3% 30.3% -3.4% 8.3% 7.9% -9.2%
Adjusted EBITDA up 40.8% YoY with solid margin expansion of 513 bps Adjusted EBITDA & Margin AR$ Million Consolidated Adjusted EBITDA Margin expanded 513 bps to 35.6% from 30.5% in 4Q19By segmentsArgentine Cement, masonry cement and lime segment Adjusted EBITDA margin expanded 604 bps to 40.4%Concrete Adjusted EBITDA margin worsened to -19.2% from -5.4%Railroad Adjusted EBITDA margin deteriorated to -0.6% from 11.6%Aggregates Adjusted EBITDA margin decreased to -9.0% from -4.6%FY20 EBITDA of US$171 million, with EBITDA margin of 33.3% compared to US$172 million and 28.7% in FY19 +2.5% 44 58 US$ million 35.6% 30.5% Adjusted EBITDA Margin 7 Consolidated Adjusted EBITDA up 40.8% YoY reflecting a strong momentum in our core cement businessEBITDA of US$58 million in the 4Q20, compared to US$44 million in 4Q19 172 171 +40.8% 27.1% 31.9% Note: Figures in US dollars result from the calculation of figures expressed in Argentine pesos, as previously reported (without the application of IAS29) and the average exchange rate for each reporting period.
Net profit surged 93.9% benefiting from EBITDA growth and net finance gain Net Profit Attributable to Owners AR$ Million 46 181 US$ million +111.3% Net Profit breakdown:Adjusted EBITDA increased by 40.8% YoYTotal finance gain of Ps.638 million in 4Q20 compared to a net loss of Ps.189 million in 4Q19Foreign exchange gain of Ps. 289 million in 4Q20, compared to a Ps. 480 million in 4Q19, due to lower debt denominated in foreign currency and real depreciation of the Ps.Net Financial expense, declined by Ps. 656 million compared to same quarter las year driven by lower total Financial DebtGain on net monetary was Ps.483 million in 4Q20 compared to Ps.120 million on 4Q19Effective tax rate in 4Q20 was 31.6% from 37.6% in 4Q19Net Profit Attributable to Owners of the Company in 4Q20 increased 111.3% YoY Finance Costs, net AR$ Million 8 +117.4% 50 17 Note: Figures in US dollars result from the calculation of figures expressed in Argentine pesos, as previously reported (without the application of IAS29) and the average exchange rate for each reporting period.
Robust balance sheet and sound debt profile Debt by Currency Debt Maturity schedule Cash position of Ps. 4.4 billion and total debt at Ps. 6.5 billion in December’20Net Debt of Ps. 2.0 billion (US$ 24 mm) at Dec’20 compared to Ps. 11,2 billion (US$ 187 mm) at Dec’19Net Debt/ LTM Adj. EBITDA ratio of 0.16x in FY20 compared with 0.83x in FY19In 4Q20, Operating cash flow for 4Q20 increased 52% YoY, mainly due to higher profitability partially offset by higher working capital needs, and Capital expenditures of Ps.1.7 billion (45% L´Amalí expansion)Extraordinary dividend of US$ 31 million from sale of Paraguayan operationShare Repurchase plan launched in February 2021 for up to Ps. 750 million Cash Flow Highlights 4Q20 4Q19 FY20 FY19 Net cash generated by operating activities 3,974 2,611 11,356 9,326 Net cash used in investing activities (1,707) (3,133) (1,398) (15,973) Net cash (used in) generated by financing activities (3,162) 1,066 (10,485) 3,498 Cash and cash equivalents at the end of the period 4,394 1,776 4,494 1,776 9 Note: Figures in US dollars result from the calculation of figures expressed in Argentine pesos, as previously reported (without the application of IAS29) and the average exchange rate for each reporting period. US$ Million 4Q 2021 3Q 2021 Cash Position 1Q 2021 2Q 2021 18 3 17 14 1Q 2022 22 EUR USD Ps.
Looking into 2021 Covid-19 continues to be a source of uncertainty, yet in a significantly lower degree than in 2020Persistent strong momentum for Cement demand encourage us for the remainder of the yearAmid an expected challenging scenario, we remain focused on delivering strong results Expansion of L´Amalí plant at 97% of execution and advancing towards completionHealthy cash flow generation and solid balance sheet L´Amalí expansión project L´Amalí: Control room 10 Lomaser: Blending and distribution center
Questions & Answers
Exhibit: Summary Financial Statements
Adjusted EBITDA Reconciliation & Margin 13
Balance Sheet 14
Income Statement 15
Statement of Cash Flows 16
IR Contact Marcos I. GradinChief Financial Officer and Investor RelationsGaston PinnelInvestor Relations Manager+54-11-4319-3050investorrelations@lomanegra.com