Financial Performance - Net sales revenues decreased by 21.2% YoY to Ps. 180,686 million (US$ 185 million) in 3Q24, primarily due to a 21.0% decline in Cement segment sales volumes[3]. - Consolidated Adjusted EBITDA reached Ps. 43,279 million (US$ 55 million), down 18.5% YoY in pesos and 16.5% in dollars, with an EBITDA margin of 24.0%, an increase of 78 basis points YoY[3][7]. - Net profit for 3Q24 was Ps. 21,153 million, an 8.7% decrease from Ps. 23,177 million in the same period last year, with a notable improvement in net total finance gain[3][15]. - Gross profit fell 23.5% YoY to Ps. 40,774 million in 3Q24, with a gross profit margin contraction of 69 basis points to 22.6%[21]. - The company reported a total net financial gain of Ps. 12,599 million in 3Q24, compared to a net financial cost of Ps. 4,884 million in 3Q23[28]. - The company reported a significant decrease in finance costs, down 70.6% to ARS 12,902 million in Q3 2024 from ARS 43,914 million in Q3 2023[50]. - The company’s total shareholder's equity rose to ARS 714,674 million as of September 30, 2024, from ARS 593,095 million as of December 31, 2023[48]. Sales and Volume Trends - Cement, masonry, and lime sales volumes fell by 17.1% YoY to 1.44 million tons, although there was a sequential recovery of 32%[11]. - The Concrete segment experienced a 22.2% YoY decline in sales volumes, with a sequential improvement of 28%[12]. - The Aggregates segment saw a 28.7% decrease in sales volumes year-over-year, indicating ongoing challenges in the market[12]. - Railroad segment revenues decreased by 4.7% YoY, with a 7.0% decline in transported volume, partially offset by positive pricing dynamics[19]. - Net revenue for Q3 2024 was ARS 180,686 million, a decrease of 21.2% compared to ARS 229,223 million in Q3 2023[50]. Cost and Expenses - Cost of sales decreased by 20.5% YoY to Ps. 139,911 million in 3Q24, primarily due to lower sales volumes and improved energy inputs[20]. - Selling and administrative expenses decreased by 12.9% to Ps. 16,569 million in 3Q24, reaching 9.2% of sales, up 87 basis points YoY[22]. - The cost of sales for the three months ended September 30, 2024, was 110,611 million pesos, up from 41,856 million pesos in the same period of 2023, representing a rise of 164.5%[54]. Debt and Liquidity - Net debt decreased to Ps. 171,888 million (US$ 177 million), resulting in a Net Debt/LTM Adjusted EBITDA ratio of 1.03x, down from 1.40x in FY23, reflecting a US$ 40 million reduction in indebtedness during the quarter[3][7]. - Total debt as of September 30, 2024, was Ps. 185,606 million, down from Ps. 296,811 million YoY, with a net debt to LTM adjusted EBITDA ratio of 1.03x[30][34]. - Cash generated from operating activities in 3Q24 was Ps. 63,570 million, compared to Ps. 45,154 million in 3Q23, mainly due to positive working capital effects[36]. - Cash and cash equivalents at the end of the period were 13,718 million pesos, consistent with 64,610 million pesos at the end of the same period in 2023[52]. Future Outlook - The company anticipates a stronger recovery as macroeconomic factors stabilize, indicating optimism for future performance[6][8]. - The company provided a forward guidance of 8% revenue growth for Q4 2023, projecting revenues between $2.7 billion and $2.8 billion[55]. - The company plans to enter two new international markets by the end of 2023[55]. Operational Highlights - The Adjusted EBITDA margin for the Concrete segment improved to 4.2%, up 355 basis points YoY, while the Aggregates segment contracted to negative 17.0%[25]. - The company experienced a net cash used in investing activities of 17,629 million pesos for the three months ended September 30, 2024, compared to 13,321 million pesos in the same period of 2023, reflecting an increase of 32.5%[52]. - The company reported a net cash used in financing activities of 34,767 million pesos for the three months ended September 30, 2024, compared to 61,206 million pesos in the same period of 2023, indicating a decrease of 43.2%[52]. - The company’s inventories increased to ARS 166,065 million as of September 30, 2024, from ARS 154,181 million as of December 31, 2023[48]. Market and Product Development - New product launches contributed to a 20% increase in sales in the consumer electronics segment[55]. - Market expansion efforts led to a 25% increase in sales in the Asia-Pacific region[55]. - The company completed a strategic acquisition of a tech startup for $200 million to enhance its product offerings[55]. - The company invested $150 million in R&D for new technologies, focusing on AI and machine learning[55]. - Customer satisfaction ratings increased to 90%, reflecting improved service and product quality[55].

Group 1 - The article introduces Ignacio Zorzoli as a new contributing analyst for Seeking Alpha, encouraging individual investors to share their investment ideas [1] - Zorzoli has over 10 years of trading experience and focuses on value companies linked to commodity production, particularly in emerging markets [2] - The analyst emphasizes the importance of companies with sustained free cash flows, low leverage, and a solid pro-shareholder attitude, including buyback programs and dividend distributions [2] Group 2 - The article highlights Zorzoli's preference for analyzing underappreciated sectors such as oil & gas, metals, and mining, which may present good investment opportunities [2] - It is noted that past performance is not indicative of future results, and no specific investment recommendations are provided [3]

Group 1 - The article discusses the potential for investment opportunities in countries, specifically highlighting Argentina's long-standing economic struggles due to overspending [1] - The author has a successful track record in stock market investments, averaging over 31% returns over a one-year period from their articles [1] - The investment strategy focuses on deep value stocks, primarily in small-cap companies, which constitute 50-75% of the author's portfolio [1] Group 2 - The author has a beneficial long position in the shares of LOMA, indicating a personal investment interest [2] - The article emphasizes that past performance is not indicative of future results, highlighting the inherent uncertainties in investment [2] - The author expresses independent opinions without any business relationships with the companies mentioned, ensuring unbiased analysis [2]

Core Viewpoint - Loma Negra's 2Q24 results reflect a challenging macroeconomic environment in Argentina, with significant declines in sales volumes and ongoing operational adjustments to mitigate costs [1][2]. Group 1: Company Performance - Loma Negra's sold volumes decreased by 30% in 2Q24 compared to the previous year, with concrete volumes down 45% [3]. - Despite the decline in sales, the company managed to improve its margins by 500 basis points in both gross and EBITDA, resulting in an 11% contraction in adjusted EBITDA and a 12% contraction in operating income [3]. - The company halted clinker production and grinding operations to reduce costs, which may not be sustainable in the long term due to potential inventory cost increases [3]. Group 2: Market Conditions - Argentina is experiencing a significant recession, with the economy expected to decline by mid-to-high single digits this year, severely impacting the cement industry [2]. - Retail buyers are facing reduced disposable income, and real estate developers are hesitant to invest due to high construction costs and a lack of buyers [2]. - The national government has ceased all public works since December, further diminishing demand for cement [2]. Group 3: Ownership and Control Issues - Loma Negra's controller, Intercement, has been burdened by debt and is seeking to sell its stake in Loma, with Companhia Siderurgica Nacional (CSN) holding exclusive negotiation rights [4]. - Intercement filed for asset protection in Brazil, which does not affect Loma's operations but increases the urgency of selling its stake [4]. - The potential change in ownership could attract interest from other strategic players, including local investors [4]. Group 4: Valuation Insights - Loma's current valuation is challenging to assess due to the ongoing recession, with a market cap of approximately $820 million and potential cash profits estimated between $55 million to $70 million [5]. - The most negative scenario suggests a yield of about 6.6%, which is not particularly attractive given Argentina's economic instability [5]. - The stock is viewed as a Hold, as the company is expected to cycle between periods of growth and decline without significant long-term profitability improvements [5].

Financial Data and Key Metrics Changes - The company's top-line revenue for Q2 2024 was Ps. 166.1 billion, a decrease of 28% year-on-year, with cement volume down 32.5% [5] - Consolidated adjusted EBITDA reached $51 million (Ps. 38 billion), down 11.7% year-on-year, but the EBITDA margin expanded to 28.1%, an increase of 520 basis points [5][13] - Net profit attributable to owners of the company was Ps. 29.6 billion, compared to Ps. 9.5 billion in Q2 2023, driven by operational performance and financial gains [15] Business Line Data and Key Metrics Changes - The Cement, masonry & lime segment saw a revenue decline of 26.1%, with volumes contracting 32.5% year-on-year, although strong pricing partially offset the decline [9] - Concrete revenues decreased by 47% due to a 45% drop in dispatches, while the aggregate segment revenues fell by 36% with state volumes down 25% [10] - Railroad revenues decreased by 14.5%, with transported volumes down 22.5%, but positive price dynamics helped mitigate the impact [10] Market Data and Key Metrics Changes - The construction activity indicator showed gradual improvement after a low in March, with cement dispatches reflecting a positive trend in July [7][8] - Bulk cement dispatches were down 41% year-on-year, while bagged cement saw a 24% increase, indicating a shift in demand [8] Company Strategy and Development Direction - The company is focusing on profitability and cost control initiatives, which have led to EBITDA margin expansion despite volume declines [4] - Management expressed optimism about the construction industry's recovery, citing stabilization of economic factors and increased foreign direct investment as key drivers [18] Management's Comments on Operating Environment and Future Outlook - Management noted a gradual recovery in cement volumes and expects this trend to continue, supported by improved economic conditions and increased credit availability [21] - The company anticipates maintaining current price levels while managing costs effectively, with expectations for margin stability in the upcoming quarters [22] Other Important Information - The company ended the quarter with a net debt of Ps. 119 billion, with a net debt to EBITDA ratio of 1.26 times, indicating a strong balance sheet [16] - Capital expenditures for maintaining operations and kiln projects were allocated at Ps. 16.3 billion, with a focus on addressing short-term debt maturities [17] Q&A Session Summary Question: July volumes and price trends - Management indicated that July showed a significant recovery in volumes and expects this trend to continue, driven by improved economic conditions and real wage recovery [21] Question: Sustainability of margin increases - Management believes that margins can be maintained despite potential impacts from thermal energy costs, with expectations for further improvements in Q4 [22] Question: Main drivers of recovery in the second half of the year - Management identified private works and the potential approval of the Rige program as key drivers for recovery, with expectations for increased activity in the mining sector [24] Question: Capital allocation and dividends - Management stated that they are evaluating capital allocation options, including addressing short-term debt with cash generation and bank lines, while maintaining a focus on shareholder value [26] Question: Volume mix of bag versus bulk cement - Management reported a current mix of 60% bag and 40% bulk cement, with expectations for bulk to contribute more in the future without impacting pricing [30][31]

2Q24-Results Conference Call Disclaimer and Forward-Looking Statement 1 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 termin ...

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," ...

Company Participants Conference Call Participants Alejandra Obregon - Alejandra Obregon Pedro Maulhardt - Latin Securities Daniel Rojas - Bank of America Loma Negra CompañÃa Industrial Argentina Sociedad Anónima (NYSE:LOMA) Q1 2024 Earnings Conference Call May 10, 2023 10:00 AM ET Diego Jalon - Head of IR Sergio Faifman - CEO Marcos Gradin - CFO Operator Diego Jalon Sergio Faifman After the sharp devaluation of last December, and the correction of relative price, the construction industry has experienced a ...

Loma Negra Reports 1Q24 results Buenos Aires, May 9, 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 March 31, 2024 (our "1Q24 Results"). 1Q24 Key Highlights 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. Commen ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________ FORM 20-F ______________________________ o REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED December 31, 2023 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR o SHELL COMPANY REPO ...