Loma Negra (LOMA) Q4 2024 earnings summary

Executive summary

• Delivered strong results and margin growth in a challenging year marked by a construction sector downturn and reduced demand, supported by effective cost control and operational efficiency.

• Net revenues for FY24 were Ps. 699,179 million (US$628 million), down 23.9% YoY, mainly due to contraction in the core Cement segment and similar trends in other businesses.

• FY24 adjusted EBITDA was Ps. 181.0 billion (US$198 million) with a margin of 25.9%, up 211 bps YoY; net profit for FY24 was Ps. 153.8 billion, up 628.8% YoY.

• Maintained a solid balance sheet, reducing net debt to US$157 million and net debt/EBITDA ratio to 0.89x.

• Advanced ESG initiatives, including a new sustainability report, 3% reduction in GHG emissions, 31% reduction in water extraction, and enhanced diversity and governance programs.

Financial highlights

• 4Q24 adjusted EBITDA reached Ps. 50.6 billion, margin 29%, up 623 bps YoY; 4Q24 net profit was Ps. 22.4 billion, reversing a loss of Ps. 43.1 billion in 4Q23.

• FY24 net revenues fell 23.9% YoY to Ps. 699.2 billion; cement volumes down 23.7% YoY.

• 4Q24 gross profit was stable at Ps. 56.7 billion, with gross margin up 640 bps to 32.6%; FY24 gross margin up 166 bps to 26.7%.

• Cash position at year-end was Ps. 8.6 billion; capital expenditures in 4Q24 were Ps. 21.2 billion, mainly for maintenance and the 25kg bags project.

• Net debt reduced by US$20 million sequentially in 4Q24.

Outlook and guidance

• 2024 was a transitional year; 2025 is expected to bring double-digit volume growth, supported by private and public projects and improved economic outlook.

• Cement consumption per capita at historic lows in 2024 presents significant recovery potential as the economy stabilizes.

• Margins from Q4 2024 considered sustainable, with potential for further improvement as volumes recover.

• Maintenance capex planned for 2025, with no major investments beyond the 25kg bag project.

• Pricing expected to track inflation, with less frequent increases as inflation slows.