CEMENTOS ARGOS S.A. 2Q22 Results
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This document contains forward-looking statements and information related to Cementos Argos S.A. and its subsidiaries (together referred to as "Argos") that are based on the knowledge of current facts, expectations and projections, circumstances and assumptions of future events.
Various factors may cause Argos' actual future results, performance or accomplishments to differ from those expressed or assumed herein.
If an unexpected situation presents itself or if any of the premises or of the company's estimations turn out to be incorrect, future results may differ significantly from the ones that are mentioned herein.
The forward-looking statements are made to date and Argos does not assume any obligation to update said statements in the future as a result of new information, future events or any other factors.
1. Consolidated Results
Prices continued increasing both in cement and ready-mix, accompanied by a strong evolution of volumes especially in the US and in Colombia
The solid performance in volumes and pricing led to revenues achieving a new all-time high record
Cost inflation pressure continued during the quarter, total cost of sales increased 350 billion pesos, mainly affected by energetics and raw materials
EBITDA result remains on track with quarterly budget and aligned with the full year guidance of COP 2.05 - 2.15 trillion
2Q22
Strong price traction and the continuation of solid demand conditions offsets cost inflation
Volumes | QUARTER | YTD | ||||||
2021.Q2 | 2022.Q2 | Var | 2021.Q2 | 2022.Q2 | Var | |||
Cement | 000 TM | 4,494 | 4,220 | -6.1% | 8,617 | 8,170 | -5.2% | |
Cement - Adjusted | 000 TM | 4,394 | 4,220 | -4.0% | 8,383 | 8,170 | -2.6% | |
RMC | 000 M | 3 | 1,981 | 1,957 | -1.2% | 3,983 | 3,864 | -3.0% |
RMC - Adjusted | 000 M | 3 | 1,726 | 1,957 | 13.4% | 3,520 | 3,864 | 9.8% |
Key Figures | QUARTER | YTD | ||||||
2021.Q2 | 2022.Q2 | Var | 2021.Q2 | 2022.Q2 | Var | |||
Revenue | COP Bn | 2,473 | 2,851 | 15.3% | 4,791 | 5,429 | 13.3% | |
EBITDA | COP Bn | 696 | 509 | -26.9% | 1,141 | 954 | -16.4% | |
EBITDA Adjusted | COP Bn | 512 | 525 | 2.6% | 949 | 884 | -6.8% | |
Margin EBITDA | % | 28.1% | 17.8% | -10.3% | 23.8% | 17.6% | -6.2% | |
Margin EBITDA Adjusted | % | 21.1% | 18.4% | -2.7% | 20.2% | 16.3% | -3.9% | |
Net Profit | COP Bn | 164 | 5 | -96.7% | 220 | 27 | -87.6% | |
Net Margin | % | 6.6% | 0.2% | -6.4% | 4.6% | 0.5% | -4.1% |
Adjusted EBITDA excludes: i) For 2Q22 a non-operational expense related to the listing process for COP 16.1 billion, equivalent to USD 4.1 million, ii) For 2Q21 EBITDA excludes COP 174 billion of the gain on sale of the Dallas divestiture, equivalent to USD 48.1 million, COP 1.5 billion generated by the Dallas operation, equivalent to USD 426 thousand, and COP 8.2 billion generated by the divested RMC operations in FL and NC, equivalent to USD 2.3 million.
Adjusted EBITDA Margin excludes: i) For 2Q22 a non-operational expense related to the listing process for COP 16.1 billion, equivalent to USD 4.1 million, ii) For 2Q21 EBITDA excludes COP 174 billion of the gain on sale of the Dallas divestiture, equivalent to USD 48.1 million.
Adjusted Ready-mixvolumes for 2Q21 exclude 141k m3 sold by the divested Dallas operations and 115k m3 sold by the operations in FL and NC divested on 1Q22.
Cement volumes exclude since 3Q21 the product bought to third parties used to supply Argos' operations of RMC in the US, particularly in Texas, to reflect better the degree of integrations of the operations. For purposes of comparability, the adjusted figure for 2Q21 excludes 100k tons of cement purchased from third parties.
RMC: Ready-Mix Concrete
2Q22
Our hedging strategy for energetics generated consolidated savings of around COP 84 billion for the quarter when compared to the spot market prices
Fuel matrix per region based on caloric consumption and estimated hedging for H2-2022 | |||||
USA | Colombia | CCA | |||
Savings COP 44 bn* | Savings COP 37 bn | Savings COP 3 bn | |||
Gas 27% | Gas 16% | PetCoke 95% | |||
Coal 56% | Alt. Fuels | ||||
Coal 80% | Fixed | ||||
Fixed | Alt. Fuels | 5% | |||
11% | |||||
18% | 4% | ||||
Fixed | Fixed | ||||
Fixed | 95% | ||||
34% | |||||
48% | |||||
Alt. Fuels | |||||
11% | |||||
PetCoke 5% | |||||
* Savings for the US include | |||||
diesel hedging for RMX | Others 1% |
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Cementos Argos SA published this content on 08 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 August 2022 23:25:06 UTC.
