Earning Date, Transcript Summary & Report

EBITDA Margin Expansion: Significant expansion of EBITDA margin by over 600 basis points, reaching 29% in Q4 2024, up from 22.8% in Q4 2023.

Adjusted EBITDA Growth: Achieved an adjusted EBITDA of $50 million in Q4 2024, reflecting a 2.4% increase in peso tons despite lower volumes.

EBITDA Performance Improvement: Full year 2024 EBITDA totaled $198 million with a margin of 25.9%, improving by 211 basis points compared to the previous year.

Debt Reduction and Strengthened Balance Sheet: Net debt declined by $20 million in Q4 2024, reaching $157 million, with a net debt ratio below 1x, indicating a strengthened balance sheet.

Sustainability Report Highlights: Released a new sustainability report aligning with 2030 goals, showcasing a 3% year-over-year decrease in greenhouse gas emissions and a 31% reduction in water extraction.

Dispatch Volume Decline: Achieved a 14% year-over-year drop in dispatches in Q4 2024, showing a narrowing gap compared to previous quarters, indicating a gradual recovery in volumes.

Economic Growth Projections: Positive economic outlook projected by the Central Bank, with expected growth in 2025, supporting recovery in the construction sector.

Stable Gross Profit Growth: Consolidated gross profit remained stable with a gross margin expansion of 640 basis points year-over-year, reaching 32.6% despite lower volumes.

Construction Industry Downturn Impact: The construction industry downturn led to reduced demand for Loma Negra's products, impacting overall performance.

Quarterly Revenue Decline: The fourth quarter top line declined 19.5%, primarily due to a weaker performance in the cement segment, with a 14.1% year-over-year volume contraction.

Revenue Decline Analysis: For the fiscal year 2024, consolidated revenues declined 23.9% to ARS 699 billion, down from ARS 919 billion in 2023, with cement volumes contracting 23.7%.

Concrete Segment Margin Decline: The concrete segment saw its adjusted EBITDA margin contract by 760 basis points, turning negative at minus 6.1% compared to 1.5% in the fourth quarter of 2023.

Revenue Decline Analysis: The aggregate segment recorded a 34.2% revenue decline with sales volume down just 3.1%, indicating persistent low overall activity levels affecting price dynamics.

Operating Cash Flow Decline: Despite a reduction in net debt, cash flow from operating activities decreased to ARS 47.8 billion compared to ARS 57 billion in the fourth quarter of 2023, indicating less favorable working capital impact.

Sales Mix Impact on Profitability: The company faced challenges with a shift in the sales mix towards lower-priced final aggregates, negatively impacting profitability.

Railroad Segment Performance: The railroad segment, while seeing some improvement, still remained in negative territory with an adjusted EBITDA margin of minus 7.4%.

Construction Sector Challenges: The overall economic environment remains uncertain, with the construction sector facing challenges due to the suspension of many public works projects.