Loma Negra (LOMA) Q4 2024 earnings summary

Executive summary

• Delivered strong results and margin growth in Q4 2024 despite a challenging construction sector and declining volumes, supported by effective cost control and operational efficiency.

• FY24 net revenues were Ps. 699,179 million (US$628 million), down 23.9% year-over-year, 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 211bps YoY; net profit for FY24 was Ps. 153.8 billion, up 628.8% YoY.

• Maintained a solid balance sheet with net debt of US$157 million and a net debt/LTM adjusted EBITDA ratio of 0.89x.

• Advanced ESG initiatives, including a 3% YoY reduction in greenhouse gas emissions and 31% reduction in water extraction.

Financial highlights

• Q4 2024 adjusted EBITDA reached Ps. 50,589 million, margin expanded to 29.0%, up 623 bps YoY.

• Full-year 2024 EBITDA totaled Ps. 180,987 million, margin improved to 25.9%, up 211 bps YoY.

• Q4 net profit attributable to owners was Ps. 22,118 million, reversing a net loss of Ps. 43,963 million in Q4 2023.

• Full-year net income attributable to owners reached Ps. 153,627 million, up from Ps. 22,400 million in 2023.

• Cash position at year-end was Ps. 8,553 million; capital expenditures in 4Q24 were Ps. 21,200 million, mainly for maintenance and the 25kg bags project.

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 a significant opportunity for recovery 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 completion of the 25kg bag project.

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