Q4 2023 Loma Negra Compañía Industrial Argentina SA Earnings Call
Okay.
Operator: Good morning and welcome to the Loma Negra fourth quarter 2023 conference call and webcast. All participants will be in a listen-only mode.
Good.
Good morning, and welcome to the Loma Negra fourth quarter 2023 conference call and webcast.
All participants will be in a listen only mode.
Operator: Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. Also, Mr. Sergio Faifman will be responding in Spanish immediately following an English translation. To ask a question, you may press the star key, then 1 on your telephone keypad.
Should you need assistance. Please signal a conference specialist by pressing the star key followed by zero.
After today's presentation there'll be an opportunity to ask questions also Mr. Sergio <unk>.
<unk> will be responding in Spanish immediately following an English translation.
To ask a question you May press Star then one on your telephone keypad.
Operator: To withdraw your question, please press star then 2. Please note, this event is being recorded. I would now like to turn the conference over to Mr. Diego Jalon, Head of IR. Please go ahead, Diego.
To withdraw your question. Please press Star then two.
Please note. This event is being recorded I would now like to turn the conference over to Mr. Diego Jaylen head of IR.
Please go ahead Diego.
Operator: The conference is now being recorded. The conference is no longer being recorded. I'm sorry, please stand by.
The conference is now being recorded.
Okay.
Okay.
The conference he is no longer being recorded.
Okay.
I'm sorry, please standby.
Okay.
[music].
Diego Jalon: Sponsored ADR, BF-WATCH TV 2021 Sponsored ADR, BF-WATCH TV 2021 Sponsored ADR, BF-WATCH TV 2021 Sponsored ADR, Thank you. Good morning and welcome to Loma Negra's earnings conference call. By now, everyone should have access to our earnings press release and the presentation for today's call, both of which were distributed yesterday after market close. Joining me on the call this morning will be Sergio Faifman, our CEO and Vice President of the Board of Directors, and our CFO, Marcos Gradin. Both of them will be available for the Q&A session.
Thank you good morning, and welcome to the <unk>.
Earnings Conference call.
By now everyone should have access to our earnings press release and the presentation for today's call both of which block distributed yesterday after market close.
Joining me on the call. This morning will be social Bachman, our CEO and Vice President of the board of directors and our CFO Michael Okay.
Both of them will be available for the Q&A session.
Diego Jalon: Before we proceed, I would like to make the following safe harbor statements. Today's call will contain forward-looking statements, and I refer you to the forward-looking statements section of our earnings release and recent filing with the SEC. We have no obligation to update or revise any forward-looking statements to reflect new or changed events or circumstances.
Before we proceed I would like to make the following safe Harbor statement.
Today's call will contain forward looking statements and I refer you to the forward looking statements section.
Our earnings release, and recent filings with the SEC.
We assume no obligation to update or revise any forward looking statements to reflect new or changed events or circumstances.
Diego Jalon: This conference call will also include discussion of non-GAAP financial measures. The full reconciliation of the corresponding financial measures is included in the earnings press release. Now, I would like to turn the call over to Sergio. Thank you, Diego. Hello, everyone, and thank you for joining us this morning.
This conference call with also include discussion of non-GAAP financial measures.
For reconciliation of the corresponding financial measures is included in the earnings press release now.
Now I would like to turn the call over to Sunny.
Thank you Diego Hello, everyone and thank you put showing us this morning.
Sergio Damian Faifman: I would like to begin my presentation with a discussion of the highlights of the quarter, and then Marcos will take you through our market review and financial results. After that, I will make five final remarks, and then we will open the call to questions.
I'd like to begin my presentation, we did.
The highlights of the quarter and then of course, we dig you flow what multiple of you haven't seen that yet.
Cut that I put a bite type final remarks.
And then we will open the call to questions.
Sergio Damian Faifman: Starting with slide two, I am delighted to share with you our performance for the final quarter of the year. Despite ongoing challenges resulting from the political transition and evolving economic environment, which impacted second semester activity levels, the industry concluded the year with dispatch volume that ranked only behind the record year of 2022. In this context, Loma has once again demonstrated its resilience, delivering another solid set of results, despite the decrease in our top line, which reached 99 billion pesos, a decrease of 13.2%. This decline was primarily due to the volume contraction in our core cement business. Assessment EVDA stood at 61 million dollars for the quarter, or 22.7 billion pesos.
Starting with slide two.
I'm delighted to share with you our performance for the thing our quota after yet despite including challenging resulting for the political transition and then both.
Our bottleneck, which impacted singles mix elective lebed to seamlessly concluded the year with dispatch boardroom that Frank I wondered if you guy the record year of 2022.
In this context Loma, that's one again the most at risk.
Delivering another solid set of the side. Despite the decrease in our top line. We teach you 19 9 billion pesos medical a decrease of 13, 2%.
This decline was primarily due to the volume contraction in our core segment.
Yeah.
I just meant EBITDA stood at 61 million for the quarter or 22 7 billion.
Billion pesos, the yellow competition, because I think they decide of noncore assets for $19 million in the fourth quarter of 2022.
Sergio Damian Faifman: The year-on-year comparison is affected by the sale of non-core assets for $19 million in the fourth quarter of 2022; excluding this effect, ABDI decreased by 25.8%. Consolidated adjusted EVDA margin for the quarter reached 22.8%, contracting by 389 basic points once we eliminated the extra result for the base of comparison. On the other hand, the U.S. dollar FEDI per ton stood at $39 for the quarter, almost flat year-on-year once we subtracted the asset sale and improved by 7% sequentially. When looking to our annual figures in 2023, we reached a solid EVDI of $252 million with an EVDI margin of 23.8%. On the financial side, we use our class for domestic bonds. Throughout the year, we have successfully carried out our local bond insurance, taking advantage of the favorable moments for solid corporate credit.
Excluding this effect EBITDA decreased by 25 eight.
8%.
Consolidated.
EBITDA margin for the quarter, which is 22.8% contracted by three hungry 18, nine basic point once we eliminate it slow.
English.
For the basic combination.
On the other time they used to do that EBITDA per tonne is stood up sitting ninth donut for the quota almost flat year on year.
Once we subtracted the I should say and improving by 7% sequentially bases.
Looking to our annual fee rates in 2020 feet with Richard M. D. A.
$252 million with an EBITDA margin of 23.8%.
Yeah.
On the financing side, you choose our class four domestic bond.
Yeah, we have so successfully carrying out for local bond issuance.
Well, it's helpful at the moment for solid corporate credit.
Sergio Damian Faifman: During the quarter, we can sell all the remaining cross-border short-term debts, reaching a net debt of $174 million. Please turn to slide four for a review of our ESG highlights for the year. We take great satisfaction in releasing a new edition of the Loma Negra Sustainability Report.
During the quarter, we can sell all their money cross border short term debt, reaching a net debt of $174 million.
Please don't just late fall for a review of our ESG highlights for the year.
We take great satisfaction utilizing a new edition of the illuminate a sustained support.
Sergio Damian Faifman: I aim to share our journey and dedication to sustainable development with all stakeholders. Regarding the environmental aspect, our total greenhouse gas emission intensity, Scope 1 and 2, stood at 527.36 kg of CO2 per tonne of centimeter material, increasing 0.35% year-on-year due to the variation of the clinker stock compared to 2022. However, without considering the clinker stock variation, the performance was positive with a reduction of 1.4% in kilogram of CO2 per ton of cement.
Oh, you mean to say that our show me and dedication to <unk>.
Men with all stakeholders.
Regarding they bought that stake our total greenhouse gas emissions intensity scope, one and two the suit that place hungry 27 point City Chic Quito T.
T O tool.
Well sentiment the material.
Have you seen Cedar point, 75% E. L. Yet you could debate is shown off the clinker to Stoke compared to 2022.
However, we are considering the clinker there's still competition. They performed that was positive with a reduction of one 4% in Q2, but bone cement it keep it.
Sergio Damian Faifman: In line with our 2030 Sustainable Commitments, we reduce water extraction by 15.5% and decrease 10% our solid waste generation. One of our main commitments in terms of environmental sustainability is the reduction of our carbon footprint and the goal of achieving carbon neutrality in concrete by 2015. We have a long way to go in pursuit of these objectives, which were consolidated in 2023 with the climate roadmap to 2013. This commitment includes an action and investment plan based mainly on four dimensions, clinker factor, and thermal efficiency. Electric Efficiency and Fuel Mix
In line with Ah, what 2030 sustainability commitments with reduce the water extraction by 15.5% and decrease 10% or so it was Shannon.
<unk> generation.
One of our main commandments in denim and they don't intend to spend I believe you started.
<unk> shown our carbon footprint and they go what sheathing carbon neutrality in concrete by 2015.
It's a long way to go into the suite of diesel objectives that was consolidated in 2023 with the key Macy's roadmap to 20 feet.
This commitment includes an action and investment plan basis, meaning on food dementia clinker factor settlement if he can.
Electric since he.
Fuel mix.
Sergio Damian Faifman: In pursuit of this goal, we formed inter-area and interdisciplinary teams with the proposal to continue to work on a portfolio of ideas, solutions, and investments required to achieve the Reduction Goal set for 2013. On the social side, we are convinced that through strategic partnership we can transform reality to ensure a more inclusive future. We maintain the implementation of our program in different territories of the country.
In pursuit of this goal before much into that yet and interdisciplinary teams. We can propose of continuing to work on it put the 40 of the Dia solution I mean, birdman liquidity to achieve the reduced ongoing set for 2013.
On the social side, we are convinced that through strategic partnership we cancel them put them in reality to insulet and more inclusive future, we maintain inflammation or forward program in different territories of the country benefited more than 80000 people.
Sergio Damian Faifman: Benefit more than 80,000 people. Guided by our principle, We Are All Loma, we held the first Diversity and Inclusion Week, and we provided more than 50,000 hours of training for our employees, specifically in training on diversity, equity, and inclusion topics, which is 648 hours of training. Regarding the governance steps, we continue targeting our people with the company's interim program where we cover 100% of our employees and reinforce the commitment to ethics and trust. We held the complaint week for the second time, which was an opportunity to reinforce the message and share content related to ethical and integrity issues, antitrust, ethical lines, ethical behavior, and civil security, with different tools and mechanisms to reach more than 800 employees. We continue to embrace and travel the path of commitment to the challenges that the context imposes on us. It is a path that we walk on in an ethical, responsible, and sustainable manner.
Got you day by our principle, we are all Norma we felt the first diversity and inclusion week and reaching more T cells.
But I mean for our employees.
In training of diversity equity and inclusion topics beaches. She comes in 48 hours of training.
I'm glad to be the governor on our stake we continue providing our people of the company entering in program.
We called out at one Congress per cent of our employee and we foresee the commitment to it because I'm talking to.
We said the complaint weak for the second times, which was an opportunity to reinforce the message and she had content related to ethical.
Indeed, the D E Shaw antitrust ethical line, it because hubbell and see let's see.
With different tools and make ends reaching more than eight hungry employee.
We continue to onboard I'm proud that the parts commitment to the selling channel that's the context in boots.
It is a part that's worked through.
Most of them are such that they live in London.
Marcos Isabelino Gradin: This report reflects such a path. I invite you to read it to know the most outstanding results of our company. I will now hand over the call to Marcos Gradin, who will work with you on market review and financial results. Please, Marcos, go ahead.
This report reflects hotspots.
I invite you to read to eat to now the most something besides our company.
I would now corn of the corn to medical without he who will walk you for what America the view on Peanuts Telesat.
Go ahead.
Marcos Isabelino Gradin: Thank you, Sergio, and good morning, everyone. Please turn to slide 6. As you can see on the upper left chart, the most recent estimates indicate a negative performance of the economy for 2023 of around 1.6 percent. In the same sense, the market expectation report from the Central Bank signals a negative performance for 2024, showing a decrease of 3 percent and then a recovery in 2025. When we dive into the numbers for our industry, we can see that after a positive October, the construction activity indicator shows a significant drop in the last two months of the quarter, deepening the drop in January. Following this trend, seven-day budgets show a double-digit decrease in November and December and a sharp drop in the first month of 2024.
Thank you Sergio and good morning, everyone. Please turn to slide six.
As you can see on the upper left chart. The most recent estimates indicate the negative performance of the economy for 2020 free of around one 6%.
In the same sense the market expectation report from the Central Bank.
Ignace analytic performance for 2024.
Showing a decrease of 3% and then a recovery in 2025.
When we dive into the numbers for our industry. We can see that after a positive October their construction activity indicators shows a significant drop in the last two months of the quarter.
Deepening the drop in January following this trend 70. This budget show a double digit decrease in November and December and a sharp drop in the first half of deposit <unk>.
After several months of election process volatility sense International 70 industry are being affected by the political transition and the consequent effects of tighter economic policy.
Marcos Isabelino Gradin: After several months of election process volatility, sales in the national cement industry are being affected by the political transition and the consequent effects of tighter economic policies. The industry's bulk cement dispatches took a hit due to a lower level of activity in the fourth quarter, decreasing by 12 percent year on year, while bulk cement boasts a moderate construction of 5 percent. When looking at the breakdown by dispatch mode for the quarter, bulk shipments represent 44 percent of the total dispatches, in line with the figure reached for the whole year at two percentage points above the fourth quarter of 2022. After the conclusion of the election year, it would be necessary to dispel uncertainty about economic direction and find a certain political balance to enable the reactivation of the industry and lay the foundations for a stage of genuine growth.
The industry above 70, spud just took a hit due to lower level of activity in the fourth quarter.
The accretion by 12% year on year.
While <unk> seven both.
Construction of 5%.
When looking at the breakdown by dispatch mode for the quarter box shipments represent 44% of the total dispatches.
In line with a figure reached for the whole year two percentage points.
Above the fourth quarter of 2022.
After the conclusion of the electoral year it would be necessary to these felt a sense of do you have other economic direction I'm fighting a certain political balance to enable our observation of the industry.
Lay the foundations for a stage of genuine growth.
Turning to slide seven for a review of our top line performance by segment.
The fourth quarter topline show a decrease of 14, 2% mainly attributed to the decline in the seven segment also followed by the other businesses.
The summit measure was $7 nine segment was down 16% with volumes contracted by 10, 1% year on year, mainly.
Mainly due to the impact of the economic environment on bulk mold dispatches.
Seven months House also decreased following the trend of previous quarter.
Marcos Isabelino Gradin: Turning to slide seven for a review of our top line performance by segment, the fourth quarter top line shows a decrease of 13.2 percent, mainly due to the decline in the cement segment, also followed by the other businesses. The cement measurement and line segment was down 16 percent, with volumes contracted by 10.1 percent year on year, mainly due to the impact of the economic environment on bulk mode dispatches. Bulk cement sales also decreased, following the trend of the previous quarter.
Lower volumes, coupled with softer by dynamic, which despite adjusted for inflation experienced a decline due to elevated marketing official figures on the timing of the price adjustments.
Concrete revenues decreased by 12, 3% in the quarter, mainly due to the 17, 5% decrease in dispatches.
Major projects, which are there market Doug good flow of concrete operation experienced a slowdown you too I grew up on.
And I think uncertainty while public works at a standby mode after elections awaiting future definitions.
Aggregates segment show a decrease of nine 5%, which says volumes down 12, 3%, partially upset by a bright spot for us.
In the Southern Bank Railroad revenues decreased by 10, 5% in the quarter.
Marcos Isabelino Gradin: Lower volumes were coupled with softer price dynamics, which despite being adjusted for inflation, experienced a decline due to elevated monthly inflation figures and the timing of the price adjustments. Concrete revenues decreased by 12.3 percent in the quarter, mainly due to the 17.5 percent decrease in dispatches. Major projects, which are the market target for concrete operations, experienced a slowdown due to macroeconomic uncertainty, while public works entered standby mode after the elections, awaiting future definitions.
Transported volumes were down by 9% primarily affected by lower activity in the construction sector.
But our main cargo shippers, especially how quickly are these.
Suddenly a storm that hit by a lack of December temporarily knockout of service the two plants for which we transport Academy goes to what insights.
For the FY 2020 free consolidated revenues were down six 1%.
Two 422 billion pesos from 452 billion pesos mutual positive attitude.
Chairman volumes contracted by 12, 5% from the record year of 2022.
Moving on to slide nine consolidated gross profit for the quarter declined 14, 3% with a margin contraction of only 36 basis points to 26, 2%.
Marcos Isabelino Gradin: Aggregate segments showed a decrease of 9.5 percent, with sales volumes down 12.3 percent, partially offset by a good price performance. In the same vein, railroad revenues decreased by 10.5 percent in the quarter. Transported volumes were down by 9 percent, primarily affected by the lower level of activity in the construction sector, which impacted our main cargo shippers, especially in aggregates. Additionally, a storm that hit Vallablanca in December temporarily knocked out of service the two plants from which we transport chemicals to Buenos Aires.
Mainly due to the cost improvements in the SME segment and lower depreciation.
In the southern segment, so a reduction of energy inputs Loughborough margins driven by lower consumption of thermal energy per tonne, coupled with value creation natural gas prices.
I mean, the Simpsons cost of electrical energy and prove out the proportion of hydraulic energy cut which has a lower cost increasing the country's electrical generation metrics.
Finally, while SG&A expenses remain flat, we love it but how about retention of all of these show up one 1%.
ONEOK our support centers are placed each hour.
Chris will walk out of 32 basis points, reaching 10% due to the accretion adult black.
For the fiscal year two of us into a different gross profit was down 13, 2% with a margin contraction of 92 basis points.
Please turn to slide 10.
Our adjusted EBITDA for the quarter.
Stood at $61 million, which not only robust vega amidst a challenging environment.
Marcos Isabelino Gradin: For the FY2023, consolidated revenues were down 6.3 percent to $422 billion from $452 billion in 2022, with segment volumes contracted by 4.5 percent from the record year of 2022. Moving on to slide 9. Consolidated gross profits for the quarter declined 14.3 percent, with a margin contraction of only 36 basis points to 26.2 percent, mainly due to cost improvements in the segment segments and lower depreciation. Regarding the segment segments, the reduction of energy inputs was primarily driven by lower consumption of thermal energy per ton, coupled with a decrease in natural gas prices. In the same sense, the cost of electrical energy improved as a proportion of hydraulic energy, which has a lower cost, increasing the country's electrical generation matrix.
Embezzles adjusted EBITDA was down 44, 7% in the quarter, reaching $22 7 billion pesos with a solid EBITDA margin of 22 Buckhead bullshit.
You mentioned early earlier that year on year comparison is affected by a noncore asset sale in the fourth quarter of 2022.
That would be an agent that affect adjusted EBITDA basis was down 25, 8% with a margin contracted by 389 basis points in line with previous quarterly results.
Seven and segment adjusted EBITDA stood at 26, 6% constructed 217 basis points, excluding the sale of lessons.
The cost improvement that I mentioned before mainly in energy inputs, partially offset the lower top line performance.
In a per ton basis, EBITDA reached $49 per ton with almost no variation year on year. Once we should suck desert sales and improving by 7% from the previous quarter.
Concrete adjusted EBITDA decreased 61 million pesos compared to fourth quarter a year ago.
Emerging construction of 129 basis points, reaching one 7%.
Deposit cost and excess control.
To fully offset the lower top line performance.
The adjusted EBITDA margin of aggregates constructed to 14, 2% from 25, 9% in the fourth quarter just less in 'twenty two.
Marcos Isabelino Gradin: Finally, while SG&A expenses remained almost flat, with a variation of only 0.1 percent year-on-year as a percentage of sales, it showed a year-on-year increase of 132 basis points, reaching 10 percent due to the decrease in the top line. For the FY2023, gross profit went down 13.2 percent, with a margin contraction of 192 basis points. Please turn to slide 10.
Mainly due to save costs and the effect of lower volumes, partially gone bad.
Compensated by a positive performance.
Finally, the adjusted EBITDA margin of the railroad constructed naphtha.
Back on the 22 basis points to minus four 2% in the fourth quarter.
Five 1% in the fourth quarter of two plus in 'twenty two.
Partly due to higher costs, coupled with lower transported volumes.
For the full year 2020 fee adjusted EBITDA reached the figure of 252 million U S dollars.
Marcos Isabelino Gradin: Our adjusted EBITDA for the quarter stood at $61 million, a very robust figure amidst a challenging environment. In pesos, adjusted EBITDA was down 44.7 percent in the quarter, reaching 22.7 billion pesos, with a consolidated EBITDA margin of 22.8 percent. As mentioned earlier, the year-on-year comparison is affected by a non-core asset sale in the fourth quarter of 2022. Eliminating that effect, adjusted EBITDA in pesos was down 25.8 percent, with the margin contracting by 389 basis points, in line with previous quarterly results. Seven-segment adjusted EBITDA stood at 26.6 percent, contracting 217 basis points, excluding the sale of assets. The cost improvement that I mentioned before, mainly in energy inputs, partially offset the lower top-line performance. In a per-ton basis, EBITDA reached $39 per tonne, with almost no variation year-on-year, once we subtracted the asset sales and improved by 7 percent from the previous quarter. However, concrete adjusted EBITDA decreased 161 million pesos compared to the fourth quarter of a year ago, with a margin contraction of 129 basis points, reaching 1.5 percent. Despite the cost and excess control, it couldn't fully offset the lower top-line performance.
Moving on to the bottom line on slide 12, this quarter with posted a net loss attributable to owners of the company of 19.8 billion pesos compared to a net profit of $22 7 million pesos in the fourth quarter.
2022.
However, total financial cost due to the December shot civilization osteotomy type vessels.
With the sale of the noncore assets in the fourth quarter of 2022.
The principal reasons for dealer issue.
Total net financial costs stood at $14 3 billion vessels this quarter.
From a financial gain of $1 2 billion pesos to same quarter last year.
Mainly due to the impact of.
So the automation of the peso and the exchange rate difference.
Partially offset by a gain in the net monetary position.
In some sense, we had an increase in the financial expenses due to higher debt position.
For the full year net income much of it the sooner the company increased 77% year on year.
$10 3 billion pesos.
So 6 billion pesos in fiscal year 2022.
And then as a result of a lower total net financial costs, coupled with a lower tax position that's called the persistent lower Burnishing a result.
Moving onto the balance sheet as you can see on slide 14.
We ended the quarter with a cash position of $6 7 billion pesos and a total debt of 147 4 billion pesos.
In this quarter.
Consequently, our net debt to EBITDA ratio stood at one four times.
Compared to <unk> 37 times at the end of 2022.
Our operation cash generation stood at $26 2 billion pesos.
Whereas as accretion net profit adjusted to reconciled to net cash provided by operation activities was partially compensated by a positive effect of the working capital mainly due to lower income tax advances.
Regarding capital expenditures, we allocated $18 2 billion pesos Walton maintain its capex and ongoing projects of adapting our this much much easier to use 25 kilograms of box.
Marcos Isabelino Gradin: The adjusted EBITDA margin of aggregates contracted to 14.2 percent from 25.9 percent in the fourth quarter of 2022, mainly due to higher sale costs and the effect of lower volumes, partially compensated by a positive price performance. Finally, the adjusted EBITDA margin of the railroad contracted 922 basis points to minus 4.2 percent in the fourth quarter from 5.1 percent in the fourth quarter of 2022, principally due to higher costs coupled with lower transported volumes. For the full year 2023, adjusted EBITDA reached a figure of 252 million U.S. dollars.
Yeah.
During the quarter the company used cash and financial activities for 71 billion.
Billion pesos, mainly for the repayments of borrowings and tourists.
We also we should take Glassful bond does along with short term borrowings partially offset these effects.
In dollar terms, our total debt reached $182 million Sunday, our net debt at $174 million at the end of this quota.
The Greece of $41 million during the quarter.
During this period, we canceled the remaining short term U S dollar cross boarder debt extending the evidence generation and reduce the financial cost.
Marcos Isabelino Gradin: Moving on to the bottom line on slide 12. This quarter, we posted a net loss attributable to owners of the company of 19.8 billion pesos, compared to a net profit of 22.7 million pesos in the fourth quarter of 2022. The higher total financial costs due to December's sharp devaluation of the Argentine pesos, along with the sale of non-core assets in the fourth quarter of 2022, are the principal reasons for the devaluation. Total net financial costs stood at 13.3 billion pesos this quarter, from a total financial gain of 1.2 billion pesos the same quarter last year, mainly due to the impact of the devaluation of the peso in the exchange rate difference, partially offset by a gain in the net monetary position.
Now in 2024 buildings have maturities are adapting purchase.
Breaking it down by currency does all of that I mean, the debt represents two.
76% of adult does that while the rescue ship basis.
Additionally, as we've mentioned before the end of the quarter the company sure it's plus full domestic bonds.
It is in U S dollar for a total amount of $10 million.
Majority in the second quarter of 2% to 86.
Accruing any search rate of 6% per year.
Joe Foster 20 fleet, we paid approximately 120 million U S dollars in dividends, which represents $1 eight year similar to what we paid in 2022.
Now for our final remarks, I would like to handle the call back to Sergio.
Thank you Marcos now casino like did the sensation I. Please ask you to time just late 15.
Marcos Isabelino Gradin: In the same sense, we had an increase in financial expenses due to a higher debt position. For the full year, net income attributable to owners of the company increased 70.7 percent year-on-year to 10.3 billion pesos from 6 billion pesos in fiscal year 2022, mainly as a result of a lower total net financial cost, coupled with a lower tax position that compensated for a lower operational result. Moving on to the balance sheet, as you can see on slide 14, we ended the quarter with a cash position of 6.7 billion pesos and a total debt of 147.4 billion pesos. Consequently, our net debt to EBITDA ratio stood at 1.4 times compared to 0.37 times at the end of 2022. Our operation cash generation stood at 26.2 billion pesos, where the decrease in the net profit adjusted to reconcile to net cash provided by operating activities was partially compensated by a positive effect of working capital, mainly due to lower income tax advances.
We're very proud of that aside I cheeses myeloma in 'twenty two 'twenty three.
Despite the lower volume what was the fourth quarter, that's what modal pegged by day.
In the period due to the political transition.
We must lose see that 2023.
Better yet for the industry in Panama.
Only become the record of TV in 2022.
Clearly they look for that process and the subsequent change in administration, how do you see uncertainty.
Impacting the level of activity industry stakeholder agriculture, and awaiting the government action and the stabilization of key economic indicators.
Despite the significant drop in activity, let it have you done in the first months of the year.
Or do you need peak, but well that's the path to recovery wheat weaning them food off the challenges.
I can Tina Hassan great.
Great.
Yes, which will we look at each country minuses just started movie alone.
Right pardon.
In that scenario Loma has to pick up.
Positive could support boosted the country development full feeding and industry leaders.
Finally, I would like to thank all our employees for their commitment they have shown throughout the year.
I got so once took place that's due to the less of del Webb, if they called that probably be even close to us whether or not that yes.
I'm going to need to go that we can face any change that this new yeah My greetings.
This is some of our remarks, we are now ready to take questions. Operator, Please open the call for questions.
Marcos Isabelino Gradin: Regarding capital expenditures, we allocated 18.2 billion pesos, mostly for maintenance capital expenditures, an ongoing project of adapting our dispatch facilities to use 25 kilogram bags. During the quarter, the company used cash in financial activities for 31 billion pesos, mainly for the repayments of borrowings and interest. We also issued a class 4 bond that, along with short-term borrowings, partially offset these effects.
Thank you we will now conduct a question and answer session. If you would like to ask a question. Please press Star then one on your telephone keypad.
A confirmation tone will indicate that your line is in the question queue.
You May press Star then two if you would like to remove your line.
All participants using speaker equipment, it may be necessary to pick up your handset prior to pressing the keys once again star one on your telephone keypad.
We also would like to ask that you. Please let me your questions to one question and one follow up.
If you have additional questions you may re queue for those questions and they will be addressed.
Marcos Isabelino Gradin: In dollar terms, our total debt reached $182 million, standing our net debt at $174 million at the end of this quarter, with a decrease of $41 million during the quarter. During this period, we canceled all the remaining short-term U.S. dollar cross-border debt, extending the average duration and reducing the financial cost. Now, in 2024, we only have maturities on our debt in pesos. Breaking it down by currency, the dollar-denominated debt represents 76% of the total debt, while the rest is in pesos.
Also please note that Mr. Sergio five men will be responding in Spanish immediately following an English translation.
Please hold momentarily, while we assemble our roster.
Our first question is from Daniel Rojas of Bank of America. Please go ahead.
Good morning, gentlemen, can you hear me.
Okay.
Hello.
Okay.
Yes, Sir we can hear you. Please go ahead.
Hello.
Looking at the contraction in margin 289 basis points, you mentioned that excludes the asset sale.
Did you give a little bit more details on what's behind this what factors lie behind the lower margin on what we should expect going forward. Thank you.
Yeah.
Yeah.
Okay.
Marcos Isabelino Gradin: Additionally, as we mentioned before, during the quarter, the company issued its class 4 domestic bonds, denominated in U.S. dollars, for a total amount of $10 million, with maturities in the second quarter of 2026 and accruing an interest rate of 6% per year. In 2023, we paid approximately $120 million in dividends, which represents $1 per year, similar to what we paid in 2022. Now, for our final remarks, I would like to return the call to Sergio. Thank you. Thank you, Marcos. Now, to finalize the presentation, I would please ask you to turn to slide 15. We are very proud of the results achieved by Loma in 2023, despite the lower volume of the four quarters that were more affected by the end of the period due to the political transition.
Okay.
Okay.
Danielle Thank you for your question.
I Wonder just don't do that the margins are not sending all I'll just do one compare year on year.
There they are constructing because of the lower volumes.
On the top line.
You saw it on a on a sequential basis quarter over quarter emergence out.
Sure.
Yeah.
All statements.
But the breach, but obviously if the.
Good luck.
Okay, and if I may follow up now that the new President has been in office for a few months.
Can you give us some color on how you're seeing activity going forward.
The team already on board do you see a faster or lower transfusion that you might have expected, we just want to get an idea.
How we should expect that the year to rollout.
Yeah.
Yeah.
Okay.
Okay.
Obviously, they are on that side.
Our beam E yesterday, the volume in east.
11 of 20, 25%.
We are there.
Marcos Isabelino Gradin: We must lose sight of the fact that 2023 was the second best year for the industry in terms of volume, only behind the record achieved in 2022. Clearly, the electoral process and the subsequent change in administration have affected and helped, impacting the level of activity. Industry stakeholders are cautious and awaiting the government's initial action and the stabilization of key economic indicators. Despite the significant drop in activity levels evidenced in the first month of the year, we remain optimistic but aware that the path to recovery is difficult and full of challenges. Argentina has great growth potential, which will be unleashed if the country manages to start moving along the right path.
Got it.
Mountain Dew continues about SMB space.
Then.
Well the second half of the.
Calling him he began to pick up.
Yeah.
I'll pick up on southern volumes.
But obviously that now.
Yeah got it.
Thank you.
Yeah.
No one cup.
As a reminder, if you would like to ask a question you May Press Star then one on your telephone.
Our next question is from George Venus of Latin Securities. Please go ahead.
Thank you.
Good evening and thank you for the presentation.
The they went through and you said about the debt.
The pricing environment.
Got it.
Alrighty.
Sure.
Given the deepening of the contraction in dispatches.
The pricing is always been that what we expect for the next couple of.
Cortes.
Okay.
Yeah, Okay. That's helpful.
Sergio Damian Faifman: In that scenario, Loma has the capacity to support and bolster the country's development, fulfilling a role as industry leader. Finally, I would like to thank all our employees for the commitment they have shown throughout the year. I also want to express gratitude to the rest of our stakeholders for being close to us for another year. And, brotherly, together, we can face any change that this new year might bring.
Hi, Jorge Thank you for your question.
This scenario, particularly the he ended up like I really must say I E.
Is that embraces I'm kidding.
December some debate we are above inflation.
Hum.
The Bishop do all in.
So you mean that on Sunday.
Hey, chip.
Our actual right for it.
Hi, Bob the long winter we had.
You almost want to say now.
Oh, yes, so she and operation do you have any thoughts of your own.
Operator: This is the end of our prepared remarks. We are now ready to take questions. Operator, please open the call for questions. Thank you. We will now conduct a question and answer session. If you would like to ask a question, please press star then 1 on your telephone keypad. A confirmation tone will indicate that your line is in the question queue. You may press star then 2 if you would like to remove your line.
Hi.
Got it.
We expect this trend to continue.
We see some good.
And don't take the effects loop.
Okay.
Yeah.
Thank you very much.
Yeah.
Well look.
Okay.
And this concludes our question and answer session I would like to turn the conference back over to Diego de La <unk> for any closing remarks.
Okay.
Thank you for joining us today are we truly appreciate your interest in our company.
Operator: For participants using speaker equipment, it may be necessary to pick up your handset prior to pressing the keys. Once again, press 1 on your telephone keypad. We also would like to ask that you please limit your questions to one question and one follow-up. If you have additional questions, you may re-queue for those questions, and they will be addressed. Also, please note that Mr. Sergio Faifman will be responding in Spanish immediately following an English translation. Please hold momentarily while we assemble our roster. Our first question is from Daniel Rojas of Bank of America. Please go ahead.
Allow me to remind you that.
Sure. So I'll get you shouldn't I'll follow system to support each other.
And I'll, let Chuck.
Okay.
A full week's with forward to what we can do again next call.
In the meantime, we are available for your questions.
Thank you and to tell anything.
Okay.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Okay.
[music].
Daniel Rojas: Good morning, gentlemen. Yes, sir. We can hear you.
Operator: Please go ahead. Hello. Looking at the contraction in margin, the 389 basis points you mentioned that excludes the asset sale, could you please give us a little bit more details on what's behind this?
Sergio Damian Faifman: What factors lie behind the lower margin and what should we expect going forward? Thank you. Sponsored ADR, Daniel, thank you for your question. I will respond to that by saying that margins are not descending. Obviously, when you compare year on year, they are contracting because of the lower volumes and the heating on the top line.
Okay.
[music].
Daniel Rojas: But if you saw it on a sequential basis, quarter over quarter, margins are.. are in Australia. But the principal factor, obviously, is the... That was fun. Okay, and if I may follow up, now that the new president has been in office for a few months, can you give us some color on how you're seeing activity going forward? Is his new team already on board?
Yeah.
Uh huh.
Yeah.
Oh.
[music].
Sergio Damian Faifman: Do you see a faster or slower transition than you might have expected? We just want to get an idea of how we should expect the year to roll out. Sponsored ADR, Daniel, obviously, the year and the first month are being hit, yet the volume is shrinking to a level of 20-25%. We expect the upcoming month to continue more or less at this pace, but then in the second half of the year, the economy began to pick up, and that's where we are going to see a pickup on seven volumes. Obviously, the number is going to be negative for the year.
Uh huh.
Yeah.
[music].
Hum.
Hum.
Uh huh.
Yeah.
[music].
Operator: Thank you. Sponsored by ADR 2013 ADR All Rights Reserved. ADR, Argentina, United States of America.
Okay.
[music].
Operator: No one. As a reminder, if you would like to ask a question, you may press star and then one on your telephone. Our next question is from George Venus of Latin Securities. Please go ahead. Thank you. Good evening, and thank you for the presentation. The question is about the pricing environment in the current recessionary scenario. Given the deepening of the contraction in dispatches, how is pricing evolving, and what should we expect for the next couple of quarters?
Uh huh.
[music].
Yeah.
[music].
George Venus: Good morning, Jorge. Thank you for your question. Regarding prices, since December of this date, we are above inflation in the pricing dynamics. Nuestro precio actual en marzo es similar al antes de la devaluación de diciembre.
Sergio Damian Faifman: Our actual price is above the one that we had in December. We expect this trend to continue, although if we see some discrete movement of the effects, we will act accordingly. Thank you very much. Hey. And this concludes our question and answer session. I would like to turn the conference back over to Diego Jalon for any closing remarks. Thank you for joining us today. We truly appreciate your interest in our company. Allow me to remind you that we have issued our third edition of our sustainability report, and it's available on our website, and we invite you to have a look at it. As always, we look forward to meeting you again on our next call, and in the meantime, we are available for any questions that you may have.
Sergio Damian Faifman: Thank you, and have a nice day. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect. Sponsored ADR, © BF-WATCH TV 2021 Sponsored ADR, Season's Greetings, Consider supporting our channel right now, and leave a like. Sponsored ADR, Please Subscribe to my channel Sponsored ADR, sponsored by Agave Grill © BF-WATCH TV 2021, Sponsored ADR © BF-WATCH TV 2021, Sponsored by the U.S. Embassy in the Philippines Sponsored by ADR, © BF-WATCH TV 2021