Q3 2024 Loma Negra Compañía Industrial Argentina Sociedad Anónima Earnings Call
Good morning, and welcome to the Loma Negra third quarter 2024 conference call and webcast.
All participants will be in a listen only mode should you need assistance. Please signal a conference specialist by pressing the Starkey followed by zero.
After today's presentation there'll be an opportunity to ask questions also Mr. Sergio Fleishman will be responding in Spanish immediately following an English translation.
To ask a question you May press Star then one on your telephone keypad.
To withdraw your question. Please press Star then two please.
Please note that this event is being recorded.
Speaker Change: I would now like to turn the conference over to Mr. Diego Hallo head of IR. Please Diego go ahead.
Diego Hallo: Thank you good morning, and welcome to illuminate US earnings conference call by now everyone should have accessed or 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 such a five month, our CEO and vice President of the board of directors and our CFO Michael <unk>.
Diego Hallo: Both of them will be available for the Q&A session.
Diego Hallo: Before we proceed I would like to make the following safe Harbor statements.
Diego Hallo: This call will contain forward looking statements and I refer you to the forward looking statements section of our earnings release and recent filings with the S. E C.
We assume no obligation to update or revise any forward looking statements to reflect new or changed events or circumstances.
Diego Hallo: The conference call will also include a discussion on non-GAAP financial measures. The full reconciliation of the corresponding financial measures is included in the earnings press release.
Sergio Fleishman: Now I would like to turn the call over to Sergio.
Sergio Fleishman: Thank you Diego Hello, everyone and thank you for showing us this morning.
Sergio Fleishman: I would like to start my presentation by discussing the highlights of the quota.
Sergio Fleishman: Then I'll conclude thank you well with Michael W. Okay not satisfied.
Speaker Change: Halloween Doug.
Speaker Change: I will share some final remarks before opening the call to little question.
Speaker Change: Starting with the right tool.
Speaker Change: We are replacing 2% nominated outside of quote a couple of sites.
Speaker Change: Got it got it seamlessly volume so with a strong sequential improvement increasing by 25%, while still below less Seattle Everett the studies of comedy in activity indicate that we move.
Speaker Change: The most challenging video.
Speaker Change: Do you mean incident on our top line, reaching 118.7 million pesos and 21, 2% decrease in the quarter.
Speaker Change: Due to the lower seven dispatches.
Speaker Change: This quarter Noma achieved and consolidated a settlement EBITDA $65 million or 43 billion pesos down 18.5% compared to the same period last year.
Speaker Change: I wouldn't be a machine stood at 24%.
Speaker Change: Things are improving.
Speaker Change: 78 basis points, he had a linear we'd see for microvision.
Speaker Change: In the challenging affinity and these new pack on demand.
Speaker Change: On a per ton basis, EBITDA was 75 point dollar so maintaining a very solid four months. It's important to note that third quarter machine alone you're discussing any factor such as higher energy costs.
Sergio Fleishman: I would say activity I'm personally she allowed us to mitigate the full impact of winter coach.
Sergio Fleishman: On the commercial side, our balance sheets continue interesting that with net debt at one.
Sergio Fleishman: $177 million.
Sergio Fleishman: In our last call this quarter less capital, enabling us to deliver and achieve in there that's about tier.
Sergio Fleishman: One sito for lead times.
Speaker Change: I will now part of the call to Michael <unk>, who will walk you through our market review and peanuts.
Michael W.: Michael go ahead.
Michael W.: Thank you Sergio and good morning, everyone. Please turn to slide four when looking at the evolution of must be someone said for the industry.
Sergio Fleishman: It is clear that 70 spud just have reached a significantly better level than in the previous two quarters.
Sergio Fleishman: Volumes have increased by 25% sequentially.
Sergio Fleishman: The same sequential comparison show an improvement of six percentage opposed to that degree.
Sergio Fleishman: Our recent figures for October our in language September figures, despite Dave but of a national strike that affected this budget.
Sergio Fleishman: Bob Salmon dispatches are recovering more quickly gaining ground in the dispatch most breakdown are reaching 62%.
Sergio Fleishman: In contrast, bulk segment has been more affected by the economic environment, the subsidiary public works and lower activity levels in.
Sergio Fleishman: The larger private approaches.
Sergio Fleishman: The central banks market. In addition report also points to an improved economic outlook.
Sergio Fleishman: Testing that the recovery would have begun in the second half of this year.
Sergio Fleishman: Marking the end of the recession, most challenging phase.
Sergio Fleishman: The construction activity indicator, though still below 2020 free levels Rip.
Sergio Fleishman: It reflects these trends as well whether it is narrowing the year on year comparison gap.
Sergio Fleishman: Positive indicators, such as the steady recovery of real wages, the downward trend in inflation fiscal surplus and lower interest rates are key factors that could enable a broader role for credit in our economy.
Sergio Fleishman: And encourage and accelerate foreign direct investment inflows.
Sergio Fleishman: While macroeconomic conditions remain challenging stable economic variables are essential for driving sustainable growth.
Speaker Change: Turning to slide five for a review of our top line performance by segment.
Sergio Fleishman: The third quarter topline show a decrease of 21, 2%, mainly due to a lower top line performance of our seven business.
Sergio Fleishman: Also followed by the rest of the segments.
Sergio Fleishman: The sermon measure <unk> salmon in land segment declined by 21%.
Sergio Fleishman: With volumes contracted 17, 1% year on year.
Speaker Change: Couple we've helped a bright purple.
Sergio Fleishman: Although the construction impact as well as the spud to smoke box element is performing significantly better showing only a moderate decline while back these bunch of solar.
Sergio Fleishman: Demand for box element is more closely tied to larger projects, which typically require additional time planning.
Sergio Fleishman: Favorable market conditions to consolidate.
Sergio Fleishman: Increased revenues decreased by 29% in the quarter, primarily due to a 22% drop in this budget.
Sergio Fleishman: The type of project that are central to our concrete segment, our seats driving struggling to gain traction.
Sergio Fleishman: Mirroring the trends seen in above seven sites.
Sergio Fleishman: The aggregate segment experience at $42 seven decline.
Sergio Fleishman: With sales volumes down by 29%.
Sergio Fleishman: Reflecting the pattern of the concrete segment.
Sergio Fleishman: The reduced level of activity has resulted in a more challenging competitive the competitive landscape.
Sergio Fleishman: Finally railroad revenues saw a modest decline of four 7% in the quarter.
Sergio Fleishman: Transported volumes dropped by 7%, mainly due to the reduced activity in the construction sector.
Sergio Fleishman: However, this was partially offset by increased volumes of grants and chemicals.
Sergio Fleishman: The positive trend also helped mitigate the impact of lower transported volumes.
Sergio Fleishman: Moving onto slide seven consolidated gross profit for the quarter declined 23, 5%.
Sergio Fleishman: There's a margin contraction of 69 basis points to 22, 6%.
Sergio Fleishman: Margins remained stable despite the volume contraction of our core business.
Sergio Fleishman: In the SME segment, our cost management efforts helped mitigate the impact of a lower top line.
Sergio Fleishman: Although hydrothermal and electrical energy inputs tighter margins on a sequential basis.
Sergio Fleishman: This effect was partially offset year over year bio production strategy of holding several fields and mutilation clinker stock produce at lower energy costs.
Sergio Fleishman: The water machines.
Sergio Fleishman: In the year over year comparison thermal energy costs showed considerable improvement.
Sergio Fleishman: Additionally, reduce electrical energy needs from an extended cold in the lifestyle running face increase the share of renewable energy in our energy matrix to 66% up from 39% in first quarter 'twenty free further contributing to lower energy cost.
Sergio Fleishman: On the other hand, the railroad a congresswoman experienced margin expansion, while aggregates more impacted by current economic conditions posted a significant contraction.
Sergio Fleishman: For railroads demurrage accretion volumes combined with positive price performance held bullshit margins.
Sergio Fleishman: Finally, SG&A expenses fell by 12, 9%, primarily because of reduced salaries.
Sergio Fleishman: Lower costs from turnover tax of freight due to decreased volumes.
Sergio Fleishman: As a percentage of sales it stood at nine 2% an increase of 87 basis points.
Sergio Fleishman: Eight 3% because of the declining revenues.
Sergio Fleishman: Please turn to slide eight our consolidated adjusted EBITDA for the quarter stood at $55 million, while in vessels adjusted EBITDA reached 43 billion down.
Sergio Fleishman: Down a deep 5%.
Sergio Fleishman: Despite the volume decline and the challenging scenario the consolidated EBITDA margins remained silent and stood at 24% expanded by 78 basis points from last year.
Sergio Fleishman: On a sequential basis, it's important to note that the third quarter show a larger margin due to cargo seasonal cost.
Sergio Fleishman: The semi segment adjusted EBITDA margins stood at 25, 5%, a slight drop of 20 basis points tight cost management and improve energy inputs of mitigates the impact of a lower top line.
Sergio Fleishman: Yeah.
Sergio Fleishman: Concrete adjusted EBITDA increased 484 million pesos compared to the same quarter of last year with a margin expansion of 355 basis points, reaching 4%.
Sergio Fleishman: Cost control measures and gain from the sale of obsolete assets offset the lower top line.
Sergio Fleishman: Adjusted EBITDA margin of aggregates contracted to negative 70, 70% four 8% in the third quarter 'twenty free.
Sergio Fleishman: The low level of activity on more complex competitive environment affected the segment operational results.
Sergio Fleishman: Finally, the Windows segment, adjusted EBITDA margin ex.
Sergio Fleishman: Expanded by 840 basis points in the quarter, reaching 12, 6%.
Sergio Fleishman: So as far as the volumes experienced some moderate decline.
Sergio Fleishman: Due to increased Green transport was prices.
Sergio Fleishman: Show solid growth expected cost control further supported these positive herself.
Sergio Fleishman: Moving onto the bottom line on slide deck. This quarter, we posted a net profit attributable to owners of the company of $20 9 billion pesos.
Sergio Fleishman: Third to net profit of $22 9 billion pesos in the first quarter of two plus <unk>.
Sergio Fleishman: The lower operational results, mainly due to the drop in volumes was partially compensated with the higher total financial gain.
Sergio Fleishman: Financially, we posted a total net financial gain of $12 6 billion peso for the quarter compared to a.
Sergio Fleishman: Financial cost of $4 9 billion pesos in the same period last year.
Sergio Fleishman: Devaluations in the reduced impact of exchange rate differences due to a slower different valuation base and a lower net financial expense were mainly driven by lower interest rates.
Sergio Fleishman: This was partially offset by a smaller gain on the net monetary position as withheld a lower passive monetary position within the quarter.
Speaker Change: By yourself to effect from inflation adjustment.
Speaker Change: Moving onto the balance sheet as you can see on slide 11, we ended the quarter with a net debt of 172 billion pesos.
Speaker Change: Bringing our net debt to EBITDA ratio to one two to three times.
Speaker Change: Down from one four times at the end of two plus into activity.
Speaker Change: As anticipated in our last call, we reduced our indebtedness by $40 billion during the quarter further strengthening our balance sheet.
Speaker Change: Cash generation from operating activities reached 64 billion pesos up from 45 billion pesos in the.
Speaker Change: St deal to close in <unk>.
Speaker Change: But mildly driven by positive working capital effects.
Speaker Change: During the quarter clinker production was minimized to lower energy inputs, resulting in reduced inventory levels.
Speaker Change: This was further supported by decrease accomplish yields and reduce income tax payments.
Speaker Change: We allocated 17.
Speaker Change: 4 billion pesos to capital expenditures this quarter.
Speaker Change: Brooks you model.
Speaker Change: Approximately 40% of this amount was invested in the 25 milligram box approaching.
Speaker Change: With the remainder primarily directed towards maintaining capex.
Speaker Change: During the quarter the company used $34 8 billion pesos in financing activities, primarily for the repayment of borrowings and interest payments.
Speaker Change: In dollar terms, our desktop reached $177 million at the end of this quarter before the duration of one year.
Speaker Change: Broken eat eat by currency, the Llanos illuminated Denver percent, 77% of the total depth, while the remaining portion is in pesos.
Speaker Change: These go whenever we address the maturity of the class one bond you shouldn't you shouldn't vessels.
Speaker Change: Thereby reducing the weight of our local currency debt.
Speaker Change: Regarding the remaining bonds. The glass two bonds are set to mature in the fourth quarter of 2020 451.
Speaker Change: The glass flat glass full bonds will mature in 2026.
Speaker Change: It's a very clear horizon ahead in terms of our structure depth.
Sergio Fleishman: Now for our final remarks, I would like to handle the call back to Sergio.
Sergio Fleishman: Thank you.
Sergio Fleishman: Thank you Marcos now casino liked the presentation I. Please ask you to just like how the team.
Sergio Fleishman: The headquarter pet show, what a significant sequential improvement steady moving past the workforce.
Sergio Fleishman: Hum.
Sergio Fleishman: The company you said still early stage for the future progress needed to fully close that yet although he added up.
Sergio Fleishman: I would personally like CVD and production strategy enable us to maintain healthy mushrooms mitigate the full impact of winter cold, despite the lower dispatch level and difficult economic conditions.
Sergio Fleishman: We are closely at optimum calisi monitoring the evolution of the economic challenging as.
Sergio Fleishman: As inflation and incur a slight decline.
Sergio Fleishman: The real economy and activity level, we have a more solid foundation put them at all.
Sergio Fleishman: Passion of the credit and mortgage loan could be a significant driver for the construction sector in the near future.
Speaker Change: To me that that reduction in countries now below one point for the first time since 2019.
Sergio Fleishman: A positive a steep trouble attracting putting investment.
Sergio Fleishman: Amit all Italian King the country College basketball potentially ready to be unloaded and noma is well positioned to support and I shall not forward.
Sergio Fleishman: To conclude I would like to thank all our employees and our stakeholders for their commitment and continued support.
Speaker Change: This is end of our prepared remark we are now ready to take questions. Operator, Please open the call for questions.
Speaker Change: 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.
Speaker Change: A confirmation tone will indicate that your line is in the question queue you.
Speaker Change: You May press Star then two if you would like to remove that line.
Speaker Change: For participants using speaker equipment, it may be necessary to pick up your handset prior to pressing the keys. Once again that is star and then one on your telephone keypad.
Speaker Change: We would also like to ask you to please limit your questions to one question and one follow up if you have any additional questions you may re queue for those questions and they will be addressed.
Speaker Change: Also please note that Mr. Sergio five men will be responding in Spanish immediately following an English translation. Please hold momentarily as we assemble our roster.
Speaker Change: And our first question today will come from Marina merchants with Latin Security. Please go ahead.
Speaker Change: No.
Speaker Change: Hi, Thanks.
Speaker Change: Alright.
Speaker Change: Yeah.
Speaker Change: The first one on pricing.
Speaker Change: Yeah.
Speaker Change: No.
Speaker Change: Yes Quinn.
Quinn: How do you see the pricing dynamics for Y O y.
Speaker Change: Having them all in.
Speaker Change: Volume found anything yet.
Speaker Change: And I think no one and Nevada.
Speaker Change: Man.
Speaker Change: It continues to be more deep breath in the bag.
Speaker Change: And so what countries yes.
Speaker Change: In fact, some projects tool.
Speaker Change: And finally 90 segmental to pick up.
Speaker Change: Thank you.
Speaker Change: Yeah.
Speaker Change: Hi, thank.
Speaker Change: Thank you for that.
Speaker Change: Well I think let me guide, but it feels a lot on Yankee candle monetary unbilled, mainly because as Jan said is how many of those.
Speaker Change: Regarding price dynamic we are closely they're deemed evolution of.
Speaker Change: How can we continue to.
Speaker Change: Follow on our dynamic and attractive prices.
Speaker Change: Sorry, let me now ask tightening plus you're under 50 malls that have missed it but it can blow continue on with what I'm into my Chili's.
Speaker Change: The lower inflation in the last three months, we have continued to Chester or our prices on a monthly basis.
Speaker Change: <unk> plus <unk>.
Speaker Change: Yes, or no, but if you end up but they won't be deciding momentum today, so baidu message, maybe with inflation, oh, 2% or 1% per month, we can start.
Speaker Change: Thinking about it.
Speaker Change: Adjusting prices.
Speaker Change: On a three months or four months.
Speaker Change: I mean people connected.
Speaker Change: She had Yamato Minto got it it makes it just had a book to help mentor email city I'm more worried about and I'll go with this level of off market inflation, if we made into our space and in time, when we have to increase our prices. It would be you know a two digit figure.
Speaker Change: That would be difficult for that for the market to do.
Speaker Change: To take that.
Speaker Change: Adjustments.
Speaker Change: Our primary goal is to promote T cells here in medical and voice of God.
Speaker Change: And that rigor.
Speaker Change: Regarding our volumes are as you mentioned Hum back cement has been recovering.
Speaker Change: More more facile and bulk cement is still lagging.
Speaker Change: But I think it can go vertical on canola.
Speaker Change: Yeah.
Speaker Change: Got it.
Speaker Change: <unk> M D idled, who demand Macy's tackled on Sunday.
Speaker Change: Eight of them and done.
Speaker Change: Regarding a larger cross ships, which is the target of bulk cement, we did with the <unk>.
Speaker Change: Other.
Speaker Change: Legal projects that are starting to.
Speaker Change: To gain a beach, they are probably going to affect or impact the bad sentiment and says Oh.
Speaker Change: Yeah, Nick bought summit.
Speaker Change: Are you a mutual projectiles for you all.
Speaker Change: Get done they ran the shabby I will not go to extraordinary people who've gone deal economics.
Speaker Change: In Cassandra.
Speaker Change: Many private projects where.
Speaker Change: He joined the evolution of the effects and with this Oh yeah.
Speaker Change: The steady evolution of the effects in that.
Speaker Change: In the last couple of months, we are starting to see.
Speaker Change: Because of this.
Speaker Change: That rollout driven importantly by that but I need a minute that was a poorly done.
Speaker Change: Another important driver for bulk cement.
Speaker Change: It works.
Speaker Change: You do become a handle it Ian.
Speaker Change: It came out on there now without the only color I'm not telling you that Indian bus yeah, Peanuts, you shouldn't rely on what they might be used and what we ended up I know you talked you Martin.
Speaker Change: I mean that case, we have seen are held at the new scheme involving.
Speaker Change: Involving the private sector and the public works.
Speaker Change: How at least is going to evolve so we're going to we're expecting this to start to see but volumes are next year.
Speaker Change: So how do you already have again in fact, I didn't even put out by that approach.
Speaker Change: But these two variables should include <unk> have an impact on bulk cement dispatches.
Speaker Change: Mark.
Mark: Thank you very clear.
Speaker Change: Yeah.
Speaker Change: Again, if you have a question you need to press Star and then one.
Speaker Change: And our next question today will come from Marcello Fairlawn with Ita BBA. Please go ahead.
Marcello Fairlawn: Hi, everyone. Good morning, Thanks for taking my question here.
Speaker Change: I have one question related to deep dense I mean, you guys boosted deleveraging SKU at one time that that it is EBITDA.
Speaker Change: Sorry, I'm not at all.
Speaker Change: One time net debt to EBITDA and you guys don't have any major projects underway. So my question is related to you could see some improvement in the events, maybe 44 for Q4 2025.
Speaker Change: Are you guys just you happy for a healthy kept up a fire. So this is my question. Thank you.
Speaker Change: Hi, Marcelo Thank you for the question.
Speaker Change: It's pretty good.
Speaker Change: They are headquartered.
Speaker Change: Telecom menorah modest can it be done.
Speaker Change: Historically the quarters are the ones that have a lower EBITDA margin, but you come in beginning of vertical castellaneta. He had telemeter elected.
Speaker Change: I don't know the final neutral mcadams, that's basically due to increase cost in there during the winter season, and you shouldn't I mean take Daniel Toohey Muslim what total body of course to say you saw a nice gain but I don't know about between say, we'll note that our third quarter below the line yet.
Speaker Change: Additionally, this year, we had some extra hike on some costs that impacted.
Speaker Change: During the second quarter.
Speaker Change: Well the Haynesville Minto importantly go when transported beaten that one out of here like what sort of fee until she said the tinder placental foot on an IBD Marshalls point of when they need it.
Speaker Change: That is headquartered in Dublin for example, the impact of taking prices up transport.
Speaker Change: Energy that we had between.
Speaker Change: Between 400 and 700% impacted.
Speaker Change: Between May.
Speaker Change: And dose.
Speaker Change: That effect impacted the second and third quarter.
Speaker Change: And it has become a bus anecdotally scenario had been flat year on year last year.
Speaker Change: In general as it typically happens in this process of high inflation.
Speaker Change: The payout ratio that appeal.
Speaker Change: Ladies and gentlemen that are mitigated.
Speaker Change: No my games are getting in margin because we end up we have the capability of moving oil prices weaker than our costs went up quite a bit market necessarily mentally if you wonder what better put them at high dose <unk>, Oh, sorry, Martin backed out but in Indiana.
Speaker Change: So what did better.
Speaker Change: No matter, where you are at work.
Speaker Change: So if you look at the margins of the I'll say, we view the impact of Youtube.
Speaker Change: The costs and probably youre going to see.
Speaker Change: <unk> been.
Speaker Change: The next independent board Buckingham into political played out and what I mean.
Speaker Change: No it would be I don't know nautique on of course talking thrown them in tandem with video differently basically due to the debt.
Speaker Change: Now we are not going to have the impact on the on the winter costs, primarily in energy are not.
Speaker Change: Because of the other costs that's happening moving following inflation.
Speaker Change: Okay. Thanks, and a follow up question here what are you thinking about these things going forward.
Speaker Change: I'd give you end up but I wouldn't know Ted I won't really talk about but its Daniel.
Speaker Change: So far we have a we don't have anything planned for this year.
Speaker Change: But perhaps you might miss it for production one you already been laid out a scenario tons of timber in capital allocation.
Speaker Change: Warren W pattern effect any cause for the upcoming months or next year, we are on a lysine.
Speaker Change: The capital allocation alternatives.
Speaker Change: Thinking about the better alternative for electric holders.
Speaker Change: Okay. Thank you so much guys.
Speaker Change: Got it.
Speaker Change: And our next question today will come from Estevan Arietta with ballots. Please go ahead.
Speaker Change: Okay.
Speaker Change: Yeah. Good afternoon, Thanks for taking my question.
Speaker Change: And thus in sourcing situation impulse any debt repayment covenants on pneumonia here you are controlling changes.
Speaker Change: I'm just trying to continue to do that and where that comes from sheep to another company.
Speaker Change: And will trigger a tender offer for Loma <expletive> shares.
Speaker Change: Okay.
Speaker Change: Alright. Thank you for your question.
Speaker Change: No no I need them call. It I'm for Cambria control gameplay Guy won't impact on our company yet there is no call button regarding the change of control that they have.
Speaker Change: Impact on the company.
Speaker Change: Okay.
Speaker Change: Montana bid or the math doesn't come into play kind of like that none of my E.
Speaker Change: And if that's what they ended up at this juncture I like almost got it.
Speaker Change: Regarding a tender and then the the.
Speaker Change: The regulations of that and what you see in T. M D C.
Speaker Change: We will apply.
Speaker Change: Considering that he found operation of course.
Speaker Change: Thank you.
Speaker Change: Yeah.
Speaker Change: Well look.
Speaker Change: And our next question today will come from Daniel Rojas with Bank of America. Please go ahead.
Speaker Change: Thanks for taking my call.
Speaker Change: Most of my questions have been asked but I was curious when I was hoping to get a little bit more detail on.
Speaker Change: Hum.
Speaker Change: Let me try to Peel back.
Speaker Change: Hum presentation.
Speaker Change: Does it.
Speaker Change: Make Florida almost strategy of selling smaller bags to get better pricing what are you hoping to get.
Speaker Change: That's it from me.
Speaker Change: Okay.
Speaker Change: Any color you can give us and additionally to that give you can very simply think about the sequential recovery.
Speaker Change: Cement volumes.
Speaker Change: I know if you can kind of details on the call but could.
Speaker Change: Could you give us maybe if you could call it. Thank you.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: Hi, Danielle.
Speaker Change: Before we go to question.
Speaker Change: Hey.
Speaker Change: Richard Dineen Orient Wdis, you mean, Natalie I want to say you got anything.
Speaker Change: Yeah.
Speaker Change: Stability of cement in bulk or are very close from old is the same.
Speaker Change: And in that way.
Speaker Change: In a macro to Costco Marshalls Breasseale Pedro <unk> finished with book to Bill do you have anything that I need obviously.
Speaker Change: I'm back.
Speaker Change: More price and also more costs, so that the margins are.
Speaker Change: Better.
Speaker Change: In bulk and profitability is more or less the same.
Speaker Change: TV until you're glad volume in Baltimore.
Speaker Change: And annual medical along with what the O'neill, United but actually I mean per counterparty Lakewood deal regarding volumes, we can see one.
Speaker Change: First stage until June and then a hiking a heightened volumes.
Speaker Change: Starting in July is article, but that's been a bottleneck.
Speaker Change: The trend upwards.
Speaker Change: So the whole illuminate arsenic that recovery that we're seeing.
Speaker Change: Starting in July, it's more or less 30%.
Speaker Change: Up the figures of the first six months a quite solid on Monday.
Speaker Change: Why do they like to say Thomas Orlando put out but it Brooks you more on your the mental hurdle he glared at William So only keeping this tendency speaking about.
Speaker Change: A recovery of a or.
Speaker Change: Or an increase in volumes for next year on our on our.
Speaker Change: Two figures.
Speaker Change: Yes.
Speaker Change: Great.
Speaker Change: And my follow up.
Speaker Change: I remember one of them.
Speaker Change: You should be published around.
Speaker Change: Pension recovery of the mortgage market.
Speaker Change: You bet.
Speaker Change: Can you give us any color on what you see on the ground upstream.
Speaker Change: It might be our bank's jumping into the mortgage market and starting to cheat pardon me the pvp construction at TVT.
Speaker Change: To do that.
Speaker Change: Thank you.
Speaker Change: Yeah.
Speaker Change: Let's see let him into this one is from Nick I will give him the hemophilia a winter break that opinion.
Speaker Change: Yes, clearly that's something that we have always said that we'd be very important for both the food demand, making sure not only Brazil importantly, though isn't that it wouldn't be that in each of Asia greater.
Speaker Change: That's a few months ago. So that's been a recovery on real estate sales.
Speaker Change: I wouldn't say that we I mean, the mutual bond proceeds up and download.
Speaker Change: And there is a lot to do well in and that's why the Earth model it associated a losing game, which is B I D.
Speaker Change: And then more predictable contracts you have with Google.
Speaker Change: And many of those sales.
Speaker Change: Sales are those are those operations.
Speaker Change: And that's boosting future construction projects, while EMEA, yet it doesn't maintain a romantic let I'm going to let the known impact related.
Speaker Change: I want to jump on it so.
Speaker Change: So this continues and growth for julie's going to have an impact on future San Jose.
Speaker Change: Yeah.
Speaker Change: Exactly.
Speaker Change: Okay.
Speaker Change: We will conclude our question and answer session I would like to turn the conference back over to Diego alone for closing remarks.
Speaker Change: Okay.
Diego Hallo: Hi, Thank you everyone for joining us this morning.
Speaker Change: A pleasure for us to come in this on this call and we look forward to meeting you again in our Med school. Thank you very much.
Speaker Change: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines and have a pleasant day.
Speaker Change: Okay.
Speaker Change: [noise].