Q2 2025 Loma Negra Compañía Industrial Argentina Sociedad Anónima Earnings Call
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. Santiago five men 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 note. This event is being recorded.
I would now like to turn the conference over to Mr. Diego, How long head of IR. Please Diego go ahead.
Thank you good morning, and welcome to illuminate US earnings conference call by now everyone should have access for 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 circa five months, our CEO and vice President of the board of directors and our CFO Medical Halloween.
Both of them will be available for the Q&A session.
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 filings with the SEC.
We assume no obligation to update or revise any forward looking statements to reflect new or changed events or circumstances.
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 <unk>.
Thank you Diego Hello, everyone and thank you for showing us this morning.
Like just that'll my presentation by discussing the highlights of the quarter, then Melco, who will take you our medical review and Peanuts sidecar.
With that I will share.
Remark before opening the call to your questions.
Starting with slide two.
That's different than economy continues to recover and effective in Alaska CDP fewer days from index from the first quarter 70 dispatches in the hands of three at a combined these trends supporting the growth seen in the first three months of the year, maintaining a positive trajectory.
That site there is a still a long way to go I'm glad currently navigating the initial pace of recovery.
However, in Denmark, Lasalle and <unk> is still early stage recovery for the sector margin for the quarter stood at 21, 2% on consolidated basis, showing a year over year decline.
We're mainly driver by the impact of a more challenging competitive environment typical of the recovery that is not yet fully consolidated.
And 11% increase in volumes during the quarter helped offset the more difficult pricing dynamic that affect the top line right.
We are translating into a lower inflation scenario, what price a settlement at a modest spaces out of more limited on the current market condition.
We achieved it in a settlement EBITDA.
$34 million down 31%.
When measured in pesos EBITDA margin contracted primarily due to a soft top line through a strict cost control helped mitigate the impact.
And the financial firms our balance sheets remain solid.
During the quarter net debt increased secondly to $215 million.
As the first half of the year is typically more capital intensive.
Our net debt to EBITDA flat deal remain at comfortable level, reaching 174 times.
Hello, and therefore for the second quarter with socially useful and new corporate with Boeing for one candidate 12 $49 million the process it would be useful to address upcoming debt maturity, extending our debt duration and improving our maturity profile.
Not one of the cold tumor godaddy.
Well you see our market review our financial results. Please Marcos go ahead.
Thank you Sergio and good morning, everyone. Please turn to slide four the resets for Argentina economy in the first quarter were very positive with year over year growth, reaching five 8%.
Current forecast for the full year remains around 5% sustaining optimism in this recovery process.
However, it is important to note that the recovery is not uniform across all sectors.
In particular, the ISR the construction activity in this index.
Continues to signal a positive rebound in our industry.
Regarding seven this budget during the second quarter volumes grew by 14% year over year.
Strong recovery in bulk cement compared to about seven.
As a result above seven games three percentage points in the overall dispatch mix, reflecting a rebound in this segment.
Yes, the first half of the year community growth reached 14%.
As mentioned previously we are still in the early stages of recovery with a midterm election on the horizon that.
Could introduce some political volatility.
Nonetheless, we remain optimistic that the consolidation of the current economic model will lead to a more stable environment and neighbors in sustaining growth overtime.
Turning to slide five for a review of our top line performance by segment.
Second quarter top line declined by 8%, primarily due to a weaker performance in the SME segment.
By softer results across our remaining segments.
The Senate most of the assortment online segment posted a 99% revenue decline.
Despite an 11, 1% year over year increases in volumes.
Continuing the recovery trend observed in the first quarter.
Semi dispatch has begun to show stronger momentum.
Even by industrial and commercial projects as well as social housing developments.
Additionally, certain provincial level public work started to gain traction.
Though they remain at a very.
Larry Elder stage.
Docs haven't volumes continued the trends seen in the first quarter.
Posted single digit year over year growth. However, the positive impact of hydro volumes, partially offset by softer pricing conditions in.
In the context of an early stage of recovery and a new low inflation environment.
The competitive landscape continues to limit pricing dynamics.
Complete revenues declined by one 1% in the quarter.
As a 43, 4% increase in volumes was offset by breast pressures.
You mean from a more competitive market.
Volume growth was supported by private projects, mainly related to logistics infrastructure and residential development.
As well as a moderate uptick in public works.
On the other hands the aggregate segment posted.
Slide cereal, 0.8% revenue increase.
A 44% decrease in volumes.
Driven mainly by higher road construction activity in the Permian sale when the site is in Santa Fe upset the impact of softer pricing.
Prices were also affected by the states.
As a road construction project primarily require fine aggregates.
Which carry a lower unit price and reduce the overall average.
Railroad revenues declined by eight six percentage of quota at 10, 2% increase in transported volumes.
Mitigating the effects of weaker pricing.
With volume growth, primarily driven by.
By Hydro transport of construction materials. However, the disruption of the railroad lines in Bahia Blanca March, particularly affected longer haul traffic maybe.
<unk> raised gypsum brookstone, reducing ton kilometer transported sequentially revenue generation.
Moving onto slide seven consolidated gross profit declined 35%.
While gross margin contracted by 659 basis points year over year, reaching 24%.
In the <unk> segment cost of sales increased by <unk>, 8% year over year, despite increasing sales volumes effective cost management and lower depreciation impact help upset the weaker pricing environment.
Additionally, lower maintenance cost and improve energy input prices contributed positively to the quarterly cost structure.
Continuing the trend from previous quarter. The company continues to benefit from thermal energy contracts with year over year tariff reductions.
In short term agreements that ensure production.
Margins also declined across our remaining business segments.
Sure enough rival.
And some margin expansion.
Finally, SG&A expenses increased by five 3%, mainly driven by higher salaries and insurance cost, partially offset by lower marketing expenses.
As a percentage of sales SG&A reached 10, 7% representing a year over year increase of 145 basis points.
Please turn to slide eight consolidated adjusted EBITDA for the quarter stood at $34 million when in pesos.
Vessels of which 47 billion.
Reflecting efforts a 36 year over year decline.
This increase was primarily driven by lower EBITDA generation in the <unk> segment.
With this the consolidated EBITDA margin contracted 221, 2%.
Representing a 691 basis points decline year over year.
In our <unk> segment, adjusted EBITDA margin contracted to 24, 8% down.
Balance sheet covenants with tier two basis points.
Due to a softer pricing environment.
Cost declined by 10% percent on a per ton basis.
Supported by lower energy input prices and maintaining costs.
These efficiencies together with higher sales volume, partially offset the weaker top line.
The concrete segment saw its adjusted EBITDA margin declined by <unk> <unk>.
773 basis points.
Minus 14% compared to a minus five 3% in the second quarter of 2024.
Although higher volumes and cost efficiencies contributed positively.
Not sufficient to fully offset the negative pricing impact.
In the aggregates segment adjusted EBITDA margin fell to minus 27, 3% comp.
Compared to minus 10, 2% in the same quarter last year.
While volumes continue to recover a still challenging competitive environment and a favorable product mix weighed on segment profitability.
On the other hand, the railroad segment reported an adjusted EBITDA margin expansion and Christian by 351 basis points to.
298% up from six 3% in the same period of 2024.
Volume growth driven by increased shipments of construction materials.
Cost controls supported the performance.
Whoever the interruption of the labor line in Bahia Blanca continuous traffic volumes.
Equally in longer haul traffic such as grain gypsum Brookside.
Moving on to the bottom line on slide 10, net profit attributable to owners of the company totaled $2 4 billion pesos for the quarter.
Compared to a net gain of 41 billion pesos in the second quarter of 2024.
This decline was primarily driven by a decline in the financial results.
Combined with weaker operational performance.
On the partnership front the main driver of the already.
Our ratio plus a reduced gains from the net monetary position I think rationale the effect of monetary liabilities.
Most of it is significant significantly compared to the same period of last year.
In addition exchange rate difference had the hydro impact due to the devaluation that followed leasing capital controls.
As a result the company.
Brookside.
Net financial loss of $16 7 million pesos for the quarter.
Moving onto the bottom line on slide 10, net profit attributable to owners of the company until it goes here 4 billion pesos for the quarter.
Compared to a gain of $33 5 billion pesos in the same period of two.
Compared to a net gain of 41 billion pesos in the second quarter of 2024.
2024.
Additionally, net financial expenses declined by 50%.
This decline was primarily driven by a decline in the financial results combined with weaker operational performance.
Reaching nine 8 billion pesos.
Primarily due to lower interest rates.
Moving onto the balance sheet as you can see on slide 11, we ended the quarter with net debt of 256 billion peso seven debt to EBITDA ratio of 134 times.
On the financial front, the main driver of the year over year of operation.
Reduced gains from the net monetary position as inflationary effect of monetary liabilities.
Moderator significant significantly compared to the same period of last year.
Up from Zero point 89 times at the end of the quarter.
In addition exchange where they pretty much had the hydro impact due to the devaluation that followed nation.
Hello, Yes, typically more capital intensive gaslog.
Cash flow used in operation activities totaled $22 3 billion pesos.
Capital controls.
As a result, the company reported a net financial loss of $16 7 million pesos for the quarter.
Compared to the $22 3 billion pesos generated in the second quarter of 234.
Impaired to a gain of $33 5 billion pesos in the same period of.
Performance was primarily driven by a lower operational result.
2024.
And a higher income tax paid.
Additionally, net financial expenses declined by 50%, reaching $9 8 billion pesos.
The income tax paid during the quarter stood at $45 5 billion pesos.
They correspond to the amount total amount for the fiscal year 2024.
Primarily due to lower interest rates.
Moving onto the balance sheet as you can see on slide 11, we ended the quarter with net debt of 256 billion peso suddenly this debt to EBITDA ratio of 134.
The company reported a negative result in 2020 free.
No advance payments were made for 224 until the final tax water cess and became due in May 2025.
Thanks.
Up from Zero point 18, nine times at the end of the quarter.
Additionally, the company has already started making that statement for fiscal year 2025.
The first half of the year is typically more capital intensive.
This effect was partially offset by lower working capital needs in other areas.
Cashflow Vyas integration activities totaled $22 3 billion pesos.
Compared to the $22 3 billion pesos generated in the second quarter of 2024.
The beginning of the winter season, we began to minimize clinker production and increase the use of inventories.
This performance was primarily driven by a lower operational result.
Additionally, we invested 18 billion pesos in capital expenditures this quarter.
And a higher income tax paid.
Primarily allocated to the 25 kilograms.
The income tax paid during the quarter stood at $45 5 billion pesos.
<unk> project.
During the company the company generated $45 6 billion pesos from financing activities.
Mainly correspond to the amount total amount for the fiscal year 2024.
From your borrowing net of loan repayments or anticipate.
The company reported a negative result in 2020 free.
In U S. Dollar terms net debt stood at $215 million with a ratio of less than one year by the end of the quarter.
No advance payments were made for 224 until the final tax water cess became due in May 2025.
Additionally, the company has already started making that statement for fiscal year 2025.
That represents a 71% of our total debt.
As a reminder in pesos.
This effect was partially offset by lower working capital needs in other areas.
After the close of the quarter. The company successful issues is plus five corporate bond or 100.
The beginning of the winter season, we began to minimize clinker production and increase the use of inventories.
$14 million with material.
Julia Turner.
Additionally, we invested 18 billion pesos in capital expenditures this quarter.
The rate of 8%.
The newborn was partially subscribe for exchanges, we've called plus two and plus three bonds.
Primarily allocated to the 25 kilogram.
Proceeds were primarily used to repay the remaining balance of the cholesterol bond maturity in December.
Marine projects.
During the company the company generated $45 6 billion bushels from financial activities.
The other short term debt.
From new World, New borrowing net of loan repayments and anticipate.
This issuance the company extended the average duration of its depth and continues to maintain our balanced maturity profile.
In U S. Dollar terms net debt stood at $215 million with installation of less than one year.
Now for our final remarks.
I'll turn the call back to Sergio.
By the end of the quarter.
Ted.
At the center of 71% of our total debt.
Thank you Marcos now to simulate the presentation I. Please ask you to turn to slide 13.
As a reminder.
Yes.
After the close of the quarter. The company successful issues is plus five corporate bond for 100.
The recovery trend in the first quarter has continue to we are still in the early phase of the process and market conditions remain challenging.
$13 million with Wachovia turnout and an interest rate of 8%.
The 5.8% GDP expansion in the first quarter, you said very positive signal for what lies ahead busters and died.
The new bond was partially subscribe through exchanges, we've called out plus two and plus three parts.
Proceeds were primarily used to repay the remaining balance of the cholesterol bond maturity.
On the evolution of seven dispatch during the first half of the year.
December.
Other short term debt.
I will have patients achieve totally dishy grow.
With issuance the company extended the average duration of its depth and continues to maintain our balanced maturity profile.
In 2025.
While demand remained in the early stage of recovery. He industry is well positioned for the future expansion in this context, we continue to produce high operational efficiency and remain focus.
Now for our final remarks.
I will hand, the call back to Sergio.
Thank you Marcos now to simulate the presentation I. Please ask you to turn to slide 13.
Focus on delivering solid results.
Despite the ongoing challenging I want to highlight our strong commitment to innovation and the continued development of our industry as well as the healthy uncertainty of everyone involved in construction activity.
The recovery trend in.
In the first quarter has continued and we are still in the early phase of the process and market conditions remain challenging.
The 5.8% GDP expansion in the first quarter, you said 30, plus you do see me for what lies ahead buses.
A clear example of this is a transition to 25 kilo seven Bucks a project that's a key.
Buses and died.
It has seen 14 asphalt and investment.
On the evolution of seven dispatch during the first half of the year.
One we are approved to have specially implements.
I would especially like.
While the current environment remain demand.
We've totally dishy grow in 2025.
I didn't notice it.
While demand remained in the early stage of recovery he industry is well positioned for the future expansion in this context.
What I get and remain confident in Loma ability to light.
It's end of our prepared remark, we are now ready to take questions.
Turning to produce high operational efficiency and remain fully focused on delivering solid results.
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 one on your telephone keypad, a confirmation tone will indicate that your line is in the question queue you.
Despite the ongoing challenging I want to highlight.
A strong commitment to innovation and the continuing development of our industry as well as healthy and safety of everyone involved in construction activity.
You May press Star then two if you would like to remove your line.
For participants using speaker equipment, it may be necessary to pick up your handset prior depressing the keys.
A clear example of this is a transition to 25 kilo sentiment box and project that our Kid is cheaper faults and investments and one we are approved to have specially employment.
Once again star one on your telephone keypad.
We also would like to ask that you. Please limit yourself to one question and one follow up please.
While the current environment remain demand.
If you have additional questions you may re queue for those questions and they will be addressed.
We are in college I throw out ahead and remain confident in Loma ability to light.
Also please note that Mr. Sahil five men will be responding in Spanish immediately following an English translation.
It's end of our prepared remark, we are now ready to take questions.
Hold momentarily, while we assemble our roster.
Hey, Tony Please open the call for questions.
Thank you we will now conduct a question and answer session.
And the first question will come from Mario <unk> with Morgan Stanley. Please go ahead.
Like to ask a question. Please press Star then one on your telephone keypad.
Hello My name. It seems thank you for taking my question. My question is regarding pricing I. Just wanted to know if you could provide more color if the weaker than expected pricing second Q could be explained by the timing of the price increase.
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.
For participants using speaker equipment, it may be necessary to pick up your handset prior depressing the keys once again star one on your telephone keypad.
Or like maybe they were closer to the end of the quarter or are you guys see more structural trends that could make pricing more challenging in the near term.
We also would like to ask that you. Please limit yourself to one question and one follow up please.
And second if you could if possible could you. Please also share how all this competitive and pricing trends behaving heading to third quarter in the second half of the year.
If you have additional questions you may re queue for those questions and they will be addressed.
Okay.
Also please note that Mr. Sahil five men will be responding in Spanish immediately following an English translation.
Hold momentarily, while we assemble our roster.
Hello, Mr. Diego, how long your line may be muted.
And the first question will come from Mario <unk> with Morgan Stanley. Please go ahead.
Hi, Mario Thank you for your question.
Hello, My name it seems taking for taking my question. My question is regarding pricing I. Just wanted to know if you could provide more color if the weaker than expected pricing second Q could be explained by the timing of the price increase or like maybe they were closer to the end of the quarter are you guys see more structural transit could make pricing more challenging in the near term.
Alright.
But if you didn't get a lot of corn like never got somebody do I guess with the more simple message.
Regarding our pricing has to be with the competitive environment of the last five months, you've got to come in to get to impact. The one we'll see you already see for duo nobody.
And second if you could is it possible could you. Please also share how are these competitive and pricing trends behaving heading to third quarter in the second half of the year.
Nobody has shown that people are gone meal logically there once the b.
For all that the restrictions on patent concept work, while lifted that had an impact on the tax how do you like there will be moments in time, because I'm the head of the world.
Yeah.
And so wall Street this.
Just last month.
Hello, Mr. Diego, how long your line may be muted.
Hum.
Hum on the effects.
Hi.
Vantage for video games.
Thank you for your question.
There could be multiple methods.
But as you kind of correlate that message on video. It is I also say that in the last two months the competitive environment is better.
But I think I'll bet you a negative article in light and we've got somebody do you already dosed with <unk>.
Regarding our pricing attached multi b with the competitive environment of the last five months.
And in the previous months really.
And so right now you're going to have inventory, but as you probably realize plus young we have foreseen to end the year with <unk>.
I mean to get to impact the one they'll see severely safeway duo.
Greece in pricing.
Nobody has shown that people are gone meal logically there once the b.
Rising above inflation.
If we get a C on parallel review my message and in pressure there.
I'll bet their restrictions on pet and content were lifted that had an impact on the effects. How do you like there will be more mass than inside of him yet and so was.
Got it.
So on a recovery in pricing on the remaining of the.
And right now they've got completely D. Var is backed out in ophthalmology and whatnot.
This last month.
Hi.
<unk> got I mean, you need to put them on <unk>.
Hum.
The effects.
Regarding the competitive environment.
<unk> Fujimoto metric I mean, they're going to be.
Stable, we're not seeing a nature.
DRAM Brasil Tammy cortical domestic on video it is I also say that in the last two months the competitive environment is better than the.
Valuations are full.
For the call.
The month to month.
That's clear thank you.
The previous months demo preamble Saturday, Daniel now mentally potential for realizing plus young we have foreseen to end the year with an increase in pricing.
It will.
And our next question will come from Sofia <unk> with <unk> Securities. Please go ahead.
And pricing above inflation.
Hi, Thank you for taking my question.
United will get us you're on parallel tracks and what message and in particular, there that he can add it to my board and so on a recovery in pricing on the remaining.
Regarding the sector why did you start out.
Further contraction in the second half of the year and weaker.
Right.
And right now you've got <unk>.
It backed out in a small handful.
Hi, Thank you for the question.
<unk> currently got them you need to put them up making.
Our contracts yoga could lead most domestic attenuating, the United had a figure that method.
Regarding the competitive environment.
Stable, yet not seen a major Ah.
The contraction to be having been in the past few months I've seen you got to the one that he had a pretty good time I'll handle <unk>.
Valuations.
For the next couple of months ago.
That's clear thank you.
But as you want it all malaria extra demand method.
No.
<unk> seen them.
And our next question will come from Sofia <unk> with <unk> Securities. Please go ahead.
Slow recovery, but probably even just in this last couple of months.
In content or are you a product with a.
Major calamity on telco deals.
Hi, Thank you for taking my question.
And regarding the drivers looking forward there are many of those that should be it should have a positive impact not contest automobile locate key titles that are you at a bus you Radha will not massive but they don't impact or important than any other approaches nonetheless.
And regarding the sector, what do you start to look for.
Construction in the second half of the year and with the potential driver.
I see some good part of the question and.
Those drivers.
Our contracts younger could we must domestically than you added can be United had a feeling what method.
Have a significant impact on dispatches them, it's going to take some time maintaining them on line.
The contraction that we having been in the past few months I've seen it up to the one that we had previously thermal handlers and.
If you're on it but I think the.
Any update or Congress Union total areas like big data ingestion until it but we keep our forecast for the year, but considering that we should have on a gradual mother's womb.
But as Jan said, all malaria, if the demand message.
<unk> seen them.
A slow recovery, but dependent probably even just in this last couple of months.
Great.
Let's see and if we can have message.
I got a poorly gosh do I listen, Brian Carolan Aside Santa Fe.
In Guadalajara, you have product would do I, even neutral KKR, but he has held a bunch of deals.
In the left a couple of months, we're starting also to see some.
And regarding drivers looking forward. There are many of those that should be that should have a positive impact not fantastic time or relocate Glen gate I suppose that are you at a bus you're right I won't Miss it by a particular impact oil <unk> and any other approaches nonetheless.
The increase in the level of activity of public works in the province itself when aside from Santa Fe Pedro claim upgrade can approximate headsets that are really incremental and now.
Our boutique Italian embodies reshaped.
And she has already come in some and we did that.
Obviously those drivers.
Have a significant impact on dispatches its going to take some time maintaining them on with.
Activity in the Wall Street.
Once you have to have a positive.
A positive dynamic in that we've got.
You're on it but I think the.
Coming months and also there are perfect to private industrial investments.
Any update or Congress Union total areas like big data he doesn't until their budget, we keep our forecast for the year that I'm not considering that we should have on a gradual.
Infrastructure.
Yeah.
In Romania.
There's room for other maintenance.
Okay.
Yeah. Thank you.
Let's see and if we can have messaged him already.
Okay.
So without poorly gasp in Gladys empyrean, showing upside with Santa Fe.
Okay.
Our next question will come from Marcello for along with the toe.
In the last couple of months, we're starting also to see some increase in the level of activity of public works in the province itself on a site in Santa Fe.
Please go ahead.
Hi, everyone. Good morning, Thanks for taking my question.
I am afraid can approximate headsets E L F.
The first one is just a follow up regarding volumes you guys mentioned that you still expect margins to Brisbane.
Incremental and now with a boutique Italian embodies reshaped the main but if you don't get kind of a shallow economic times.
Yeah. Thanks, guys. So just to give a more color on that if you guys expect.
And we do believe that that is.
Activity in the Wall Street.
No the position or could expect mid teens.
Once you reach a positive.
A positive dynamic in the upcoming.
The next month's meeting for <unk> and <unk>.
Coming months and also there are project to private industrial investments in.
My second question is related to the cost efficiency.
Thanks to boost.
And infrastructure that should.
So just with Max understand once the company.
Yeah.
Okay.
Perspectives in terms of.
Cost efficiencies and as part of the second half of this year and also.
Okay.
Thank you.
Okay.
Could we expect kind of margins and if I may just one final question with us regarding defense I'd just like to understand what is the management's view regarding position vis vis furniture. So these airlines my points. Thank you.
Sure.
Our next question will come from Marcello for along with <unk>. Please go ahead.
Hi, everyone. Good morning, Thanks for taking my question.
Sorry, I'm Marcelo the LDH is very bad I don't know if youre. If you can repeat the question.
The first one is just a follow up regarding volumes you guys mentioned that you do expect margins to grow by double boost.
Reached 2005, so I'd just like to give a more color on that.
Now if you if the first one was regarding volumes.
Oh sure can you hear me.
Mark Who's to know the position or could expect mid teens.
Better now.
Yes, that's better.
That makes more smooth.
Okay.
And my second question is related to the cost to the efficiencies that you guys expect to boost.
My question for volumes, if your guidance expect the volumes mark loans to low double digit increase for this year or would you expect.
So just with Max understand what is the company.
In terms of.
Maybe Chris if I meet these firms for Christmas. So it is my first question. My second is related to margins. What you would expect for margins in the second half.
Cost efficiencies and as part of the second half this year and also what could we expect kind of margins.
And if I may just one final question with us regarding defense I'd, just like to understand what has been management's view regarding position in these earnings years. So these are lines my points. Thank you.
And finally, if I may.
One final question is regarding deep I'd like to understand the company's view for this year. Thank you.
Sorry, I'm Marcelo.
It's very glad I didn't know if you can repeat the question I'm not sure. If the first one was regarding volumes.
Hi, Marcelo Thank you for the question.
So what do we see that really jumped out and I can tell you my opinion to that rapidly as younger anymore clarity months Orlando.
Oh sure can you hear me better now.
Before regarding our expectations for the year.
Yes, that's better.
Okay. So my question for volumes.
Keeping this double digits now for that.
Your guidance expect the bottoms mark loans to low double digit increase for this year or would you expect.
For the year to implement the numerator hooley operated into Korea.
Kate how awkward exited Europe, the Democratic Golar Arctic Hulu arrangement that you have.
Volume may be greeted by mid teens.
So this is my first question my second is related to margins, what you would expect for margins in the second half.
In a beaker Danielle.
I did it for the whole.
Or do you have that specifically for the for the performance of <unk> of July which was below the year on year comparison.
Five and finally, if I may.
One final question is regarding deep dense I'd like to understand the company's view for this year. Thank you.
You have to remember that July of last year was to one of the peak.
Yeah.
There was a very challenging base of comparison on the whole luminaire hadn't <unk>.
The following are some of the end of the study at a structure, where you added a beat with the volumes for the second half of last year, we have not seen that situation to happen again.
Hi, Marcelo Thank you for the question.
So how do we get here.
So I'm not going to take them on maintaining of that that place yoga anymore clarity months Atlanta as I mentioned before regarding our expectations for the year.
<unk> come up with the multiyear terrestrial medical battery on pallet Richemont method regarding margins and how long that's.
Keeping this Doug.
Double digits and our forecast for the year can do I meant a numerator fully operated and Austria.
What I mentioned about how the pricing you're expecting a recovery.
Kate how after a lengthy period of Democratic Golar Arctic Hulu arrangement that you have.
In the coming months and it has broken my quarter ongoing cost of the lease.
We're in a big way Danielle.
I don't know if it got off it open.
Either before the aluminum portfolio that specifically for the for the performance of <unk> of July which was below the year on year comparison, we have to remember that July of last year was to one of the peak of the year. So that there was a very challenging base of comparison on the alumina and so on the cement.
We might have been a few of them.
Probably next quarter, even though you're going to have some impact of the of the cost of winter are we expecting some recovery.
One of those is having called out American at parity with them about it.
And then continuing this tendency of recovery for the for the fourth quarter.
Any of the following are some of the end of the 30th assurance area. So were you out of the beta with the with the volumes for the second half of last year, we have not seen that situation to happen again.
The last question was about dividends.
Yes, okay.
Tamara kinetic demonstration multi local threshold medical battery on Palo Alto Chipotle said regarding margins and how long that I'll say is what I mentioned about what type of pricing we are expecting a recovery.
I'd say most of it is on the pull out of that has come at the U R. E D.
The RP financiera Mccormick parallel function at us sooner.
In our lighting every alternative on the financial front for our shareholders are going to wind up with good ideas capital there in a company here.
In the coming months.
Okay.
<unk> cost of the Indiana.
Analyzing the structure of the capital of the company I will not animals from a ratio on the power you'd end up at a bottom antibody approach and the right, but we don't have any any position for propane events. So far this year.
When I went out of it but as you all probably next quarter.
Even though we're going to have some impact of the of the cost of winter are we expecting some recovery continue unbilled AR is something called I imagine it probably is going to work and and then continuing with this tendency of recovery for the for the fourth quarter.
Okay. Thank you so much.
Okay.
Our next question will come from Andreas <unk> with Citigroup. Please go ahead.
The last question was about dividends.
Yes.
So you must have had some good pull out of that has come at you out here.
Alright.
In the longer renewed bankrupted ratio margin may have come from their judgment and energy prices.
The RVP enunciate unrecorded parallel tanks and heaters.
In our lighting every alternative on the financial front for our shareholders.
Without any capital there in a company here.
I am sorry.
Analyzing the structure of capital of the company I will not animals from a ratio on the power you'd end up at a bottom antibody approach and the right, but we don't have any any position for propane dividends. So far this year.
You are asking for energy prices, we are not having the desktop.
Sorry, no I am asking is the pressure on margins, maybe partially explained by the newly issued the prices that we have seen.
In the <unk>.
Year to date.
Okay. Thank you so much guys.
But it doesn't matter right.
Look.
Our next question will come from Andreas <unk> with Citigroup. Please go ahead.
Hi, I'm going to thank you for the question.
But what I'm gonna put.
Put her on a one off basis.
Right now you've got competitive right Victoria.
Alright.
The longer in these parts of the ratio in mind, you may have come from there.
Taking into aluminum Pogo monopoly power.
As I mentioned before.
First many new energy prices.
The past few months we have.
A competitive dynamic.
It was a more challenging one.
The freedom of a message elaboration Butler director, Daniel we misunderstand, how youre going to be on the call and if we see what happened in the last two months and.
I am sorry, you are asking for energy prices, we are not having to desktop.
Yeah.
Sorry, no I am asking is the pressure on margins, maybe partially explained maybe each newly issued at prices that we have seen.
Forecast for that for the remainder of the year, we have a more positive.
Positive expectation.
NIM continued to meet numerous in pesos Senator atmosphere.
In the year to date.
But it's just a matter of the pricing strategy.
A lot of Korean debt in annual Barcelona, physical framatome entitled peripheral more rapid but I'll open it was like 1% of main cabin basic economic commercial rationality.
Hi, I'm going to think about it.
You can put whatever come into la.
Put her on <unk>.
And when you see our debt.
Let me go competitive.
Victoria.
The numbers that we publish.
And Christian into aluminum Pogo mass of apparel.
Adjusted by inflation are you also have to compare then given the the increases on pricing in the in the first semester of last year.
Yes, as I mentioned before in this past few months we have.
Competitive dynamic.
Was a more challenging robalo the freedom of a message elaboration Butler director of English, we misunderstand, how you want the video Makoto.
Just those number by inflation plus number are not very accurate.
And if we see what happened in the last two months and a forecast for that for the remainder of the year, we have a more positive.
The person who makes it rather dramatically, but that's generated breccia.
Post the quarter.
And then in the coming months, there's going to be a recovery in terms of pricing scenario.
Positive.
The expectation that the main controller no medicine peso similar prevalence here.
My name is probably California, plus unit peso services subsidiary PT local merchant that when would you see that the.
A lot of Korean this Atlanta Barcelona pivotal study also met our original movies that open the wider Latam, Brazil main cabin pressure control commercial rationality.
The comparison.
Against.
Adjusted by inflation figures, sometimes the combined incentives.
And so and when you see our the the numbers that we publish.
It's difficult to Etfs.
But I'm doing an Indian personality about pressure on Dayrates and donated shelf market in central Europe.
Adjusted by inflation are you also have to compare them given the the increases on pricing in the in the first semester of last year.
But we are expecting them.
Reasonable time, we expect to see again the.
Just those number by inflation plus number are not very accurate.
In the last few years of pricing DSO at Samsung and costs.
On the margins that we previously saw.
We ended up putting more metropolitan medical device generated Brasil.
That affected the quarter.
Clearly in the in the in the coming months, the there's going to be a recovery in terms of pricing.
Our next question will come from Daniel Rojas with Bank of America. Please go ahead.
I think it was a scenario on the Ono.
My name is pretty California, plus you are in pesos, sorry, say Saturday UCT like membership.
Good morning can you hear me.
When would you see that the.
Yes, we can hear you.
The comparison.
So.
Against adjusted by inflation fears, sometimes the combined incentives.
I wanted to go back to the pricing question and sorry for them.
Maybe it's the third time you answered this but I just wanted to get it very clearly so as the industry moves from these high inflation environment and then the competitive environment can you discuss it becomes more challenging.
It's difficult to do office did a ton of it Brandon and in game for Us and I'll give a little of pressure or some data. They can do that it shall American and central Europe.
But we are expecting them.
Reasonable time are we expect to see again, the fears of pricing DSR Thompson and cost per ton on our margins that we previously thought.
Wanted to get a better sense of your commercial strategy.
I'm guessing that you previously you had to increase prices on a very high pace to keep up with inflation and now maybe that changes and structurally did the whole industry has to rethink their approach to pricing increments and maybe that explains that the pricing situation or is it more.
Our next question will come from Daniel Rojas with Bank of America. Please go ahead.
Of a competitive dynamic where the competition is not increasing prices.
Good morning can you hear me.
Yes, we can hear you.
Do you have.
So.
To increase as much.
I wanted to go back to the pricing question and sorry for them.
Wanted to drill down on those dynamics. So we can get a better sense of how in the second half you are going to be able to catch up.
Maybe it's the third time you answered this but I just wanted to get it very clearly so as the industry moves from these high inflation environment and then the competitive environment you discuss it becomes more challenging I just wanted to get a better sense of your commercial strategy.
And sorry for asking do you so much.
Hi, Danielle Thank you for your question.
So the idea of Cushing, it's not going be in assembly and Buffy WNS.
I will tell you that there is.
It is a combination of these two situations for portola.
I'm guessing that you previously you had to increase prices at a very high pace to keep up with inflation and now maybe that changes and structurally did the whole industry has to rethink their approach to pricing increments and maybe that explains that the pricing situation or.
Got it.
You got it.
This year on a <unk>.
The intent.
That might help maintain video with a mentor on one hand, the did the sudden decrease in inflation it changes the strategy and pricing now.
Or is it more of a competitive dynamic where the competition is not increasing prices.
Not only like the amount of office.
These increases.
And you have been able to increase as much I just wanted to drill down on those dynamics. So we can get a better sense of how in the second half you are going to be able to catch up. Thank you and sorry for asking do you so much.
Increases in prices that you can count, but also in the timing of the chest.
Yes, <unk> the subsidiary of kick them assortment of our massive input I cannot compete and carry more umbilical masking it a mentor identity.
Hi, Danielle Thank you for your question.
Is that the Philadelphia became yet for any pattern in Macau and also at the same time.
So media cashing it should have come down, but he does sheerness.
I will tell you that there is that it.
Once these adjustments are more space out there the competition might not take this despite adjustments.
It's a combination of these two situations.
Like I E billing platform to show up in our own ecstatic ritual.
The intent is to migrate our mainstay in video with a mentor on one hand, the sudden decrease in inflation it changes the strategy and pricing now.
And then with the same time invested at before and those little difference and can can impact it.
Competitive environment and when they can now reopening plus an anti psychotic therapy.
Not only by the amount of.
In fact, our cancer immunotherapy.
<unk> like them to dance here in a scenario of high inflation.
This increases on pricing.
But also in the timing of the chest.
This dynamic was.
Most importantly subsidiaries kick them assortment of some massive seattle's input Ana can potentially more than local marketing and a mentor.
It's very fast.
Hum.
With valuations being impact that much in our clients.
We need all of it is.
Guidance of our competitors and consequent effect plus Jan look, but he made a message is okay needle a room.
Philadelphia became yet for any pad coming on in Macau and also at the same time. Once these adjustments are more space out there and the competition might not take this despite adjustments that.
In a competitive learning better color because you all operator.
And if the scenario that correction the pressures on Antelope niches and in this first months of this transition from a high inflation scenario to a low inflation scenario.
Is that with the same time industry before and those little difference and can can impact the competitive environment and when they can now do you have any plus an anti psychotic.
These new dynamics.
There's a little bit our.
Competitive environment from a comment on this I would now like activities. How some of the end of stores would be more of a message I wanted scenario mutual my rationale really going out there and get it back up once the scenario.
A therapy in lung cancer.
But I am not totally empty <unk> to hit that number to NCR in a scenario of high inflation vis a vis this dynamic was very fast.
More stable.
That's what we comment before.
Last two months of planning that.
And this.
These valuations being impact that much in our clients are clients of our competitors and consequent effect plus Jan look, but he made up messages okonedo.
Different a different dynamic and we expect that to continue in the coming months.
In Nevada for some of us and that's what we're expecting for that for the remainder of the year.
Early on a competitor you are in a matter of Carlo if you roll up for that or if the scenario that correction the pressure of it until it matches and in this first month of this transition from a high inflation scenario to a low inflation scenario.
Thank you. Thank you for the additional color and May have a follow up.
The President announced a provide decision program for 10000 kilometers of roads and other initiatives to try to push for an increment in public works in Argentina I know, it's early and there are few details, but I just wanted to get a better sense of how the public work program is recovering.
This is new dynamics.
Second a little bit our.
The competitive environment from a comment on this I would now like activities has come at the end of stores would be more of a message I want as an ideal mutual Maharashtra now really going to get any entity.
And then you mentioned a couple of regions in the country that are seeing better.
The scenario is.
Prospects and more activity.
It's more stable that to what we comment before this last two months of planning that.
What's your outlook for the second half and the outlook for these programs to the president.
Thank you.
It'd be front or is it something that we can and do you expect that to continue in the coming months.
Okay.
Key.
In Nevada for some of us and that's what we're expecting for that for the remainder of the year.
The commentary so criminal multiple than CRM photo beginning kalydeco and in fact, we put out a public out but we.
Thank you. Thank you for the additional color and EM.
We believe there is a.
A lot of potential in terms of.
A follow up.
I'm, the President announced a provide decision program for 10000 kilometers of roads and other initiatives to try to push for an increment in public works in Argentina I know, it's early and there are few details, but I just wanted to get a better sense of how the public work program is recovering.
Public infrastructure, North animal who ask us how located we need we have no doubt that this will come keeps up quarter collateral <unk> decided to keep that in and see a map.
But I also appreciate those most he ended up only casino shindo owed at Bolivar and <unk>, because I don't know that I will not miss at Martinez.
We do understand that.
And then you mentioned a couple of regions in the country that are seeing better.
Given that these projects are neither a framework now too.
Prospects are mark duty.
To make that the private sector access with this project.
What's your outlook for the second half and the outlook for these programs to the president.
Require sometimes he says San Antonio submit today, some of the new impact Domino desktop it achieved gray market cap with tutto at the known impact important data for two.
Thank you.
Okay.
Okay.
The commentary Remicade multiple denture I didn't totally make a radical nephrectomy pulled out of boudicca.
Today.
Believe it or there is a lot of potential in terms of.
We think that's probably the impact of leasing the second semester, it's not going to be very high but we do believe it is a very interesting driver for.
Public infrastructure, North animal, who I guess, Hello, Kate give already need we have no doubt that this will come keeps up order collateral to the Tennessee Dot T H E B.
For next year once all of them.
Yeah.
Thank you this is very clear.
The market Ico projectors, nausea, and build up all the casinos kinder or at Bolivar and tell them because I didn't know that I would not miss at Monte Carlo.
And this concludes our question and answer session I would like to turn the conference back over to Diego jargon for closing remarks.
And we do understand that.
Given that these projects are neither.
Framework now too to make there.
Thank you once again for joining us today, we sincerely appreciate your continued interest and support and as always we look forward to a recollected with you on our next call in the meantime, please don't hesitate to reach out with any questions you may begin.
The private sector access with this project.
It might require sometimes he says San Antonio submit today, some of Indonesia impact domain or desktop it achieved today market cap with tutto at the known impact important at all.
Take care and have a great day.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Hello.
We think that's probably the impact of leasing the second semester, there's no point to a very high bar.
But we do believe it is a very interesting driver for that.
For next year once alone.
Thank you this is very clear.
And this concludes our question and answer session I would like to turn the conference back over to Diego Chevron for closing remarks.
Thank you once again for joining us today, we sincerely appreciate your continued interest and support and as always we look forward to reconnecting with you on our next call in the meantime, please don't hesitate to reach out with any questions give me kind of take care and have a great day.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
[music].