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Juan Esteban Calle | Felipe Aristizabal | Maria Isabel Echeverri | ||
CEO | CFO | VP of Legal Affairs | ||
Gustavo Uribe | Carlos Yusty | |
Leader of Central America | VP of the Colombia Division | |
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This document contains forward-looking statements and information related to Cementos ArgosstyleS.A. and its subsidiaries (together referred to as "Argos") that are based on the knowledge of current facts, expectations and projections, circumstances and assumptions of future events.
Various factors may cause Argos' actual future results, performance or accomplishments
to differ from those expressed or assumed herein.
If an unexpected situation presents itself or if any of the premises or of the company's estimations turn out to be incorrect, future results may differ significantly from the ones that are mentioned herein.
The forward-looking statements are made to date and Argos does not assume any obligation to update said statements in the future because of new information, future events or any other factors.
All the discussions on the financial and operational results held during the call, will be based on the adjusted figures, excluding non-recurring and non-core operations. For a detail on the reconciliation and the adjustments please refer to the annexes of our quarterly report.
Shareholder approved | in |
dividends for 2024 | |
Phase 2 of the share-buyback program totaling | |
. | of the program has been |
already executed |
conversion rate into common shares, capital
structure of nearly | of common shares |
to be eligible for indexes such as the MSCI Emerging's Markets and the FTSE Russell
9.500
9.000 | 35.200 |
8.500 | 30.200 | |
Since SPRINT launched | ||
8.000 | 25.200 |
7.500 | 20.200 |
7.000 | 15.200 |
6.500 | 10.200 |
6.000 | 5.200 |
5.500 | 200 | ||||||||||||
Cemargos | |||||||||||||
Volume | |||||||||||||
MARKET CAP
FLOAT Adj. MARKET CAP
ADTV
1Q24 HIGHLIGHTS
COP 1.3 | Tn | COP 279 | Bn | ||||
REVENUE | EBITDA | ||||||
-3.4% YoY | +10.7% YoY | ||||||
2.5mm ton | 686 k m3 | ||||||
CEMENT VOLUME | RMX VOLUME | ||||||
Volumes - Adjusted | QUARTER | YTD | ||||||
2023.Q2 | 2024.Q2 | Var | 2023.Q2 | 2024.Q2 | Var | |||
Cement | 000 TM | 2,438 | 2,490 | 2.1% | 4,863 | 4,723 | -2.9% | |
RMC | 000 M | 3 | 680 | 686 | 0.8% | 1,372 | 1,334 | -2.8% |
Key Figures - Adjusted | QUARTER | YTD | ||||||
2023.Q2 | 2024.Q2 | Var | 2023.Q2 | 2024.Q2 | Var | |||
Revenue | COP Bn | 1,391 | 1,344 | -3.4% | 2,837 | 2,656 | -6.4% | |
EBITDA | COP Bn | 252 | 279 | 10.7% | 539 | 570 | 5.9% | |
EBITDA Margin | % | 18.1% | 20.7% | 264 pbs | 19.0% | 21.5% | 249 pbs | |
Net Income | COP Bn | 136 | 127 | -6.5% | 254 | 200 | -21.5% | |
Net Margin | % | 9.8% | 9.5% | -32 pbs | 9.0% | 7.5% | -145 pbs |
For a detailed reconciliation of the adjustments please refer to the appendix
+2.1% YoY | +0.8% YoY |
Strong financial results despite
volume affectations
- Volume affectations due to weather conditions, reduced import volume in the River Markets and moderating demand conditions. Strong backlog for 2H24
- Positive pricing momentum across all lines of business offset volume affectations.
- Adjusted EBITDA 2024 guidance was reaffirmed to range of ~ $970 to $1,010 million.
- On track to generate at least $40 million dollars of Argos USA synergies
OUR NET PROFIT 1H24
SUM's Equity | Net income YTD |
method YTD
Net profit affected by the higher seasonality of Summit's legacy
operations, that generate most of its net profit during the second and third quarter of the year.
QUARTER HIGHLIGHTS
-5.2% | +12.9 % | |
TOTAL CEMENT VOLS YoY | EXPORTS VOLS YoY |
Pricing dynamics in line with local
inflation and stable YTD
- Increased reliability of the plants has released a capacity of +611,000 tons of cement and +170,000 tons of clinker
-
Captured savings during 2Q24 of COP 40 billion derived from our program From the
Quarry to the Client - The unitary costs of energetics in the cement business decreased in line with the inflation softening
- Stable prices, efficiencies, and energetics costs headwinds, were the main drivers for the margin expansion of 332 bps and the EBITDA increase of 13.9% YoY during 2Q24
Key Figures - Adjusted | QUARTER | YTD | |||||
2023.Q2 | 2024.Q2 | Var | 2023.Q2 | 2024.Q2 | Var | ||
Revenue | COP Bn | 766 | 744 | -2.9% | 1,523 | 1,486 | -2.4% |
EBITDA | COP Bn | 147 | 168 | 13.9% | 328 | 365 | 11.1% |
EBITDA Margin | % | 19.2% | 22.6% | 332 pbs | 21.6% | 24.5% | 299 pbs |
Volumes | QUARTER | YTD | |||||
2023.Q2 | 2024.Q2 | Var | 2023.Q2 | 2024.Q2 | Var | ||
Cement | 000 MT | 1,413 | 1,339 | -5.2% | 2,814 | 2,658 | -5.5% |
Local Market | 000 TM | 1,106 | 992 | -10.3% | 2,161 | 1,956 | -9.5% |
Exports | 000 TM | 308 | 347 | 12.9% | 652 | 702 | 7.6% |
RMC | 000 M3 | 613 | 634 | 3.5% | 1,233 | 1,215 | -1.5% |
Aggregates | 000 MT | 305 | 154 | -49.5% | 618 | 304 | -50.8% |
For a detailed reconciliation of the adjustments please refer to the appendix
Housing market 1H24 | ||||||||||||
Housing Sales (units) | YoY YTD | |||||||||||
11.016 | ||||||||||||
11.000 | 10.383 | |||||||||||
9.680 | 9.698 | 9.385 | ||||||||||
8.879 | 8.867 | LTM Average | ||||||||||
9.000 | 8.572 | |||||||||||
8.575 | 6.910 | 8.147 | ||||||||||
6.509 | ||||||||||||
7.000 | 6.013 | reduction | ||||||||||
5.000 | of annual budget from | |||||||||||
Enero Febrero | Marzo | Abril | Mayo | Junio | ||||||||
Government Housing Subsidies | ||||||||||||
2023 | 2024 | Average LTM | assigned | |||||||||
- Investments of COP 22 trillionwithin the next 4 years in mobility and public infra (besides the Metro)
- 70 works in total including:
- 80 km of new roads
- 46 road interchanges
- 7 mid-size infra projects
- 400.000 m2 public space
- Some of these projects are already being awarded or executed:
- Transmilenio's new lines
- Calle 13
- Green Corridor of the 7th
- Additionally, Bogotá has several housing projects that will demand at leas 915.000 m3 of RMX during the following 4 years
- The Metro will continue to be an important driver of demand
- The program "Barrios a la Obra" will deploy investments for COP 600 billionwithin the next 4 years
- COP 10 billionwill be executed in 2024 to build 20 km of roads
- The cement dispatches to Hidroituangowill represent around 4% of the total local dispatchesin Colombia for the second half of the year
- 5 different projectsto start in 2024, with an estimated consumption of around
75,000 m3 of ready-mix concrete - Improvement of the quality of the roads of the city. During the second half of the year the city will deploy investments for COP 68 billionto improve the public infrastructure