Holcim (Argentina) (HARG) Q1 2023 earnings summary

Executive summary

• Q1 net sales were ARS 22,555,563 thousand, nearly matching ARS 22,562,624 thousand in Q1 2022; operating profit rose to ARS 3,853,870 thousand from ARS 3,488,394 thousand.

• Net income fell to ARS 3,491,051 thousand from ARS 4,420,250 thousand; basic EPS was ARS 9.55 vs. ARS 12.09.

Financial highlights

• Gross profit was ARS 9,080,953 thousand vs. ARS 8,868,447 thousand; cost of sales declined to ARS 13,474,610 thousand from ARS 13,694,177 thousand.

• Financial income increased to ARS 2,151,300 thousand from ARS 1,662,117 thousand, while financial expenses rose to ARS 1,417,467 thousand from ARS 635,628 thousand.

• Profit before income tax was ARS 4,518,430 thousand vs. ARS 5,784,777 thousand; income tax expense was ARS 1,027,379 thousand vs. ARS 1,364,527 thousand.

• Operating cash flow was ARS 741,487 thousand vs. ARS 5,574,567 thousand; cash and equivalents ended Q1 at ARS 15,476,780 thousand, down from ARS 19,011,597 thousand at year-end 2022.

Segment performance

• Cement-AFR net sales were ARS 21,072,385 thousand and operating profit ARS 3,880,886 thousand, compared with ARS 21,263,632 thousand and ARS 3,803,245 thousand in Q1 2022.

• Aggregates net sales were ARS 430,325 thousand and operating profit ARS 57,652 thousand, vs. ARS 327,670 thousand and ARS 18,180 thousand in Q1 2022.

• Concrete net sales were ARS 899,539 thousand and operating profit ARS 110,216 thousand, vs. ARS 993,353 thousand and ARS 96,363 thousand in Q1 2022.

• OPS net sales were ARS 314,485 thousand, compared with ARS 253,079 thousand in Q1 2022; segment operating profit was ARS 23,774 thousand vs. ARS 17,087 thousand.