Holcim (Argentina) (HARG) Q1 2024 earnings summary

Executive summary

• Q1 revenue was ARS 66,554m, down from ARS 87,486m YoY; operating performance swung to a loss of ARS 3,892m from income of ARS 14,948m.

• Net income was ARS 10,438m versus ARS 13,540m, supported by a ARS 22,922m monetary-position gain; EPS was ARS 30.31 versus ARS 36.99.

Financial highlights

• Gross profit fell to ARS 21,301m from ARS 35,222m; cost of sales declined to ARS 45,253m from ARS 52,264m.

• Distribution and administration expenses were ARS 15,484m and ARS 5,591m, versus ARS 16,341m and ARS 3,449m YoY; other operating expenses were ARS 4,118m versus ARS 484m.

• Financial income was ARS 2,312m versus ARS 8,344m; financial expense was ARS 4,714m versus ARS 5,498m.

• Cash and equivalents ended at ARS 9,909m, down from ARS 28,220m at Dec. 31, 2023; operating activities used ARS 6,002m in Q1.

Segment performance

• Cement sales were ARS 58,946m versus ARS 80,745m YoY; aggregates were ARS 1,485m versus ARS 1,462m, and concrete was ARS 2,141m versus ARS 3,475m.

• Other products and services sales rose to ARS 3,154m from ARS 1,220m, including Quitam’s paints and liquid membranes; co-processing services generated ARS 828m versus ARS 584m.

• Segment operating results were Cement-AFR loss ARS 6,304m, Aggregates loss ARS 330m, Concrete loss ARS 216m, Other products and services loss ARS 98m, and Corporate income ARS 3,056m.