Holcim (Argentina) (HARG) Q4 2023 earnings summary

Executive summary

• FY2023 sales were 238,935 million pesos, down from 256,651 million; net income declined to 31,536 million from 41,509 million, with both years stated in Dec. 2023 purchasing power.

• The acquisition of a 51% stake in Quitam added paints and liquid membranes to the construction-products portfolio; consolidated results include Quitam from 28 Apr. 2023.

Financial highlights

• Revenue 238,935 million pesos vs. 256,651 million YoY; cost of sales 144,686 million vs. 155,839 million; gross profit 94,249 million vs. 100,812 million.

• Operating income 39,366 million vs. 45,587 million; income before tax 60,154 million vs. 56,985 million; net income 31,536 million vs. 41,509 million.

• Financial income was 24,004 million and financial expense 28,030 million; monetary-position gain was 24,814 million, vs. 18,143 million, 16,649 million and 9,904 million, respectively, in 2022.

• Operating cash flow rose to 72,139 million from 56,333 million; cash and equivalents closed at 18,612 million, down from 48,634 million.

Segment performance

• Cemento-AFR generated 218,299 million pesos in segment sales and 37,248 million in operating result; 2022 segment sales were 240,368 million and operating result 46,765 million.

• Aggregates recorded segment sales of 5,219 million and operating result of 989 million, vs. 4,737 million and 829 million in 2022.

• Concrete recorded segment sales of 9,265 million and operating result of 415 million, vs. 12,068 million and 1,404 million in 2022.

• Other products and services recorded segment sales of 7,609 million and operating result of 3,244 million; 2022 sales were 3,062 million and operating result 125 million. This segment includes Quitam.