Cementos Argos 3Q 2024 Profits Fall 37% Year-on-Year

Medellin-based multinational cement/concrete giant Cementos Argos announced November 7 that its third quarter (3Q) 2024 net profits fell 37% year-on-year, to COP$156 billlion (US$36 million), from COP$250 billion (US$58 million) in 3Q 2023.

Revenues in 3Q 2024 rose slightly — by 1.45% year-on-year — to COP$1.33 trillion (US$308 million), while earnings before interest, taxes, depreciation and amortization (EBITDA) rose 5.3% year-on-year, to COP$311 billlion (US$72 million), according to the company.

“At the end of the third quarter of 2024, the company’s EBITDA margin expanded cumulatively by 235 basis points, maintaining the positive growth trend in Colombia, Central America and the Caribbean, and meeting the 2024 guidance of having an EBITDA margin over 22%,” according to Argos.

“With the reduction of debt and greater financial flexibility, Argos closed the third quarter of 2024 with a debt-to-EBITDA ratio of 2.2 times, enhancing its ability to explore growth opportunities in its various businesses in the región,” the compny added.

As for first-nine-months (January through September) 2024, revenues rose 3% year-on-year, to COP$4 trillion (US$927 million), while EBITDA rose 4%, to COP$868 billion (US$201 million) and adjusted net income fell 19% year-on-year, to COP$408 billion (US$94 million).

Total accumulated volume of cement shipped at the end of the third quarter fell 4.8% year-on-year, to 7 million tons, “mitigated by operational improvements and cost savings,” according to Argos.

Cumulative concrete shipments dipped 4.6% year-on-year, to 2 million cubic meters, “attributable to market factors in Colombia but offset by the focus on profitability over volume,” according to Argos.

“In Colombia, price dynamics have been aligned with year-on-year inflation. Despite challenges, including protests by transporters, Cementos Argos reached an accumulated EBITDA of COP$577 billion [US$133 million] at the end of the quarter, with an EBITDA margin of 25.9%, up 286 basis points.

“Accumulated shipments in Colombia so far this year reached 4 million tons of cement and 1.8 million cubic meters of concrete,” the company added.

As for its Central America and Caribbean región operations, “accumulated EBITDA at the end of the third quarter was US57 million, which represents a growth of 3.3%, with an accumulated EBITDA margin of 28.8%, up 141 basis points,” according to Argos.

“In the Caribbean so far this year, there has been an accumulated EBITDA of US$38 million, with an increase of 33.4%, and an EBITDA margin of 19.2%, up 491 basis points,” the company added.