Cementos Argos Full-Year 2021 Profits Skyrocket 451% Year-on-Year
Medellin-based multinational cement/concrete giant Cementos Argos announced February 17 that its full-year 2021 net profit jumped 451% year-on-year, to COP$431 billion (US$109.6 million).
Earnings before interest, taxes, depreciation and amortization (EBITDA) jumped 34% year-on-year, to COP$2.1 trillion (US$534 million), while revenues rose 9.1% year-on-year, to COP$9.8 trillion (US$2.49 billion).
As for fourth-quarter (4Q) 2021, profits skyrocketed by 1,503%, to COP$112 billion (US$28.5 million), while EBITDA jumped 45%, to COP$542 billion (US$138 million ) and revenues rose 9.3%, to COP$2.5 trillion (US$636 million), according to the company.
“Consolidated full-year EBITDA margin of 20.2% is the highest since 2005, when the internationalization of Cementos Argos began,” according to the company.
“Pricing in the U.S. gained traction due to the second price increase of the year. Cement and ready-mix prices increased 2% and 5.3% year over year, respectively. Meanwhile, the CCA [Caribbean and Central America] and Colombia regions had stability in pricing during the quarter.
“Cost inflation continued on the fourth quarter and had an impact across the regions, particularly in fuels, electric energy and freights. The residential segment continues to support solid demand conditions and provides a positive outlook in the U.S. and Colombia,” the company added.
Colombia Results
“Demand conditions in Colombia maintained the solid dynamic evidenced since the third quarter of 2021,” according to Argos.
“Cement and ready-mix volumes [in 4Q 2021] increased 8.3% and 17% respectively versus the fourth quarter of 2020. In terms of pricing, both segments remained flat sequentially. In cement, prices rose 0.2% and in ready-mix prices increased 0.4% versus 3Q 2021.
“The residential segment continued to boost the commercial dynamics in the country. Social [subsidized] and non-social housing sales increased 30% and 24% respectively year-over-year and reached historic records. Additionally, housing starts achieved the highest level in seven years, which is a signal of the continuation of strong demand in the segment.
“Total EBITDA reached COP$142 billion [US$36 million] during 4Q 2021, 9.7% higher than 4Q 2020. The strong EBITDA result was a consequence of the strong volumes in both segments and was possible despite the continuation of cost inflation pressures,” the company added.
