Argentinian cement producer Loma Negra released its results for the quarter ended June 30, 2020.
Net revenue decreased 30.1% year-over-year (YoY) to $108 million in the second quarter, reflecting the full impact of the COVID-19 pandemic and the extended lockdown.
Revenues in cement, masonry and lime in Argentina declined by 25.8% YoY, as a result of the sharp volume drop particularly in the bulk segment. Cement revenues in Paraguay improved 3.3% YoY, as more flexible conditions were imposed to control the COVID-19 situation.
Sales volumes of cement, masonry and lime in Argentina during the second quarter declined 24.5% to 1.01 million tons reflecting the full impact of the COVID-19 lockdown and the negative economic momentum in the country. Bag segment was more resilient, presenting a very strong recovery dynamic since May, including some positive growth rates when compared to the year ago quarter. On the other hand, bulk segment was heavily impacted by the absence of private and public works, particularly in those jurisdictions where the COVID-19 restriction was stricter.
In Paraguay, the impact of COVID-19 lockdown affected heavily on sales volumes in April. Afterwards, sales rebounded vigorously, achieving in June a record high level. Consequently, sales volumes in the second quarter grew to reached 0.13 million tons, or 0.8% when compared to prior-year period.
As a result, consolidated total sales volumes of cement, masonry and lime for the quarter decreased 22.3% YoY to 1.13 million tons.
“As a consequence of the COVID-19 pandemic, we entered the second quarter amid an unprecedented nation-wide lockdown, which negatively impacted our businesses,” said Loma Negra CEO Sergio Faifman. “Along the quarter, and depending on how the sanitation situation developed in each jurisdiction, some of these restrictions were softened, or even lifted. In anticipation of the effects of COVID-19, we took proactive measures with special focus on adopting strict biosafety protocols in our operations and maintaining our financial strength on our balance sheet.”
“We remain alert and cautious regarding the evolution of this worldwide crisis, which ending seems hard to predict,” he said.
Faifman concluded, “I would finally like to thank our people who, in this unprecedented COVID-19 situation, showed a great responsibility and resourcefulness in order to overcome difficulties and to keep on running the business.”