Loma Negra Compañía Industrial Argentina Sociedad Anónima (NYSE:LOMA) Q3 2019 Earnings Conference Call Transcript
Nov 08, 2019 • 10:00 am ET
Good morning and welcome to the Loma Negra Third Quarter 2019 Conference Call and Webcast. [Operator Instructions] Also, Mr. Sergio Faifman will be responding in Spanish, immediately following an English translation. [Operator Instructions]
I would now like to turn the conference over to Mr. Gaston Pinnel, Head of IR. Please go ahead.
Thank you. Hi. Good morning. Thank you for joining us today. We appreciate your participation in this conference call. By now, everyone should have accessed to our earnings press release and today's call presentation, both of which were distributed yesterday after market close.
Speaking. during today's call will be Sergio Faifman, our CEO and Vice President of the Board of Directors; and our CFO, Marcos Gradin. Both will be available for the Q&A session right after the presentation.
Before we begin, I would like to make the following safe harbor statements. Today's call will contain forward-looking statements and I refer you to the forward-looking statements section of our earnings release and recent filings with the SEC. We assume no obligation to update or revise any forward-looking statements to reflect new or changed events or circumstances.
Now I would like to turn the call over to our CEO, Sergio Faifman.
Sergio Damian Faifman
Thank you, Gaston. Hello everyone and thank you for joining us today. I am pleased to welcome you again to Loma Negra third quarter 2019 earning conference call.
We will begin our presentation with a discussion of the highlights of the quarter, and then Marco will take you through our market review and financial results. Afterwards, I will share some thoughts for the remainder of the year. Finally, we will open the call to your questions.
Starting with Slide 3. We ended the quarter with another solid set of result amid a challenging context. The unexpected result in the August primary elections lead to a high financial economic volatility that eroded the incipient recovery previously observed in some of the macroeconomic variables.
The peso depreciated sharply and inflation started again, affecting overall activity levels and the already weak growth expectation. In this line our Cement demand dropped by 7.5% in a year-on-year basis. As a major infrastructure public work completed, consumption is lower down or even put on hold probably until the economic landscape become more foreseeable. However EBITDA grew by 2.7% with margin expansion of 289 basis point as we were able to control our costs and start capturing benefit from previous efficiency initiative.
During the quarter, we continued with our effort to streamlining our production footprint and this is the reason why we converted the San Juan facility into a grinding and distribution center. In this quarter, we achieved an adjusted EBITDA of $52 million. And when excluding the non-recurrent costs the EBITDA reached $53 million almost equal to the third quarter last year.
The expansion of our L'Amali plant continue on track. As it's a key element of our long-term strategy and will contribute to our production efficiency and profitability. The kick in date is expected to