Loma Negra Compania Industrial Argentina Sociedad Anonima 6-K, filed Aug 29, 2022
Loma Negra Compania Industrial Argentina Sociedad Anonima (LOMA)
6-K
2022-08-29
For: 2022-08-26
View Original
Added on
April 12, 2026
About this 6-K
Loma Negra Compania Industrial Argentina Sociedad Anonima filed this 6-K on August 29, 2022.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6‑K
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 under the
Securities Exchange Act of 1934
Securities Exchange Act of 1934
For the month of August, 2020
Commission File Number: 001-38262
LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
(Exact Name of Registrant as Specified in its Charter)
(Exact Name of Registrant as Specified in its Charter)
LOMA NEGRA CORPORATION
(Translation of Registrant’s name into English)
(Translation of Registrant’s name into English)
Cecilia Grierson 355, 3th Floor
Zip Code 1107 – Capital Federal
Republic of Argentina
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
Table of Contents
|
Item
|
Description
|
|
|
1
|
Loma Negra Relevant Event
|
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
|
Loma Negra Compañía Industrial Argentina Sociedad Anónima
|
||||
|
|
|
|
|
|
|
|
Date: August 26, 2022
|
|
By:
|
/s/
|
Marcos I. Gradin
|
|
|
|
|
Name:
|
Marcos I. Gradin |
|
|
|
|
|
Title:
|
Chief Financial Officer |
|
|
|
|
Loma Negra Compañía Industrial
Argentina Sociedad Anónima
|
|
|
|
|
|
Consolidated condensed interim financial
statements as of June 30, 2022 and for the six
and three-month periods ended June 30, 2022
and 2021
|
Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this free translation.
LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2022 AND 2021
CONTENTS
Unaudited consolidated condensed interim statement of profit or loss and other comprehensive income
Unaudited consolidated condensed interim statement of financial position
Unaudited consolidated condensed interim statement of changes in equity
Unaudited consolidated condensed interim statement of cash flows
Notes to the unaudited consolidated condensed interim financial statements:
1 Legal information
2 Basis of preparation
3 Critical accounting judgments and key sources used for estimating uncertainty
4 Sales revenues
5 Cost of sales
6 Selling and administrative expenses
7 Other net gains and losses
8 Tax on bank accounts debits and credits
9 Financial results, net
10 Income tax expense
11 Earnings per share
12 Property, plant and equipment
13 Inventories
14 Related party transactions and balances
15 Other receivables
16 Right of use of assets and lease liabilities
17 Trade accounts receivable
18 Investments
19 Capital stock and other capital related accounts
20 Borrowings
21 Accounts payable
22 Provisions
23 Tax liabilities
24 Cash and cash equivalents
25 Financial instruments
26 Non-cash transactions
27 Segment information
28 Compromises
29 Ferrosur Roca S.A. concession and related rail services
30 Argentine economic context
31 Effects of COVID-19 on the Group
32 Officially stamped books
33 Subsequent events
Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”).
In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this free translation.
LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
UNAUDITED CONSOLIDATED CONDENSED INTERIM STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME AS OF JUNE 30, 2022 AND 2021
(All amounts are expressed in thousands of Argentine pesos - $ -
except otherwise indicated)
|
Six months
|
Three months
|
|||||||||||||||||||
|
Notas
|
06.30.2022
|
06.30.2021
|
06.30.2022
|
06.30.2021
|
||||||||||||||||
|
Net revenues
|
4
|
47,919,094
|
47,371,220
|
25,268,329
|
23,399,365
|
|||||||||||||||
|
Cost of sales
|
5
|
(33,268,053
|
)
|
(31,632,792
|
)
|
(18,174,834
|
)
|
(16,349,897
|
)
|
|||||||||||
|
Gross profit
|
14,651,041
|
15,738,428
|
7,093,495
|
7,049,468
|
||||||||||||||||
|
Selling and administrative expenses
|
6
|
(4,350,442
|
)
|
(3,981,391
|
)
|
(2,207,503
|
)
|
(2,018,222
|
)
|
|||||||||||
|
Other gains and losses
|
7
|
12,166
|
216,288
|
(23,143
|
)
|
138,581
|
||||||||||||||
|
Tax on bank accounts debits and credits
|
8
|
(479,797
|
)
|
(487,316
|
)
|
(255,311
|
)
|
(259,753
|
)
|
|||||||||||
|
FINANCIAL RESULTS, NET
|
||||||||||||||||||||
|
Exchange rate differences
|
9
|
(578,377
|
)
|
355,314
|
(398,352
|
)
|
317,039
|
|||||||||||||
|
Gain on net monetary position
|
1,624,724
|
1,920,378
|
629,323
|
905,091
|
||||||||||||||||
|
Financial income
|
9
|
77,019
|
221,980
|
57,222
|
145,795
|
|||||||||||||||
|
Financial expenses
|
9
|
(1,173,822
|
)
|
(1,761,869
|
)
|
(597,926
|
)
|
(889,407
|
)
|
|||||||||||
|
Profit before tax
|
9,782,512
|
12,221,812
|
4,297,805
|
5,388,592
|
||||||||||||||||
|
INCOME TAX EXPENSE
|
||||||||||||||||||||
|
Current
|
10
|
(2,249,628
|
)
|
(5,348,735
|
)
|
(29,822
|
)
|
(2,519,985
|
)
|
|||||||||||
|
Deferred
|
10
|
(1,443,113
|
)
|
(4,276,554
|
)
|
(1,854,624
|
)
|
(4,943,640
|
)
|
|||||||||||
|
NET PROFIT (LOSS) FOR THE PERIOD
|
6,089,771
|
2,596,523
|
2,413,359
|
(2,075,033
|
)
|
|||||||||||||||
|
Net profit (loss) for the period attributable to:
|
||||||||||||||||||||
|
Owners of the Company
|
6,205,561
|
2,707,090
|
2,488,927
|
(2,024,548
|
)
|
|||||||||||||||
|
Non-controlling interests
|
(115,790
|
)
|
(110,567
|
)
|
(75,568
|
)
|
(50,485
|
)
|
||||||||||||
|
NET PROFIT (LOSS) FOR THE PERIOD
|
6,089,771
|
2,596,523
|
2,413,359
|
(2,075,033
|
)
|
|||||||||||||||
|
Earnings per share (basic and diluted) in Argentine pesos
|
11
|
10.5949
|
4.5419
|
4.2517
|
(3.3967
|
)
|
||||||||||||||
The accompanying notes are an integral part of these consolidated condensed interim financial statements.
Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine
National Securities Commission (“CNV”). In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this free translation.
1
LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
UNAUDITED CONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION AS OF JUNE 30, 2022 AND DECEMBER 31, 2021
(All amounts are expressed in thousands of Argentine pesos - $
- except otherwise indicated)
|
Notes
|
06.30.2022
|
12.31.2021
|
||||||||||
|
ASSETS
|
||||||||||||
|
Non-current assets
|
||||||||||||
|
Property, plant and equipment
|
12
|
107,922,346
|
110,685,066
|
|||||||||
|
Right of use of assets
|
16
|
367,336
|
421,909
|
|||||||||
|
Intangible assets
|
325,369
|
393,593
|
||||||||||
|
Investments
|
18
|
7,153
|
7,153
|
|||||||||
|
Goodwill
|
71,348
|
71,348
|
||||||||||
|
Inventories
|
13
|
4,317,499
|
4,198,902
|
|||||||||
|
Other receivables
|
15
|
844,247
|
946,454
|
|||||||||
|
Total non-current assets
|
113,855,298
|
116,724,425
|
||||||||||
|
Current assets
|
||||||||||||
|
Inventories
|
13
|
14,441,279
|
11,841,582
|
|||||||||
|
Other receivables
|
15
|
1,793,443
|
1,621,366
|
|||||||||
|
Trade accounts receivable
|
17
|
5,935,378
|
5,392,744
|
|||||||||
|
Investments
|
18
|
12,522,230
|
6,726,342
|
|||||||||
|
Cash and banks
|
771,192
|
450,299
|
||||||||||
|
Total current assets
|
35,463,522
|
26,032,333
|
||||||||||
|
Total assets
|
149,318,820
|
142,756,758
|
||||||||||
The accompanying notes are an integral part of these consolidated condensed interim financial statements.
Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the consolidated
financial statements filed with the CNV prevail over this free translation.
2
LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
UNAUDITED CONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION AS OF JUNE 30, 2022 AND DECEMBER 31, 2021
(All amounts are expressed in thousands of Argentine pesos - $
- except otherwise indicated)
|
Notes
|
06.30.2022
|
12.31.2021
|
||||||||||
|
SHAREHOLDERS’ EQUITY AND LIABILITIES
|
||||||||||||
|
Capital stock and other capital related accounts
|
19
|
27,049,787
|
27,731,106
|
|||||||||
|
Reserves
|
65,068,006
|
61,797,835
|
||||||||||
|
Retained earnings
|
6,205,561
|
8,966,734
|
||||||||||
|
Equity attributable to the owners of the Company
|
98,323,354
|
98,495,675
|
||||||||||
|
Non-controlling interests
|
112,502
|
228,292
|
||||||||||
|
Total shareholders’ equity
|
98,435,856
|
98,723,967
|
||||||||||
|
LIABILITIES
|
||||||||||||
|
Non-current liabilities
|
||||||||||||
|
Borrowings
|
20
|
7,223,530
|
542,857
|
|||||||||
|
Provisions
|
22
|
765,068
|
772,434
|
|||||||||
|
Salaries and social security payables
|
41,640
|
68,814
|
||||||||||
|
Lease liabilities
|
16
|
261,497
|
320,205
|
|||||||||
|
Other liabilities
|
117,610
|
194,197
|
||||||||||
|
Deferred tax liabilities
|
10
|
20,929,140
|
19,486,027
|
|||||||||
|
Total non-current liabilities
|
29,338,485
|
21,384,534
|
||||||||||
|
Current liabilities
|
||||||||||||
|
Borrowings
|
20
|
6,374,821
|
2,876,118
|
|||||||||
|
Accounts payable
|
21
|
9,942,965
|
10,723,709
|
|||||||||
|
Advances from customers
|
953,763
|
1,397,566
|
||||||||||
|
Salaries and social security payables
|
2,584,345
|
2,769,969
|
||||||||||
|
Tax liabilities
|
23
|
1,430,540
|
4,554,846
|
|||||||||
|
Lease liabilities
|
16
|
84,699
|
108,298
|
|||||||||
|
Other liabilities
|
173,346
|
217,751
|
||||||||||
|
Total current liabilities
|
21,544,479
|
22,648,257
|
||||||||||
|
Total liabilities
|
50,882,964
|
44,032,791
|
||||||||||
|
Total shareholders’ equity and liabilities
|
149,318,820
|
142,756,758
|
||||||||||
The accompanying notes are an integral part of these consolidated condensed interim financial statements.
Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the consolidated financial statements filed with the
CNV prevail over this free translation.
3
LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
UNAUDITED CONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY AS OF JUNE 30, 2022
(All amounts are expressed in thousands of Argentine pesos - $
- except otherwise indicated)
|
Owners contributions
|
||||||||||||||||||||||||||||||||||
|
Capital stock
|
Treasury shares
|
Capital adjustments
|
Treasury shares adjustments
|
Share premium
|
Treasury stock shares premium
|
Treasury stocks trading premium
|
Merger premium
|
Cost of treasury stock
|
Share-based payment plans
(Note 23) |
Legal reserve
|
Environmental reserve
|
Optional Reserve for Future Dividends
|
Retained earnings
|
Shareholders’ equity attributable to owners of the parent company
|
Non-
controlling interest
|
Total
|
||||||||||||||||||
|
Balances as of January 1, 2022
|
58,743
|
860
|
9,673,907
|
141,563
|
15,428,814
|
2,402,210
|
-
|
3,221,015
|
(3,250,291
|
)
|
54,285
|
1,975,014
|
15,417
|
59,807,404
|
8,966,734
|
98,495,675
|
228,292
|
98,723,967
|
||||||||||||||||
|
Acquisition of treasury stock (Note 19)
|
(208
|
)
|
208
|
(34,248
|
)
|
34,248
|
(581,165
|
)
|
581,165
|
(714,456
|
)
|
(714,456
|
)
|
(714,456
|
)
|
|||||||||||||||||||
|
Share-based payment plans (Note 14)
|
33,137
|
33,137
|
33,137
|
|||||||||||||||||||||||||||||||
|
Granting of share-based plans
|
5
|
(5
|
)
|
829
|
(829
|
)
|
14,069
|
(14,069
|
)
|
9,670
|
8,943
|
(18,613
|
)
|
-
|
-
|
|||||||||||||||||||
|
Resolved by Board of Directors
|
-
|
-
|
||||||||||||||||||||||||||||||||
|
Meeting dated April 14, 2022
|
||||||||||||||||||||||||||||||||||
|
Dividends paid
|
(5,696,563
|
)
|
(5,696,563
|
)
|
(5,696,563
|
)
|
||||||||||||||||||||||||||||
|
Resolved by Ordinary General
|
||||||||||||||||||||||||||||||||||
|
Shareholders’ Meeting dated April 27, 2022
|
||||||||||||||||||||||||||||||||||
|
Optional reserve
|
8,966,734
|
(8,966,734
|
)
|
|||||||||||||||||||||||||||||||
|
Net income for the period
|
6,205,561
|
6,205,561
|
(115,790
|
)
|
6,089,771
|
|||||||||||||||||||||||||||||
|
Balances as of June 30, 2022
|
58,540
|
1,063
|
9,640,488
|
174,982
|
14,861,718
|
2,969,306
|
9,670
|
3,221,015
|
(3,955,804
|
)
|
68,809
|
1,975,014
|
15,417
|
63,077,575
|
6,205,561
|
98,323,354
|
112,502
|
98,435,856
|
||||||||||||||||
The accompanying notes are an integral part of these consolidated condensed interim financial statements.
Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the consolidated
financial statements filed with the CNV prevail over this free translation.
4
LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
UNAUDITED CONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY AS OF JUNE 30, 2021
(All amounts are expressed in thousands of Argentine pesos -
$ - except otherwise indicated)
|
Owners contributions
|
||||||||||||||||||||||||||||||
|
Capital
|
Capital corresponding to treasury shares
|
Capital Adjustments
|
Capital adjustments of own shares
|
Share premium
|
Share premium for treasury shares
|
Merger premium
|
Cost of treasury shares
|
Legal reserve
|
Environmental reserve
|
Optional reserve
|
Retained earnings
|
Equity
attributable to
owners of the
Company
|
Non-
controlling
interests
|
Total
|
||||||||||||||||
|
Balances as of January 1, 2021
|
59,603
|
-
|
9,815,469
|
-
|
17,831,023
|
-
|
3,221,016
|
-
|
1,975,014
|
15,416
|
36,479,900
|
23,327,506
|
92,724,947
|
557,374
|
93,282,321
|
|||||||||||||||
|
Resolved by Ordinary General
|
||||||||||||||||||||||||||||||
|
Shareholders’ Meeting dated April 20, 2021 Optional reserve
|
23,327,506
|
(23,327,506
|
)
|
|||||||||||||||||||||||||||
|
Purchase of treasury shares
|
(635
|
)
|
635
|
(63,548
|
)
|
63,548
|
(1,082,557
|
)
|
1,082,557
|
(1,302,366
|
)
|
(1,302,366
|
)
|
(1,302,366
|
)
|
|||||||||||||||
|
Income for the period
|
2,707,090
|
2,707,090
|
(110,567
|
)
|
2,596,523
|
|||||||||||||||||||||||||
|
Balances as of June 30, 2021
|
58,968
|
635
|
9,751,921
|
63,548
|
16,748,466
|
1,082,557
|
3,221,016
|
(1,302,366
|
)
|
1,975,014
|
15,416
|
59,807,406
|
2,707,090
|
94,129,671
|
446,807
|
94,576,478
|
||||||||||||||
The accompanying notes are an integral part of these consolidated condensed interim financial statements.
Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the consolidated financial statements filed with
the CNV prevail over this free translation.
5
LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
UNAUDITED CONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWS AS OF JUNE 30, 2022 AND 2021 (All amounts are expressed in thousands of Argentine pesos - $ - except otherwise indicated)
|
06.30.2022
|
06.30.2021
|
|||||||
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||||||
|
Net profit for the period
|
6,089,771
|
2,596,523
|
||||||
|
Adjustments to reconcile net profit to net cash generated by operating activities
|
||||||||
|
Income tax expense
|
3,692,741
|
9,625,289
|
||||||
|
Depreciation and amortization
|
4,621,412
|
3,729,049
|
||||||
|
Provisions
|
107,071
|
(35,069
|
)
|
|||||
|
Exchange rate differences
|
(287,926
|
)
|
(830,950
|
)
|
||||
|
Interest expense
|
457,832
|
529,050
|
||||||
|
Share-based payments
|
33,137
|
-
|
||||||
|
Income on disposal of property, plant and equipment
|
(13,860
|
)
|
(122,696
|
)
|
||||
|
Allowance for contributions paid to the Trust Fund to Strengthen the Inter-urban Railroad System
|
63,655
|
62,864
|
||||||
|
Changes in operating assets and liabilities
|
||||||||
|
Inventories
|
(3,061,854
|
)
|
(1,106,865
|
)
|
||||
|
Other receivables
|
(506,726
|
)
|
(551,933
|
)
|
||||
|
Trade accounts receivable
|
(2,015,165
|
)
|
(1,390,531
|
)
|
||||
|
Advances from customers
|
(303,101
|
)
|
(318,179
|
)
|
||||
|
Accounts payable
|
1,073,415
|
517,719
|
||||||
|
Salaries and social security payables
|
501,067
|
495,920
|
||||||
|
Provisions
|
(57,160
|
)
|
(39,656
|
)
|
||||
|
Tax liabilities
|
824,155
|
(116,969
|
)
|
|||||
|
Other liabilities
|
(129,960
|
)
|
(172,370
|
)
|
||||
|
Gain on net monetary position
|
(1,624,724
|
)
|
(1,920,378
|
)
|
||||
|
Income tax paid
|
(4,787,508
|
)
|
(5,667,064
|
)
|
||||
|
Net cash generated by operating activities
|
4,676,272
|
5,283,754
|
||||||
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||
|
Proceeds from the operation of Yguazu Cementos S.A.
|
65,023
|
409,644
|
||||||
|
Proceeds from disposal of property, plant and equipment
|
25,403
|
116,030
|
||||||
|
Payments to acquire property, plant and equipment
|
(1,861,215
|
)
|
(4,175,076
|
)
|
||||
|
Payments to acquire intangible
|
(3,044
|
)
|
-
|
|||||
|
Payments to acquire investments
|
-
|
(3,044,155
|
)
|
|||||
|
Contributions to F.F.F.S.F.I.
|
(72,240
|
)
|
(68,807
|
)
|
||||
|
Net cash used in investing activities
|
(1,846,073
|
)
|
(6,762,364
|
)
|
||||
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||
|
Proceeds from borrowings
|
14,079,095
|
770,159
|
||||||
|
Interest paid
|
(245,514
|
)
|
(435,088
|
)
|
||||
|
Dividends paid
|
(5,681,134
|
)
|
-
|
|||||
|
Lease liabilities
|
(78,928
|
)
|
(129,541
|
)
|
||||
|
Repayment of borrowings
|
(3,565,599
|
)
|
(3,872,870
|
)
|
||||
|
Purchase of treasury shares
|
(714,456
|
)
|
(1,302,366
|
)
|
||||
|
Net cash generated by (used in) financing activities
|
3,793,464
|
(4,969,706
|
)
|
|||||
|
Net increase (decrease) in cash and cash equivalents
|
6,623,663
|
(6,448,316
|
)
|
|||||
|
Cash and cash equivalents at the beginning of the period
|
4,500,776
|
8,992,194
|
||||||
|
Effect of restating in constant currency of cash and cash equivalents
|
(223,724
|
)
|
(154,967
|
)
|
||||
|
Effects of the exchange rate differences on cash and cash equivalents in foreign currency
|
(2,438
|
)
|
(486,228
|
)
|
||||
|
Cash and cash equivalents at the end of the period
|
10,898,277
|
1,902,683
|
The accompanying notes are an integral part of these consolidated condensed interim financial statements.
Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the consolidated financial statements filed
with the CNV prevail over this free translation.
6
LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS AS OF JUNE 30, 2022 AND 2021
(All amounts are expressed in thousands of Argentine
pesos - $ - except otherwise indicated)
1. LEGAL INFORMATION
Legal address:
Boulevard Cecilia Grierson 355, 4th Floor, City of Buenos Aires, Argentina.
Fiscal year number:
Fiscal year number 98, beginning January 1, 2022.
Principal business of the Company:
The Company and its subsidiaries, mentioned below, are referred to in these consolidated condensed interim financial statements as the
“Group”.
The main activity of the Group is the manufacturing and selling of cement and its derivatives, as well as the exploration of mineral
resources that are used in the production process. At present, the Group has 8 cement factories in Argentina, in the provinces of Buenos Aires, Neuquén, San Juan and Catamarca. The Company also has 11 concrete plants.
The Group, through its subsidiary Cofesur S.A.U., has a controlling interest in Ferrosur Roca S.A., a company whose capital is held by
Cofesur S.A.U. with 80%, the National State with a 16% interest, and 4% has been transferred by the latter to the workers through a trust created for such purpose. Ferrosur Roca S.A. operates the railway cargo network of
Ferrocarril Roca under a concession granted by the Argentine government in 1993 for a term of 30 years, which allows access of several of Loma Negra’s cement production plants to the railway network. As a result of the National
Government’s decision to put an end to the existing railway concession system in Argentina and shift to an open access model with the participation of private rail operators, the above concession will end in March 2023. For this
reason, the Group has assessed potential business scenarios based on its intention to continue delivering services as a rail network operator, as described in Note 29.
The Group also has a controlling interest in Recycomb S.A.U., a company engaged in the treatment and recycling of industrial waste
intended to be used as fuel or raw material.
Date of registration in the Argentine General Inspection of Justice (IGJ):
| - |
Registration of the bylaws: August 5th, 1926, under No 38, Book 46.
|
| - |
Last amendment registered to the bylaws: July 13th, 2021, under No. 10,675 Book 103 of Companies by shares.
|
| - |
Correlative Number of Registration with the IGJ: 1,914,357.
|
| - |
Tax identification number [CUIT]: 30-50053085-1.
|
| - |
Date of expiration: July 3, 2116.
|
Parent company:
InterCement Trading e Inversiones Argentina S.L. with 51.0437% of the Company’s capital stock and votes.
Capital structure:
The subscribed for and paid in capital amounts to $ 59,602,649, represented by 596,026,490 book-entry common shares with a nominal
value of $ 0.10 each, and each entitling to one vote. Some of these shares are treasury shares as described in Note 19.
Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the
consolidated financial statements filed with the CNV prevail over this free translation.
7
LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS AS OF JUNE 30, 2022 AND 2021
(All amounts are expressed in thousands of Argentine
pesos - $ - except otherwise indicated)
2. BASIS OF PREPARATION
2.1 Basis of preparation
The accompanying consolidated condensed interim statement of financial position as of June 30, 2022, the consolidated condensed
interim statement of profit or loss and other comprehensive income, consolidated condensed interim statement of changes in equity and of cash
flows for the six and three month periods ended June 30, 2022 and 2021 and the notes to the consolidated condensed interim financial statements (hereinafter, the “interim financial statements”) are unaudited and have been
prepared as interim financial information. These interim financial statements are prepared in accordance with International Accounting Standard (“IAS”) 34, Interim Financial Reporting, pursuant to the provisions in Technical
Resolution No. 26 (as amended) issued by the Argentine Federation of Professional Councils of Economic Sciences [FACPCE] and the Regulations issued by the Argentine Securities Commission [“Comisión Nacional de Valores” (CNV)].
Consequently, not all of the disclosures required in accordance with International Financial Reporting Standards (“IFRS”) for annual
financial statements are included herein, hence, these interim financial statements shall be read in conjunction with the Group’s consolidated financial statements for the fiscal years ended December 31, 2021 and 2020 issued on
March 7, 2022. In the opinion of the Group’s Management, these unaudited consolidated condensed interim financial statements include all normal recurring adjustments, which are necessary for a fair representation of financial
results for the interim periods presented.
The financial information as of December 31, 2021 presented in these unaudited consolidated condensed interim financial statements
arises from our audited consolidated financial statements for the fiscal year ended December 31, 2021, restated in closing currency of the reported period, following the guidelines in IAS 29. Such guidelines have been described
in Note 2.2 to our consolidated financial statements as of December 31, 2021.
The results of operations for the six-month periods ended June 30, 2022 and 2021 do not necessarily reflect the results for the full
years. The Company believes that the disclosures are appropriate and adequate to consider that the information presented is not misleading.
These consolidated condensed interim financial statements were approved for issue by the Board of Directors on
August 11, 2022, the date when the interim financial statements were available for issuance.
2.2 Basis of consolidation
These interim financial statements include the unaudited consolidated condensed interim statement of financial position, results of
operations and cash flows of the Company and its consolidated subsidiaries. The basis of consolidation and the subsidiaries are the same as for the Company’s audited consolidated financial statements for the year ended December
31, 2021, issued on March 7, 2022.
The consolidated information disclosed in these condensed interim financial statements include the following subsidiaries:
|
Main business
|
Country
|
% of direct and indirect ownership as of
|
|||||
|
06.30.22
|
12.31.21
|
06.30.21
|
|||||
|
Subsidiary name:
|
|||||||
|
Cofesur S.A.U.
|
Investment
|
Argentina
|
100.00
|
100.00
|
100.00
|
||
|
Ferrosur Roca S.A. (1)
|
Rail freight transportation
|
Argentina
|
80.00
|
80.00
|
80.00
|
||
|
Recycomb S.A.U.
|
Waste recycling
|
Argentina
|
100.00
|
100.00
|
100.00
|
||
|
(1) Directly controlled by Cofesur S.A.U.
|
|||||||
Below is a summary of the financial information of Ferrosur Roca S.A., a subsidiary with material non-controlling interests.
Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the
consolidated financial statements filed with the CNV prevail over this free translation.
8
LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS AS OF JUNE 30, 2022 AND 2021
(All amounts are expressed in thousands of
Argentine pesos - $ - except otherwise indicated)
|
06.30.2022
|
12.31.2021
|
|||||||
|
Current assets
|
1,447,872
|
1,458,204
|
||||||
|
Non-current assets
|
1,790,169
|
2,501,050
|
||||||
|
Current liabilities
|
2,134,986
|
2,091,589
|
||||||
|
Non-current liabilities
|
540,539
|
726,196
|
||||||
|
Equity attributable to the owners of the company
|
450,012
|
913,176
|
||||||
|
Non-controlling interests
|
112,503
|
228,294
|
|
06.30.2022
|
06.30.2021
|
|||||||
|
Six-month period
|
||||||||
|
Sales revenues
|
4,052,155
|
3,751,372
|
||||||
|
Financial results, net
|
93,087
|
75,563
|
||||||
|
Depreciations
|
(931,824
|
)
|
(706,845
|
)
|
||||
|
Income tax
|
118,539
|
(24,704
|
)
|
|||||
|
Loss for the period (*)
|
(578,955
|
)
|
(552,849
|
)
|
||||
|
(*) The net loss as of June 30, 2022 includes a gain of 12,685 from eliminations of intragroup transactions.
|
||||||||
|
06.30.2022
|
06.30.2021
|
|||||||
|
Six-month period
|
||||||||
|
Net cash generated by operating activities
|
249,888
|
497,157
|
||||||
|
Net cash used in investing activities
|
(313,485
|
)
|
(454,427
|
)
|
||||
|
Net cash generated (used in) by financing activities
|
132,384
|
(34,574
|
)
|
|||||
|
Financial and holding results generated by cash
|
(6,692
|
)
|
(15,521
|
)
|
||||
2.3 Accounting policies
These consolidated condensed interim financial statements have been prepared using the same accounting policies and criteria used in
the preparation of the audited consolidated financial statements for the year ended December 31, 2021, except for the adoption of new standards and interpretations effective as of January 1, 2022, if any.
2.3.1 Application of new and revised International Financial Reporting Standards (IFRS)
| • |
Adoption of new and revised IFRS
|
The Group has adopted all of the new and revised standards and interpretations issued by the International Accounting Standards Board
(“IASB”) that are relevant to its operations and that are mandatorily effective as of June 30, 2022, as described in Note 2.2 to the Group's annual consolidated financial statements as of December 31, 2021.
The Group has not opted for early adoption of any other standard, interpretation or amendment that has been issued but is not yet in
force.
| • |
New standards
|
New standards and interpretations issued during the six-month period ended June 30, 2022 and the standards and interpretations issued
but not mandatory as of that date are described in Note 2.2 to the consolidated financial statements as of December 31, 2021.
Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the
consolidated financial statements filed with the CNV prevail over this free translation.
9
LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS AS OF JUNE 30, 2022 AND 2021
(All amounts are expressed in thousands of
Argentine pesos - $ - except otherwise indicated)
3. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES USED FOR ESTIMATING UNCERTAINTY
In the application of the Group´s accounting policies, the Group´s management is required to make judgments, estimates and assumptions
about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are relevant. Actual results
may differ from these estimates.
In the ordinary course of its business, the Group selects tax criteria and accounting positions based on a reasonable interpretation of
current regulations, also taking into account the opinion of its tax and legal advisors together with the evidence available up to the date of issue of these financial statements. However, there may be situations in which the
assessment that a third party could make of them and the eventual realization of damage to the Group is uncertain. For such cases, the Group has evaluated the issues considering their significance in relation to the financial
statements and has not made a provision as it is not required by current accounting standards.
Underlying estimates and assumptions are continuously reviewed. Changes in estimates are accounted for prospectively.
The unaudited consolidated condensed interim financial statements reflect all adjustments which are, in the opinion of Management,
necessary to make a fair statement of the results for the interim periods presented.
There are no significant changes to the critical judgements used by Management in applying accounting policies to the critical
judgements disclosed in the annual consolidated financial statements for the year ended December 31, 2021, including those derived from the definition of the completion period of the current Ferrosur Roca S.A. concession mentioned
in Notes 1 and 29.
As a consequence of the activities in which the Group is engaged, its transactions do not have a significant cyclical or seasonal
character. Nevertheless, during the second half of the year, the volume of sales in Argentina has historically showed a slight increase.
4. REVENUES
|
06.30.2022
|
06.30.2021
|
|||||||
|
Six-month period
|
||||||||
|
Sales of goods
|
65,807,802
|
64,810,796
|
||||||
|
Domestic market
|
65,785,133
|
64,754,615
|
||||||
|
External customers
|
22,669
|
56,181
|
||||||
|
Services rendered
|
2,226,159
|
2,102,443
|
||||||
|
(-) Bonus / Discounts
|
(20,114,867
|
)
|
(19,542,019
|
)
|
||||
|
Total
|
47,919,094
|
47,371,220
|
Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the
consolidated financial statements filed with the CNV prevail over this free translation.
10
LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS AS OF JUNE 30, 2022 AND 2021
(All amounts are expressed in thousands of
Argentine pesos - $ - except otherwise indicated)
5. COST OF SALES
|
06.30.2022
|
06.30.2021
|
|||||||||||||||
|
Six-month period
|
||||||||||||||||
|
Inventories at the beginning of the year
|
16,040,484
|
15,717,283
|
||||||||||||||
|
Finished products
|
810,323
|
968,044
|
||||||||||||||
|
Products in progress
|
2,730,455
|
1,849,513
|
||||||||||||||
|
Raw materials, materials, fuel and spare parts
|
12,499,706
|
12,899,726
|
||||||||||||||
|
Purchases and production expenses for the period
|
35,986,347
|
33,127,604
|
||||||||||||||
|
Inventories at the end of the period
|
(18,758,778
|
)
|
(17,212,095
|
)
|
||||||||||||
|
Finished products
|
(813,631
|
)
|
(924,719
|
)
|
||||||||||||
|
Products in progress
|
(3,815,020
|
)
|
(3,157,061
|
)
|
||||||||||||
|
Raw materials, materials, fuel and spare parts
|
(14,130,127
|
)
|
(13,130,315
|
)
|
||||||||||||
|
Cost of sales
|
33,268,053
|
31,632,792
|
||||||||||||||
The detail of production expenses is as follows:
|
06.30.2022
|
06.30.2021
|
|||||||
|
Six-month period
|
||||||||
|
Fees and service fees
|
661,878
|
634,975
|
||||||
|
Salaries, wages and social security contributions
|
5,470,601
|
5,315,388
|
||||||
|
Transport and travelling expenses
|
246,328
|
226,312
|
||||||
|
Data processing
|
16,994
|
15,824
|
||||||
|
Taxes, contributions and commissions
|
644,331
|
662,831
|
||||||
|
Depreciation and amortizations
|
4,380,779
|
3,647,602
|
||||||
|
Preservation and maintenance costs
|
2,914,209
|
3,032,982
|
||||||
|
Communications
|
34,636
|
32,259
|
||||||
|
Leases
|
60,209
|
32,645
|
||||||
|
Employee benefits
|
134,537
|
129,959
|
||||||
|
Water, natural gas and energy services
|
8,985
|
7,447
|
||||||
|
Freight
|
3,676,031
|
3,258,545
|
||||||
|
Fuel
|
4,975,042
|
4,267,921
|
||||||
|
Insurance
|
117,911
|
88,850
|
||||||
|
Packaging
|
1,231,480
|
1,388,416
|
||||||
|
Electrical power
|
3,237,265
|
3,309,732
|
||||||
|
Contractors
|
2,466,231
|
2,455,563
|
||||||
|
Tolls
|
-
|
10,100
|
||||||
|
Canon (concession fee)
|
30,208
|
29,524
|
||||||
|
Security
|
170,826
|
168,475
|
||||||
|
Others
|
503,446
|
438,360
|
||||||
|
Total
|
30,981,927
|
29,153,710
|
Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the
consolidated financial statements filed with the CNV prevail over this free translation.
11
LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS AS OF JUNE 30, 2022 AND 2021
(All amounts are expressed in thousands of
Argentine pesos - $ - except otherwise indicated)
6. SELLING AND ADMINISTRATIVE EXPENSES
|
06.30.2022
|
06.30.2021
|
|||||||
|
Six-month period
|
||||||||
|
Managers and directors compensation and fees
|
350,955
|
299,254
|
||||||
|
Fees and compensation for services
|
341,118
|
324,245
|
||||||
|
Salaries, wages and social security contributions
|
1,070,667
|
973,534
|
||||||
|
Transport and travelling expenses
|
43,870
|
27,525
|
||||||
|
Data processing
|
140,597
|
89,598
|
||||||
|
Advertising expenses
|
143,173
|
130,117
|
||||||
|
Taxes, contributions and commissions
|
1,024,231
|
1,053,979
|
||||||
|
Depreciation and amortizations
|
285,822
|
272,530
|
||||||
|
Preservation and maintenance costs
|
6,602
|
9,796
|
||||||
|
Communications
|
38,923
|
26,999
|
||||||
|
Leases
|
10,977
|
13,927
|
||||||
|
Employee benefits
|
29,107
|
28,211
|
||||||
|
Water, natural gas and energy services
|
1,799
|
2,649
|
||||||
|
Freight
|
641,195
|
567,835
|
||||||
|
Insurance
|
141,417
|
81,725
|
||||||
|
Allowance for doubtful accounts
|
8,171
|
3,791
|
||||||
|
Security
|
9,995
|
8,226
|
||||||
|
Others
|
61,823
|
67,450
|
||||||
|
Total
|
4,350,442
|
3,981,391
|
||||||
7. OTHER GAINS AND LOSSES
|
06.30.2022
|
06.30.2021
|
|||||||
|
Six-month period
|
||||||||
|
Gain on disposal of property, plant and
equipment
|
13,860
|
122,696
|
||||||
|
Donations
|
(13,721
|
)
|
(53,567
|
)
|
||||
|
Technical assistance services provided
|
2,269
|
3,302
|
||||||
|
Gain on tax credit acquired
|
33,855
|
46,439
|
||||||
|
Contingencies
|
(106,796
|
)
|
(28,977
|
)
|
||||
|
Leases
|
44,013
|
90,441
|
||||||
|
Miscellaneous
|
38,686
|
35,954
|
||||||
|
Total
|
12,166
|
216,288
|
8. TAX ON BANK ACCOUNTS DEBITS AND CREDITS
The general tax rate on bank debits and credits is 0.6% for the amounts debited and credited in the bank accounts of the Group. For the
amounts debited and credited, 33% of both items may be taken as payment on account of other taxes. The 67% of the tax paid is included in this line item in the statement of profit or loss and other comprehensive income.
Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the
consolidated financial statements filed with the CNV prevail over this free translation.
12
LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS AS OF JUNE 30, 2022 AND 2021
(All amounts are expressed in thousands of
Argentine pesos - $ - except otherwise indicated)
9. FINANCIAL RESULTS, NET
|
06.30.2022
|
06.30.2021
|
|||||||
|
Six-month period
|
||||||||
|
Exchange rate differences
|
||||||||
|
Foreign exchange gains
|
-
|
458,935
|
||||||
|
Foreign exchange losses
|
(578,377
|
)
|
(103,621
|
)
|
||||
|
Total
|
(578,377
|
)
|
355,314
|
|||||
|
Financial income
|
||||||||
|
Unwinding of discounts on provisions and liabilities
|
77,019
|
221,980
|
||||||
|
Total
|
77,019
|
221,980
|
||||||
|
Financial expenses
|
||||||||
|
Interest from short-term investments
|
(620,659
|
)
|
(943,052
|
)
|
||||
|
Interest on borrowings
|
(161,486
|
)
|
(319,476
|
)
|
||||
|
Interest on leases
|
(17,738
|
)
|
(42,051
|
)
|
||||
|
Tax interest
|
(8,140
|
)
|
(68,692
|
)
|
||||
|
Unwinding of discounts on receivables
|
(73,081
|
)
|
(62,864
|
)
|
||||
|
Others
|
(292,718
|
)
|
(325,734
|
)
|
||||
|
Total
|
(1,173,822
|
)
|
(1,761,869
|
)
|
10. INCOME TAX EXPENSE
Income tax expense is recognized on the basis of the actual profit for the period and the statutory rate expected at year-end.
This criterion does not significantly differ from the criterion established in IAS 34, which requires income tax expense to be
recognized in each interim period based on the best estimate of the effective tax rate expected as of year-end.
In this regard, Law No. 27,260, promulgated on June 16, 2021, incorporated modifications on the corporate income tax rate, establishing
a tiered structure of the applicable rates based on the level of accumulated taxable net income for each company, which can be 25%, 30% and 35%; maintaining the tax of 7% on the distribution of dividends.
The main accounting impact of the new regulations is the measurement of deferred income tax assets and liabilities, since these must be
recognized by applying the tax rate that will apply to the Company on the dates on which the differences between the accounting values and the tax will be reversed or used. For this reason, the Group has considered its tax
projections to establish the estimate rate that will apply in each year, in order to determine the value of temporary items and tax losses based on the estimated term of reversion and consumption.
The reconciliation of income tax expense for the six-month periods ended June 30, 2022 and 2021 and that which would result from
applying the statutory rate in force on the net profit before income tax expense that arises from the condensed interim statement of profit or loss and other comprehensive income for each period is as follows:
Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the
consolidated financial statements filed with the CNV prevail over this free translation.
13
LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS AS OF JUNE 30, 2022 AND 2021
(All amounts are expressed in thousands
of Argentine pesos - $ - except otherwise indicated)
|
06.30.2022
|
06.30.2021
|
|||||||
|
Total profit before income tax expense
|
9,782,512
|
12,221,812
|
||||||
|
Statutory income tax rate
|
35
|
%
|
35
|
%
|
||||
|
Income tax at statutory rate
|
(3,423,879
|
)
|
(4,277,634
|
)
|
||||
|
Adjustments for calculation of the effective income tax:
|
||||||||
|
Effects of the fiscal revaluation and adjustment to reflect inflation for accounting and tax purposes
|
(250,873
|
)
|
(79,464
|
)
|
||||
|
Change in tax rate
|
728
|
(5,250,755
|
)
|
|||||
|
Impairment of tax losses recognized in subsidiaries
|
(13,691
|
)
|
-
|
|||||
|
Other non-taxable income or non-deductible expense, net
|
(5,026
|
)
|
(17,436
|
)
|
||||
|
Total income tax expense
|
(3,692,741
|
)
|
(9,625,289
|
)
|
||||
|
INCOME TAX
|
||||||||
|
Current
|
(2,249,628
|
)
|
(5,348,735
|
)
|
||||
|
Deferred
|
(1,443,113
|
)
|
(4,276,554
|
)
|
||||
|
Total
|
(3,692,741
|
)
|
(9,625,289
|
)
|
Likewise, the breakdown of deferred income as of June 30, 2022 and December 31, 2021 is as follows:
|
06.30.2022
|
12.31.2021
|
|||||||
|
Deferred tax assets
|
||||||||
|
Loss carryforward from subsidiary
|
252,550
|
350,185
|
||||||
|
Leases
|
-
|
4,018
|
||||||
|
Provisions
|
117,972
|
113,023
|
||||||
|
Accounts payable
|
50,632
|
-
|
||||||
|
Other receivables
|
54,668
|
90,735
|
||||||
|
Salaries and social security payables
|
33,806
|
40,720
|
||||||
|
Other liabilities
|
98,911
|
100,232
|
||||||
|
Trade accounts receivable
|
2,010
|
2,376
|
||||||
|
Others
|
5,259
|
5,996
|
||||||
|
Total deferred tax assets
|
615,808
|
707,285
|
||||||
|
30,06,2022
|
31,12,2021
|
|||||||
|
Deferred tax liabilities
|
||||||||
|
Investments
|
(90,611
|
)
|
(11,371
|
)
|
||||
|
Property, plant and equipment
|
(18,772,700
|
)
|
(16,354,859
|
)
|
||||
|
Inventories
|
(1,565,346
|
)
|
(1,765,037
|
)
|
||||
|
Taxes payable (adjustment to reflect inflation for tax purposes)
|
(1,084,886
|
)
|
(2,059,488
|
)
|
||||
|
Borrowings
|
(22,599
|
)
|
(2,329
|
)
|
||||
|
Leases
|
(7,400
|
)
|
-
|
|||||
|
Others
|
(1,406
|
)
|
(228
|
)
|
||||
|
Total deferred tax liabilities
|
(21,544,948
|
)
|
(20,193,312
|
)
|
||||
|
Total net deferred tax liabilities
|
(20,929,140
|
)
|
(19,486,027
|
)
|
Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the
consolidated financial statements filed with the CNV prevail over this free translation.
14
LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS AS OF JUNE 30, 2022 AND 2021
(All amounts are expressed in
thousands of Argentine pesos - $ - except otherwise indicated)
11. EARNINGS PER SHARE
Basic and diluted earnings per share
The earnings and the weighted average number of common shares used in the calculation of basic and diluted earnings per share are as
follows:
|
Six months
|
Three months
|
|||||||||||||||
|
06.30.2022
|
06.30.2021
|
06.30.2022
|
06.30.2021
|
|||||||||||||
|
Profit attributable to the owners of the parent company used in the calculation of earnings per share - basic and diluted
|
6,205,561
|
2,707,090
|
2,488,927
|
(2,024,548
|
)
|
|||||||||||
|
Weighted average number of common shares for purposes of basic and diluted earnings per share (in thousands)
|
585,711
|
596,026
|
585,401
|
596,026
|
||||||||||||
|
Basic and diluted earnings per share (in pesos)
|
10.5949
|
4.5419
|
4.2517
|
(3.3967
|
)
|
|||||||||||
12. PROPERTY, PLANT AND EQUIPMENT
|
06.30.2022
|
12.31.2021
|
|||||||
|
Cost
|
261,426,720
|
259,742,746
|
||||||
|
Accumulated depreciation
|
(153,504,374
|
)
|
(149,057,680
|
)
|
||||
|
Total
|
107,922,346
|
110,685,066
|
||||||
|
Land
|
1,395,977
|
1,395,977
|
||||||
|
Plant and buildings
|
17,880,720
|
18,677,686
|
||||||
|
Machinery, equipment and spare parts
|
79,107,571
|
78,889,927
|
||||||
|
Transport and load vehicles
|
1,598,521
|
2,025,310
|
||||||
|
Furniture and fixtures
|
97,496
|
129,308
|
||||||
|
Quarries
|
6,659,793
|
6,846,496
|
||||||
|
Tools
|
118,534
|
140,338
|
||||||
|
Construction in progress
|
1,063,734
|
2,580,024
|
||||||
|
Total
|
107,922,346
|
110,685,066
|
Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the
consolidated financial statements filed with the CNV prevail over this free translation.
15
LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS AS OF JUNE 30, 2022 AND 2021
(All amounts are expressed in
thousands of Argentine pesos - $ - except otherwise indicated)
13. INVENTORIES
|
06.30.2022
|
12.31.2021
|
|||||||
|
Non-current
|
||||||||
|
Spare parts
|
4,515,799
|
4,437,318
|
||||||
|
Allowance for obsolete inventories
|
(198,300
|
)
|
(238,416
|
)
|
||||
|
Total
|
4,317,499
|
4,198,902
|
||||||
|
Current
|
||||||||
|
Finished products
|
813,631
|
810,323
|
||||||
|
Production in progress
|
3,815,020
|
2,730,455
|
||||||
|
Raw materials, materials and spare parts
|
7,566,404
|
7,078,433
|
||||||
|
Fuels
|
2,246,224
|
1,222,371
|
||||||
|
Total
|
14,441,279
|
11,841,582
|
14. RELATED PARTY TRANSACTIONS AND BALANCES
The outstanding balances between the Group and related parties as of June 30, 2022 and December 31, 2021 are as follows:
|
06.30.2022
|
12.31.2021
|
|||||||
|
Related companies:
|
||||||||
|
InterCement Brasil S.A.
|
||||||||
|
Accounts payable
|
(111,373
|
)
|
(135,358
|
)
|
||||
|
InterCement Trading e Inversiones S.A.
|
||||||||
|
Other receivables
|
311,387
|
359,656
|
||||||
|
Accounts payable
|
(24,396
|
)
|
(29,644
|
)
|
||||
|
Intercement Participações S.A.
|
||||||||
|
Other receivables
|
245,974
|
240,911
|
||||||
|
Accounts payable
|
(90,588
|
)
|
(370,980
|
)
|
||||
|
InterCement Trading e Inversiones Argentina S.L.
|
||||||||
|
Other receivables
|
85,182
|
-
|
Summary of balances as of June 30, 2022 and December 31, 2021 is as follows:
|
06.30.2022
|
12.31.2021
|
|||||||
|
Other receivables
|
642,543
|
600,567
|
||||||
|
Accounts payable
|
(226,357
|
)
|
(535,982
|
)
|
||||
The transactions between the Group and related parties for the periods ended June 30, 2022 and 2021 are detailed as follows:
|
06.30.2022
|
06.30.2021
|
|||||||
|
InterCement Participações S.A. – Sales of services
|
30,626
|
98,707
|
||||||
|
InterCement Participações S.A. – Services received
|
(453,455
|
)
|
(464,919
|
)
|
The amount recognized in the consolidated statement of
profit or loss and other comprehensive income related to key management salaries, wages and fees amounted to 288,236 and 226,999 for the six-month periods ended June 30, 2022 and 2021, respectively. Additionally, a loss
has been accrued under the long-term incentive program for a total of 14,813 and 43,939 during the six-month periods ended June 30, 2022 and 2021, respectively. Finally, during the current period, 10,069 American Depositary
Receipts (“ADRs”) were distributed within the framework of the aforementioned incentive programs.
Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the
consolidated financial statements filed with the CNV prevail over this free translation.
16
LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS AS OF JUNE 30, 2022 AND 2021
(All amounts are expressed in
thousands of Argentine pesos - $ - except otherwise indicated)
The Group did not recognize any expense in the current period, or in previous ones, regarding bad or doubtful accounts related to
amounts owed by related parties.
The outstanding amounts as of June 30, 2022 are not secured and will be settled in cash. No guarantees have been granted or received on
the outstanding balances.
On April 14, 2002, the Company's Board of Directors approved the payment of a cash dividend for a total amount of 5,696,563 and
communicated that as a general principle the payment of such dividends will be made to all Shareholders in ARS. However, all shareholders were guaranteed the option of receiving payment of their proportion of the dividend in the
equivalent in US Dollars, converting the original dividend into pesos at the exchange rate “Reference Exchange Rate of the Central Bank of the Republic Argentina-Com. “A” 3500” corresponding to the close of the business day
immediately prior to the day of availability; and, in such case, grant shareholders the option of receiving the payment of the dividend in US Dollars through Caja de Valores S.A., in their local bank account or in a bank account
abroad.
15. OTHER RECEIVABLES
|
06.30.2022
|
12.31.2021
|
|||||||
|
Non-current
|
||||||||
|
Advances to suppliers
|
522,174
|
658,472
|
||||||
|
Tax credits
|
87,519
|
112,615
|
||||||
|
Contributions to the Trust Fund to Strengthen the Inter-urban Railroad System (F.F.F.S.F.I.)
|
245,161
|
247,124
|
||||||
|
Prepaid expenses
|
234,554
|
175,286
|
||||||
|
Guarantee deposits
|
-
|
81
|
||||||
|
Subtotal
|
1,089,408
|
1,193,578
|
||||||
|
Allowance for doubtful receivables
|
(245,161
|
)
|
(247,124
|
)
|
||||
|
Total
|
844,247
|
946,454
|
||||||
|
06.30.2022
|
12.31.2021
|
|||||||
|
Current
|
||||||||
|
Income tax credits
|
267,400
|
-
|
||||||
|
Turnover tax credits
|
159,684
|
136,604
|
||||||
|
Value added tax
|
26,303
|
-
|
||||||
|
Other tax credits
|
1,287
|
-
|
||||||
|
Credit for sale of interest in Yguazu Cementos S.A.
|
312,891
|
419,359
|
||||||
|
Related parties’ receivables (Note 14)
|
642,543
|
600,567
|
||||||
|
Prepaid expenses
|
238,574
|
322,091
|
||||||
|
Guarantee deposits
|
856
|
1,165
|
||||||
|
Reimbursements receivable
|
8,949
|
16,331
|
||||||
|
Advances to suppliers
|
20,463
|
25,031
|
||||||
|
Salaries advances and loans to employees
|
6,570
|
13,110
|
||||||
|
Receivables from sales of property, plant and
equipment
|
17,232
|
14,212
|
||||||
|
Miscellaneous
|
90,691
|
72,896
|
||||||
|
Total
|
1,793,443
|
1,621,366
|
16. RIGHT OF USE OF ASSETS AND LEASE LIABILITIES
The Group has entered into lease agreements primarily for the lease of offices and premises. The evolution of the right of use of
assets and lease liabilities as of June 30, 2022 and December 31, 2021 is as follows:
Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the
consolidated financial statements filed with the CNV prevail over this free translation.
17
LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS AS OF JUNE 30, 2022 AND 2021
(All amounts are expressed in
thousands of Argentine pesos - $ - except otherwise indicated)
|
06.30.2022
|
12.31.2021
|
|||||||
|
Lease liabilities:
|
||||||||
|
At the beginning of the period / year
|
428,503
|
1,090,864
|
||||||
|
Additions
|
21,264
|
77,928
|
||||||
|
Interest accrued in the period / year
|
15,626
|
58,797
|
||||||
|
Foreign exchange gain
|
(40,269
|
)
|
(146,072
|
)
|
||||
|
Decrease
|
-
|
(412,383
|
)
|
|||||
|
Payments
|
(78,928
|
)
|
(240,631
|
)
|
||||
|
At the end of the period / year
|
346,196
|
428,503
|
|
Right of use assets:
|
||||||||
|
At the beginning of the period / year
|
421,909
|
919,480
|
||||||
|
Additions
|
21,264
|
77,928
|
||||||
|
Depreciations
|
(75,837
|
)
|
(193,403
|
)
|
||||
|
Decrease
|
-
|
(382,096
|
)
|
|||||
|
At the end of the period / year
|
367,336
|
421,909
|
||||||
17. TRADE ACCOUNTS RECEIVABLE
|
06.30.2022
|
12.31.2021
|
|||||||
|
Accounts receivable
|
5,920,988
|
5,616,047
|
||||||
|
Accounts receivable in litigation
|
301,088
|
84,585
|
||||||
|
Notes receivable
|
17,443
|
41,800
|
||||||
|
Foreign customers
|
5,789
|
4,037
|
||||||
|
Subtotal
|
6,245,308
|
5,746,469
|
||||||
|
Allowance for doubtful accounts
|
(309,930
|
)
|
(353,725
|
)
|
||||
|
Total
|
5,935,378
|
5,392,744
|
18. INVESTMENTS
|
06.30.2022
|
12.31.2021
|
|||||||
|
Non-current
|
||||||||
|
Investments in other companies
|
||||||||
|
- Cementos del Plata S.A.
|
7,153
|
7,153
|
||||||
|
Total
|
7,153
|
7,153
|
||||||
|
Current
|
||||||||
|
Short-term investments
|
||||||||
|
- Mutual funds in pesos
|
9,467,590
|
1,654,308
|
||||||
|
- Fix-term deposits in pesos
|
-
|
2,396,169
|
||||||
|
- Short-term investments in foreign currency
|
659,495
|
-
|
||||||
|
- Public securities in pesos
|
2,395,145
|
2,675,865
|
||||||
|
Total
|
12,522,230
|
6,726,342
|
Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the
consolidated financial statements filed with the CNV prevail over this free translation.
18
LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS AS OF JUNE 30, 2022 AND 2021
(All amounts are expressed in
thousands of Argentine pesos - $ - except otherwise indicated)
19. CAPITAL STOCK AND OTHER CAPITAL RELATED ACCOUNTS
|
06.30.2022
|
12.31.2021
|
|||||||
|
Capital
|
59,603
|
59,603
|
||||||
|
Adjustment to capital
|
9,815,470
|
9,815,470
|
||||||
|
Cost of treasury stock
|
(3,955,804
|
)
|
(3,250,291
|
)
|
||||
|
Share-based payment plans
|
68,809
|
54,285
|
||||||
|
Treasury stocks trading premium
|
9,670
|
-
|
||||||
|
Share premium
|
17,831,024
|
17,831,024
|
||||||
|
Merger premium
|
3,221,015
|
3,221,015
|
||||||
|
Total
|
27,049,787
|
27,731,106
|
|
The issued, paid-in and registered capital, consists of:
|
||||||||
|
Common stock with a face value of $ 0.1 per share and entitled to 1 vote each, fully paid-in (in thousand)
|
596,026
|
596,026
|
||||||
Acquisition of treasury stock
During the previous year and the present period, the Company carried out various plans for the acquisition of treasury stock, as
detailed in note 23 to the financial statements for the year ended December 31, 2021.
Acquisitions were carried out in accordance with the market opportunities, dates, prices and quantities established by the Company’s
Management.
The purpose of the repurchase plan is to efficiently dispose of a portion of the Company’s liquidity, which may result in a greater
return of value to the shareholders considering the current attractive value of the share.
On February 21, 2022, the last plan to acquire treasury stocks was finalized, having reached a purchase amount of 711 million
corresponding to the purchase of shares and 10,069 ADRs. On January 5, 2022, 10,069 ADRs were distributed under the long-term incentive program (Note 14).
Until the date of issuance of these financial statements, the Company acquired 10,625,520 treasury stocks for a total amount of
3,955,804.
20. BORROWINGS
20.1 Composition of borrowings
|
06.30.2022
|
12.31.2021
|
|||||
|
Company
|
Interest rate
|
Maturity date
|
Amount
|
Amount
|
||
|
Borrowings in foreign currency – USD
|
||||||
|
Industrial and Commercial Bank of China
|
Loma Negra C.I.A.S.A.
|
6 Month-Libor + 4.25%
|
Jan-22
|
-
|
124,921
|
|
|
Industrial and Commercial Bank of China
|
Loma Negra C.I.A.S.A
|
6 Month-Libor + 4.25%
|
Feb-22
|
-
|
8,706
|
|
|
Industrial and Commercial Bank of China
|
Loma Negra C.I.A.S.A
|
6 Month Libor + 7.375%
|
Jan-22
|
-
|
996,369
|
|
|
Industrial and Commercial Bank of China
|
Loma Negra C.I.A.S.A
|
6 Month Libor + 7.375%
|
Jan-22
|
-
|
903,008
|
|
|
Industrial and Commercial Bank of China
|
Loma Negra C.I.A.S.A
|
6 Month-Libor + 4.25%
|
Mar-22
|
-
|
56,697
|
|
|
Industrial and Commercial Bank of China (Dubai)
|
Loma Negra C.I.A.S.A
|
3 Month-Libor + 8%
|
Jul-24
|
7,092,748
|
-
|
|
|
Industrial and Commercial Bank of China (Dubai)
|
Loma Negra C.I.A.S.A.
|
3-Month Libor + 7.5%
|
Nov-23
|
737,249
|
1,093,809
|
|
|
Total borrowings in foreign currency
|
7,829,997
|
3,183,510
|
||||
Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the
consolidated financial statements filed with the CNV prevail over this free translation.
19
LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS AS OF JUNE 30, 2022 AND 2021
(All amounts are expressed in
thousands of Argentine pesos - $ - except otherwise indicated)
|
06.30.2022
|
12.31.2021
|
|||||
|
Company
|
Interest rate
|
Maturity date
|
Amount
|
Amount
|
||
|
Borrowings in local currency
|
||||||
|
Overdrafts
|
Loma Negra C.I.A.S.A.
|
47.26%
|
Jul-22
|
5,499,820
|
66,483
|
|
|
Overdrafts
|
Ferrosur Roca S.A.
|
43%
|
Jul-22
|
268,534
|
168,982
|
|
|
Total borrowings in local currency
|
5,768,354
|
235,465
|
||||
|
Total
|
13,598,351
|
3,418,975
|
||||
| (1) |
In the month of April 2022, Loma Negra C.I.A.S.A. entered into a loan
agreement abroad with the Industrial and Commercial Bank of China Limited for USD 56 million, whose principal payments are due in three equal installments in January, April and July 2024. Said loan is guaranteed by InterCement
Participações S.A. up to 51% of its amount. Interest accrues at the Libor rate plus 8%, payable quarterly. Due to the fact that said loan has
been used to pay the Company's obligations abroad, the funds from it have not been deposited or settled through the single free exchange market (“MULC”). The loan has been valued at its amortized cost in foreign
currency, converting the resulting amounts to local currency at the official selling exchange rate in effect at the end of the reporting period.
|
| (2) |
On June 30, 2022, Loma Negra C.I.A.S.A. entered into a loan with Citibank N.A. for an amount of 5,500 million pesos to be paid 180 days after its
execution, accruing a fixed nominal rate of 47.25% to be paid monthly.
|
|
Summary of borrowings by Company:
|
06.30.2022
|
12.31.2021
|
||||||
|
Loma Negra C.I.A.S.A.
|
13,329,817
|
3,249,993
|
||||||
|
Ferrosur Roca S.A.
|
268,534
|
168,982
|
||||||
|
Total
|
13,598,351
|
3,418,975
|
20.3 Movements of borrowings
The movements of borrowings for the six-month period ended June 30, 2022 are as disclosed below:
|
Balances as of January 1, 2022
|
3,418,975
|
|||
|
New borrowings
|
14,079,095
|
|||
|
Interest accrued
|
161,486
|
|||
|
Effect of exchange rate differences
|
(250,092
|
)
|
||
|
Interest payments
|
(245,514
|
)
|
||
|
Principal payments
|
(3,565,599
|
)
|
||
|
Balances as of June 30, 2022
|
13,598,351
|
As of June 30, 2022, the long-term borrowings have the following maturity schedule:
|
Fiscal year
|
||||
|
2023
|
229,073
|
|||
|
2024
|
6,994,457
|
|||
|
Total
|
7,223,530
|
|||
Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the consolidated financial statements filed with the CNV prevail over this free translation.
20
LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS AS OF JUNE 30, 2022 AND 2021
(All amounts are expressed
in thousands of Argentine pesos - $ - except otherwise indicated)
21. ACCOUNTS PAYABLE
|
06.30.2022
|
12.31.2021
|
|||||||
|
Suppliers
|
6,231,295
|
5,614,950
|
||||||
|
Related parties (Note 14)
|
226,357
|
535,982
|
||||||
|
Accounts payable for investments in property, plant and equipment and intangible assets
|
785,482
|
2,268,306
|
||||||
|
Expenses accrual
|
2,699,831
|
2,304,471
|
||||||
|
Total
|
9,942,965
|
10,723,709
|
22. PROVISIONS
|
06.30.2022
|
12.31.2021
|
|||||||
|
Labor and social security
|
195,646
|
144,822
|
||||||
|
Environmental restoration
|
435,049
|
456,815
|
||||||
|
Civil and others
|
134,373
|
170,797
|
||||||
|
Total
|
765,068
|
772,434
|
Changes in the provisions were as follows:
|
Labor and
social security
|
Environmental
restoration
|
Civil and others
|
Total
|
|||||||||||||
|
Balances as of January 1, 2022
|
144,822
|
456,815
|
170,797
|
772,434
|
||||||||||||
|
Increases / (Recoveries) (*)
|
78,950
|
(20,720
|
)
|
(8,436
|
)
|
49,794
|
||||||||||
|
Uses (**)
|
(28,126
|
)
|
(1,046
|
)
|
(27,988
|
)
|
(57,160
|
)
|
||||||||
|
Balances as of June 30, 2022
|
195,646
|
435,049
|
134,373
|
765,068
|
||||||||||||
(*) Includes the effect of the inflation adjustment.
(**) Includes the application of provisions to their specific purposes.
23. TAX LIABILITIES
|
06.30.2022
|
12.31.2021
|
|||||||
|
Income tax
|
92,659
|
3,436,745
|
||||||
|
Value added tax
|
850,533
|
683,791
|
||||||
|
Turnover tax
|
271,886
|
212,412
|
||||||
|
Other taxes, withholdings and perceptions
|
215,462
|
221,898
|
||||||
|
Total
|
1,430,540
|
4,554,846
|
24. CASH AND CASH EQUIVALENTS
For purposes of the consolidated condensed interim statement of cash flows, cash and cash equivalents include cash, banks accounts and
short-term investments with high liquidity (with maturities of less than 90 days from the date of acquisition). Cash and cash equivalents at the end of each reporting period/year as shown in the consolidated condensed interim
statement of cash flows can be reconciled to the related items in the consolidated condensed interim statement of financial position as follows:
|
06.30.2022
|
12.31.2021
|
|||||||
|
Cash and banks
|
771,192
|
450,299
|
||||||
|
Short-term investments (Note 18)
|
10,127,085
|
4,050,477
|
||||||
|
Cash and cash equivalents
|
10,898,277
|
4,500,776
|
Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the
consolidated financial statements filed with the CNV prevail over this free translation.
21
LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS AS OF JUNE 30, 2022 AND 2021
(All amounts are expressed
in thousands of Argentine pesos - $ - except otherwise indicated)
25. FINANCIAL INSTRUMENTS
25.1 Net debt to equity ratio
The net debt to equity ratio of the reported period/fiscal year is as follows:
|
06.30.2022
|
12.31.2021
|
|||||||
|
Debt (i)
|
13,598,351
|
3,418,975
|
||||||
|
Cash and cash equivalents
|
10,898,277
|
4,500,776
|
||||||
|
Net debt
|
2,700,074
|
(1,081,801
|
)
|
|||||
|
Equity (ii)
|
98,435,856
|
98,723,967
|
||||||
|
Net debt to equity ratio
|
0.03
|
(0.01
|
)
|
|
(i) Debt is defined as current and non-current borrowings.
|
|
(ii) Shareholders’ equity includes all the non-controlling interests, which are managed as capital.
|
25.2 Categories of financial instruments
|
06.30.2022
|
12.31.2021
|
|||||||
| Financial assets | ||||||||
|
At amortized cost:
|
||||||||
|
Cash and banks
|
771,192
|
450,299
|
||||||
|
Investments
|
3,054,640
|
5,072,034
|
||||||
|
Accounts receivable
|
7,008,540
|
6,517,357
|
||||||
|
At fair value through profit and loss:
|
||||||||
|
Investments
|
9,467,590
|
1,654,308
|
||||||
|
Financial liabilities
|
||||||||
|
Amortized cost
|
28,234,993
|
22,376,764
|
25.3 Financial risks
The Group´s activities are exposed to a variety of financial risks: market risk (including foreign currency risk, interest rate risk
and price risk considering the current inflation rates), credit risk and liquidity risk. The Group maintains an organizational structure and systems that allow the identification, measurement and control of the risks to which it
is exposed.
These consolidated condensed interim financial statements do not include all the information and disclosures on financial risks,
therefore, they should be read in conjunction with the Group´s consolidated financial statements for the fiscal years ended December 31, 2021 and 2020 issued on March 7, 2022.
Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the
consolidated financial statements filed with the CNV prevail over this free translation.
22
LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS AS OF JUNE 30, 2022 AND 2021
(All amounts are expressed
in thousands of Argentine pesos - $ - except otherwise indicated)
25.4 Fair value measurement
Fair value measurement is described in Note 33.8 to the annual consolidated financial statements.
From December 31, 2021 through June 30, 2022, there have been no significant changes in the industry’s economic activity affecting
the fair value of the Group´s financial assets and liabilities, either measured at fair value or amortized cost. In addition, there were no transfers among the different levels of fair value hierarchy to assess the fair value of
the Group's financial instruments during the six-month period ended June 30, 2022.
The carrying amounts of financial assets and liabilities recognized at amortized cost, included in the consolidated financial
statements as of June 30, 2022 and December 31, 2021, approximate to their fair values. Borrowings are measured at amortized cost considering the effective interest rate method, which approximate to their fair value given their
cancellation period.
The Group’s Management considers that the liquidity risk exposure is low since the Group has been generating cash flows from its
operating activities, supported on profits, and has access to loans and financial resources, as explained in Note 20.
25.5 Exchange risk management
The Group carries out transactions in foreign currency and is hence exposed to exchange rate fluctuations, also considering the current
exchange regulations in force. Exposures in the exchange rate are managed within approved policy parameters using foreign exchange contracts.
The carrying amounts of monetary assets and liabilities stated in currencies other than the functional currency of each company
consolidated at the end of the reporting period/year are as follows:
|
06.30.2022
|
12.31.2021
|
|||||||
|
Liabilities
|
||||||||
|
United States Dollars
|
9,206,936
|
6,257,607
|
||||||
|
Euro
|
163,727
|
197,234
|
||||||
|
Real
|
60
|
64
|
||||||
|
Assets
|
||||||||
|
United States Dollars
|
1,945,263
|
1,255,118
|
||||||
|
Euro
|
58,778
|
26,125
|
Foreign currency sensitivity analysis
The Group is mainly exposed to the US Dollar and euro.
The following table shows the sensitivity of the Group to an increase in the US Dollar and the Euro exchange rate. The sensitivity rate
is that used when reporting to the top executive level and represents the management’s assessment of a possible reasonable change in exchange rates. The sensitivity analysis only includes outstanding foreign-currency monetary
items and adjusts traslation of such items on the end of the period tems considering a reasonably possible 25% increase in the exchange rate.
|
Effect of
US Dollars
|
Effect of Euro
|
|||||||
|
Loss for the period
|
1,815,418
|
26,237
|
||||||
|
Decrease in of shareholder's Equity
|
1,815,418
|
26,237
|
||||||
Additionally, considering the current exchange regulations existing in Argentina, the Group constantly monitors the alternatives for
collecting assets and canceling liabilities in foreign currency and their corresponding impacts. The result derived from the use of financial instruments for the cancellation of operations in foreign currency is recognized at the
moment in which the Group unconditionally commits or irreversibly executes such cancellation in kind. As of June 30, 2022, in the case of the use of financial instruments for the cancellation of the aforementioned operations, it
would result in an exchange variation of approximately 102%.
Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the
consolidated financial statements filed with the CNV prevail over this free translation.
23
LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS AS OF JUNE 30, 2022 AND 2021
(All amounts are expressed
in thousands of Argentine pesos - $ - except otherwise indicated)
26. NON-CASH TRANSACTIONS
Below is a detail of the transactions that did not involve cash flow movements during the six-month periods ended June 30, 2022 and
2021, respectively:
|
06.30.2022
|
06.30.2021
|
|||||||
|
- Acquisitions of property, plant and equipment financed with trade payables
|
126,212
|
186,924
|
||||||
|
- Right of use of assets
|
21,264
|
54,032
|
27. SEGMENT INFORMATION
The Group has adopted IFRS 8 – “Operating Segments”, that require operating segments to be identified on the basis of internal reports
regarding components of the Group that are regularly reviewed by the Executive Committee, chief operating decision maker, in order to allocate resources to the segments and to assess their performance. This analysis is based on
monthly information concerning historical figures of the identified segments. The information reviewed by the main decision maker basically consists in the historical details corresponding to each month accumulated until the end
of the reporting period. It is for this reason that they differ from the inflation-adjusted figures as described in Note 2.2.
For the purposes of managing its business both financially and operatively, the Group has classified the operations of its businesses
as follows:
| i) |
Cement, masonry cement and lime: this segment includes the results from the cement, masonry cement and lime business in Argentina, and comprises the
procurement of raw materials from quarries, the manufacturing process of clinker / quicklime and their subsequent grinding with certain additions in order to obtain the cement, masonry cement and lime.
|
| ii) |
Concrete: this segment includes the results generated from the production and sale of ready-mix concrete. It also includes the delivery of the
product at the worksite and, depending on the circumstances, the pumping of concrete up to the place of destination.
|
| iii) |
Aggregates: this segment includes the results generated from the production and sale of granitic aggregates.
|
| iv) |
Railroad: this segment includes the results generated from the provision of the railroad transportation service.
|
| v) |
Others: this segment includes the results of the industrial waste treatment and recycling business to produce materials for use as fuel.
|
Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the
consolidated financial statements filed with the CNV prevail over this free translation.
24
LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS AS OF JUNE 30, 2022 AND 2021
(All amounts are expressed
in thousands of Argentine pesos - $ - except otherwise indicated)
|
06.30.2022
|
06.30.2021
|
|||||||
|
Sales revenue
|
||||||||
|
Cement, masonry cement and lime
|
37,382,598
|
23,709,176
|
||||||
|
Concrete
|
3,328,210
|
2,032,725
|
||||||
|
Railroad
|
3,575,604
|
2,107,876
|
||||||
|
Aggregates
|
1,002,951
|
318,498
|
||||||
|
Others
|
308,128
|
139,751
|
||||||
|
Inter-segment eliminations
|
(3,270,398
|
)
|
(1,843,874
|
)
|
||||
|
Subtotal
|
42,327,093
|
26,464,152
|
||||||
|
Reconciliation - Effect from restatement in constant currency
|
5,592,001
|
20,907,068
|
||||||
|
Total
|
47,919,094
|
47,371,220
|
|
06.30.2022
|
06.30.2021
|
|||||||
|
Cost of sales
|
||||||||
|
Cement, masonry cement and lime
|
21,798,446
|
13,310,803
|
||||||
|
Concrete
|
3,222,173
|
2,186,230
|
||||||
|
Railroad
|
3,429,772
|
2,022,441
|
||||||
|
Aggregates
|
907,019
|
301,668
|
||||||
|
Others
|
192,231
|
93,259
|
||||||
|
Inter-segment eliminations
|
(3,270,398
|
)
|
(1,843,874
|
)
|
||||
|
Subtotal
|
26,279,243
|
16,070,527
|
||||||
|
Reconciliation - Effect from restatement in constant currency
|
6,988,810
|
15,562,265
|
||||||
|
Total
|
33,268,053
|
31,632,792
|
|
06.30.2022
|
06.30.2021
|
|||||||
|
Selling, administrative expenses and other gains and losses
|
||||||||
|
Cement, masonry cement and lime
|
3,176,035
|
1,788,893
|
||||||
|
Concrete
|
145,125
|
22,493
|
||||||
|
Railroad
|
196,194
|
127,405
|
||||||
|
Aggregates
|
10,249
|
3,805
|
||||||
|
Others
|
83,729
|
49,003
|
||||||
|
Subtotal
|
3,611,332
|
1,991,599
|
||||||
|
Reconciliation - Effect from restatement in constant currency
|
726,944
|
1,773,504
|
||||||
|
Total
|
4,338,276
|
3,765,103
|
|
06.30.2022
|
06.30.2021
|
|||||||
|
Depreciation and amortization
|
||||||||
|
Cement, masonry cement and lime
|
1,000,979
|
529,681
|
||||||
|
Concrete
|
33,995
|
31,449
|
||||||
|
Railroad
|
263,140
|
137,320
|
||||||
|
Aggregates
|
15,225
|
13,119
|
||||||
|
Others
|
2,500
|
2,598
|
||||||
|
Subtotal
|
1,315,839
|
714,167
|
||||||
|
Reconciliation - Effect from restatement in constant currency
|
3,229,736
|
2,916,393
|
||||||
|
Total
|
4,545,575
|
3,630,560
|
Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the
consolidated financial statements filed with the CNV prevail over this free translation.
25
LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS AS OF JUNE 30, 2022 AND 2021
(All amounts are expressed
in thousands of Argentine pesos - $ - except otherwise indicated)
|
06.30.2022
|
06.30.2021
|
|||||||
|
Sales revenue less cost of sales, selling, administrative expenses and other gains and losses
|
||||||||
|
Cement, masonry cement and lime
|
12,408,117
|
8,609,480
|
||||||
|
Concrete
|
(39,088
|
)
|
(175,998
|
)
|
||||
|
Railroad
|
(50,362
|
)
|
(41,970
|
)
|
||||
|
Aggregates
|
85,683
|
13,025
|
||||||
|
Others
|
32,168
|
(2,511
|
)
|
|||||
|
Subtotal
|
12,436,518
|
8,402,026
|
||||||
|
Reconciliation - Effect from restatement in constant currency
|
(2,123,753
|
)
|
3,571,299
|
|||||
|
Total
|
10,312,765
|
11,973,325
|
||||||
|
Reconciling items:
|
||||||||
|
Tax on bank accounts debits and credits
|
(479,797
|
)
|
(487,316
|
)
|
||||
|
Financial results, net
|
(50,456
|
)
|
735,803
|
|||||
|
Income tax
|
(3,692,741
|
)
|
(9,625,289
|
)
|
||||
|
Net profit for the year
|
6,089,771
|
2,596,523
|
In relation to the segregation of the results by geographic segment, the Group carries out 99.92% of its activities and operations in
Argentina.
No customer has contributed 10% or more of the Group´s revenue for the six-month periods ended June 30, 2022 and 2021, respectively.
28. COMMITMENTS
The Group’s commitments are described in Note 36 to the annual consolidated financial statements for the fiscal year ended December 31,
2021.
29. FERROSUR ROCA S.A. CONCESSION AND RELATED RAIL SERVICES
On March 11, 1993, Ferrosur Roca S.A. obtained the concession of the General Roca National Cargo Railway Network with the exception of
the Altamirano-Miramar corridor and the urban sections, through the approval of the concession contract formalized by National Executive Branch Decree No. 2681/92, after the presentation made through a national and international
tender and formalized to that effect. The area of influence is concentrated in the center and south of the province of Buenos Aires, north of the province of Río Negro and Neuquén. It has access to the ports of Buenos Aires, Dock
Sud, La Plata, Quequén, and Bahía Blanca.
Ferrosur Roca S.A. is indirectly controlled by the Company, through Cofesur S.A.U. which owns 80% of the interest, 16% of which belongs
to the National State and the remaining 4% belongs to the workers of Ferrosur Roca S.A. through a trust created for this purpose.
The term of the concession is 30 years, which expires in March 2023, and originally provides for an extension of 10 additional years.
Ferrosur Roca S.A. has requested the above-mentioned extension in due time on March 8, 2018, and in line with the bidding terms and
conditions and the concession agreement.
On November 7, 2018, Decree No. 1027/2018, which regulated Law No. 27,136, was published in the Official Gazette. The relevant subjects
were: readjustment of existing concession contracts with the possibility of extending them for a term not greater than 10 years, full implementation of open access system on the day following expiration of the last concession
contract (of the three private concessions existing at present), including extensions, with the possibility of initiating this modality in the branches that allow it when the planned investments are made; revision of technical
standards; revision of the sanction regime, and creation of the registry of operators.
Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the
consolidated financial statements filed with the CNV prevail over this free translation.
26
LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS AS OF JUNE 30, 2022 AND 2021
(All amounts are expressed
in thousands of Argentine pesos - $ - except otherwise indicated)
On March 29, 2021, through Resolution No. 219/2021, the National Commission for Transport Regulation (“CNRT”) approved the Rules and
Regulations of the National Registry of Railway Operators and granted such capacity to Ferrosur Roca S.A. and the other railway concessionaires and, through Resolution No. 211 of the Ministry of Transport, published in the
Official Gazette on June 28, 2021, rejected the request for an extension of the concession contracts duly submitted by all the private railway concessionaires. Therefore, the railway concession operated by the Company will expire
at the end of its original term, that is, on March 10, 2023. The purpose of the National State is that the national railway network be based on a mixed modality combining public and private cargo operators, where the National
State will manage the infrastructure and control the related investments, thus allowing any registered railway operator to provide railway services regardless of who owns or possesses the facilities at the point of loading or
destination.
As a consequence, the Group understands that, at the end of its concession, it will continue to provide the cargo transport rail
services it currently provides but as a cargo operator under the terms set forth in Resolution No. 211, Law No. 27,132, and Decree No. 1027 dated November 7, 2018. To this end, the Group will have to readjust various operational
issues once it hands over control of the railway infrastructure linked to its current concession to the National State. The Group's Management understands that the intention of the National State is to prioritize the continuity of
the current operators for each of the existing services and businesses, thus guaranteeing the best use of the experience they have acquired.
On June 9, 2022, the Ministry of Transportation published in the Official Gazette the Resolution 353/2022 in which it grants a 12-month
extension in the concession granted to the concessionaire FerroExpreso Pampeano S.A. ending on June 30, 2023 and establishes the canon or toll to be paid by railway operators that circulate along the Bahía Blanca – Rosario branch.
As of the date of issuance of these consolidated financial statements, beyond the extension mentioned in the previous paragraph
regarding one of the concessionaires, several regulations are still pending definition by the National State on which the railway operators scheme will operate as of March 2023, the date on which the current concession managed by
Ferrosur Roca S.A. will end, together with the negotiations to implement the operator contracts with the different parties involved.
In this context, the Group has assessed the possible business scenarios, considering that its intention is to continue providing
services as operator of the railway network. In these scenarios, the National State, responsible for managing the train traffic control systems and maintaining the railway infrastructure, would charge the Company a fee for the use
of the railway infrastructure, which would replace direct maintenance expenses currently paid by the concessionaires plus the related tolls; no significant changes are expected in the rest of matter matters and activities compared
to the current business model of Ferrosur Roca S.A. In addition, the Group´s assessment of the new business model has included estimation of the term for the provision of rail services, the routes and businesses that would be
assigned, the future demand for rail freight services, and the allocation of fixed and variables costs in the new cost structure of Ferrosur Roca S.A., among other issues.
Finally, the Group has reassessed all accounting estimates associated with the end of the current concession, including delivery and
control of the railway infrastructure and associated contracts in order to conclude the concession scheme as well as adjustment of its operating model to the new scheme as a rail operator. No significant impact is expected to
date. The Group will continue to monitor the new regulations as they come into effect, as well as the progress of ongoing negotiations with the National State and will record any related effect as soon as it is possible to make an
estimate.
Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the
consolidated financial statements filed with the CNV prevail over this free translation.
27
LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS AS OF JUNE 30, 2022 AND 2021
(All amounts are expressed
in thousands of Argentine pesos - $ - except otherwise indicated)
30. THE ARGENTINE ECONOMIC CONTEXT
On November 14, 2021, the mid-term general legislative elections took place, and the outcome was contrary to the governing party, with
a nationwide differential of almost nine points with respect to the main opposition alliance, and a loss of almost fifteen points as compared to the votes obtained in the 2019 presidential elections. After the electoral result
became known, President Alberto Fernandez anticipated the sending and treatment at the National Congress of a bill articulating the multi-year economic program, including the agreement with the International Monetary Fund and a
realistic budget that is plausible from a market perspective.
The central issues of the macroeconomic scenario in Argentina are as follows:
| - |
Due to the crisis unleashed by the COVID-19 pandemic, the Argentine economic activity was more affected than other economies in the region due to
its previous macroeconomic weakness. The loosening of restrictions during 2021 and up to June 2022, due to the drop in infections, and the expansion of public spending, focused on expanding consumption, caused the economy
to react by growing at a rate of approximately 10% in 2021, although still below the 2019 average activity levels.
|
| - |
The initial impact of the pandemic and social distancing measures on the economy and household income also affected poverty levels, with the poverty
rate reaching 40.6% in 2021 and involving 18.8 million people nationwide.
|
| - |
The primary fiscal deficit accelerated mainly due to the economic measures taken by the national government, which generated a monetary imbalance
driven by money printing to increase the money supply as a way of financing the expansion of spending used for subsidies to mitigate the effects of COVID-19, social plans, and government employment, among other issues.
|
| - |
The national consumer price index published by INDEC accumulated 36.2% in 2022 and 50.94% for the year 2021.
|
| - |
Reducing the fiscal deficit is one of the central issues in the framework of the negotiation with the International Monetary Fund (“IMF”), and a
large part of the deficit is explained by the growth of subsidies due to the delay in rate/tariff increases. Also, as the subsidies are financed with monetary issue, this increases the pressures on inflation. Within the
framework of an agreement with the IMF, the National Government hardly has room not to reduce energy subsidies.
|
| - |
The low level of reserves in the Central Bank (“BCRA”) has led the national government to maintain a very restrictive exchange control for the
purchase of foreign currency in the MULC, affecting the payment of imports of services and goods, financial indebtedness and dividends, among others. The imbalance due to monetary issue constitutes an inflation factor and,
together with the restrictive exchange control imposed by the BCRA, favors the increase in the exchange rate gap.
|
31. EFFECTS OF COVID-19 ON THE GROUP
On March 11, 2020, the World Health Organization declared the outbreak of coronavirus (COVID-19) as a pandemic. The public health
emergency situation has spread practically throughout the world and different countries have taken various measures to tackle this.
As the pandemic took hold, the National Executive Branch issued a number of measures intended to restrict or suspend commercial
operations, restrict travel, and set up social distancing measures. These restrictions have been loosening, or disappearing, during 2021 and 2022.
Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the
consolidated financial statements filed with the CNV prevail over this free translation.
28
LOMA NEGRA COMPAÑÍA INDUSTRIAL ARGENTINA SOCIEDAD ANÓNIMA
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS AS OF JUNE 30, 2022 AND 2021
(All amounts are expressed
in thousands of Argentine pesos - $ - except otherwise indicated)
As a result, the Group adopted various measures to mitigate the effects of this situation, such as: (i) adapting the level of its
operations based on market demand; (ii) implementing the use of remote work for administrative employees of the Group; and (iii) creating a crisis committee to monitor and evaluate the implementation of measures aimed at
mitigating the effects of this pandemic.
The Group Management estimates that this situation will not generate a significant adverse impact on future operations, but the
uncertainties regarding the effects, extent and duration of this situation do not allow a reasonable estimate of the potential impacts as of the date of issuance of these financial statements, which will depend on the significance
of the health emergency and the success of the measures adopted and to be adopted in the future.
32. OFFICIALLY STAMPED BOOKS
As of date of these interim financial statements, for administrative purposes, consolidated financial statements were not yet
transcribed in the relevant certified books.
33. SUBSEQUENT EVENTS
The Group has considered events after December 31, 2021, to assess whether it is necessary to recognize or disclose them in these
consolidated financial statements. Such events were assessed through August 11, 2022, the date when the consolidated financial statements were available for issue.
33.1 New loan
On July 1, 2022, Loma Negra C.I.A.S.A. was granted new loan agreement with Eurobanco Bank Ltd. for USD 80 million, for a term of 90
days, extendable to 180 days, cancelable at maturity. This loan accrues interest at a variable nominal rate based on the SOFR rate to be paid quarterly.
Additionally, on July 7, 2022, the Company entered into a loan agreement with HSBC Bank Argentina S.A. for 3,000 million pesos maturing
within 180 days, accruing a fixed interest rate of 52% per year.
33.2 Payment of dividends
On July 1,2022, the board of directors of the company approved the payments of dividends amount of 10,300 million to allocating a part
of the Optional reserve for Future Dividends, equivalent to a dividend of Ps. 17.5947778152810 per share. The dividend was made available on July 12, 2022.
The board of directors also communicated that as a general principle the payment of such dividends will be made to all Shareholders in
ARS. However, it will be granted to all Shareholders the option of (a) receiving payment of their proportion in the dividends through the delivery of the equivalent amount of USD resulting of the conversion of the proportional
amount of the original dividend in ARS to USD through the Reference Exchange Rate of the Central Bank of the Republic Argentina – Communication “A” 3500 corresponding to the close of the immediate trading day prior to April 26,
2022 or (b) to receive payment in USD through Caja de Valores S.A., in each respective Shareholders’ local bank or in a bank account abroad
Free translation in English of the original consolidated financial statements filed in Spanish with the Argentine National Securities Commission (“CNV”). In case of discrepancy, the
consolidated financial statements filed with the CNV prevail over this free translation.
29