Loma Negra's (LOMA) Q4 2024 earnings report showed a notable increase in net profit amid a decline in revenue, which is a positive indicator for the company's financial health despite the challenging economic conditions. Below is a detailed analysis of the key points from the earnings report and how they compare to past surprises1:
- Net Profit Surge: Loma Negra reported a significant increase in net profit, which surged by 628.8% year-over-year to Ps. 153,627 million. This is a substantial improvement from the previous year, indicating a strong profitability period for the company2.
- Revenue Decline: However, net revenues fell by 23.9% year-over-year to Ps. 699,179 million. This decline is a challenge for the company, especially considering the surge in net profit. The revenue decrease is attributed to lower demand and sales volumes, particularly in the cement segment2.
- EBITDA and Margin: The consolidated adjusted EBITDA decreased by 17.2% year-over-year to Ps. 180,987 million. Despite the decrease, the EBITDA margin expanded by 211 basis points to 25.9%. This expansion suggests that the company is becoming more efficient in managing its costs relative to its revenue2.
- Debt Reduction: Loma Negra reported a significant reduction in net debt, improving its debt-to-EBITDA ratio to 0.89x from 1.40x in the previous year. This indicates a stronger financial position and a reduced reliance on debt financing2.
Comparing the Q4 2024 performance to past surprises, Loma Negra has shown resilience in maintaining profitability despite revenue challenges. The company's focus on efficiency and sustainability initiatives has likely contributed to the improved EBITDA margin and net profit surge. However, the decline in revenue and sales volumes remains a concern that the company will need to address in future quarters to sustain its financial performance.
4/11/2025 09:10am
