The cement company's revenues fell by 6.4% compared to the first six months of 2023, leading to a turnover of just over US$ 688 million.
Cementos Argos, the cement company of Grupo Argos, reduced its profits by 21.5% in the first half of the year compared to the same period last year, leaving it with a net profit of 254 billion Colombian pesos (US$ 62.4 million), the company reported on Friday.
The cement company's revenues fell by 6.4% compared to the first six months of 2023, leading to a turnover of just over 2.8 billion Colombian pesos (US$ 688 million).
By region, Cementos Argos saw its sales fall by 2.4% year-on-year, while they rose by 3% in Central America.
Adjusted gross operating profit (EBITDA) stood at 570 billion Colombian pesos (US$ 139 million) in the first six months of the year, increasing by 5.9% compared to the first half of 2023.
These results are the product of the continued implementation of efficiency strategies and cost discipline in the regions, together with the slowdown in inflation and the improvement of market dynamics in certain countries within the Central American region.
This enabled an expansion of the EBITDA margin of 249 basis points, reaching 21.5% during the quarter.
PERFORMANCE IN COLOMBIA
In Colombia, cement volumes in the quarter totaled 1.3 million tons, 5% less than in the same period in 2023, although with a significant increase in exports. In contrast, concrete volumes in the quarter increased 4% year-on-year, reaching 634 thousand cubic meters.
Financial results during the period were positive, with a quarterly EBITDA of 168 billion pesos, growing 14%, with a margin of 22.6%, which shows an expansion of 332 basis points. The accumulated EBITDA for the year to date is 365 billion pesos, 11% higher than the previous year, with a margin of 24.5%, which expands 300 basis points.
The Regional continues to execute a commercial strategy leveraged on the strength of the brand, with stable prices and a robust market and project segmentation for the deployment of the company's value proposition.
Sales of new homes in Colombia have begun to stabilize, which, combined with the reduction in mortgage rates, moderation of inflation, improvements in the government system for granting housing subsidies and ambitious infrastructure plans by local governments in the country's main cities, allows us to foresee improvements in cement shipments within the next 12 to 18 months.
"In light of the improvement in the industry's dynamics, Argos Colombia has purchased 30 new mixers that began operating in July, which will allow for greater efficiencies in the ready-mix concrete business and better serve medium- and large-scale projects in major cities," the firm said in its statement.
