GuruFocus -
- Consolidated Revenues: COP1.5 trillion, stable compared to the same period in 2023.
- EBITDA: COP4.5 trillion, a growth of 39% compared to the previous year.
- Net Profit: COP7.3 trillion, with net profit for the controller at COP4.3 trillion.
- Separate Financial Results - Revenues: COP3.4 trillion.
- Separate Financial Results - EBITDA: COP3.3 trillion.
- Separate Financial Results - Net Profit: COP2.8 trillion.
- Net Debt: COP9.1 trillion, a reduction of 24% compared to the same period last year.
- Share Price Increase: Ordinary shares increased by 112%, preferential shares by 108%.
- Cementos Argos EBITDA Margin: 22%, an increase of 130 basis points from the previous year.
- Celsia Revenues: COP4.7 trillion, reflecting an increase of 3% year-to-date.
- Celsia EBITDA: COP345 billion, a decrease of 17% due to lower energy generation and asset deconsolidation.
- Odinsa EBITDA: COP154 billion, an increase of 2% from the previous year.
- Pactia Effective Gross Revenue: COP125 billion, a growth of 10% year-over-year.
- Pactia EBITDA: COP67 billion, an increase of 12% year-over-year.
- Urban Development Business - Land Lots: Structured 1,286 hectares, resulting in significant cost savings.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Grupo Argos SA (BOG:GRUPOARGOS) reported a significant increase in its investment portfolio, appreciating close to COP3 trillion, reaching COP19.3 trillion.
- The company achieved a 39% growth in EBITDA, reaching COP4.5 trillion, compared to the same period in the previous year.
- Grupo Argos SA's share repurchase program has led to a substantial increase in share prices, with ordinary shares rising by 112% and preferential shares by 108%.
- Cementos Argos achieved an EBITDA margin of 22%, reflecting a 130 basis point increase from the previous year.
- Celsia inaugurated Colombia's first solar energy storage system, enhancing its energy transition efforts and increasing solar energy generation by 45% year-to-date.
- Grupo Argos SA's consolidated revenues remained stable at COP1.5 trillion, showing no growth compared to the previous year.
- Celsia experienced a 17% drop in consolidated EBITDA due to lower energy generation caused by adverse weather conditions.
- The urban development business faced a decline due to adjustments in the reasonable value of land lots, resulting in a provision close to COP96 billion.
- Cementos Argos saw a reduction in cement and concrete dispatches by 9% and 8%, respectively, due to decreased activity in the residential segment.
- Grupo Argos SA's net debt increased to COP1.2 trillion, primarily due to cash disbursements for the joint OPA for Grupo Nutresa shares.
A: Jorge Velasquez, CEO, explained that the process involves analyzing alternatives for a property structure where each holding is not a shareholder of the other. This is being done with global support, such as from JPMorgan (NYSE:JPM), to ensure regulatory and value implications are considered. The process is ongoing, and further steps will be announced once ready, ensuring fair treatment for all shareholders.
Q: Can you give more detail on the deterioration of some assets in the urban development business?
A: Maria Clara Aristizabal, Manager of Urban Development Business, stated that the deterioration corresponds to the Baru and Pavas assets in Barranquilla. This is due to increased raw material costs post-COVID, impacting the residual value of these assets.
Q: Repurchases of shares have impacted market price recovery but reduced the possibility of entering international indexes. Is this considered for future repurchase programs?
A: Juan Esteban Mejia, Head of Investor Relations, noted that despite share repurchases, liquidity and transactional volume have increased, potentially leading to higher index weighting. The company aims to maintain liquidity to access other indexes.
Q: In case of a successful offer for Summit, what investment options could Cementos Argos evaluate?
A: Jorge Velasquez, CEO, emphasized regulatory constraints prevent discussing specifics. However, any decisions will be communicated publicly and openly.
Q: Can you provide more information about the new water/infrastructure business investment?
A: Mauricio Ossa, CEO of Odinsa, explained the focus is on water reuse treatment in Chile, Peru, and Mexico, targeting sectors like mining and agriculture. The initiative is expected to start in 2025, leveraging Grupo Argos' expertise in managing stakeholder relationships.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.