Loma Negra Compañía Industrial Argentina Sociedad Anónima (LOMA): history, ownership, mission, how it works & makes money

A Brief History of Loma Negra Compañía Industrial Argentina Sociedad Anónima (LOMA)

Foundation and Early Years

Loma Negra Compañía Industrial Argentina was established in 1926 in the province of Buenos Aires, Argentina. Initially focusing on cement production, the company quickly became a vital player in the construction industry.

Expansion and Growth

By the 1950s, Loma Negra had expanded significantly, reaching a production capacity of approximately 1 million tons of cement per year. This growth was driven by the increasing demand for construction materials during Argentina's economic expansion.

Public Offering and Major Milestones

In 1993, Loma Negra was privatized, and its shares were listed on the Buenos Aires Stock Exchange. The initial public offering (IPO) raised about US$160 million. In subsequent years, the company continued to modernize its facilities and expand its product range.

Acquisition and Global Presence

In 2005, Loma Negra was acquired by the Brazilian company Camargo Corrêa, marking a significant step in its international expansion. By 2017, Loma Negra was recognized as one of Argentina's largest cement producers, with a market share exceeding 40%.

Financial Overview

As of 2022, Loma Negra reported revenues of approximately ARS 80 billion (around US$800 million), reflecting a robust recovery following economic challenges. Gross profit margins stood at about 30%.

Recent Developments

In 2023, Loma Negra announced plans to invest US$100 million in new production facilities aimed at increasing efficiency and capacity. This investment indicated a strong commitment to future growth and adaptation to evolving market conditions.

Sustainability Initiatives

Loma Negra has implemented several sustainability initiatives, including reducing CO2 emissions by 20% over the past five years. The company is actively working to enhance its environmental performance and align with global sustainability standards.

Market Position and Competitors

As of 2023, Loma Negra remains a leading cement producer in Argentina, facing competition from companies such as Holcim Argentina and Cementos Avellaneda. Despite competition, Loma Negra maintains a strong foothold in the market due to its extensive distribution network and brand reputation.

A Who Owns Loma Negra Compañía Industrial Argentina Sociedad Anónima (LOMA)

Overview of Ownership Structure

Loma Negra Compañía Industrial Argentina Sociedad Anónima (LOMA) is publicly traded, and its ownership is distributed among various institutional and individual shareholders. As of the latest data, the largest shareholders are notable financial institutions and investment firms.

Major Shareholders

Institutional Ownership

The institutional ownership of LOMA plays a significant role in its governance and strategic direction. The following table outlines key institutional shareholders and their respective stakes.

Recent Financial Performance

Loma Negra's financial performance has been closely monitored by its shareholders. The following table summarizes key financial metrics from the latest fiscal year.

Impact of Ownership on Corporate Governance

The ownership structure of Loma Negra influences its corporate governance and decision-making processes, with significant institutional ownership typically resulting in more strategic oversight.

Conclusion of Ownership Analysis

With a mixed ownership profile, Loma Negra benefits from both institutional and public investment, leading to a diverse input in its operational strategies and corporate governance.

Loma Negra Compañía Industrial Argentina Sociedad Anónima (LOMA) Mission Statement

Corporate Vision

The corporate vision of Loma Negra emphasizes being a leader in the cement industry within Argentina, focusing on sustainable growth and innovation.

Core Values

• Integrity: Commitment to ethical practices and transparency.
• Quality: Delivering superior products and services.
• Sustainability: Emphasizing environmentally responsible operations.
• Innovation: Fostering a culture of continuous improvement.
• Customer Focus: Prioritizing customer satisfaction and engagement.

Financial Overview

As of the end of 2022, Loma Negra reported revenues of approximately $1.1 billion, illustrating a robust growth trajectory.

The EBITDA for the same period was around $260 million, reflecting strong operational efficiency.

Market Position

In a recent analysis, Loma Negra held approximately 37% of the Argentine cement market share, making it the largest cement producer in the country.

Key Financial Metrics

Commitment to Sustainability

Loma Negra is dedicated to reducing its carbon footprint by implementing eco-friendly practices, aiming for a 20% reduction in CO2 emissions by 2025.

Strategic Objectives

• Increase production capacity by 15% by 2024.
• Expand product offerings, particularly in sustainable construction materials.
• Enhance operational efficiencies through technological advancements.

Community Engagement

Loma Negra invests approximately $2 million annually in community development programs, focusing on education and employment initiatives.

Recent Developments

In 2023, Loma Negra announced a strategic partnership with a local renewable energy provider to transition 30% of its energy consumption to renewable sources by 2025.

How Loma Negra Compañía Industrial Argentina Sociedad Anónima (LOMA) Works

Company Overview

Loma Negra is the leading producer of cement in Argentina. The company operates with a focus on the manufacturing and distribution of cement and concrete products. As of 2022, Loma Negra produced approximately 4 million tons of cement annually.

Financial Performance

For the fiscal year ended December 31, 2022, Loma Negra reported the following financial figures:

Manufacturing Operations

Loma Negra operates several cement plants in Argentina, with a total production capacity exceeding 6 million tons per year. The major facilities include:

• Cement Plant in Olavarría
• Cement Plant in L’Amalí
• Cement Plant in Mendoza

Market Position

As of 2023, Loma Negra holds approximately 50% market share in the Argentine cement industry. The company is a primary supplier for major construction projects in Argentina.

Sales and Distribution

In 2022, Loma Negra distributed products to over 35,000 customers across Argentina. The logistics network enables the company to deliver products efficiently to urban and rural areas alike.

Corporate Social Responsibility Initiatives

Loma Negra engages in various corporate social responsibility initiatives focusing on sustainability and community development. In recent reports, 20% of their energy consumption comes from renewable sources.

Recent Developments

In April 2023, Loma Negra announced an investment of USD 50 million for upgrading their production technology to improve operational efficiency and reduce emissions.

Stock Performance

As of the end of September 2023, LOMA shares traded at USD 12.50 per share, reflecting an increase of 25% year-to-date.

Future Outlook

The company forecasts a growth rate of 5-7% in cement demand over the next five years, supported by ongoing investments in infrastructure development throughout Argentina.

Conclusion

Through its focused operational strategies, efficient manufacturing processes, and commitment to sustainability, Loma Negra continues to solidify its position as a market leader in the Argentine cement industry.

How Loma Negra Compañía Industrial Argentina Sociedad Anónima (LOMA) Makes Money

Product Segments

Loma Negra generates revenue through several key product segments within the cement and construction materials industry:

• Cement: Approximately 90% of total sales.
• Concrete: Roughly 6% of total sales.
• Aggregates: About 4% of total sales.

Market Position

Loma Negra holds a significant market share within Argentina, estimated at 50% of the cement market. This positioning allows the company to maintain competitive pricing and secure large contracts with construction firms.

Revenue Figures

In the fiscal year 2022, Loma Negra reported revenues of approximately ARS 89.5 billion, which showed an increase compared to previous years fueled by strong demand in the construction sector.

Cost Structure

The company’s cost structure includes various factors that affect profitability:

• Raw Materials: Cement production costs account for around 50% of total costs.
• Energy Costs: Energy expenses constitute about 25% of production costs.
• Labor Costs: Labor comprises nearly 15% of total operational expenses.

Export Opportunities

Export sales contribute significantly to Loma Negra’s revenue, accounting for approximately 10% of total sales. The company exports to neighboring countries, including:

• Uruguay
• Paraguay
• Chile

Market Trends and Demand

The demand for cement in Argentina is projected to grow at a compound annual growth rate (CAGR) of 4% through 2025, driven by increased infrastructure projects and residential constructions.

Financial Performance Metrics

Investment in Technology

Loma Negra continuously invests in technological advancements to increase production efficiency and reduce costs, with a reported expenditure of around ARS 1.5 billion in 2022.

Sustainability Initiatives

The company has implemented eco-friendly practices, focusing on reducing CO2 emissions by targeting a 25% reduction by 2025.

Strategic Partnerships

Strategic partnerships with major construction companies enhance Loma Negra’s market presence and promote brand loyalty. Recent collaborations include:

• Joint ventures with local construction firms
• Supply agreements with major infrastructure projects

Future Growth Prospects

Looking ahead, Loma Negra aims for expansion through potential acquisitions and increased production capacity, with plans to invest an additional ARS 3 billion by the end of 2023.