Colombia: Cementos Argos’ says its sales volumes in the first half of 2020 were affected by coronavirus-related lockdown measures in Colombia and some countries of Central America and the Caribbean. These markets have since recovered gradually as quarantine measures were eased. Its revenue fell by 4.6% year-on-year to US$1.14bn in the first half of 2020 from 1.20bn in the same period in 2019. Cement and ready-mixed concrete (RMC) sales volumes declined by 15% to 6.79Mt and 19.9% to 4.05Mm3 respectively. Earnings before interest, taxation, depreciation and amortisation (EBITDA) dropped by 9.5% to US$200m.
“These results were driven mainly by the firm commitment of our employees in implementing the health and safety protocols and the saving initiatives contained within RESET (restart safe and healthy), together with the better-than-expected market dynamics particularly in the US and some of our markets in the Caribbean,” said Juan Esteban Calle, the group’s chief executive officer (CEO).
By region the group reported growing RMC sales and earnings, both on an adjusted basis, in the US in the second quarter of 2020. Cement volumes fell in the country, mainly due to lower cement sales volumes in the Northeast region, due to lockdown measures and reduced demand from the wholesale segment. In Colombia a complete national lockdown from the start of the second quarter reduced sales significantly. A mixed picture was presented in the Caribbean and Central America due to differences in government lockdown policy although overall sales and earnings were down.
