Grupo Argos S.A. (GRUPOARGOS) Earnings Call Transcript & Summary

Esteban, thank you. Thank you very much. Thank you for being with us today. As you assume, it's a pleasure sharing with you the results of this second quarter of 2024. I have a very special connotation to the impact of the transformational transactions that were made during this quarter. I would add that during this first quarter for the year, the business has kept giving solid operational results, which have been reflected in the positive figures that we'll be sharing with you. Next before introducing a summary of the financial results for the company in a detailed manner, we would also like to make a comment about the results of the agreement for the disinvestment that Grupo Argos made from its share participation in Nutresa group, which has a little bit the materialization of relevant profit for the company besides expansion of larger economic rights for this organization for Grupo Sura. Now I want to invite you to look at the slide concerning the impact of this operation. Thanks to the successful conclusion of the public offer by Grupo Nutresa shares and the second share exchange during this second quarter, all the operations were completed under this framework agreement that was signed on 15th of June of 2023. As a result of this implementation, Grupo Argos and Grupo Sura don't own shares of Grupo Nutresa anymore, or ICH or JGDB, and Nugil don't have Grupo Sura shares nor for the Sociedad Portafolio. Besides, it's expected that the upcoming months, we will finalize the liquidation process for the Sociedad Portafolio by which we will distribute to the shareholders of this company in a proportional manner according to their participation the remnant share. This is composed by 62 million shares of Grupo Sura and 82 million shares of Grupo Argos. It is the participation that Nutresa initially had with both Grupo Sura and Grupo Argos, and as part of this decision has been included in the Sociedad Portafolio. As a result of this liquidation, Sociedad Portafolio anticipates we'll give Grupo Argos 13.7 million shares, meaning treasury shares. In order to facilitate this process last 31st of July, the company carried out an extraordinary general meeting with the shareholder which a change of designation of the reserves of the Sociedad was approved in order to receive the shares, which will be treated as a reacquired shares. Likewise, Grupo Argos will also receive the economic rights of 10.3 million additional shares of Grupo Sura. Has -- such as it has been communicated previously to the market, we can see that the Grupo Argos, as an infrastructure holding, does not have the intention in other location to constitute as the controller of Grupo Sura. Grupo Argos will transfer shares to an autonomous equity that has the irrevocable structure of not exercising political rights in a way that it would not exercise political rights further than 49% of the shares that are represented in any shareholders of Grupo Sura. During the same shareholders' assembly that I mentioned for Grupo Argos. As such, a bylaws reform was approved, focused on strengthening the corporate governance practices for Grupo Argos. Between other changes, two articles were included in the social bylaws that promote equitable treatment for shareholders and offer exit options at right prices in the case that there is a takeover bid for the ordinary shares of Grupo Argos. The reform establishes the right of the shareholders receive an offer for 100% of shares with rights approval ensuring that there will be pro rated and will receive a fair price in case the beneficiary requires 20% or more of the ordinary shares besides a right is granted in order for the price to be equal with those shareholders that sell their ordinary shares. In a takeover bid, if in the upcoming months, the same beneficiary launches takeover bid for the same price, this will be always be beared in mind in order to include best practices in these bylaws that updating them according to the market transfer reassuring the commitment with a continuous update and better corporate practices in benefit of all its shareholders. From another side, given that all these steps have been completed under the framework agreement, we could see in a consolidated manner, the impacts that these transactions have had for Grupo Argos. The investment in Grupo Nutresa was classified as a financial instrument measured at a reasonable value with changes the ORI were also known as the other integral results, by which is the generated profit in the transfer of the shares of Grupo Nutresa was reflected on the ledgers in the accumulated gains as a reclassification of the ORI. The rest of the associated effects with the transaction are recognized in the profit and loss statements of our book because these both events must be considered jointly in order to visualize the net benefit of this transaction. The release of accumulated gains in the ORI was COP 1.5 trillion, and the company recorded a profit in its consolidated profit and loss statement of COP 1.1 trillion. Adding with this economic benefit after taxes of COP 2.6 trillion, this effect includes the profit recognized for Grupo Sura over this transaction incorporated at the same time in the profit and loss statement of Grupo Argos through the traditional application of the participation method. In the separate the OCI, the company recorded a negative result of COP 196 billion that include both costs as well as associated taxes with this transaction. Nevertheless, when considering this COP 1.5 trillion as accumulated gains released in the OCI, the net benefit of this transaction will be of COP 1.3 trillion. The transaction also impacts the consolidated equity given the increase of the economic participation of Grupo Sura because of the difference between the intrinsic and average value of the reacquired shares by the company. Summarizing, with the close of all these operations of this framework agreement and the liquidation of the Sociedad Portafolio, Grupo Argos will move to have from 22% to 46% of the economic rights of Grupo Sura. That's actually one of the main financial conglomerate groups of Latin America, recording a net gain of COP 2.6 trillion in its financial results. This added to the solid dynamic -- operational dynamics in all of our assets that we'll be seeing further on, places the company in very good results. But besides strengthening the company in order to continue its strategic infrastructure asset management. The new sum of the parting of Grupo Argos. With the materialization of the exchange of its participation in Grupo Nutresa, the Grupo Argos portfolio has experimented a significant transformation, orientating more towards infrastructure. On Slide 4, you could see how the investment portfolio has reformed for this organization. Taking as a reference, the values on the layers of our nonlisted investments, such as Odinsa, the Urban Development Business, Pactia, and between others and the price of the shares in the Colombian Stock Exchange of our listed investments such as Celsia, Cementos Argos, Grupo Sura or Sociedad Portafolio and obviously, as we mentioned Nutresa, we see that in respect with the second quarter previous year of 2023, the portfolio of Grupo Argos has priced COP 2.8 trillion reaching COP 19 trillion of total value. This increase is supported in the close of the strategic transaction as the one I just mentioned and Summit Materials and a good operational performance of our business. In order to administrate this portfolio of COP 19 trillion Grupo Argos, as an asset manager, acquired in operational expenses of COP 86 billion during the last 12 months, excluding the operational expenses of the urban development business, depreciation, amortization and the non-occupying operational expenses. This relation between the administration expenses and the managed portfolio equals to a ratio of 0.5%, which places the company under the comparable asset managers. When including the associated expenses through merger and acquisition operations during the last 12 months and generated profits for several trillion Colombian pesos, this ratio has increased 3.7%. This is a figure that is still below any other asset administrator. We also need to consider that the Grupo Argos is a strategic direction of growth, which we actively participated in this capital structure and in the strategy development, in the identification and materialization of emerging acquisition operations under development, few talent, better management and institutional relations with different republic and government in favor of a better value construction of all of our businesses, meaning by this, Grupo Argos Management grows further then it passes management of a portfolio. From another side, this divestment of Grupo Nutresa and operations such as that withi Summit Materials have allowed for infrastructure segment to increase its weight from 56% to 70% within the investment portfolio of the company aligning with the strategic route of continuing being manager focused on infrastructure businesses. Now let's discuss about the market performance. In this first semester, we keep on passing in our asset repurchase program, focused on having a different mechanism in order to offer value to all our shareholders in a consolidated manner. The companies of Grupo Empresarial Argos have executed more than $100 million since the repurchase programs have begun on behalf of Grupo Argos, Cementos Argos and Celsia. In the last 12 months, the price of the ordinary shares of Grupo Argos have increased 85%, the preferential shares 74%. The ordinary shares for Cementos Argos have increased 148% and the shares of Celsia 60% in the same period. The market cap for the companies of Grupo Empresarial Argos have increased in more than COP 13 trillion. And the measure that we that we purchase our own shares at the current market values, which we continue observing a relevant gap between the fundamental value, and the price for our market share, as the participation of each of the shareholders is increasing. Besides this, this strategy has offered a larger dynamism and liquidity in the market at the moment that it has been required. Moving on to the consolidated results for this first quarter of 2024. As you might see on Slide #6, Grupo Argos closed with consolidated revenues of COP 8.2 trillion. This is stable compared with 2023 and an EBITDA of COP 3.4 trillion, representing a growth of 41% compared with the same period last year. This, bearing in mind that as a result of the agreement between Cementos Argos and Summit Materials with the combination of the North American assets. The company disposed of 100% of its subsidiary shares in the United States, by which the involved assets in this section were classified as a discontinuous operation as a consequence of the company making changes in the representation of its financial results consolidated up to 30th June of 2023, reclassifying all the associated accounts to the group of assets that have been disposed in the United States to a net profit line under discontinuous operations. As a result, the net profit closed at COP 6.8 trillion and the underlying net of COP 4.7 trillion. This is a figure that reflects the generated profits -- the revenues of these transactions with Summit and the exchange that we had with Nutresa shares leveraged in the good operational results of our infrastructure investments and driven by the same, not requiring effects that effectively consolidated results. The financial -- accelerated financial results showed that the accumulated revenue for the year closed in COP 3.2 trillion. The EBITDA closed in COP 3.1 trillion, and the net profit reached COP 2.7 trillion. Now I like to invite you to move on to Slide #8, where we can see the summarized structure of the assets that the company manages at the close of this first quarter. And as they will keep on being reported towards the future in terms of the financial results. We can see that despite that Grupo Argos keeps exercising control and consolidated Cementos Argos, Celsia and Odinsa, the investments that our subsidiaries have made in last years have led that many of the reserves, assets and liabilities are not consolidated line by line in the financial results and as a consequence nor in the Grupo Argos results. Now this reflects as a method of participation in the results of each branch and afterwards in its financial risk and the consolidated financial results if requires. From now, for example, 31% of the participation of Cementos Argos holds in Summit Materials will reflect in the consolidated financial results through the participation method. Likewise, the asset management business for Celsia, including the C2EnergÃa, Tesorito, Laurel and Caoba platforms that are midsized and large-sized solar generation or thermal generation where we anticipate that a great part of the growth of this branch will happen and the strategy development that we have led from Grupo Argos associating with the third-party capital won't be recorded line and underline in the financial status of the company. Likewise, creation of the road and airport of platform creation in Odinsa design association with Macquarie results that the results of this concessions won't be consolidated either in our financial statements. That's why it's so important to consider that the consolidated financial statements only incorporate a minority group of the managed assets of the company. In other words, the revenues and the EBITDA and the consolidated EBITDA don't fully reflect the operational performance of the businesses of an asset manager as Grupo Argos is becoming. In the upcoming slide, we go over the detail of the change in the accounting of the company for this 2024. Besides deconsolidating the assets of Cementos Argos in the United States during 2024 that I have previously mentioned, the company records a lower level of revenues in its energy business, given the disinvestment a great part of its assets in Central America during 2023. Beside deconsolidating its participation in OPAIN and recorded a lower participation method in Quiport, a result of the creation of the airport vertical in Macquarie. There's also an increase in the participation method of Grupo Sura given the increase of its economic rights in this investment, and we start according the dividends that Grupo Nutresa -- that we received from Grupo Nutresa. on Slides number 10, 11, 12, we present a summary of the contributions to the revenue to the EBITDA and to consolidated net profit joined with the main considerations and nonrecurring impact that have affected this quarter and have affected the previous quarter also in each one of the segments. The results of the second quarter for 2024 were influenced by the deconsolidation of Argos USA. The deconsolidation after the sale of certain assets in Central America and the deconsolidation of OPAIN due to the creation of the airport platforms in the concession business from its side the financial results for the second quarter of this year -- Of the previous year, sorry, were impacted both at the consolidated as well as separate due to the associated profits at the close of the airport platform. This represented revenues and gains for Grupo Argos both from the direct sale of its participation in OPAIN as because of the recorded profit by Odinsa on this transaction. Because of this, even though we do see a relevant drop in some of the metrics of the financial results of the company comparing to this quarter, in an isolated manner with the same period of last year, it's important to consider the first quarter adjustments in each one of the segments, both in 2024 as well as in 2023 that are completely comparable between each other. Likewise, we present a summary of the revenue variation, EBITDA and net profit in the energy platform, roads, airports as well as the total results of Summit Materials converted into Colombian pesos. This company's investments even though they're not into the financial statements and because of this are not evident in the contribution by segment to the consolidated value, we've shown very positive operational performance that have to be considered in the value generation of Grupo Argos as a manager of infrastructure assets. Now I want to invite you to check Slide #14, where we can find the operational results. Cementos Argos have kept focusing in the profitability of its operations, achieving an EBITDA growth of 3% in comparison with 2023, reaching an EBITDA margin of 21% for this year, which represents an increase of 150 basis points in respect with the first quarter of previous year, part of continuous efforts and better price strategies and better larger expense and cost control. Concerning the investment of 31% that the company keeps in Summit Materials, it's important to highlight the integration of both platforms advances and it's about to generate $40 million in terms of synergies for this year of H1. The estimated total of $138 million from run rate that have been communicated to the market in a span of 3 to 5 years. The Summit Materials team has reiterated its provision of EBITDA for 2024 despite the related interruptions with the weather maybe in the Houston market and in the east of the United States. And the moderate conditions in the cement demand, Summit has been able to present solid quarterly results. This reflects an advantageous position and geographic diversification and dynamic of the market. The complementary of the cement aggregate ready mix and all the construction products besides shown have proven the leadership of the company. Combined and ready to capitalize the market possibility of this versus economy of the world. Despite the volatility of the market, Summit Materials share has kept at average of $39. Considering the average exchange rate of the more over 54.7 million shares that Cementos Argos holds in the company, this is equal to close to COP 6,500 of each share of Cementos Argos. Even though this year, the price share of Cementos Argos has grown more than 150% since the announcement of the combination -- asset combination with Summit, we keep achieving a significant discount in the valuation that the market allocates to the assets of Argos in Colombia, Central America and Caribbean. This operation, besides the strengthening with the complementary asset agreement, that have come from the Summit transaction that will also allow the increase of exports for this country are always highly flexibility positioned in terms of finances. We closed of multiple of net to EBITDA of 2.1x, lowest one in the decade. Besides this, Grupo Argos and SCI announced the inclusion of Cementos Argos asset in the smart category index. In the upcoming 23rd of August, the rebalancing of FTSI will be announced where analysts anticipate that the company will be included, thanks to the increase of its liquidity and the price of its shares. This incorporation into these indices joined with the solid results of the business, anticipate a virtuous cycle for the asset in the Colombian Stock Exchange, we expect that we'll come closer and closer to a fundamental value of its assets that I reiterate that we still see with a very important discount. During the quarter, Cementos Argos dispatched 2.5 million tonnes of cement and 686,000 cubic meters of concrete in its Colombian, Central American and Caribbean operations, increasing by 2% and 1%, respectively, compared with the same period in the previous year in these different geographies. In the Colombian region, we observed dynamics that were very positive with an increase of 14% EBITDA and margin expansion of 250 basis points year-after-year despite a total volumes of cement decreased 5%. Local volumes of cement dropped 10%, while the exports increased 13%, which compensate partially the reduction of the national dispatches and improves the peak capacity that the company has developed in decades in terms of adopting with its solid logistics decision to the dynamic of the different markets where we might articulate through productivity and logistics the different best natural cycles of these economies despite the fact that the total dispatches of cement in the country have been dropping, mainly given to a lower residential segment activity, which is going to highlight that the new housing sales have started to stabilize with a positive increase of 10% in the first quarter of this year compared with the same period last year. Despite the sales levels, licensing and housing construction are still very low, we anticipate an improvement in the cement dispatches in the upcoming 12 to 18 months if we are able to keep these dynamics as a country. Besides this, in the Infrastructure segment it is relevant to highlight that the main cities of the country have been developing ambitious projects to develop public infrastructure projects in the upcoming 4 years. This should also drive the cement and concrete demand in the upcoming quarters driving projects that are generated and is financed in the regions with resources or through the public-private association. In Central America and the Caribbean, the EBITDA grew 13% in comparison to the first quarter of last year, reaching $72 million with an EBITDA margin higher than 24%. We expect that this positive dynamic and the current results will be kept during the upcoming 6 months of the year, bear in mind the impact in the seasonality of some of the countries in the region. Now I want to invite you to move on and check the results of the energy business. Thanks to the normalization of the weather conditions of the country and thanks to the asset portfolio that Celsia accounts with, our energy business has showed results. Irrespective with the first quarter first year that was importantly affected by a lower generation, given the intensity of a El Niño phenomena. The generated hydraulic energy part of the energy service business of Celsia grew 19% compared with the second quarter 2023. While the generated energy in the asset management business that includes Tesorito, C2EnergÃa and Laurel platforms increased by 47%. From another side, the controller net profit accumulated for the year has grown 19% compared with the figures of 2023. In second quarter, the consolidated revenue reached COP 1.9 trillion, which represents an increase of 22% compared with the same period in 2023. For this year, the revenues accumulated COP 3.3 trillion with a 7% increase. Consolidated EBITDA was COP 464 billion experiencing a drop 4%. Nevertheless, when including the EBITDA in the Celsia investment platforms, that as I previously mentioned, are not consolidated in the financial statements, but coming through participation methods in the nonoperational revenues of the company. The total EBITDA of the quarter will be close to COP 573 billion being stable in comparison with the same metrics the same quarter last year. The energy generation during the quarter was 1,433 megawatt hour represents an increase of 9%. This is a relevant increase considering during the same period last year, Celsia yet counted with the generation of some assets in Central America that were disinvested. Because of this, they don't contribute to the generation of this quarter. Now let's move on Odinsa results down in Slide 18. The airport traffic keeps showing a notable growth accumulating 3 consecutive quarters of a 2-digit increases in our result calls. The airport platform has mobilized 50 million passengers in the last 12 months. This is an increase of 16% in respect of the same period last year from which 44 million correspond to the El Dorado International Airport that distributed -- 44 million corresponds to the El Dorado International airport. This is a record figure for this asset that's operating at full capacity. The extraordinary performance of El Dorado airport, which traffic grew 21% compared with the first quarter 2023, reflects the consolidation in Colombia as a very important touristic hub and business hub and also highlights the competitive position of the Bogota Airport in order to become a regional hub that will connect all the American continent. The future of the airport sector and for tourism in Colombia is promising. And Odinsa is an ideal position in order to capitalize the value that will be generated. We expect that our private initiatives such as the IP of El Dorado Max that seeks to expand the capacity of El Dorado to more than 60 million passengers a year and the IP of Cartagena Airport that proposes the construction of a new airport between Cartagena and Barranquilla are currently under the feasibility siding. They keep on advancing with a good dynamic, and we expect a transition to a project that we can make in the upcoming years. Let's remember also that the large Macquarie asset management is 2 years by now in the case of railroads and 1 year in the case of airports. The used vehicle to materialize these alliances is a private capital fund and the results of this keeps it shown a very positive attachments with a price hold that has been over 27% since its beginning. The distribution -- the invested capital of distribution metrics, DPI, reaches 0.18x, which places within the higher archives of performance for this type of investment at the age of this private capital fund assets. Now these made distributions, we add the value of depending on business, the metric of this value is a higher value one that's known as PVPI. That's a valuation of Odinsa's invested capital. In the case of the capital fund for Odinsa, the projections indicate that this metric will be placed in 1.37x of the contributed value. These figures proves the profitability and how solid the assets managed by Odinsa are and this is compatible with the individual return on investment rates that we are reviewing on Slides 19 and 20 of the presentation that you're following now. Moving on to the operational results of the company, starting on Slide 19. The road platform closed the quarter with a daily average traffic of 104,000 vehicles. This is stable compared with the same period previous year. The revenues of the concessions for the platform grew 19% compared with the same period previous year, while the order EBITDA was placed in COP 150 billion, an 8% increase. The expected IRR for Autopistas del Café highways at the close of the quarter was 22%, the Túnel de Oriente at 21%, Concesión La Pintada 15% and Malla Vial del Meta still under construction at 11%. In the case of airports, which figures are detailed on Slide 20, the traffic during the quarter reached 13 million passengers, growing 18%. The revenues and the EBITDA of this platform I mentioned in dollars increased 19% and 13% in respect with the same quarter last year. As a result, the expected TIR for El Dorado reaches 18%, while Quiport is placed at 11%, TIR being turnover investment. In the real estate business, the gross effective revenue was COP 119 billion, which represents a growth of 10% year-over-year. The quarter's EBITDA was COP 65 billion, which also represents a 10% increase. In terms of the same assets for the cumulative year, the operational net revenue for EBITDA grew 10% and 11% in comparison to 2023 in total. Contracts have been renewed for 116,000 square meters and whereas new contracts were 29,000 square meters due this involvement in 2024 at the close of the period. We in fact closed with the quarter with non-hotel portfolio occupation of 96.6%. This represents an increase of 78 basis points compared with the same period 2023 and an increase of 63% of basically at 63 basis points versus the previous quarter. In the case of the second quarter of 2023, the logistics and storage sectors had a higher increase in terms of revenues, increasing 19%, thanks to the better conditions in terms of contract renewals and better placements that will materialize at better prices. This quarter, the Urban Development business reached net cash flow of COP 7 billion, reaching at a cumulative cash flow of COP 31 billion for this quarter, which represented a 13% less compared with the same semester previous year, given acceleration of the real estate business. Nevertheless, the results reflect the strength of the Urban Development business that the company has been making it more specifically in the city of Barranquilla, knowing that its figures are substantially better than the drop in the sales indexes center and Urban Development indexes for the city of Barranquilla. In the period, we made a transfer of 3 lots, 2 in Puerto Colombia and 1 in Barranquilla. This resulted in total revenues of COP 48 billion. This is 19% more than the previous year and an EBITDA of COP 8 billion. It's important to remember that the cumulative results for the year, we still see total revenues and negative EBITDA -- negative total revenues and EBITDA, sorry, given an adjustment in the reasonable value in the land lots of Pavas and Barú, which the urban cost was modified, resulting in a lower value reflected in the results of the semester. This drop is truly an accounting drop, and it will allow for more usages of the business, which will also allow to accelerate the sales for the future. In addition, this quarter, Barranquilla mayor's office, our Urban Development Business and Tecnoglass agreed on finalizing an important road circuit composed by Carrera 75A, Calle 98 and Via 40 in the northern part of Barranquilla as part of the development plan for 2024-2027. This agreement reaffirms our commitment of forging alliances in order to develop spaces that drive the city's growth and improve the quality of life of hundreds of thousands of inhabitants in the metropolitan area of Barranquilla. Now I want to move on to analyze the consolidated debt that's found on Slide 25, in order to analyze the evolution of the consolidated indebtedness. On this front, our net debt closed in COP 8.7 trillion with a drop of 29% compared with the same period last year, explained mainly by the positive effect received from the Summit transaction. Likewise, the net financial expenses for the quarter dropped a 12% year after year. The separated net debt for Grupo Argos, detailed on Slide 28, closed the quarter in COP 1.3 trillion, which represents an increase of 42% in comparison to the same period last year. This increase is given due to the cash position for the joint takeover bid that was planned for this transaction. For this transaction, the company used COP 432 billion in cash without the need of requiring additional debt. That's why we analyze the growth of the company. We can see that it only increases 5% in respect with the same period 2023 going from COP 1.6 trillion to COP 1.7 trillion. Despite the increase of the net debt given to a lower cash, Grupo Argos achieves net debt indicator over EBITDA that's pretty healthy, which offers financial flexibility closed in this quarter with an indicator of 1.5x more despite the disbursement for the takeover bid. The company keeps a solid cash position with investments on a fixed arrangement papers close to COP 355 million, which generated positive carry given that its yields are over the cost of the net debt. With this, I would like to give the word to Juan Esteban Mejia, so he can help us coordinate the Q&A session. We can take any questions or queries that you might have about the information that has been previously shared, as it was initially mentioned at the conversation, and we have a good part of our Directive Board in different businesses. So Juan Esteban, please, if we can start the Q&A session?

Thank you, Jorge Mario. [Operator Instructions] And we have a couple of questions. My first question comes from Vanessa Quiroga and is as follows. You give us the new revenue projection for the group for 2024. Does it increase? Or does it decrease?

For this question, I give the word to Alejandro Piedrahita.

I'd like to start answering. At the moment, we make the budget for 2024. But we had some estimates of what the revenue would be in terms of the transaction as well as an estimated profit of the Summit transaction. It was within the P&L, both for Cementos Argos and for Grupo Argos. So the values are such, are relatively aligned with the projection we have just for you to have some general numbers. The revenue -- the consolidated projected revenue is close to COP 14 billion compared with the revenue that was COP 22.6 billion. And why? Well, because of Jorge mentioned, this year, we started consolidating the Argos usage figures. We started consolidating from another side, the Central American Businesses. In the case of Celsia, we started consolidating to the road vertical that was reflected in 2023. The EBITDA is estimated close to COP 5 trillion as EBITDA was similar to 2023's EBITDA. How do we compensate this with this lower revenue? It is compensated to a larger revenue that we see reflected through the participation method of Grupo Sura, product of the transaction of Nutresa sale. So we have -- the lower projected revenues of COP 14 billion compared with the COP 22 billion that we had last year, but the EBITDA is still pretty similar to the net profit, of course. It's a higher net profit. Last year, we had COP 1.5 trillion in consolidated terms. This year, it is COP 7.6 trillion because of this net profit. What happens with the EBITDA and then what happens with the net profit, the EBITDA and net profit, these are not operational in fact on a product with the specific transaction of Summit Materials that's with Cementos Argos and the participation method this morning comes into Cementos Argos. So operator's activity controlling that is close to COP 4 trillion. This is speaking at a consolidated level. At a separate level, something similar happens. At a separate level, the revenue that we have projected is a COP 3.75 trillion. And why? Well, because in the separated one, we received the participation of Cementos Argos that has the impact of the extraordinary revenue, product of the sale of Argos USA and Summit. So that figure is significantly higher figure than the one that was previously recorded in 2023. I think it obviously has an EBITDA that had a separate set of COP 7.4 trillion versus a bit less than COP 1 trillion in 2023. And net profit that we estimate that will be close to COP 3 trillion, that's a bit of the reflection that we have from top of the extraordinary revenue coming from Summit Materials and Cementos Argos as reflected via the participation method versus the separate one. So those are the main figures that have adjustments in respect with year 2023 as -- that we've had projected since the beginning thanks to those 2 transactions.

Well, thank you, Alejandro. In addition, we have had another 3 questions coming from Daniel Guardiola. Let me read one by one, then we can answer them individually if you think so. First question goes as follows. Could you confirm how much time do you have according to the financial superintendency to advance with the separation of Grupo Sura?

Well, thank you, Daniel. I can answer this first part of your question, if you agree. The structure that we have right now is [indiscernible]. This has a duration of 3 years, as we've mentioned to the market. We've done this because we have a clear conviction that we don't want to be -- we should not be in the control of Grupo Suramericana. We have this time to evaluate strategic alternatives, execute this and in terms that we have already told the market. So we have a time span of 3 years that are already running.

Thank you, Rafael. Second question goes as follows. [indiscernible] that Grupo Argos is the main holder of shares with right to vote of Grupo Sura. I was wondering if you would take measures to fight against the high leverage that this company has.

Well, let me answer that question, and I'm going to be approaching this as follows. Well, thank you Daniel for your question. Within the Board of Inversiones Suramericana, Grupo Argos is represented by Alejandro Piedrahita and by me. And both of us are part of their Board. We have been evaluating the structure -- the capital structure that Grupo Sura has. I want to say that this is something that's analyzed as carefully as it deserves within that Board, not just about the actual indebtment levels compared with the cash flows. And this might be the right time to say that they do not present a Colombian pesos, even though there is an agreement that's important to draw at the level of leveraging the ratios that company has in respect with dividends against a strong position that do not generate any alarms in terms of adequate liquidity levels. Nevertheless, there is a consensus in the Board and the administration of the importance of dropping the leveraging levels to the point that has been mentioned. I cannot and I should not speak about particular initiatives to reach those deleveraging levels because these are obviously confidential. And it would be wrong for me as a Board member to take a position as a shareholder right now. What I want to highlight is that there is a structured conversation, ordered and organized conversation, prudent and careful conversation, as the position of these companies has always been to have the adequate leveraging levels as there is an alarm for the short term.

Thank you, Jorge Mario. Third question from Daniel Guardiola is aligned with the question answered by [indiscernible] questions. Question goes as follows, can you tell us the advancement in the restructuring strategy for corporate structure? This is between Grupo Argos and Grupo Sura. Bearing in mind that by this time, we should know the route we should follow for this at this time.

Thank you, Daniel, and thank you, Kathy, for your question. Let me start by mentioning the statement that I have with Barranquilla previously. We see a transformation of the property structure of Grupo Argos and Grupo Sura. And Grupo Sura and Grupo Argos were the 2 independent companies that don't have a relevant participation with a cross character between each other. This is a process that we have been working on and analyzing with different advisers that are helping us to look what could be the path and the way of doing so. Unfortunately, I cannot say which is the route nor which is the execution schedule given this process requires an in-depth study and doesn't just have a society implication, but also capital structure for solvency implications, fiscal implications, where there will be some shareholders that will increase their position. So it's a process that occupies the interest and a very higher portion of our working agenda, meaning by this of Grupo Argos Board, and to whom speaks right now, to you all and that we have been advancing in the analyzing of different alternatives, but I cannot right now choose a specific path or an execution schedule. But I want to say that we are working decisively on it. And as soon as the company has a formal position of how the execution will happen, we will share this to the market.

Thank you, Jorge Mario. We don't have any additional questions for the moment. But I just want to mention once again to all the shareholders and others that are following any additional questions, we can attend via the Investor Relations unit. Okay. We have an additional question coming from Katherine Ortiz. In respect with the road construction business, during these days, there has been a discussion about toll price increase. Details about your perception in terms of this price adjustments. Okay, I think about issue. You mentioned this as a good news about the risk adjustment, and there are certain expectations about the issue, if you can answer these questions.

Thank you, Jorge Mario, and thank you, Katherine, for your questions. Effectively, the announcement of toll increase is a reality. This increase happened on the 2nd of August. It was 1st or 2nd of August. This is an adjustment of half of the inflation for 2023 was 4.69%. It was on all the Colombian concessions and the expectation that we have according to the conversations that we've had with the government is that before the end of the year, we would do the rest of the increase, so we would level inflation. In such way, they are parting from 16th of January. It has been specified in the majority of the contracts, there will be an increase that corresponds to the respective inflation that we will have for 2024. Having said that, and I mentioned that's a good news, the satisfaction of the pending inflation, but it is following a path to close this gap. It's worth to mention than the particular case of Odinsa. The increase of 2024 in [indiscernible] was made as it corresponded in the contracts. Meaning by this, we didn't have an expectation. We didn't have an expectation in terms of inflation. In the case of [indiscernible], yes, it corresponds to 4.69% in closing of the gap in the case of [indiscernible]. And due to the modality of this contract and virtue that it has this element called collection differential, we have been collecting. At the end of the quarter, they expect an increase after a decrease of 0.50% was established. So the position of Odinsa, in terms of the inflation adjustment, this is less than the concessionary due to mix of concessions that we have in terms of first, second, third generation.

Well, thank you, Mauricio. We've been having additional questions now. We have the next question coming from [indiscernible]. Several questions complementing Daniel's and Katherine's question. In this process of the new structure, it takes so much, sometimes a year or even several years. Can we have a bit more light or information on this?

Well, yes. I would like to say that, as I previously mentioned, this is a fundamental transformation for the future of these companies. And that's why we need to be agile, and we need to be as quick as we can. But also bear in mind that in the moment that we select a definition, we have to be sure that we have covered all the different possibilities in terms of taxation, equity shareholder, but also to check on the equity story of the company towards the future. This is not an easy process. I don't want to sound as I'm giving excuses, so I don't want to answer the question. I believe this is something that we want to have a better information during the rest of this year. I hope I'm being able to share to the market an important investment during 2024. But within the range of the 3 options that [indiscernible] mentioned, months, years or many years -- between months and years, yes, not many years, but I would say months and 1 year or a few years.