Cementos Pacasmayo S.A.A. and its subsidiaries, a renowned cement company serving Peru’s construction industry, have reported their consolidated results for the first quarter of 2024. The company’s financial success can be attributed to lower costs and improved operational efficiencies. Notably, the decision to discontinue the use of imported clinker in favor of their new and more efficient kiln has contributed to a 10.0% increase in consolidated EBITDA, reaching an impressive S/132.8 million. This growth has resulted in a consolidated EBITDA margin of 27.9%, marking a 2.8% rise.
Although the company experienced a decrease in sales volumes of cement, concrete, and precast materials by 7.2%, this decline was primarily due to reduced demand resulting from a decrease in public and private investment. Factors such as a high level of insecurity and a decrease in the self-construction segment have affected the construction industry, impacting Cementos Pacasmayo’s sales. Moreover, the negative effect on fishing and agriculture, significant sources in the company’s area of influence, has further contributed to this decline.
Despite these challenges, Cementos Pacasmayo has displayed resilience. Revenues decreased by only 0.7%, aligning with the decrease in sales volumes. The company’s net income reflected a remarkable 13.8% increase, amounting to S/49.5 million. This improvement can be attributed to the operational efficiencies mentioned earlier, highlighting the company’s ability to adapt and optimize its processes.
For a more comprehensive overview of Cementos Pacasmayo’s First Quarter 2024 Earnings Release, interested parties may visit their official website at [website link].
To further discuss these impressive results, Cementos Pacasmayo will be hosting a conference call on Tuesday, April 30, 2024, at 9:30 a.m. Lima Time and 10:30 a.m. Eastern Time. Participants can access the call by dialing +1 (718) 866-4614 from within the U.S., with the access code 505256. Additionally, a live Audio Webcast of the event can be found at [webcast link].
About Cementos Pacasmayo S.A.A.
Cementos Pacasmayo S.A.A., based in the Northern region of Peru, is a long-established cement company. Since its listing on the New York Stock Exchange – Euronext in February 2012, Cementos Pacasmayo has been a key player in producing, distributing, and selling cement, as well as related materials like ready-mix concrete and precast materials. The construction sector, which has experienced substantial growth in Peru, primarily relies on Pacasmayo’s products. Moreover, the company also supplies quicklime for mining operations.
For further information, please contact:
Cementos Pacasmayo S.A.A.
In Lima, Peru:
Manuel Ferreyros, CFO
Claudia Bustamante, Investor Relations Manager
+51-958699760
[email protected]
Despite the challenges faced by Cementos Pacasmayo S.A.A., there are several key factors indicating a strong financial performance in the first quarter of 2024. The company has achieved higher EBITDA and improved operational efficiencies, leading to a 10.0% increase in consolidated EBITDA and a consolidated EBITDA margin of 27.9%. These improvements can be attributed to the decision to discontinue the use of imported clinker in favor of a more efficient kiln.
However, there has been a decrease in sales volumes of cement, concrete, and precast materials by 7.2%. This decline is primarily due to reduced demand as a result of a decrease in public and private investment in the construction industry. Factors such as a high level of insecurity and a decrease in the self-construction segment have also impacted the company’s sales. Additionally, the negative effect on fishing and agriculture, significant sources in the company’s area of influence, has further contributed to this decline.
Despite these challenges, Cementos Pacasmayo has displayed resilience by minimizing the impact on its revenues, which decreased by only 0.7%. The company’s net income, on the other hand, saw a remarkable 13.8% increase.
Looking ahead, there are some key trends and challenges that Cementos Pacasmayo may face in the market. One trend is the increasing demand for sustainable and eco-friendly construction materials. As the construction industry becomes more conscious of its environmental impact, there is a growing preference for products with lower carbon emissions and higher energy efficiency. Cementos Pacasmayo could take advantage of this trend by investing in green technologies and promoting their eco-friendly products.
Additionally, the company may face challenges related to regulatory changes and government policies. Changes in regulations and government initiatives can have a significant impact on the construction industry, affecting demand and profitability. Cementos Pacasmayo will need to stay informed and adapt to any changes in the regulatory landscape to remain competitive.
Furthermore, the ongoing COVID-19 pandemic may continue to pose challenges for Cementos Pacasmayo. The pandemic has disrupted supply chains and caused economic uncertainties, which can impact the construction industry. The company will need to closely monitor the situation and implement contingency plans to mitigate any potential risks.
In terms of forecasts, it is difficult to provide specific predictions without access to more detailed market analysis and data. However, it is important to note that the construction industry is expected to continue growing in Peru, driven by factors such as urbanization, infrastructure development, and government investment. With its established presence and strong financial performance, Cementos Pacasmayo is well-positioned to capitalize on these growth opportunities.
For a more comprehensive understanding of Cementos Pacasmayo’s First Quarter 2024 Earnings Release, interested parties can visit their official website at [website link].
To join in the discussion of these impressive results, Cementos Pacasmayo will be hosting a conference call on Tuesday, April 30, 2024, at 9:30 a.m. Lima Time and 10:30 a.m. Eastern Time. The call can be accessed by dialing +1 (718) 866-4614 (from within the U.S.) with the access code 505256. A live Audio Webcast of the event can also be found at [webcast link].
For further information, please contact Cementos Pacasmayo S.A.A. through:
– Manuel Ferreyros, CFO
– Claudia Bustamante, Investor Relations Manager
– +51-958699760
– [email protected]