Cementos Pacasmayo S.A.A. Announces Consolidated Results for Fourth Quarter 2023
Cementos Pacasmayo S.A.A. and subsidiaries (NYSE:CPAC, BVL: CPACASC1))) ("the Company" or "Pacasmayo") a leading cement company serving the Peruvian construction industry, announced today its consolidated results for the fourth quarter ("4Q23") and for the year ("2023") ended December 31, 2023. These results have been prepared in accordance with International Financial Reporting Standards ("IFRS") and are stated in Soles (S/).
4Q23 FINANCIAL AND OPERATIONAL HIGHLIGHTS:
(All comparisons are to 4Q22, unless otherwise stated)
- Adjusted EBITDA was S/156.1 million, a 29.0% increase, mainly due to operational efficiencies derived from our new kiln in Pacasmayo, as well as decreased costs of raw materials.
- Adjusted EBITDA margin of 30.5%, an increase of 7.9 percentage points, due to the above-mentioned operational efficiencies and decreased raw material costs.
- Revenues decreased 4.2%, mainly due to a contraction in demand, which affected the self-construction segment and the private sector. However, revenues were in line with those in 3Q23, which was the quarter with highest revenues this year, showing a sustained positive trend in demand.
- Sales volume of cement, concrete and precast decreased 10.3%, mainly due to the above-mentioned decrease in demand.
- Consolidated EBITDA reached S/119.5 million, a decrease of 1.2%, mainly due to the impairment of our vertical kilns in Pacasmayo, as the new kiln entered into operations, which is both more efficient and produces lower emissions, replacing older kilns.
- Net income of S/ 35.9 million, a 7.7% decrease mainly due to the impairment of our vertical kilns.
- The Sustainability Yearbook 2024 - We are honored to be included in the Yearbook by S&P, for the fourth consecutive year. This Yearbook incorporates companies that score in the top 15% of their industry globally and have a gap of less than 30% from the leader's Global ESG score.
2023 FINANCIAL AND OPERATIONAL HIGHLIGHTS:
(All comparisons are to 2022, unless otherwise stated)
- Adjusted EBITDA increased 4.9%, reaching S/518.3 million, mainly due to lower costs and operational efficiencies as we discontinued the use of imported clinker, started operating our new, more efficient kiln, and benefited from more favorable costs of raw materials.
- Adjusted EBITDA margin of 26.6%, a 3.2 percentage point increase, mainly due to improved cost structure as a result of both operational efficiencies and lower raw material costs.
- Revenues decreased 7.8%, mainly due to the low levels of private and public investment, which affected cement demand, as well as the impact of cyclone Yaku during the first months of the year.
- Sales volume of cement, concrete and precast decreased 13.9%, mainly due to the above-mentioned reasons.
- Consolidated EBITDA of S/ 481.8 million, a decrease of 2.4%, mainly due to the S/.36.6 million impairment of our vertical kilns.
- Net income of S/ 168.9 million, a 4.5% decrease, mainly due to the above-mentioned impairment. However, net income margin increased 0.3 percentage point, reaching 8.7% during this period. If we take away the non-cash effect, net profit for 2023 would have been S/ 194.7 million, a 10.1% increase when compared to the previous year, mainly due to the operational efficiencies mentioned above.
For a full version of Cementos Pacasmayo's Fourth Quarter 2023 Earnings Release, please visit https://www.cementospacasmayo.com.pe/inversionistas/reportes
CONFERENCE CALL INFORMATION:
Cementos Pacasmayo will host a conference call on Thursday, February 15, 2024, to discuss these results at 11:00 a.m. Lima Time and Eastern Time.
To access the call, please dial:
+1 (718) 866-4614 from within the U.S.
Access code: 505256
There will also be a live Audio Webcast of the event at:
https://mm.closir.com/slides?id=505256
You can also find additional dial-in numbers depending on your current location in the above link.
About Cementos Pacasmayo S.A.A.
Cementos Pacasmayo S.A.A. is a cement company, located in the Northern region of Peru. In February 2012, the Company's shares were listed on The New York Stock Exchange - Euronext under the ticker symbol "CPAC". With more than 65 years of operating history, the Company produces, distributes and sells cement and cement-related materials, such ready-mix concrete and precast materials. Pacasmayo's products are primarily used in construction, which has been one of the fastest-growing segments of the Peruvian economy in recent years. The Company also produces and sells quicklime for use in mining operations.
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