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Cementos Pacasmayo S.A.A. (symbol: CPAC) is a leading player in Peru's industrial and mining sectors, specializing in the production, distribution, and commercialization of cement, quicklime, concrete, and aggregates. The company serves as a cornerstone of the construction industry in the northern and northeastern regions of Peru, addressing the critical need for high-quality building materials in both urban and rural development projects.
Core Business Operations
At the heart of Cementos Pacasmayo's operations is its vertically integrated business model, which encompasses every stage of the cement production process, from raw material extraction to the delivery of finished products. The company operates three strategically located cement production facilities: its flagship plant in Pacasmayo, a state-of-the-art facility in Piura, and a smaller plant in Rioja. These facilities are complemented by a network of ready-mix concrete plants situated in key urban centers, including Chimbote, Trujillo, Chiclayo, Piura, and Cajamarca. This infrastructure enables the company to efficiently meet regional construction demands while minimizing logistical costs.
Product Portfolio
Cementos Pacasmayo offers a diverse range of products tailored to the needs of the construction and mining industries. Its primary offerings include:
- Cement: A core product used in residential, commercial, and infrastructure projects.
- Ready-Mix Concrete: Pre-mixed concrete solutions for efficient on-site application.
- Concrete Blocks: Durable building materials for structural and non-structural applications.
- Quicklime: A specialized product for mining and industrial processes.
- Aggregates: Essential materials for a variety of construction applications.
These products are distributed through an extensive network managed by its subsidiary, Comercial Dino S.R.Ltda., which ensures broad market coverage and reliable customer service across the region.
Market Focus and Competitive Positioning
Cementos Pacasmayo is uniquely positioned as a regional specialist, focusing on the northern and northeastern regions of Peru. This geographic concentration allows the company to leverage its deep understanding of local market dynamics and construction trends. By investing in modern production facilities and maintaining a robust distribution network, the company ensures consistent product availability and competitive pricing. Its emphasis on localized production also reduces transportation costs and environmental impact, further strengthening its market position.
Strategic Differentiators
The company differentiates itself through several key factors:
- Modern Infrastructure: State-of-the-art production facilities that enhance efficiency and product quality.
- Vertical Integration: Control over the entire production and distribution process, ensuring reliability and cost efficiency.
- Regional Expertise: A strong focus on northern and northeastern Peru, supported by a deep understanding of regional construction needs.
- Customer-Centric Approach: A wide distribution network managed by Comercial Dino S.R.Ltda. to ensure timely delivery and customer satisfaction.
Industry Context
Operating within the broader construction materials industry, Cementos Pacasmayo faces competition from both local and international cement producers. However, its regional focus and vertically integrated model provide significant advantages in terms of cost efficiency and market responsiveness. The company also benefits from Peru's ongoing infrastructure development and urbanization trends, which drive demand for high-quality construction materials.
Challenges and Opportunities
While the company is well-positioned within its market, it faces challenges such as fluctuating construction demand, competition, and the need for continuous operational efficiency. However, its modern facilities, extensive distribution network, and regional expertise provide a solid foundation for sustained performance in its core markets.
In summary, Cementos Pacasmayo stands out as a key player in Peru's construction materials sector, leveraging its modern infrastructure, vertical integration, and regional specialization to deliver high-quality products and services. Its strategic focus on the northern and northeastern regions of Peru underscores its commitment to meeting the unique needs of its target markets.
Cementos Pacasmayo has announced its Annual Shareholders' Meeting, scheduled for March 24, 2025 (first call) and March 31, 2025 (second call) in Lima, Peru. The meeting agenda includes reviewing the 2024 financial statements, dividend distribution ratification, and profit allocation. A significant focus will be placed on Environmental, Social and Corporate Governance (ESG) matters, including sustainability initiatives, climate risk management, emissions reduction goals, and gender equity promotion.
The meeting requires a 50% quorum of voting shares (423,868,449 total shares) on first call, while any number suffices for the second call. Shareholders must be registered 10 days prior to the meeting, with proxy registrations due by March 23, 2025. The company's external auditors, Tanaka, Valdivia & Asociados, were previously approved for fiscal years 2023-2027.
Cementos Pacasmayo (NYSE: CPAC) reported mixed results for Q4 2024. Sales volume of cement, concrete and precast increased by 2.6% in Q4, driven by bagged cement and public sector demand, with revenues up 3.0%. However, Q4 consolidated EBITDA declined 8.7% to S/142.5 million, with EBITDA margin dropping 3.5 percentage points to 27.1%. Q4 net income rose 39.3% to S/50.0 million.
For full-year 2024, despite a 3.7% decrease in sales volume, revenues increased 1.4% due to sales mix and higher prices. Annual consolidated EBITDA grew 6.0% to S/549.3 million, with margin expanding 1.2 percentage points to 27.8%. Net income increased 17.8% to S/198.9 million, driven by operational efficiencies from the new Pacasmayo kiln and favorable raw material costs.
Cementos Pacasmayo (NYSE: CPAC) announced a planned CFO succession, with current CFO Manuel Ferreyros stepping down on March 31, 2025, after serving since 2008. The transition has been in preparation for two years, demonstrating the company's commitment to a smooth leadership change. Ely Hayashi, a 20-year veteran of the company, will assume the CFO position on April 1st, 2025. CEO Humbert Nadal expressed gratitude for Ferreyros' 17 years of service, highlighting his dedication and alignment with company values. Ferreyros expressed confidence in the transition plan and emphasized the importance of preparing the next generation of leadership.
Cementos Pacasmayo reported strong financial results for Q3 2024, with consolidated EBITDA reaching S/154.6 million, up 19.9% year-over-year, driven by operational efficiencies from their new kiln and favorable raw material costs. The EBITDA margin improved by 5.0 percentage points to 29.9%. While revenues showed a modest 0.2% increase due to improved sales mix from concrete and precast sales, overall sales volume decreased 4.4%. Net income grew 35.9% to S/ 62.5 million. For the nine-month period, the company achieved a consolidated EBITDA of S/ 406.7 million, up 12.3%, with revenues increasing 0.9% despite a 5.8% decline in sales volume.
Cementos Pacasmayo (NYSE: CPAC) has announced a cash dividend of S/ 0.41 per common and investment share, totaling S/190.3 million. The dividend is derived from retained earnings from 2014-2023. After accounting for treasury shares, the net distribution will be S/175.5 million. ADS holders will receive S/2.05 per ADS, as each ADS represents five common shares. The register date is set for November 21, 2024, with distribution scheduled for December 10, 2024.
Cementos Pacasmayo S.A.A. (NYSE: CPAC) reported its Q2 2024 and 6M 2024 results. In Q2, revenues increased by 3.4% due to improved sales mix, while sales volume decreased by 5.8%. Consolidated EBITDA rose 6.1% to S/119.5 million, with a margin of 26.1%. Net income decreased by 15.4% to S/ 36.8 million. For 6M 2024, revenues grew 1.3%, despite a 6.5% decrease in sales volume. EBITDA increased 8.1% to S/252.3 million, with a margin of 27.0%. Net income remained stable at S/ 86.3 million. The company benefited from operational efficiencies and lower costs due to its new kiln in Pacasmayo.
Cementos Pacasmayo S.A.A., a leading cement company in Peru, has filed its annual report for the fiscal year ended December 31, 2023 with the SEC. The report is available on the SEC's website and the company's website. Investors can request a hard copy of the financial statements. For more information, visit the company's website or contact the Investor Relations Manager.
Cementos Pacasmayo S.A.A. reported consolidated results for the first quarter of 2024, showing a 10.0% increase in EBITDA due to lower costs and operational efficiencies. Despite a 7.2% decrease in sales volume, the company achieved a 2.8 percentage point increase in EBITDA margin. Net income rose by 13.8% to S/49.5 million, attributed to operational efficiencies.
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