Cementos Pacasmayo S.A.A. Announces Consolidated Results for Fourth Quarter 2020

Rhea-AI Summary

Cementos Pacasmayo (NYSE: CPAC) reported strong financial results for Q4 2020, with a 37.2% increase in sales volume, largely driven by bagged cement sales for self-construction and public sector projects. Revenues rose by 27.1%, while consolidated EBITDA reached S/ 128.1 million, a 27% year-over-year rise. Net income soared 61% to S/ 47.5 million. Despite a 6.9% revenue decline for the full year due to production halts in Q2, market share improved to 25.6%. Cementos Pacasmayo was also recognized in the Sustainability Yearbook 2021.

Positive

• Sales volume increased 37.2% in Q4 2020, reaching record levels.
• Q4 revenues rose 27.1%, bolstered by higher sales volume.
• Consolidated EBITDA for Q4 climbed to S/ 128.1 million, a 27% increase.
• Net income surged 61% to S/ 47.5 million in Q4 2020.
• Market share increased by 3.4 percentage points to 25.6% for the year.

Negative

• Full year sales volume decreased by 1.2% due to Q2 production halt.
• Revenues for the full year fell 6.9%, impacted by the halt in commercialization.
• Consolidated EBITDA for the year decreased by 21.2% to S/ 315.3 million.
• Net income for the year fell 56.1% to S/ 57.9 million.

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 (“4Q20”) and the whole year (“2020”) ended December 31, 2020. These results have been prepared in accordance with International Financial Reporting Standards (“IFRS”) and are stated in nominal Peruvian Soles (S/).

(All comparisons are to 4Q19, unless otherwise stated)

• Sales volume of cement, concrete and precast increased an outstanding 37.2%, reaching historical record levels once again, mainly due to the continued increase in sales of bagged cement, to the self-construction segment and to the public sector for reconstruction related projects.

• Revenues increased 27.1% primarily due to the increase in sales volume of cement, partially offset by lower sales of concrete and lower average price of cement, mainly due to sales mix, as we sold more of our lower-priced products.

• Consolidated EBITDA of S/ 128.1 million, a 27% increase compared to the same period in 2019, and a 6.2% increase quarter-on-quarter, beating the historical record reached during the previous quarter. This increase was mainly due to increased sales volume, as well as sustained savings in expenses.

• Consolidated EBITDA margin of 27.0% in line with 4Q19.

• Net income of S/ 47.5 million, a 61.0% increase mainly due to increased sales and higher operating income.

• The Sustainability Yearbook 2021 – We are honored to have been included in the Yearbook by S&P, which showcases 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. In addition, we were also awarded Industry Mover status, as we recorded the strongest year on year score improvement in our industry.

2020 Financial and Operational Highlights:

(All comparisons are to 2019, unless otherwise stated)

• Sales volume of cement, concrete and precast decreased only 1.2% mainly due to the halt in production and commercialization during 2Q20. However, national market share for the last twelve months increased 3.4 percentage points compared to 2019, reaching 25.6%, one of the highest levels in our history.

• Revenues decreased 6.9%, primarily due to the halt in commercialization mentioned above.

• Consolidated EBITDA of S/ 315.3 million; a 21.2% decrease, primarily due to the decreased revenues mentioned above, as well as fixed costs derived from the stop in production during 2Q20.

• Consolidated EBITDA margin of 24.3%, 4.4 percentage points lower, mainly due to the decrease in sales volume of cement during 2Q20.

• Net income of S/ 57.9 million, a 56.1% decrease mainly due to decreased operating profit during 2Q20, despite the recovery during the second half of the year.

For a full version of Cementos Pacasmayo’s Fourth Quarter 2020 Earnings Release, please visit http://cementospacasmayo.com.pe.

CONFERENCE CALL INFORMATION:

Cementos Pacasmayo will host a conference call on Tuesday, February 16, 2021, to discuss these results at 10:30 a.m. EasternTime / Lima Time.

To access the call, please dial:

(888) 506-0062 (From within the U.S.)

+1 973-528-0011 (From outside the U.S.)

There will also be a live Audio Webcast of the event at:

https://www.webcaster4.com/Webcast/Page/1644/39732

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 60 years of operating history, the Company produces, distributes and sells cement and cement-related materials, such as concrete blocks and ready-mix concrete. 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210215005430/en/

FAQ

What were Cementos Pacasmayo's Q4 2020 sales volume changes?

Cementos Pacasmayo reported a 37.2% increase in sales volume for Q4 2020.

How much did revenues increase for Cementos Pacasmayo in Q4 2020?

Revenues increased by 27.1% in Q4 2020 compared to the same period in 2019.

What was Cementos Pacasmayo's net income for Q4 2020?

Cementos Pacasmayo reported a net income of S/ 47.5 million in Q4 2020, up 61% year-over-year.

What challenges did Cementos Pacasmayo face in 2020?

The company faced a 6.9% revenue decline for the year due to a halt in production and commercialization during Q2 2020.

What recognition did Cementos Pacasmayo receive in 2021?

Cementos Pacasmayo was included in the Sustainability Yearbook 2021 by S&P.