Cementos Pacasmayo S.A.A. Announces Consolidated Results for Third Quarter 2021

Rhea-AI Summary

Cementos Pacasmayo S.A.A. (NYSE: CPAC) reported its 3Q21 and 9M21 financial results, showing a significant recovery in demand. Sales volume increased 14.4% in 3Q21 and 49% in 9M21, leading to a 24.5% rise in revenues. Despite this, net income for 3Q21 fell 6.9% to S/ 42.1 million due to cost increases. The company plans to invest US$ 70 million to expand its plant capacity amid rising demand. EBITDA margins decreased, primarily attributed to the use of imported clinker.

Positive

• Sales volume up 14.4% in 3Q21 and 49% in 9M21.
• Revenues rose by 24.5% in 3Q21 and 72.1% in 9M21.
• Net income increased over 100% in 9M21 compared to 9M20.
• Investment of US$ 70 million to increase cement production capacity.

Negative

• Consolidated EBITDA decreased to S/ 117.3 million in 3Q21.
• EBITDA margin dropped by 6.5 percentage points in 3Q21.
• Net income fell 6.9% in 3Q21 due to higher operating costs.

LIMA, Peru--(BUSINESS WIRE)-- 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 third quarter (“3Q21”) and the nine months (“9M21”) ended September 30, 2021. These results have been prepared in accordance with International Financial Reporting Standards (“IFRS”) and are stated in nominal Peruvian Soles (S/).

3Q21 Financial and Operational Highlights:

(All comparisons are to 3Q20, unless otherwise stated)

• Sales volume of cement, concrete and precast increased 14.4%, continuing the positive trend from previous quarters. Bagged cement continues to be the biggest driver for growth, but concrete volumes performed very well this quarter as well.

• Revenues increased 24.5% primarily due to the increase in the sales volume of cement, concrete and precast, and to an increase in cement and concrete prices, in line with cost inflation.

• Consolidated EBITDA of S/ 117.3 million, a slight decrease, mainly due to the use of imported clinker needed to sustain the record levels of cement sales.

• Consolidated EBITDA margin of 23.1% a 6.5 percentage points decrease mainly due to the use of imported clinker mentioned above. If we compare to 2Q21, since we were already using imported clinker then, there is an improvement of 2.7 percentage points.

• Net income of S/ 42.1 million, a 6.9% decrease mainly due to lower operating income because of the cost increases mentioned above. However, if we compare to 2Q21, there is a significant improvement of 52%, mainly due to higher revenues and operating profit.

• Pacasmayo plant expansion – due to the significant increase in demand, and In line with our client centered vision, the Company has decided to invest US$ 70 million to produce an additional 600 thousand MT of cement per year in its Pacasmayo plant. This once more ratifies our commitment and confidence in the development of the country.

9M21 Financial and Operational Highlights:

(All comparisons are to 9M20, unless otherwise stated)

• Sales volume of cement, concrete and precast increased 49% mainly due to a significant recovery in demand after the halt in production and commercialization during 2Q20.

• Revenues increased 72.1%, primarily due the increased demand during 2021 and the halt in production during 2020 mentioned above.

• Consolidated EBITDA of S/ 312.4 million; a 66.9% increase, primarily due to increased revenues during 2021, and higher costs due to the halt in production during 2020.

• Consolidated EBITDA margin of 22.1%, 0.7 percentage points lower, mainly due to the use of imported clinker because of the significant increase in demand.

• Net income of S/ 101.6 million, an increase over 100% mainly due to higher sales and a low comparative base because of a net loss during 2Q20 for the above-mentioned halt in production and commercialization.

For a full version of Cementos Pacasmayo’s Second Quarter 2021 Earnings Release, please visit http://cementospacasmayo.com.pe.

CONFERENCE CALL INFORMATION:

Cementos Pacasmayo will host a conference call on Wednesday, October 27, 2021, to discuss these results at 10:30 a.m. Eastern Time / 09:30 a.m. 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/1644/43148

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/20211027005711/en/

Cementos Pacasmayo S.A.A.

In Lima, Peru:

Manuel Ferreyros, CFO

Claudia Bustamante

Investor Relations Manager

+51-958699760

cbustamante@cpsaa.com.pe

Source: Cementos Pacasmayo S.A.A.

FAQ

What were Cementos Pacasmayo's sales volume results in 3Q21?

Sales volume of cement, concrete, and precast increased by 14.4% in 3Q21.

How did revenues change for Cementos Pacasmayo in 3Q21?

Revenues increased by 24.5% in 3Q21 due to higher sales volume and prices.

What was the net income for Cementos Pacasmayo in 3Q21?

Net income for 3Q21 was S/ 42.1 million, a 6.9% decrease from the previous year.

What investment is Cementos Pacasmayo planning?

Cementos Pacasmayo plans to invest US$ 70 million to expand cement production capacity.

When will Cementos Pacasmayo discuss its financial results?

Cementos Pacasmayo will host a conference call on October 27, 2021, at 10:30 a.m. Eastern Time.