Cementos Pacasmayo S.A.A. Announces Consolidated Results for Third Quarter 2020
Cementos Pacasmayo S.A.A. (NYSE: CPAC) reported strong third-quarter results for 2020, with a 14.2% increase in sales volume, driven by cement sales primarily for self-construction and reconstruction projects. Revenues rose 6.3%, while consolidated EBITDA reached S/ 120.6 million, an 8.2% increase, marking a historical high. However, for the nine months ended September 30, 2020, sales volume declined 15.4% and revenues dropped 19.4% due to a halt in production. Net income decreased 89.9% for the nine months, but the company expects a continued recovery.
- 3Q20 sales volume increased by 14.2%, achieving record levels.
- 3Q20 revenues rose by 6.3%, primarily due to higher cement sales.
- Consolidated EBITDA in 3Q20 was S/ 120.6 million, up 8.2%, the highest in company history.
- Included in the Lima Stock Exchange Good Corporate Governance Index, showcasing commitment to governance.
- 9M20 sales volume decreased by 15.4%, mainly due to production halts.
- 9M20 revenues fell by 19.4%, reflecting the impact of halted commercialization.
- Consolidated EBITDA for 9M20 decreased by 37.5%, attributed to lower revenues.
- Net income for 9M20 dropped by 89.9%, primarily from decreased operating profit.
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 (“3Q20”) and the nine months (“9M20”) ended September 30, 2020. These results have been prepared in accordance with International Financial Reporting Standards (“IFRS”) and are stated in nominal Peruvian Soles (S/).
3Q20 Financial and Operational Highlights:
(All comparisons are to 3Q19, unless otherwise stated)
-
Sales volume of cement, concrete and precast increased
14.2% , reaching historical record levels, mainly due to a sharp recovery in sales of cement, mostly of bagged cement to the self-construction segment, as well as some cement for reconstruction-related projects towards the end of the quarter.
-
Revenues increased
6.3% primarily due to the increase in the sales volume of cement, partially offset by lower sales of concrete
-
Consolidated EBITDA of S/ 120.6 million, an
8.2% increase and the highest level in the Company’s history, mainly due to increased sales volume, as well as sustained savings in expenses.
-
Consolidated EBITDA margin of
29.6% a 0.5 percentage point increase.
-
Net income of S/ 45.2 million, a
12.4% increase mainly due to increased sales and higher operating income.
- Good Corporate Governance Index. Cementos Pacasmayo was included in the Lima Stock Exchange Good Corporate Governance Index (“BVL IBGC”). We have been part of the index every year since 2009, demonstrating our continued commitment with good corporate governance practices.
9M20 Financial and Operational Highlights:
(All comparisons are to 9M19, unless otherwise stated)
-
Sales volume of cement, concrete and precast decreased
15.4% mainly due to the halt in production and commercialization during 2Q20. However, national market share for the last twelve months increased 1.5 percentage points compared to 2019, reaching24% , one of the highest levels in our history. We expect the positive trend that began during 3Q20 to continue the following months, helping to offset this decrease.
-
Revenues decreased
19.4% , primarily due to the halt in commercialization mentioned above.
-
Consolidated EBITDA of S/ 187.2 million; a
37.5% decrease, primarily due to the decreased revenues mentioned above, as well as fixed costs derived from the stop in production during 2Q20. The continued recovery should help to partially offset this decrease by the end of the year.
-
Consolidated EBITDA margin of
22.8% , 6.6 percentage points lower, mainly due to the decrease in operating income during 2Q20.
-
Net income of S/ 10.4 million, an
89.9% decrease mainly due to decreased operating profit during 2Q20, despite the recovery during this quarter.
For a full version of Cementos Pacasmayo’s Third Quarter 2020 Earnings Release, please visit https://www.cementospacasmayo.com.pe/Aplicaciones/Web/webpacasmayo.nsf/xsp_reportes.xsp.
CONFERENCE CALL INFORMATION:
Cementos Pacasmayo will host a conference call on Thursday, October 29, 2020, to discuss these results at 11:00 a.m. Eastern Time / 10:00 a.m. Lima Time.
To access the call, please dial:
(844)-369-8770 (From within the U.S.)
+1 (862)-298-0840 (From outside the U.S.)
There will also be a live Audio Webcast of the event at:
https://www.webcaster4.com/Webcast/Page/1644/37964
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 62 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.
