Cementos Pacasmayo (CPAC) Q1 2025 earnings summary

Executive summary

• Revenues increased 4.8% year-over-year to S/499.2 million, driven by higher demand for bagged cement and concrete for infrastructure projects, despite weather-related disruptions.

• Consolidated EBITDA rose 1.4% year-over-year to S/134.7 million, with net profit up 6.5% due to higher revenues, gross profit, and lower financing expenses.

• Strategic focus on building solutions and early project involvement has positioned the company as a preferred supplier for infrastructure in Northern Peru.

• Decarbonization efforts advanced, with industrial-scale trials using biomass and waste-to-fuel alternatives, and a new Sustainability Committee established.

• Sales volume of cement, concrete, and precast rose 4.1% year-over-year, reflecting strong infrastructure demand.

Financial highlights

• Revenues reached S/499.2 million, up 4.8% year-over-year, mainly from increased sales of bagged cement and concrete.

• Gross profit increased 5.5% year-over-year to S/183.4 million, aided by lower raw material costs.

• Operating profit was S/95.7 million (+0.7% year-over-year).

• Administrative expenses rose 22.4% and selling expenses 18.8% year-over-year, primarily due to a one-time union bonus and higher advertising costs.

• Gross margin for concrete, pavement, and mortar decreased 6.5 percentage points due to project execution costs and exchange rate differences.

Outlook and guidance

• Positive momentum in revenue and dispatches expected to continue throughout the year, with further growth in concrete volumes as major projects ramp up.

• EBITDA margin expected to remain stable for the rest of the year, as the extraordinary union bonus is a one-time expense.

• No major CapEx planned; focus remains on sustaining CapEx and maintaining a solid dividend policy while deleveraging.