Cementos Pacasmayo (CPAC) Q2 2024 earnings summary

Executive summary

• Revenues increased 3.4% year-over-year in Q2 2024, reversing a negative trend from the past two years, driven by strong concrete and pavement sales for the Piura Airport project, though some sources report a decrease in sales and EBITDA.

• Operational efficiencies and favorable raw material prices led to a 6.1% increase in consolidated EBITDA, but some sources note a 6.1% decline in adjusted EBITDA and margin contraction.

• The company is optimistic about the second half of 2024, expecting continued growth from public investment projects and improved macroeconomic trends.

• Social responsibility initiatives include replacing dirt floors with concrete, developing temporary housing, and launching smart purchasing programs for self-construction customers.

Financial highlights

• Q2 2024 revenues reached $457.1 million (PEN 457.1 million), up 3.4% year-over-year, mainly due to increased sales of concrete, mortar, pavements, and precast, though some sources report a sequential decline from 2Q23.

• Gross profit rose 5.9% to $161.6 million, mainly due to lower production costs and efficient kiln usage.

• EBITDA margin improved by 1.7 percentage points for the first half of 2024, but some sources note a decrease of 0.7 points in Q2.

• Net profit for the quarter decreased 15.4% year-over-year due to a one-off exchange rate gain in Q2 2023; net profit for the first six months was flat year-over-year.

Outlook and guidance

• Management expects a stronger second half, with higher volumes driven by public projects, improved fishing and agriculture sectors, and a recovery in self-construction and cement dispatches.

• Concrete and precast sales are expected to remain robust as public works accelerate, with margins in concrete anticipated to improve.