Ferreycorp (FERREYC1) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 2025 were S/1,840 million, a 2% year-over-year decrease in soles but a 0.5% increase in dollars, with YTD sales at S/3,814 million, up 3% from the prior year.

• Net income for Q2 2025 was S/111 million, down from S/122 million in Q2 2024, while reported net profit was S/122.3 million, up 10.3% year-over-year due to exchange gains; adjusted net profit excluding FX effects was S/98.2 million, down 27%.

• Dividends totaling S/293.3 million were approved and paid, maintaining a 60% payout of free disposal profits.

• The appreciation of the sol led to significant exchange gains, distorting reported gross, operating, and net income.

Financial highlights

• Gross margin for Q2 2025 was 25.4% (adjusted), with gross profit at S/454 million, down 11.7% year-over-year; gross margin fell to 24.7% from 27.5%.

• Operating profit for Q2 2025 was S/149 million, a 33% decrease year-over-year; operating margin was 8.1% (adjusted: 9.0%).

• EBITDA for Q2 2025 was S/225 million, down 22% year-over-year; YTD EBITDA was S/530 million, slightly down from S/558 million YTD 2024.

• Adjusted net income for YTD 2025 was S/259 million, up from S/226 million YTD 2024.

• Free cash flow for Q2 2025 was S/74 million, a 62% decrease year-over-year.

Outlook and guidance

• Peru's GDP is projected to grow 2.8% in 2025, with mining and construction GDP expected to rise 1.7%.

• Public and private investment are forecasted to increase by 5.2% and 4.5% respectively in 2025.

• The company expects continued focus on operational efficiency and customer support, emphasizing the need to consider adjusted figures due to exchange rate distortions.