LIMA, Peru--(BUSINESS WIRE)--
Cementos Pacasmayo S.A.A. and subsidiaries (NYSE:CPAC; BVL:CPACASC1) (“the Company” or “Cementos Pacasmayo”) a leading cement company serving the Peruvian construction industry, announced today its consolidated results for the second quarter (“2Q17”) and six months (“6M17”) ended June 30, 2017. These results have been prepared in accordance with International Financial Reporting Standards (“IFRS”) and are stated in nominal Peruvian Soles (S/).
Financial and Operational Highlights:
2Q17 Highlights
(All comparisons are to 2Q16, unless otherwise stated)
- Sales volume of cement, concrete and blocks decreased 2.8% primarily due to a sharp decline in sales volume in April due to landslides, flooding and heavy rain, in the North of Peru associated with Coastal El Niño. Sales volumes in May and June increased year-on-year.
- Revenues decreased 6.0%
- Gross margin of 39.0%, a 3.6 percentage points decrease mainly due to significantly lower sales in April, as well as increased severance payments and lower dilution of fixed costs.
- Cement EBITDA margin of 27.6%, a 4.4 percentage points decrease, resulting from unusually low cement EBITDA in April. May and June cement EBITDA margin was 30.5% and 32.3% respectively, showing a positive forward looking trend. Consolidated EBITDA of S/77.2 million, a 19.1% decrease.
- Net income of Continuing Operations of S/21.3 million, a 37.4% decrease due to lower sales volume, lower operating profit resulting from higher expenses related to severance payments, increased distribution costs due to road destruction, as well as the cost of some damages to our plants from Coastal El Niño.
- Good Corporate Governance Index - Cementos Pacasmayo was included in the Lima Stock Exchange Good Corporate Governance Index (“BVL IBGC”) for eighth consecutive year. The BVL IBGC Index is designed to track the performance of those companies committed to good corporate governance, with only six Peruvian listed companies included as part of the index in 2017.
6M17 Highlights
(All comparisons are to 6M16, unless otherwise stated)
- Sales volume of cement, concrete and blocks decreased 7.7% primarily due to a sharp decline in sales volume in the first four months of the year associated with Coastal El Niño.
- Revenues decreased 7.7% .
- Gross margin of 39.6%, in line with gross margin for the 6M16.
- Cement EBITDA margin of 28.7%, a 1.3 percentage points decrease resulting from unusually low cement EBITDA in April. Consolidated EBITDA of S/159.6 million, a 12.4% decrease.
- Net income of Continuing Operations of S/43.7 million, a 31.2% decrease resulting from lower sales and lower operating margin.
For a full version of Cementos Pacasmayo’s Second Quarter 2017 Earnings Release, please visit http://www.cementospacasmayo.com.pe/investors/.
CONFERENCE CALL INFORMATION:
Cementos Pacasmayo will host a conference call on Friday, July 21, 2017, to discuss these results at 11:30 a.m. Lima Time/12:30 p.m. Eastern Time.
| To access the call, please dial: |
| +1 (866) 682-6100 (From within the U.S.) |
| +1 (862) 255-5401 (From outside the U.S.) |
There will also be a live Audio Webcast of the event at: http://www.investorcalendar.com/event/16063
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 59 years of operating history, the Company produces, distributes and sells cement and cement-related materials, such as concrete blocks and ready-mix concrete. Cementos 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.
For more information, please visit: http://www.cementospacasmayo.com.pe/investors
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management’s current view and estimates of future economic circumstances, industry conditions, Company performance and financial results. Also, certain reclassifications have been made to make figures comparable for the periods. The words “anticipates”, “believes”, “estimates”, “expects”, “plans” and similar expressions, as they relate to the Company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170720006418/en/
