Cementos Pacasmayos reports decreased sales for 2Q17

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.

1H17 Highlights

(All comparisons are to 1H16, 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.

Read the article online at: https://www.worldcement.com/the-americas/21072017/cementos-pacasmayos-reports-decreased-sales-for-2q17/