Peru’s Cementos Pacasmayo S.A.A. has released its results for 2Q15 and 1H15. Consolidated EBITDA increased 6.4% in 2Q15 and 8.4% in 1H15, while net income improved 8.0% in 2Q15 and 19.4% in 1H15. Revenues fell in both the first quarter and the first half, attributed to weaker demand from the public sector.
The company sold less cement over both 1H15 and 2Q15, but managed to increase both its gross margin and EBITDA margin by focusing on increasing efficiencies. Weak public sector demand put pressure on cement sales, resulting in a fall in volumes sold of 9.4% over 2Q15. However, the company notes that self-construction demand remained resilient, and this market accounts for 50% of Cementos Pacasmayo’s output.
Construction of the Piura plant is in its final stages. Commissioning of the cement line, including cement grinding, packaging, transfer to pallets and truck loading, has begun and clinker production is scheduled to begin on time and on budget in the final quarter of this year. The project has taken an investment of US$386 million and will result in the elimination of clinker imports, which will provide a meaningful boost to margins going forward.
In the second half of the year, Cementos Pacasmayo expects an improvement in local government spending. Full-year cement volumes are forecast to be similar to those of 2014, while margins should also be similar – this is despite increased costs from the start-up of the Piura plant and because of the efficiency increases the company has made.
Adapted from press release by Katherine Guenioui
Read the article online at: https://www.worldcement.com/the-americas/24072015/cementos-pacasmayo-reports-1h15-and-2q15-results-213/