Cementos Pacasmayo S.A.A, Peru, has released its results for the first half of 2014, ending 30 June. The company’s cement sales volumes grew at a faster rate than the national average, rising by 3.5% y/y. According to the country’s cement association (ASOCEM) domestic dispatches grew by 0.84% y/y in 1H14.
Total sales were 2.9% higher than in 1H13, aided by improved quicklime (+57.2%) and cement sales, although concrete sales volumes fell.
Net income grew by 18% y/y during the first six months of the year. However, operating profit declined by 9% y/y, which has been attributed to higher salaries and an increase in employee profit sharing, as well as expenses related to severance payments. Gross profit was down 4.1% y/y in 1H14, mostly due to the fall in concrete demand and the temporary use of imported clinker. Consolidated EBITDA came in at S/.164.6 million in 1H14, compared to S/.172.8 million in the corresponding period in 2013.
During the period, Cementos Pacasmayo received an award for achieving the highest sustained growth in the last five years, and was also selected as part of the Lime Stock Exchange’s Good Corporate Governance Index.
Edited from various sources by Louise Fordham