Pacasmayo's volumes impacted by El Niño effect

Peruvian producer Cementos Pacasmayo SAA and its subsidiaries saw revenues decrease by 9.3 per cent and sales volumes of cement, concrete and blocks fell by 12.2 per cent primarily due to landslides, flooding and heavy rain, in the north of Peru since mid-February associated with El Niño.

The gross margin of 40.3 per cent was up 3.3 percentage points due to operational efficiencies despite lower sales volumes and increased depreciation.

The Cement EBITDA margin of 29.9 per cent was up 1.8 percentage points resulting from operational efficiencies. However, consolidated EBITDA of PEN82.4m was down five per cent.

Net income of continuing operations of PEN22.4m was down 24.1 per cent due to lower operating profit because of increased depreciation from the new greenfield Piura plant and the termination of borrowing cost capitalisation following the conclusion of the plant project. Additionally, there was a one-off income booked in 1Q16 due to a provision for 2015 which was not executed and reverted in 1Q16.