Unacem’s profit down 53% in 1Q18

Peruvian cement producer Unacem reported a 53 per cent fall in net profit to PEN157m in the first quarter of 2018.

Unacem’s domestic dispatches decreased 0.6 per cent YoY to 1.199Mt. However, revenues increased by 1.1 per cent YoY due to a higher price realisation.

Cost of sales went up 2.2 per cent when compared with 1Q17 as a result of higher maintenance costs, lowering the gross margin to 41 per cent in 1Q18 from 43 per cent in 1Q17.

The company’s EBITDA expanded by 15 per cent YoY, advancing the EBITDA margin from 30.9 per cent in 1Q17 to 32.7 per cent in 1Q18. However, a lower profit was noted due to exchange rate differences.

Capital expenses reached PEN0.16m, mainly related to work being carried out on the Atocongo plant.

Gross financial debt amounted to PEN3231m, down 3.9 per cent when compared with the previous quarter.