Unacem reports 6% rise in sales but 48% drop in net profit

Peru-based Unacem has reported 4Q18 sales of PEN507.8m, up 5.6 per cent when compared with sales of PEN481m in the equivalent period of the previous year. Operating profit increased by 16 per cent to PEN121.6m in the 4Q18 from PEN104.8m in the 4Q17. However, after financial expenses of PEN-101.3m, financial income of PEN3m, net exchange differences of PEN-32.7m and income tax expenses of PEN682,000, the quarter’s net profit reached PEN-10.2m.

In terms of Unacemen’s dispatches, these rose by 7.3 per cent QoQ to 1,369,199t but slipped 1.3 per cent YoY. Domestic deliveries increased by 5.2 per cent QoQ and by 1.9 per cent YoY to 2,978,405t, according to the National Institute of Statistics and Informatics (INEI). Unacem’s domestic market share improved, rising from 45.1 per cent in 3Q18 to 46 per cent in 4Q18.

For the full-year of 2018, the company saw sales rise by 5.7 per cent from PEN1.863bn in 2017 to PEN1.969b, supported by increases in both volume and price. However, operating profit fell by 13 per cent from PEN709.3m in 2017 to PEN616.8m in 2018. The company’s net profit took a 48 per cent slide to PEN242.2m from PEN466.2m in the previous year.

Unacem reduced is financial debt by PEN143.9m as a result of debt payments of PEN229.5m and a foreign exchange difference of PEN85.6m.