UNACEM sees contracting 2Q profit margin

Peru-based UNACEM reported a consolidated net profit of PEN110.8m (US$26.7m), up 25.8 per cent YoY, as the company’s revenues increased and interest expenses fell. However, the cost of sales was higher than expected, impacting YoY profit margins.

UNACEM’s consolidated revenues reached PEN1429.6m, up 19.8 per cent YoY as cement sales volumes increased in Peru (+13.8 per cent) and the USA (+15.7 per cent) while ready-mix sales volumes were up 54 per cent in Chile and by 34 per cent in the USA.

The increase in cement shipments was in line with the solid performance of self-construction in Peru and robust US demand, although partially offset by a decrease in shipments in Ecuador (-10.5 per cent YoY) due to the 18-day national strike in June.

However, there was a 42.1 per cent YoY drop in the company’s net income in the 2Q22 as cost of sales increased by 10.4 per cent at a time when revenues were up only four per cent YoY. Raw material costs were reported to have increased by 43.5 per cent and maintenance costs by 28.1 per cent when compared with the 1Q22.