Cemento Polpaico sees 70% drop in profits in 2022
Chile’s Cemento Polpaico, owned by the Hurtado Vicuña Group, reported a 16.9 per cent increase in revenue in 2022 to CLP368,391m when compared with 2021 when revenue reached CP315,273m. The company sold 2,028,816t of cement, down 9.6 per cent YoY, while concrete sales reached 3,287,348m3, down three per cent YoY.
However, net profits were down 70 per cent YoY to CLP3921m in 2022 from CLP12,901m in the previous year.
"The year 2022 presented less dynamism in the sector of construction mainly associated with a higher economic uncertainty, significant rise in costs labor and construction materials. He significant increase in the exchange rate in 2022, gives account of the persistent increase in hospitalisations, inputs and construction materials," explained the company.
"In addition, long-term interest rates remained high, making it difficult to access the credit for the purchase of housing and the conditions of the access to credit for construction and real estate companies they remained restrictive. This scenario had an impact on all our lines of business that was reflected, mainly, in a lower sales volume and margins operating costs well below expectations," it added.
