Cementos Pacasmayo reports 14% advance in 1Q net profit

Peru-based Cementos Pacasmayo SA reported a 7.2 per cent decline in cement, concrete and prefabricated product sales in the first quarter of 2024 to 685,700t from 738,600t in the 1Q23. Net sales slipped by 0.7 per cent to PEN476.5m in the 1Q24 from PEN480m in the year-ago period.

However, the company was able to report a 9.6 per cent YoY uptick in operating profit to PEN95m from PEN86.7m in the 1Q23. Net profit was up 13.8 per cent YoY to PEN49.5m from PEN43.5m over the same period, resulting in a net profit margin of 10.4 per cent, up 1.3 percentage points from 9.1 per cent.

"We were able to achieve an increase of 10 per cent in consolidated EBITDA and 13.8 per cent in YoY net income, mainly due to the operational efficiencies derived from our new kiln in Pacasmayo and from our multi-plant production plan. We are confident that we can maintain these efficiencies, and we will work harder to continue offering profitability, and also be prepared to take advantage of a more favourable demand environment when it occurs," said the company.

In terms of cement production, total output from the company's three plants was down by 8.3 per cent YoY to 663,500t. While the Pacasmayo plant in Trujillo increased its production by 12 per cent to 394,300t, at Rioja production slipped 1.6 per cent YoY to 75,800t and Piura supplied 193,400t of cement, down 34.3 per cent YoY, in the 1Q24.