LIMA, Peru--(BUSINESS WIRE)--Cementos Pacasmayo S.A.A. and subsidiaries (NYSE: CPAC; BVL: CPACASC1) (“the Company” or “Cementos Pacasmayo”) a leading cement company serving the Peruvian construction industry, today announced its consolidated results for the fourth quarter (“4Q17”) and full year (“2017”) ended December 31, 2017. These results have been prepared in accordance with International Financial Reporting Standards (“IFRS”) and are stated in nominal Peruvian Soles (S/).
Financial and Operational Highlights:
(All comparisons are to 4Q16 unless otherwise stated)
- Sales volume of cement, concrete and blocks increased 7.3%, primarily due to increased sales volume to the self-construction segment and to a pick up in public sector spending.
- Gross margin was 41.3%; a 1.2 percentage point increase, primarily due to a higher average price of cement.
- Cement EBITDA increased 13.9%, to S/105.5 million. Cement EBITDA margin increased to 32.2% for the fourth quarter 2017.
- Consolidated EBITDA decreased 35.7% due to a write-off in the Company’s investment in the Salmueras Sudamericanas S.A. brine project. It is important to note that this is a non-cash capital impairment.
- Net income from Continuing Operations excluding the non-cash impairment provision would have been S/36.5 million, similar to that of 3Q17, with a 247.7% increase as compared to 4Q16.
(All comparisons are to 2016 unless otherwise stated)
- Sales volume of cement, concrete and blocks decreased by only 0.8%, despite the significant decline in sales volume during the first four months of the year due to Coastal El Niño. It is important to note that year-on-year sales volume has increased steadily every month, from May through the end of the year.
- Gross margin was 40.1%, in line with that of full year 2016.
- Cement EBITDA reached S/375.3 million; a decrease of only 2.2%, despite the negative effects of Coastal El Niño on both sales and costs. Cement EBITDA margin was 30.6%, in line with that of the full year 2016.
- Consolidated EBITDA decreased 12.9%, primarily due to the non-cash impairment provision related to the Salmueras Sudamericanas S.A. brine project.
- Net income from Continuing Operations excluding the impairment provision would have been S/118.8 million for the full year 2017, in line with that of 2016.
For a full version of Cementos Pacasmayo’s Third Quarter 2017 Earnings Release, please visit http://www.cementospacasmayo.com.pe/investors/.
CONFERENCE CALL INFORMATION:
Cementos Pacasmayo will host a conference call on Tuesday, February 13, 2018, to discuss these results at 10:00 a.m. Lima Time/Eastern Time.
To access the call, please dial:
+1 (877) 407-0782 (From within the U.S.)
+1 (201) 689-8567 (From outside the U.S.)
There will also be a live Audio Webcast of the event at:
About Cementos Pacasmayo S.A.A.
Cementos Pacasmayo S.A.A. is a cement company, located in the Northern region of Peru. In February 2012, the Company’s shares were listed on The New York Stock Exchange - Euronext under the ticker symbol "CPAC". With more than 59 years of operating history, the Company produces, distributes and sells cement and cement-related materials, such as concrete blocks and ready-mix concrete. Cementos Pacasmayo’s products are primarily used in construction, which has been one of the fastest-growing segments of the Peruvian economy in recent years. The Company also produces and sells quicklime for use in mining operations.
For more information, please visit: http://www.cementospacasmayo.com.pe/investors
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management’s current view and estimates of future economic circumstances, industry conditions, Company performance and financial results. Also, certain reclassifications have been made to make figures comparable for the periods. The words “anticipates”, “believes”, “estimates”, “expects”, “plans” and similar expressions, as they relate to the Company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.