Cementos Pacasmayo S.a.a. ((CPAC)) has held its Q3 earnings call. Read on for the main highlights of the call.
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The recent earnings call for Cementos Pacasmayo S.a.a. painted a picture of robust growth and performance, tempered by some operational challenges. The company reported a strong increase in sales volume, revenues, and profitability, although it faced rising operating expenses and a decline in gross margin in certain segments.
Increase in Sales Volume
Sales volume for Cementos Pacasmayo increased by 9% compared to the same period last year. This growth was primarily driven by heightened demand from infrastructure projects and consistent performance in the Self-construction segment, showcasing the company’s ability to capitalize on market opportunities.
Gross Profit and Net Income Growth
The company reported a 14.4% increase in gross profit, with net income mirroring this growth, reaching PEN 71.5 million for the quarter. This represents an accumulated growth of 15.6% for the first nine months of the year, highlighting the company’s strong financial performance.
Revenue Growth
Revenues saw a 10.9% increase compared to the third quarter of 2024, driven by increased sales of concrete and pavement for infrastructure projects and bagged cement. The total revenue reached PEN 574.1 million, underscoring the company’s successful market strategies.
EBITDA Increase
Consolidated EBITDA rose to PEN 160.6 million this quarter, marking a 3.9% increase from the same period in 2024. This growth reflects the company’s efficient operational management and ability to generate earnings before interest, taxes, depreciation, and amortization.
Market Recognition
Pacasmayo’s reputation continues to shine as it ranked among the top 10 companies in the American corporate reputation ranking for the third consecutive year, reinforcing its strong market presence and brand value.
Increase in Operating Expenses
The company faced a 20.2% increase in administrative expenses for the third quarter of 2025 compared to the same period in 2024. This rise was attributed to higher personnel expenses due to the union bonus. Additionally, selling expenses increased by 25.5%, driven by heightened advertising and promotional activities.
Decrease in Gross Margin for Concrete, Pavement, and Mortar
Despite a 19.5% increase in sales for concrete, pavement, and mortar during the first nine months of the year, the gross margin decreased by 2.3 percentage points compared to the same period last year, indicating challenges in maintaining profitability in these segments.
Forward-Looking Guidance
Looking ahead, Pacasmayo remains focused on sustaining volumes and margins amidst potential electoral uncertainties. The company plans a CapEx of around PEN 100 million and aims to maintain dividends consistent with previous years. Strategic advancements include innovative building solutions and collaborations on projects like the Yanacocha water treatment plant. The company is committed to maintaining a net debt-to-EBITDA ratio of 2.5x, ensuring financial stability.
In summary, Cementos Pacasmayo S.a.a.’s earnings call highlighted a period of strong growth and strategic advancements, despite facing some operational challenges. The company’s robust sales volume, revenue growth, and market recognition underscore its solid position in the industry, while its forward-looking strategies aim to sustain this momentum in the face of potential challenges.