Cementos Pacasmayo S.A.A. and subsidiaries (NYSE: CPAC; BVL: CPACASC1) (“the Company” or “Pacasmayo”) a leading cement company serving the Peruvian construction industry, announced today its consolidated results for the second quarter (“2Q20”) ended June 30, 2020. These results have been prepared in accordance with International Financial Reporting Standards (“IFRS”) and are stated in nominal Peruvian Soles (S/).
2Q20 Financial and Operational Highlights:
(All comparisons are to 2Q19, unless otherwise stated)
- Sales volume of cement, concrete and precast decreased 60.3% mainly due to the halt in production and commercialization for most of the quarter due to the state of emergency declared by the Peruvian Government from March 16 until June 30, 2020 due to the COVID-19 pandemic. We were allowed to resume cement production and shipments on May 20 in line with the Government’s economic recovery plan. Average daily shipments have experienced a steady recovery since we restarted operations.
- Revenues decreased 64.5% primarily due to the halt in commercialization mentioned above. If we compared June 2020 with June 2019, revenues decreased 30.6%.
- Consolidated EBITDA of S/ -5.7 million, a 106% decrease, mainly due to the halt in sales of cement mentioned above, as well as the fixed costs derived from the halt in production in April and May. EBITDA in June 2020 was S/ 17.5 million.
- Consolidated EBITDA margin of -5%, a 34.3 percentage point decrease. However, EBITDA margin for June 2020 was 22.4%.
- Net income of S/ -45.5 million, a 241.3% decrease mainly due to decreased sales and increased fixed costs mentioned above.
- In June, the Peruvian government signed an agreement with the United Kingdom government to execute S/ 7 billion during the next two years from the Reconstruction plan for El Niño related damages in 2017. This agreement will accelerate execution and promote efficiency for much needed infrastructure mostly in the North of Peru.
6M20 Financial and Operational Highlights:
(All comparisons are to 6M19, unless otherwise stated)
- Sales volume of cement, concrete and precast decreased 33.3% mainly due to the halt in production and commercialization for over two months. We were allowed to resume cement production and shipments mid- May in line with the Government’s economic recovery plan and we expect a gradual recovery in sales volumes in the upcoming quarters.
- Revenues decreased 34.9%, primarily due to the halt in commercialization mentioned above.
- Consolidated EBITDA of S/ 66.6 million; a 64.6% decrease, primarily due to the decreased revenues mentioned above, as well as fixed costs derived from the stop in production.
- Consolidated EBITDA margin of 16.1%, 13.5 percentage points lower, mainly due to the decrease in operating income.
- Net income of S/ -34.8 million, a 155.9% decrease mainly due to decreased operating profit.
For a full version of Cementos Pacasmayo’s Third Quarter 2018 Earnings Release, please visit http://cementospacasmayo.com.pe.
CONFERENCE CALL INFORMATION:
Cementos Pacasmayo will host a conference call on Friday, July 24, 2020, to discuss these results at 12:00 p.m. EasternTime / 11:00 a.m. Lima Time.
To access the call, please dial:
(844)-369-8770 (From within the U.S.)
+1 (862)-298-0840 (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 62 years of operating history, the Company produces, distributes and sells cement and cement-related materials, such as concrete blocks and ready-mix concrete. 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.
In Lima, Peru:
Manuel Ferreyros, CFO
Investor Relations Manager
+511-317-6000 Ext. 2165