Pacasmayo (CPAC) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this cement provider, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in ea ...

Cementos Pacasmayo (CPAC) Q2 2025 Earnings Call July 22, 2025 10:00 AM ET Company ParticipantsClaudia Bustamante - Sustainability & IR ManagerHumberto Nadal Del Caprio - GM, CEO & DirectorEly Adriana Hayashi Hirahoka - CFO and Director - Finance & CybersecurityConference Call ParticipantsMarcelo Furlan Palhares - Equity Research AnalystOperatorTwenty twenty five Earnings Conference Call. At this time, all participants are in listen only mode. And please note that this call is being recorded. At the conclusi ...

Financial Data and Key Metrics Changes - Sales volume increased by 7.1% year over year, driven by stronger demand for cement and concrete, particularly for infrastructure projects [5] - Consolidated EBITDA reached $130.2 million, a 9% increase compared to the same period last year, despite rising expenses related to collective bargaining negotiations [5][12] - Revenues for the quarter increased by 5.9% compared to Q2 2024, reaching $484.1 million, with gross profit rising by 11.2% [12] - Net profit increased by 29.9% this quarter compared to the same period last year, attributed to higher revenues and reduced financing expenses [18] Business Line Data and Key Metrics Changes - Cement sales increased by 6.3% this quarter compared to the same period last year, with gross margin improving by 3.2 percentage points [15] - Concrete, pavement, and mortar sales rose by 9.8% this quarter, driven by projects like the Piura Airport, although gross margin decreased by 3.2 percentage points due to project execution costs [16] - Precast materials sales increased by 4.1% this quarter, with a gross margin decrease of 1.5 percentage points [17] Market Data and Key Metrics Changes - The company is optimistic about the infrastructure development in Peru, which is crucial for economic growth and social inclusion [6][11] - The company is a significant contributor to public-private collaboration programs aimed at enhancing infrastructure, committing over $100 million this year [9] Company Strategy and Development Direction - The company focuses on addressing Peru's infrastructure and housing deficit, emphasizing the importance of high-quality building solutions [6][11] - The strategy includes maintaining a sustainable CapEx around 100 million soles annually, with no substantial capacity increases planned [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining a positive trend in sales volumes, expecting single high-digit growth for the second half of the year [24] - The company anticipates EBITDA margins to remain stable between 28-29% [28] - Management remains optimistic about the future, expecting to post record results for the year [38] Other Important Information - Administrative expenses increased by 13.8% in Q2 2025 compared to Q2 2024, primarily due to higher personnel costs from union bonuses [14] - The net debt to EBITDA ratio is at 2.6 times, which the company considers comfortable [19] Q&A Session Summary Question: Expectations for volumes in the second half - Management expects volumes to continue with a trend of single high-digit increases, dependent on the timing of infrastructure projects [24] Question: CapEx expectations for the second half - The company plans to maintain sustaining CapEx around 100 million soles annually, with no substantial increases in capacity planned [25] Question: Expected margin improvements - EBITDA margins are expected to remain stable between 28-29% [28] Question: Dividend distribution expectations - The company has been consistent with dividends and sees no reason to change this policy, expecting to maintain the same level as previous years [28]

2Q25 Corporate Presentation MACRO OVERVIEW 1. About us Listed on the Lima Stock Exchange (BVL: CPACASC1-PE) since 1995 and on the New York Stock Exchange (NYSE: CPAC) since 2012 We are a leading Peruvian cement company, with over 67 years of operating history As of Jun-25 LTM, Pacasmayo's cement shipments reached 2.9 million MT Quarterly Highlights S/ 484.1 5.9% Compared to 2Q24 26.9% 0.8 p.p Compared to 2Q24 S/ 130.2 million 9.0% Compared to 2Q24 SALES VOLUME SALES OF GOODS EBITDA million EBITDA MARGIN Sha ...

Group 1 - Cementos Pacasmayo (NYSE: CPAC) reported positive Q1 2025 results, driven by increased demand from consumer self-construction and infrastructure projects [1] - The company experienced higher capacity utilization during the quarter, indicating operational efficiency [1] Group 2 - The focus of the analysis is on long-term operational aspects and earnings power of companies rather than market-driven dynamics [1] - The investment strategy emphasizes holding companies for the long term, with a preference for providing information that aids future investors [1]

1Q25 Quarterly Conference Call Presentation CONTENT 01 Quarterly Highlights 02 Our Strategic progress 03 Financial Highlights Our strategic progress Quarterly Highlights S/ 499.2 4.8% Compared to 1Q24 27.0% 0.9 p.p Compared to 1Q24 S/ 134.7 million 1.4% Compared to 1Q24 SALES VOLUME SALES OF GOODS EBITDA million EBITDA MARGIN Building Solutions Coprocessing Financial Highlights Sales Evolution Gross Profit Evolution EBITDA Evolution Administrative Expenses Selling Expenses Cement Debt and Leverage Total Adj ...

Macroeconomic Conditions - The company is significantly affected by global macroeconomic conditions, particularly due to its reliance on exports to the United States, China, and Europe, which could impact demand for its products [24]. - The ongoing geopolitical tensions, including the Russia-Ukraine conflict, have led to increased inflation and volatility in global markets, adversely affecting the company's financial condition [29]. - Political instability in Peru, including potential impeachment motions against President Boluarte, could lead to unpredictable economic policies that may adversely affect the business [40]. - The Peruvian economy is highly susceptible to fluctuations in regional and global markets, which could adversely affect cash flows and securities, impacting the company's financial condition [55]. - The cement sector's performance is closely tied to macroeconomic variables such as GDP growth, domestic demand, and public spending, which could be adversely affected by prolonged global economic conditions [25]. Inflation and Costs - In 2024, inflation in Peru was recorded at 2.1%, below the previous five-year average of 4.4%, but future inflation rates may rise due to supply shocks and geopolitical conflicts [47]. - As of December 31, 2024, 20.5% of the company's costs were denominated in U.S. dollars, exposing it to currency mismatch risks, especially with potential depreciation of the Peruvian sol [44]. - Global freight prices have shown volatility, impacting the cost of raw materials sourced internationally, which could affect the company's operations [34]. - The cost of electricity represented approximately 14.3% of cement production costs, while coal accounted for about 17.0%, indicating significant exposure to energy price fluctuations [69]. - The company experienced a disruption in energy supply at the Rioja facility in 2023, lasting around seven weeks, which increased operational costs due to reliance on coastal plants for cement supply [70]. Competition and Market Dynamics - The company faces increased competition from Holcim Ltd., which entered the Peruvian market by acquiring two local companies, potentially affecting market share and profitability [61]. - The company has developed a strong retail distribution network with 289 independent retailers and 315 hardware stores as of December 31, 2024 [131]. - In 2024, the company shipped approximately 2.8 million metric tons of cement, concrete, and precast products, capturing an estimated 22.8% market share of total cement shipments in Peru [129]. - The retail cement sector in Peru is characterized by households investing a significant portion of their savings in home construction, known as auto-construcción [212]. Construction Sector Insights - In 2024, auto-construcción accounted for approximately 74.8% of the company's cement sales, highlighting the dependence on residential construction in northern Peru [65]. - Approximately 15.3% of cement sales in 2024 were derived from private construction, and 9.9% from public construction in northern Peru, emphasizing the importance of construction projects for revenue [67]. - The anticipated increase in Peru's large infrastructure projects has been delayed, with a budget of S/25.7 billion (US$7.6 billion) for reconstruction works due to Coastal El Niño, which may affect future public spending [68]. - The construction sector in Peru grew by 3.5% in 2024, indicating potential for future growth in cement demand [133]. Financial Performance - Gross profit for 2024 was S/728.5 million, with a gross profit margin of 36.8%, an increase from 35.4% in 2023 [133]. - EBITDA for 2024 reached S/549.3 million, resulting in an EBITDA margin of 27.8%, up from 24.7% in 2023 [133]. - The company reported a net profit of S/198.9 million in 2024, translating to a profit margin of 10.1% [133]. - Total net sales for 2024 were S/1,978.1 million, compared to S/1,950.1 million in 2023, indicating a growth of approximately 1.4% [168]. Environmental and Regulatory Factors - The company is subject to various environmental regulations, and any violations could result in substantial fines and operational disruptions [87]. - The company has been included in the Dow Jones Sustainability Index for the fifth consecutive year, highlighting its commitment to sustainability [128]. - The EcoSaco, a new cement bag that disintegrates within the concrete mix, won multiple awards for its sustainability impact, including the Semana Economica ESG Sustainability Prize [164]. - In 2024, the company implemented Environmental Product Declarations (EPDs) for its cement products, aligning with Peru's Sustainable Building Code [175]. Strategic Initiatives and Future Outlook - The company may pursue future acquisitions to diversify its product portfolio and expand geographically, but these acquisitions could expose it to new risks and may not achieve expected benefits [75]. - The company aims to selectively pursue strategic acquisitions to expand its geographic footprint and diversify its product portfolio [160]. - The company has implemented ISO 37001 and ISO 37301 certifications to strengthen its enterprise risk management and anti-bribery practices [162]. - The company has established four strategic objectives for community relations, focusing on trust-building and improving local infrastructure, with no community conflicts reported in 2024 [154]. Operational Challenges - The company faces risks from illegal mining activities in Peru, which pose environmental and economic challenges, potentially impacting its operations [38]. - Failures in information technology and cybersecurity systems could adversely impact the company's operations and reputation, as these systems are critical for efficient management [98]. - The company has local bonds due in 2029 and 2034, and a "club deal" loan from 2021, which contain covenants limiting additional indebtedness if certain financial ratios are not met [77]. - Significant capital expenditures are required to expand cement production capacity and distribution network, and the company may face challenges in obtaining necessary funding [76].

Financial Data and Key Metrics Changes - Revenues increased by 4.8% year over year, reaching $499.2 million, driven by stronger demand for bagged cement and concrete for infrastructure projects [4][11] - Consolidated EBITDA rose to $134.7 million, a 1.4% increase compared to the same period last year, despite higher expenses related to collective bargaining negotiations [4][11] - Net profit increased by 6.5% year over year, attributed to higher revenues and gross profit, along with a slight reduction in financing expenses [15] Business Line Data and Key Metrics Changes - Cement sales increased by 3.9% year over year, primarily due to increased demand [13] - Sales of concrete, pavement, and mortar surged by 22.3% year over year, driven by major infrastructure projects [5][13] - Precast material sales grew by 6.8% compared to the previous year, mainly due to increased sales volume to the public sector [14] Market Data and Key Metrics Changes - The company is experiencing a solid recovery in demand for construction materials, particularly in Northern Peru, where it has positioned itself as a preferred choice for infrastructure development [6][7] - The execution of significant infrastructure projects is expected to secure stable demand moving forward [5][6] Company Strategy and Development Direction - The company is focused on a long-term strategy to expand the use of concrete and related products, emphasizing early involvement in projects and leveraging technology to identify opportunities [6][7] - A decarbonization strategy is being implemented, with a focus on reducing coal usage and exploring cleaner alternatives such as biomass and end-of-life tires [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining positive momentum for the rest of the year, despite challenges such as weather impacts on sales [4][5] - The company anticipates an increase in concrete volumes for the remainder of 2025, supported by ongoing infrastructure projects [28] Other Important Information - Administrative expenses increased by 22.4% year over year, primarily due to personnel expenses related to union bonuses [12] - The net debt to EBITDA ratio improved to 2.6x, indicating continued deleveraging efforts [15] Q&A Session Summary Question: Is it worth continuing the sales of concrete pavements, precast, and construction supplies when you barely make any money on it? - Management emphasized that the overall company strategy focuses on building solutions, which justifies the continued sales despite lower margins in some areas [17][19] Question: Should we expect a similar year-over-year increase in SG&A in the coming quarters? - Management clarified that the $9 million external expense is a one-time occurrence, and EBITDA margins should remain stable for the rest of the year [22][25] Question: Do you expect to maintain this level of concrete volumes for the whole of 2025? - Management indicated that concrete volumes are expected to increase for the remainder of the year due to ongoing projects [28] Question: Will dividends be considered for capital allocation going forward? - Management confirmed a solid dividend policy will be maintained while also focusing on reducing debt [31] Question: Will the production and sale of lime continue to be reported? - Management stated that lime production will continue, although it may not be reported as a separate segment due to its materiality [32]

Cementos Pacasmayo (CPAC) Q1 2025 Earnings Call April 29, 2025 10:00 AM ET Company Participants Claudia Bustamante - Investor Relation ManagerHumberto Nadal Del Caprio - CEOEly Hayashi - CFONatalia Leo Paniagua - Equity Research Associate Conference Call Participants Marcelo Furlan Palhares - Equity Research Analyst Claudia Bustamante The call over to your questions. Please note that this call will include certain forward looking statements. These statements relate to expectations, beliefs, projections, tre ...

Financial Position - As of December 31, 2024, total assets decreased to S/3,166,043, down from S/3,221,735 in 2023, reflecting a decline of approximately 1.7%[30] - Current assets remained stable at S/992,496, slightly increasing from S/992,249 in 2023[30] - Total liabilities decreased to S/1,952,945, down from S/2,031,727 in 2023, representing a reduction of about 3.9%[30] - The company reported a total equity of S/1,213,098, an increase from S/1,190,008 in 2023, reflecting a growth of approximately 1.9%[30] - Cash and cash equivalents decreased to S/72,723 from S/90,193 in 2023, a decline of about 19.4%[30] - The Group's total assets in US dollars amounted to US$11,490,000 in 2024, up from US$9,146,000 in 2023[145] - The net book value of property, plant, and equipment as of December 31, 2024, is S/2,031,139,000, reflecting a decrease from S/2,099,351,000 in 2023[158] Profitability - Sales of goods for 2024 reached S/(000) 1,978,071, a slight increase of 1.4% compared to S/(000) 1,950,075 in 2023, but a decrease of 6.5% from S/(000) 2,115,746 in 2022[31] - Gross profit for 2024 was S/(000) 728,526, representing a 5.7% increase from S/(000) 689,452 in 2023 and a 11.7% increase from S/(000) 652,031 in 2022[31] - Operating profit improved to S/(000) 391,033 in 2024, up 15.7% from S/(000) 337,555 in 2023, but down 1.2% from S/(000) 355,318 in 2022[31] - Profit for the year increased to S/(000) 198,875 in 2024, a rise of 17.7% compared to S/(000) 168,900 in 2023, and a 12.5% increase from S/(000) 176,828 in 2022[32] - Basic earnings per share rose to S 0.46 in 2024, up from S 0.39 in 2023 and S 0.41 in 2022, reflecting a 17.9% increase year-over-year[31] Cash Flow - Net cash flows from operating activities for 2024 were S/(000) 321,141, a decrease of 22.1% from S/(000) 412,323 in 2023, but a significant increase from S/(000) 111,819 in 2022[36] Expenses - The company’s total operating expenses decreased to S/(000) 337,493 in 2024, down from S/(000) 351,897 in 2023, reflecting a reduction of 4.1%[31] - The company’s finance costs for 2024 were S/(000) 100,308, a decrease of 3.5% from S/(000) 104,045 in 2023[31] - Administrative expenses for 2024 totaled S/253,383,000, up from S/231,967,000 in 2023, reflecting an increase of approximately 9.2%[198] - Selling and distribution expenses rose to S/81,410,000 in 2024, compared to S/69,569,000 in 2023, marking an increase of around 17.0%[199] - Employee benefits expenses for 2024 were S/338,921,000, which is an increase from S/292,032,000 in 2023, representing a growth of approximately 16.1%[200] Taxation - The income tax expense for 2024 was calculated at an effective rate of 33%, totaling S/97,312,000, compared to S/76,808,000 in 2023[187] - The Company has tax loss carryforwards amounting to S/92,998,000 as of December 31, 2024, up from S/44,868,000 in 2023[188] Assets and Liabilities - The total carrying amount of trade and other accounts receivable is S/135,114,000, with an expected credit loss of S/11,486,000, representing an 8.5% expected credit loss rate[155] - The total inventory as of December 31, 2024, amounts to S/773,997,000, with a provision for inventory obsolescence of S/33,880,000[156] - Trade receivables increased to S/95,419,000 in 2024 from S/83,840,000 in 2023, indicating a growth of approximately 13.5%[148] - The allowance for expected credit losses rose to S/20,520,000 in 2024 from S/18,048,000 in 2023, reflecting an increase of 8.2%[153] - Trade payables decreased to S/(000) 96,549 in 2024 from S/(000) 107,327 in 2023, representing a decline of approximately 10.5%[164] Corporate Governance - The Company has complied with all financial covenants as of December 31, 2024, and 2023, without any activation of covenants due to non-compliance[181] - The Company maintained a fixed charge covenant ratio of at least 2.5 to 1 and a consolidated debt-to-EBITDA ratio of no greater than 3.5 to 1[182] Investments and Acquisitions - The Group acquired coal concessions in January 2023 for S/34,350,000, enhancing its exploration activities in areas of interest to the cement business[161] Dividends - Declared dividends per share for 2024 remained at S/.0.41000, consistent with 2023, while total declared dividends amounted to S/175,524,000[193]