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Cementos Pacasmayo(CPAC) - 2020 Q3 - Earnings Call Transcript
2020-10-31 22:09
Financial Data and Key Metrics Changes - Cement shipments experienced a remarkable 14.2% year-over-year growth in sales volume, leading to a historical record EBITDA of PEN120.6 million, an 8.2% increase compared to Q3 2019 [5][18] - Revenues reached PEN407.4 million, a 6.3% increase from the same period last year, primarily driven by increased bagged cement shipments [16] - Gross profit decreased by 3.4% due to higher costs from imported clinker and lower average prices from a shift in sales mix [17] Business Line Data and Key Metrics Changes - Cement, concrete, and precast sales increased by 2.9% in Q3 2020 compared to Q3 2019, mainly due to increased bagged cement sales [20] - Sales of cement increased by 15.2% in Q3 2020, driven by strong demand in the Northern region [21] - Concrete sales decreased by 52.1% in the first nine months of the year, reflecting a slower recovery compared to bagged cement [22] Market Data and Key Metrics Changes - The Northern region of Peru reached pre-pandemic levels in cement shipments as early as July, outperforming other regions [7] - The Peruvian economy began reopening in Q3 2020, with over 90% of the economy operational, although GDP has not yet returned to pre-pandemic levels [6] Company Strategy and Development Direction - The company is focusing on enhancing customer experience through digital solutions and targeted offerings, such as Mundo Experto and Pacasmayo Professional [9][10] - There is a strategic emphasis on expanding the customer base beyond traditional construction companies to include self-builders and foremen [11] - The company aims for 25% of revenue to come from value-added products by 2023, with current sales from building solutions at 17% [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about sustaining current sales levels and indicated that imported clinker will be necessary to meet demand in the coming years [37] - The company anticipates that demand from government reconstruction projects will begin to materialize in the first half of 2021 [38] Other Important Information - The company reported a profit of PEN45.2 million for the period, a 12.4% increase compared to the same period in 2019, reversing a previous net loss [27] - The company has implemented health and safety measures to protect employees during the pandemic, resulting in lower than average COVID-19 cases among workers [13][14] Q&A Session Summary Question: What is the starting point for the expected 25% revenue from value-added products by 2023? - Management indicated that 17% of sales were already from building solutions in 2019, with minimal CapEx required for growth [30][31][32] Question: What are the priorities for capital deployment going forward? - Management stated that dividends are a priority, but they are also considering potential acquisitions if clear value generation paths are identified [33][35][36] Question: Until when will the company rely on importing clinker? - Management confirmed that they will continue to import clinker to secure production capacity, indicating strong demand [37][46] Question: What are the reasons for relying on clinker imports? - Management explained that the decision to import clinker was based on demand uncertainty post-lockdown, prioritizing cash preservation initially [46]
Cementos Pacasmayo(CPAC) - 2020 Q2 - Earnings Call Transcript
2020-07-24 21:14
Cementos Pacasmayo S.A.A. (NYSE:CPAC) Q2 2020 Earnings Conference Call July 24, 2020 12:00 PM ET Company Participants Claudia Bustamante - Investor Relations Manager Humberto Nadal - Chief Executive Officer Manuel Ferreyros - Chief Financial Officer Conference Call Participants Andres Soto - Santander Luis Pardo - Compass Group Alejandro Chavelas - Credit Suisse Froylan Mendez - JPMorgan Adrian Huerta - JPMorgan Francisco Suarez - Scotiabank Operator Operator Good day ladies and gentlemen. Welcome to Pacasm ...
Cementos Pacasmayo(CPAC) - 2019 Q4 - Annual Report
2020-05-01 18:38
As filed with the Securities and Exchange Commission on May 1, 2020 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO ...
Cementos Pacasmayo(CPAC) - 2019 Q4 - Earnings Call Transcript
2020-02-14 19:24
Financial Data and Key Metrics Changes - In Q4 2019, revenues reached $374.7 million, an increase of 9.8% year-on-year, primarily driven by higher sales volumes of cement, concrete, and precast products [20] - For the full year 2019, revenues increased by 10.3%, while gross profit rose by 4.3% [21] - Consolidated EBITDA for Q4 2019 was PEN 100.9 million, a 10.9% increase compared to Q4 2018, and for the full year, it reached PEN 400.3 million, a 7.7% increase from 2018 [21][29] - Gross margin decreased by 4.1 percentage points in Q4 2019 compared to the same period last year, mainly due to higher transportation costs [24] Business Line Data and Key Metrics Changes - Cement, concrete, and precast sales increased by 10.1% in Q4 2019 compared to Q4 2018, driven by higher sales volume and average prices [23] - Concrete sales saw a 20.4% increase in Q4 2019 compared to the same quarter in 2018, reflecting strong demand from infrastructure and small to medium-sized projects [26] - Precast sales increased by 42.6% in Q4 2019 compared to Q4 2018, with gross margin improving significantly due to a focus on higher-margin products [27] Market Data and Key Metrics Changes - The increase in non-bagged cement products accounted for 42% of the overall increase in cement, concrete, and block sales in 2019, indicating a shift in market dynamics [8] - The agriculture sector, particularly avocados and blueberries, contributed to increased disposable income and self-construction activities, positively impacting sales [7] Company Strategy and Development Direction - The company is focused on a cultural transformation and has defined a new purpose to align its identity and strengthen stakeholder commitment [15][16] - Digitalization initiatives are underway to enhance customer experience and improve operational efficiency through various platforms for order tracking and business management [17][18] - The long-term vision includes becoming a building solutions company, with a strategic emphasis on value-added products despite potential margin contraction [12][30] Management's Comments on Operating Environment and Future Outlook - Management anticipates a revenue growth of 5% to 6% for 2020, with reconstruction projects expected to accelerate due to government initiatives [32] - The logistics issues related to transportation costs are expected to diminish by Q3 2020, which should positively impact margins [50][54] - The company aims to achieve an EBITDA margin close to 30% in 2020, driven by operational efficiencies and increased production capacity [38][60] Other Important Information - The company plans to invest approximately $30 million in capital expenditures for 2020, primarily for maintenance [62] - A new silo is under construction in Piura to reduce transportation costs and improve operational efficiency [11] Q&A Session Summary Question: Outlook for volumes and total revenue in 2020 - Management expects a base scenario of around 5% to 6% revenue growth, with reconstruction projects likely to accelerate [32] Question: Price weakness in cement - Management indicated that cement prices may remain stable or slightly higher than the previous year [34] Question: EBITDA margin expectations for 2020 - Management anticipates reaching close to a 30% EBITDA margin, with improvements expected as logistics issues are resolved [38][60] Question: Logistics costs and clinker production - The need for specific silos for clinker storage has impacted logistics costs, but this issue is expected to be resolved by Q3 2020 [40][50] Question: Margins on ready-mix products - Management confirmed that EBITDA margins for the ready-mix business should stabilize between 10% and 13% [42] Question: CapEx guidance for 2020 - The estimated CapEx for 2020 is around $30 million, primarily for maintenance [62] Question: Energy costs and efficiency - Management is still working on improving efficiency in energy costs, with minor savings observed [65]
Cementos Pacasmayo(CPAC) - 2019 Q3 - Earnings Call Transcript
2019-10-25 13:26
Cementos Pacasmayo SAA (NYSE:CPAC) Q3 2019 Earnings Conference Call October 24, 2019 11:30 AM ET Company Participants Claudia Bustamante - Head, IR Humberto Nadal - CEO & Director Manuel Ferreyros - CFO and VP, Administration & Finance Conference Call Participants Andres Soto - Santander Ramon Obeso - Scotiabank Juan Brosset - CrediCorp Capital Tunde Ojo - Harding Loevner Sebastián Montoya - Compass Group Lucia Calvo Perez - LarrainVial Operator Ladies and gentlemen, good day, and welcome to Pacasmayo's Thi ...
Cementos Pacasmayo(CPAC) - 2019 Q1 - Earnings Call Transcript
2019-05-01 00:56
Cementos Pacasmayo S.A.A. (NYSE:CPAC) Q1 2019 Results Earnings Conference Call April 30, 2019 11:30 AM ET Company Participants Claudia Bustamante – Investor Relations Manager Humberto Nadal – Chief Executive Officer Manuel Ferreyros – Chief Financial Officer Conference Call Participants Andres Soto – Santander Daniel Sasson – Itau Mauricio Serna – UBS Tunde Ojo – Harding Loevner Operator Good day, ladies and gentlemen, and welcome to Pacasmayo's First Quarter 2019 Earnings Conference Call. At this time all ...
Cementos Pacasmayo(CPAC) - 2018 Q4 - Annual Report
2019-04-30 21:19
As filed with the Securities and Exchange Commission on April 30, 2019 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT ...
Cementos Pacasmayo(CPAC) - 2018 Q4 - Earnings Call Transcript
2019-02-12 22:36
Cementos Pacasmayo (NYSE:CPAC) Q4 2018 Earnings Conference Call February 12, 2019 11:00 AM ET Company Participants Claudia Bustamante - Head, IR Humberto Nadal - CEO Manuel Ferreyros - CFO Conference Call Participants Andres Soto - Santander Daniel Sasson - Itaú BBA Vanessa Quiroga - Credit Suisse Froylan Mendez - JPMorgan Babatunde Ojo - Harding Loevner Francisco Suarez - Scotiabank Raul Jacob - CrediCorp Capital Operator Good day, ladies and gentlemen. Welcome to the Pacasmayo's Fourth Quarter 2018 Earnin ...