Financial Performance - Revenues increased by 1.7% in 4Q22, reaching S/ 533.8 million, primarily due to higher average prices of bagged cement[3] - Consolidated EBITDA for 4Q22 was S/ 121.0 million, a decrease of 14.5% compared to 4Q21, mainly due to non-recurrent expenses[4] - Net income for 4Q22 was S/ 38.9 million, reflecting a 24.6% decrease, attributed to reduced operating profit and a slight increase in income tax expense[5] - The company achieved a net income of S/ 176.8 million for the full year 2022, a 15.4% increase compared to 2021[28] - Sales of goods in 4Q22 were S/533.8 million, a 1.7% increase from 4Q21, with a total of S/2,115.7 million for 2022, reflecting a 9.2% growth[79] - Gross profit increased by 1.1% in 4Q22 and by 16.6% in 2022 compared to 4Q21 and 2021 respectively, mainly due to cost optimization and increased prices[67] - Profit for the period decreased by 24.6% in 4Q22 compared to 4Q21, primarily due to decreased operating profit and increased non-recurrent expenses[67] - Gross profit for 2022 was S/ 652,031,000, up 16.6% from S/ 559,431,000 in 2021[111] - Basic and diluted earnings per share for 2022 were S/ 0.41, compared to S/ 0.36 in 2021, reflecting a 13.9% increase[111] Sales and Production - Sales volume of cement, concrete, and precast decreased by 7.7% in 4Q22, with total shipments of 836.8 thousand metric tons[24] - Cement production volume decreased by 5.1% in 4Q22, totaling 858.7 thousand metric tons[19] - In 4Q22, cement production volume at the Pacasmayo plant decreased by 8.9% compared to 4Q21, and by 10.2% in 2022 compared to 2021, primarily due to decreased demand from reconstruction projects and self-construction[54] - Total cement production volume decreased by 5.1% in 4Q22 compared to 4Q21, and by 5.4% during 2022 compared to 2021, in line with decreased demand[55] - Cement sales increased by 8.7% in 4Q22 compared to 4Q21, totaling S/446.7 million, and grew by 13.5% for the full year 2022[81] - Quicklime production volume decreased by 47.6% in 4Q22 compared to 4Q21, and by 33.3% in 2022 compared to 2021, mainly due to decreased demand and raw material shortages[58] - Quicklime sales dropped by 57.9% in 4Q22 compared to 4Q21, totaling S/6.4 million, primarily due to decreased sales volume[85] - Sales of construction supplies decreased by 24.4% in 4Q22 compared to 4Q21, amounting to S/26.9 million[86] Costs and Expenses - Total operating expenses increased by 19.8% in 4Q22 compared to 4Q21, reaching S/61.2 million, with personnel expenses rising by 30.1%[75] - Total operating expenses increased to S/ 296,713,000 in 2022 from S/ 241,181,000 in 2021, a rise of 23.1%[111] - Administrative expenses increased by 19.8% in Q4 2022 compared to Q4 2021, mainly due to higher salaries and one-time union bonuses[99] - Selling expenses increased by 55.7% in Q4 2022 compared to Q4 2021, totaling S/14.1 million, driven by higher personnel expenses from a larger salesforce[100] Debt and Assets - As of December 31, 2022, the total outstanding debt reached S/1,593.2 million (US 21.5 million), including S/42.5 million (US$ 11.2 million) in certificates of deposit[102] - Total current assets increased to S/1,188.5 million as of December 31, 2022, compared to S/1,009.4 million as of December 31, 2021[95] - Total liabilities increased to S/2,119.0 million as of December 31, 2022, from S/2,006.0 million as of December 31, 2021[95] - Total assets as of December 31, 2022, amounted to S/3,314.2 million, up from S/3,201.8 million as of December 31, 2021[110] Market and Industry Trends - The construction sector in Peru is estimated to grow by 3.5% in 2022, despite challenges from political instability and rising raw material costs[13] - The company signed the Peruvian Roadmap to net zero on February 2, 2023, demonstrating its commitment to sustainability[11] - The company continues to innovate with digital solutions for retail and industrial channels, enhancing user experience and project management[31] Production Efficiency - The consolidated EBITDA margin for 4Q22 was 22.7%, a decrease of 4.3 percentage points compared to the previous year[25] - Clinker production volume at the Pacasmayo plant increased by 4.9% in 4Q22 compared to 4Q21, and by 7.9% in 2022 compared to 2021, mainly due to kiln optimization in Piura[57] - The consolidated clinker production utilization rate increased by 3.9 percentage points in 4Q22 and by 5.8 percentage points in 2022 compared to 4Q21 and 2021 respectively[65] - The clinker production utilization rate exceeded 100% in 2022, marking a 10.7 percentage point increase due to optimization efforts[77] - The consolidated cement production utilization rate decreased by 3.8 percentage points in 4Q22 compared to 4Q21, reflecting a slight decline in cement demand[78] - Cement production utilization rate at the Pacasmayo plant decreased by 5.8 percentage points in 4Q22 compared to 4Q21, and by 6.9 percentage points in 2022 compared to 2021[61]
Cementos Pacasmayo(CPAC) - 2023 Q1 - Quarterly Report