Financial Performance - Profit before income tax for 2023 was S/245,708,000, a decrease of 6.5% from S/262,420,000 in 2022[2] - Profit for the year 2023 was S/168,900,000, down from S/176,828,000 in 2022, reflecting a decrease of 4.9%[7] - Total sales for 2023 were S/(000) 1,950,075, a decrease of 7.8% compared to S/(000) 2,115,746 in 2022[42] - Gross profit increased to S/(000) 689,452 in 2023, up from S/(000) 652,031 in 2022, reflecting a gross margin improvement[42] - Operating profit for 2023 was S/(000) 337,555, a slight decrease from S/(000) 355,318 in 2022[42] - Total other comprehensive income for the year was S/170,402,000, slightly down from S/179,135,000 in 2022[7] - Basic and diluted earnings per share for 2023 were S/0.39, compared to S/0.41 in 2022[42] Cash Flow and Investments - Net cash flows from operating activities increased significantly to S/412,323,000 in 2023, compared to S/111,819,000 in 2022[2] - For the year ended December 31, 2023, the net cash flows used in investing activities amounted to S/(000) 289,444, an increase from S/(000) 176,188 in 2022[66] - The company reported a net increase in cash and cash equivalents of S/(000) 7,444 for 2023, contrasting with a decrease of S/(000) 185,845 in 2022[66] - The company’s cash and cash equivalents as of December 31, 2023, were S/(000) 90,193, up from S/(000) 81,773 in 2022[66] - The company incurred S/(000) 661,520 in payments for bank loans in 2023, compared to S/(000) 448,984 in 2022, indicating a significant increase in debt servicing[66] - The company’s purchase of property, plant, and equipment in 2023 was S/(000) 272,600, which is a substantial increase from S/(000) 162,785 in 2022[66] - The company reported cash flow proceeds from the sale of property, plant, and equipment amounting to S/(000) 1,392 in 2023, down from S/(000) 2,664 in 2022[66] Assets and Liabilities - Total current assets decreased to S/(000) 992,249 in 2023 from S/(000) 1,188,453 in 2022, a decline of 16.5%[41] - Total liabilities decreased to S/(000) 2,031,727 in 2023 from S/(000) 2,119,026 in 2022, a reduction of 4.1%[41] - Total equity as of December 31, 2023, was S/(000) 1,190,008, slightly down from S/(000) 1,195,135 in 2022[41] - Non-current liabilities increased to S/(000) 1,342,339 in 2023 from S/(000) 1,165,887 in 2022, an increase of 15.1%[41] - The company’s total liabilities increased to S/(000) 1,500,000 in 2023, reflecting a growth of approximately 10% compared to the previous year[61] - Trade and other receivables decreased slightly from S/145,034,000 in 2022 to S/143,085,000 in 2023, a decline of about 1.3%[92] - Senior notes decreased significantly from S/1,071,781,000 in 2022 to S/569,192,000 in 2023, a reduction of approximately 46.9%[92] - The total financial assets decreased from S/313,974,000 in 2022 to S/233,527,000 in 2023, a decline of approximately 25.7%[92] Corporate Structure and Governance - The company maintains a 100% interest in all its subsidiaries, which include Cementos Selva S.A.C. and others[3] - The company is listed on both the Lima and New York Stock Exchanges, with Inversiones ASPI S.A. holding 50.01% of its common shares[5] - The Group has not breached any financial covenants related to senior notes in the years presented, ensuring compliance with capital structure requirements[88] Employee and Operational Expenses - The total employee benefits expenses for 2023 were S/(000) 292,032, compared to S/(000) 284,731 in 2022, reflecting a year-over-year increase of approximately 2.3%[74] - Depreciation and amortization expenses rose to S/144,195,000 in 2023, up from S/138,539,000 in 2022[2] - Finance costs increased to S/104,045,000 in 2023, compared to S/95,105,000 in 2022, marking an increase of 9.8%[2] - The company paid dividends totaling S/(000) 175,431 in 2023, slightly down from S/(000) 179,820 in 2022[66] Financial Reporting and Compliance - The Group's financial statements are presented in Soles and all values are rounded to the nearest thousand (S/000)[145] - The Group's consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS)[147] - The carrying amount of deferred tax assets is reviewed at each reporting date and reduced if it is no longer probable that sufficient taxable profit will be available[127] Accounting Policies - Revenue from the sale of goods is recognized at the point in time when control of the asset is transferred to the customer, generally on delivery of the goods[134] - The Group recognizes an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss[160] - Financial assets at amortized cost are subsequently measured using the effective interest (EIR) method and are subject to impairment[156] - Inventories are valued at the lower of cost or net realizable value, with costs incurred accounted for accordingly[197] - Mining concessions are stated at cost, net of accumulated amortization and impairment losses, and are amortized using the straight-line method[193] - Stripping costs incurred before production commences are capitalized as part of mine development costs and amortized over the life of the mine[195] - ECLs are recognized in two stages, with a 12-month ECL for credit exposures without significant risk increase and a lifetime ECL for those with significant risk increase[198] - Depreciation of assets is determined using the straight-line method over their estimated useful lives[192] - Borrowing costs related to general borrowings are capitalized using a weighted average of interest rates applicable during the period[191] - Differences arising on settlement or translation of monetary items are recognized in profit or loss[189]
Cementos Pacasmayo(CPAC) - 2023 Q4 - Annual Report