
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]