Cementos Pacasmayo(US:CPAC)2025-07-22 15:00Financial 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]