Peru: Cementos Pacasmayo sees 13% drop in sales in 4Q16

Peru's Cementos Pacasmayo saw its cement, concrete and blocks sales decline by 12.7 per cent YoY in 4Q16. However, there was extraordinary spending associated with El Niño prevention in the quarter. Compared to 3Q16 sales volumes increased.

Revenues decreased 9.8 per cent YoY to PEN316.7m (US$97.2m) while consolidated EBITDA fell 20.4 per cent YoY to PEN88.8m. The fall in EBITDA has been attributed by higher fixed costs, resulting from the lower sales volumes, as well as one-off expenses related to the permanent environmental closure of the company’s zinc operations and the dissolution of Calizas del Norte the subsidiary which used to exploit the limestone mines that are now operated by third parties.
 
Net income of continuing operations stood at PEN10.2m an 83.3% decrease, primarily due to increased depreciation and the termination of borrowing cost capitalisation following the conclusion of the Piura plant project, as well as an increase in income tax rate and an adverse exchange rate effect.