Cementos Pacasmayo net income drops 14% in 3Q18

Cementos Pacasmayo net income drops 14% in 3Q18
30 October 2018

Cementos Pacasmayo saw its revenues fall by 4.4 per cent to PEN318.8m (US$95.2m) in 3Q18, mainly due to change in mix of products sold and to a slight decrease in prices.

It also reported a 1.9 per cent rise in sales volumes of cement, concrete and precasts to 610,800t, mainly due to a recovery in the self-construction segment as well as increased sales to small and medium-sized projects.

Net income declined 13.5 per cent YoY to PEN33.4m as operating income fell as a result of higher coal prices and increases in raw material costs.

Total cement production volumes in 3Q17 remained flat at 606,800t although there was significant variation between plants. Cement production at the Pacasmayo plant increased 8.8 per cent YoY to 307,700t and 3.1 per cent at the Rioja works, which produced 75,600t in 3Q18. The Piura facility saw an 11.1 per cent YoY drop in output to 223,500t from a high 3Q17 base following a recovery after the Coastal El Niño.

In the first nine months of the year, sales volumes were up 3.8 per cent YoY to 1.708t as sales to medium-sized companies, the public and self-construction sectors increased. As a result, revenues rose 3.1 per cent YoY to PEN921.6m.

The company’s net income of PEN86.7m, representing a rise of 6.4 per cent, was attributed to a higher operating income.

Cement output in 9M18 edged up 2.4 per cent to 1.691Mt despite a 6.6 per cent drop to 196,400t at the Rioja plant, due to protest-related road blocks and decreased public demand in the first six months of the year. At the Pacasmayo works production rose by 2.5 per cent to 831,400t and Piura increased its output by 5.4 per cent to 663,500t.

Published under Cement News