Cementos Pacasmayo S.A.A. and subsidiaries (NYSE: CPAC) (BVL: CPACASC1) (the Company or Pacasmayo) a leading cement company serving the Peruvian construction industry, announced today its consolidated results for the fourth quarter (4Q18) and full year (2018) ended December 31, 2018. These results have been prepared in accordance with International Financial Reporting Standards (IFRS) and are stated in nominal Peruvian Soles (S/).
4Q18 Financial and Operational Highlights:
(All comparisons are to 4Q17, unless otherwise stated)
- Sales volume of cement, concrete and precast increased 5.6% mainly due to a recovery of the public sector, as well as increased sales to the self-construction segment and small and medium sized projects.
- Revenues increased 4.6%, mainly due to the increase in sales volume mentioned above.
- Cement EBITDA margin of 26.6%, a 5.8 percentage points decrease mainly due to a non-cash effect generated by the provision of an account receivable to the Peruvian tax authority, as well as an increase in production cost.
- Net Income of S/ -11.5 million, mainly due to two non-cash effects: the provision explained above, and the expense arising from the accumulated exchange rate loss due to the purchase of part of the international bonds explained below. Excluding these effects, net income would have been S/ 19.4 million.
- Debt reprofiling on December, the Company purchased $168.4 million of the $300 million of outstanding bonds, and later issued two local bond placements. One for S/ 260 million with a rate of 6.68750% and a 10 year maturity and another one for S/ 310 million with a 15 year maturity and an interest rate of 6.84375%.
- ISO 37001:2016 “ During 2018 the Company implemented the Anti-bribery management systems obtaining the certification in January 2019, reiterating our commitment to global anti-bribery best practices and high standards of transparency and good corporate governance.
2018 Financial and Operational Highlights:
(All comparisons are to 2017, unless otherwise stated)
- Sales volume of cement, concrete and precast increased 4.3%, mainly due to higher sales to medium-sized companies, the self-construction sector and the public sector.
- Revenues increased 3.5%, primarily due to the increase in sales volume described above.
- Cement EBITDA margin of 29.6%, 1.2 percentage points lower, mainly due to cost increases and the provision mentioned above.
- Net Income of S/ 75.1 million, mainly due to the two non-cash effects explained above. Excluding these effects, net income would have been S/ 106.1 million.
We would like to apologize for the delay in releasing the result. We experienced some unexpected technical issues uploading the information to the Peruvian Securities Commission (Superintendencia del Mercado de Valores, SMV). For a full version of Cementos Pacasmayos Fourth Quarter 2018 Earnings Release, please visit http://cementospacasmayo.com.pe.
CONFERENCE CALL INFORMATION:
Cementos Pacasmayo hosted a conference call on Tuesday, February 12, 2019, to discuss these results at 11:00 a.m. Eastern Time and Lima Time.
To access a replay of this call will be available through March 12, 2018
To obtain the replay, please call: 1-877-481-4010 from within the U.S. +1-919-882-2331 from outside the U.S. Replay ID: #42409
There will also be a live Audio Webcast of the event available at: https://www.investornetwork.com/event/presentation/42409
A replay of the webcast will be available at the above link for one year following the call
About Cementos Pacasmayo S.A.A.
Cementos Pacasmayo S.A.A. is a cement company, located in the Northern region of Peru. In February 2012, the Companys shares were listed on The New York Stock Exchange – Euronext under the ticker symbol “CPAC”. With more than 61 years of operating history, the Company produces, distributes and sells cement and cement-related materials, such as concrete blocks and ready-mix concrete. Pacasmayos products are primarily used in construction, which has been one of the fastest-growing segments of the Peruvian economy in recent years. The Company also produces and sells quicklime for use in mining operations.
For more information, please visit http://www.cementospacasmayo.com.pe.
Cementos Pacasmayo S.A.A.
In Lima, Peru:
Manuel Ferreyros, CFO
Investor Relations Manager
+511-317-6000 Ext. 2165