Cementos Pacasmayo S.A.A. Announces Consolidated Results For Third Quarter 2017

Cementos Pacasmayo S.A.A. and subsidiaries (NYSE: CPAC; BVL: CPACASC1) ("the Company" or "Cementos Pacasmayo") a leading cement company serving the Peruvian construction industry, today announced its consolidated results for the third quarter ("3Q17") and nine months ("9M17") ended September 30, 2017. These results have been prepared in accordance with International Financial Reporting Standards ("IFRS") and are stated in nominal Peruvian Soles (S/).

Financial and Operational Highlights:

3Q17 Highlights

(All comparisons are to 3Q16 unless otherwise stated)
  • Sales volume of cement, concrete and blocks increased 4.8%, primarily due to increased sales volume to the self-construction segment and a pick up in public sector spending mainly for repairs, towards the end of the quarter. Peru was affected by Coastal El Niño that resulted in significant losses. Official reconstruction spending from the government has not yet started so there is still space for significant growth in the next quarters.
  • Revenues increased 6.7%, primarily due to the increase in volume described above as well as an increase in price.
  • Gross margin of 40.1%; a 2.7 percentage point decrease mainly due to higher raw materials costs after damage from Coastal El Niño.
  • Consolidated EBITDA increased 38.9% as compared to 2Q17, to 107.2 MM. Cement EBITDA margin increased to 32.2%, from 27.6% in 2Q17.
  • Net income of Continuing Operations of S/38.6 million; a 15.7% decrease mainly due to lower operating profit resulting from increased costs of some raw materials, as well as continued expenses related to transporting raw material via an alternate route as well as to exchange rate-related gain in 3Q16.

9M17 Highlights

(All comparisons are to 9M16, unless otherwise stated)
  • Sales volume of cement, concrete and blocks decreased 3.5% primarily due to a sharp decline in sales volume in the first four months of the year associated with Coastal El Niño.
  • Revenues decreased 2.8%.
  • Gross margin of 39.8%, 1 percentage point lower than 9M16.
  • Consolidated EBITDA of S/266.9 million, a 7.7% decrease, mainly due to Coastal El Niño related damages. Cement EBITDA margin of 30.0%, a 1.5 percentage point decrease resulting from lower operating profit.
  • Net income of Continuing Operations of S/82.3 million, a 24.6% decrease resulting from lower sales and lower operating margin during the first four months of the year, as well as higher expenses due to damage from Coastal El Niño.

For a full version of Cementos Pacasmayo's Third Quarter 2017 Earnings Release, please visit http://www.cementospacasmayo.com.pe/investors/.

CONFERENCE CALL INFORMATION:

Cementos Pacasmayo will host a conference call on Friday, October 27, 2017, to discuss these results at 10:00 a.m. Lima Time/11:00 a.m. Eastern Time.

To access the call, please dial:+1 (888) 567-1602 (From within the U.S.)+1 (404) 267-0373 (From outside the U.S.)

There will also be a live Audio Webcast of the event at: http://www.investorcalendar.com/event/20970

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 Company's shares were listed on The New York Stock Exchange - Euronext under the ticker symbol "CPAC". With more than 59 years of operating history, the Company produces, distributes and sells cement and cement-related materials, such as concrete blocks and ready-mix concrete. Cementos Pacasmayo's 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/investors

This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, Company performance and financial results. Also, certain reclassifications have been made to make figures comparable for the periods. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the Company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.

View source version on businesswire.com: http://www.businesswire.com/news/home/20171026006678/en/

Copyright Business Wire 2010

More from Press Releases

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

21st Century Fox Scoops Up Local News Stations

21st Century Fox Scoops Up Local News Stations

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Three-Part FREE Webinar Series

Three-Part FREE Webinar Series

March 24 Full-Day Course Offering: Professional Approach to Trading SPX

March 24 Full-Day Course Offering: Professional Approach to Trading SPX