The following is a summary of the Cementos Pacasmayo S.A.A. (CPAC) Q2 2024 Earnings Call Transcript:
Financial Performance:
Cementos Pacasmayo reported a revenue increase of 3.4% in Q2 2024 to $457.1 million, mainly driven by concrete, mortar, pavement, and precast sales related to the Piura airport project.
Gross profit in Q2 2024 rose 5.9% primarily due to lower production costs and the cessation of imported clinker use.
Consolidated EBITDA increased by 6.1% in Q2 2024, attributed to operational efficiencies and increased sales.
Net profit decreased by 15.4% in Q2 2024 compared to the same period last year, mainly due to a one-off exchange rate gain in Q2 2023.
Business Progress:
Cementos Pacasmayo completed phase 1 of the Piura airport project in Q2 2024 with the construction of a temporary runway.
The company started phase 2, the main runway reconstruction, expected to complete by December 2024.
Introduced a temporary housing service and an intelligent purchasing method (AYU) to aid low-income families and support their construction needs over time.
Opportunities:
Continued growth in public investment projects.
Increased sales participation in infrastructure projects such as the Piura airport project as well as the potential rise in precast sales from accelerated public sector projects.
Risks:
Decreased sales from the self-construction segment, which saw a 3.6% drop in cement volumes in Q2 2024.
Minor reduction in gross margins for concrete and pavement despite increased sales, attributed to the project mix which while diluting fixed costs, provided a lower margin.
More details: Cementos Pacasmayo IR
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