Cementos Pacasmayo S.a.a. ((CPAC)) has held its Q2 earnings call. Read on for the main highlights of the call.
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The latest earnings call for Cementos Pacasmayo S.a.a. painted a picture of both optimism and caution. The company reported strong sales volume recovery and increased EBITDA, alongside notable achievements in public-private collaborations and talent management. However, these positive aspects were tempered by rising administrative and selling expenses and a decline in the gross margin for certain segments.
Strong Sales Volume Recovery
Sales volume for Cementos Pacasmayo increased by 7.1% year-over-year, driven by robust demand for cement and concrete, particularly in infrastructure projects. This growth underscores the company’s ability to capitalize on market opportunities and meet the rising needs of the construction sector.
Increased EBITDA and Profit Margin
The company reported a consolidated EBITDA of PEN 130.2 million, marking a 9% increase from the previous year. Additionally, net profit surged by 29.9%, fueled by higher revenues, gross profit, and reduced financing expenses, highlighting the company’s effective financial management.
Recognition in Talent Management
Cementos Pacasmayo was recognized for the seventh consecutive year as a top-ranked cement company in the MERCO Talent index, ranking 19th overall across all industries. This accolade reflects the company’s commitment to fostering a strong workforce and maintaining a positive corporate culture.
Public-Private Collaboration Success
The company’s involvement in the Obras por Impuestos program, with over $100 million committed this year, demonstrates its significant contributions to public infrastructure projects. This collaboration underscores the company’s role in driving regional development.
Positive Financial Performance
Revenues for Cementos Pacasmayo increased by 5.9% compared to the second quarter of 2024, with gross profit rising by 11.2% year-over-year. These gains were achieved through operational efficiencies and lower raw material costs, showcasing the company’s ability to enhance profitability.
Increased Administrative and Selling Expenses
Administrative expenses rose by 13.8% in Q2 2025 and 17.9% for the first half of the year, primarily due to higher personnel expenses related to union bonuses. Additionally, selling expenses increased by 28% in Q2 2025, reflecting heightened advertising and promotional efforts.
Gross Margin Decline in Concrete Segment
The gross margin for concrete, pavement, and mortar sales decreased by 3.2 percentage points in Q2 2025. This decline was mainly due to execution challenges and increased costs associated with the Piura Airport project.
Forward-Looking Guidance
Looking ahead, Cementos Pacasmayo anticipates high single-digit volume growth, with EBITDA margins expected to remain between 28% and 29%. The company plans to continue distributing dividends at levels consistent with previous years, maintaining a stable financial outlook.
In summary, Cementos Pacasmayo’s earnings call revealed a company navigating both opportunities and challenges. While the strong sales volume recovery and increased profitability are promising, rising expenses and margin pressures in certain segments warrant attention. Overall, the company remains optimistic about its growth prospects and financial stability.