CPAC - Earnings call transcript Q4 2021 | Cementos Pacasmayo S.A.A.

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Operator

Good day, ladies and gentlemen. Welcome to the Cementos Pacasmayo's Fourth Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. And please note that this call is being recorded. At the conclusion of our prepared remarks, we will conduct a question-and-answer session. to host like today, now would introduce for our Ms. I Investor Relations Bustamante, Manager. Claudia Ms. begin. Bustamante, you may

Claudia Bustamante

Thank morning, Matthew. you, Good everyone.

of over Manuel Financial Joining me then our might will forward-looking Chief Please are Mr. We'll our beliefs, and Mr. that our commentary call to on turn call Humberto affect Humberto that are our regulatory additional include this on the to other results. of risks call not Executive today relate company's the are with These therefore an expectations, subject Mr. strategic on Officer, short events the will Mr. set then call primarily with the like Nadal Officer. With the in is or overview that, Nadal, Ferreyros, trends begin Chief matters and quarter now certain for that the Nadal. questions. and findings. financial follow results. statements. Descriptions to medium-term. these focusing over outlook Mr. to note to facts turn statements risks call historical Ferreyros I'd projections, your forth future uncertainties will and our and

Humberto Nadal

Welcome call. today's to Claudia. conference you, Thank everyone

of reached which quarterly as company which an revenues in This XX.X%. of was EBITDA, was outstanding concrete, the and in reflected us and a mix cement increase solutions. in These all in to lead improved building slight This higher improvement $XXX.X history. favoring prices quarter, sales also we highest an well decrease both the offset saw volumes cement by as higher margin million,

want compared cement sales, that that last on the But to XXXX, record become is XXXX. most truly very difficult compared pleased also these our aware to building task important to Because with when increased year. revenues based to to results. with This remarkable surpass results, annual continues we're increased We're it a terms strategy period In XX% provider. be almost is it's concrete sales XX% of a aligned to a our and represent of almost to motor mention in solutions bag these of extremely same levels.

goal levels. still XXXX, maintain challenging extremely volume current to which for So sales our an one, is is

keep that or have million XXXX, to selling focus which tons the to take X.X to in You an strategic almost view would review whole a mind for went tons year we in million future. XX%. like our from XX.X means to increase opportunity is this XXXX as I in on and

undeniably got sales any this As This mentioned calculated is of and beginning. at unprecedented EBITDA. levels before, exceptional estimates beyond year, sale and which and is our rationality the

we Country, As as conditions market market evidenced share. the by before, increased the out positive are our through national is it have mentioned

the our have needs. even have public demand. to is for [Indiscernible] is of strategy, reason, By or the Part reinforcing managed to and it respond We maintaining generic of this spending national and clientcentric social of their variety a been our able products that unique develop services our also we north to irrational fair if the grow average. to above reconstruction that say

and brand. professional For industrial segment other Pacasmayo

We continued and of the process digitalizing products uses the in our purchasing services.

We entirely our have transactional relationship almost been with clients. digitalized our

and market. integrate hand, purchasing construction For the and the our [Indiscernible], ecosystem are of digital continuous formalization the solutions, physical [Indiscernible] and and improves they on an approximatization experience other to

for is we abated many, COVID-XX show believe been many pandemic this significant path. improvements have excessive relevant years need sustainability that has now, at working to and in pressing the we Although with core our

past is nature. Evidence reach of standards, to model the strive place always mean, highest Jones included with years, and our year improving looking year. sites during reach consecutive our co-banner ranking I the in and been Sustainability to the eighth always the we that global leaders, to Index always every our three ourselves fact this the our have are We despite Dow garage for industry in

years. been consecutive included a for book also have year two sustainability in We

were Our status, industry. proud. in recorded the score extremely awarded mover the eight The makes year, first index companies us These year, one year we the in as this industry we of improvement we our included. year a on remain cement strong as only

companies. increasing. XXX of reached place pleased [Indiscernible] cement XX we spots are any the see top national hope since very the world We in top recently [Indiscernible] improvement ranking, strongest number to year. are joining Index will level, company and [Indiscernible] more the by and were XX that the companies in named yearbook and the improving last The continue in At

We our are many many and see are improvement. to rewarded. for strive years recognized are of and of continue this very pleased that to achievement proud efforts [Indiscernible] We'll

that better. know the are they scores. can [Indiscernible] Manuel do constantly I us to always turn we (ph) things ourselves challenging we we now And call to for are reach higher As over will

Manuel Ferreyros

compared Thank had quarter the this last you, use Consolidated in mainly as last before, compared year, in the company, and increased the and bag EBITDA million due year, the revenues quarter due of performed cement same of XX.X% $XXX.X profit Gross to increase as mainly Humberto. period increase the Good fourth-quarter XXXX, prices, quarter. same compared increase fourth quarter XX.X% history when to X.X% mentioned to million XXXX, well in the the highest sales, which fourth well everyone. very the sales. of mainly as morning, Fourth increased period due partially imported to offset a to were XXXX of concrete higher to increased we was when by to costs XXX.X sales [Indiscernible]. in

increased For the XX.X%. year, revenues full

Humberto volume. highest higher concrete, is to favorable since mix of and imported significant use as which well sales sales amount Pricing XX% as As increased margin our increased we production history. costs. due a clinker, Despite of cement increased both cement. of company sold more EBITDA mainly This And in having of types mentioned. EBITDA the

increase year. compared X.X% period the in high due fourth expenses, last were Turning decreased to COVID-XX to personnel which expenses same and donations, the intuitive we to quarter of operating expense XXXX. during to due and the for Mainly

increased administrative ensure sharing as profit in third-party in XXXX, increase mainly as expenses line Selling It halt due is fourth covered when increased safety sales. also of the administered administrative to note base, variable in-line for well important compared that quarter production an the increase rate, the XXXX salaries -- expenses the of restrictions increased services and of comply with to workers to to to X.X% in budget low know protocols the increase to with to workers. related period that with income due after to exchange During during increase an in mainly commercialization. increased tax the XX% expenses XXXX, due mainly expenses in our were

mentioned selling mainly during to increase before, and During XX.X% expenses low of in increased promotion because as we recovered as XXXX, increase well base XXXX in COVID-XX. to the from an section as XXXX, advertising variable compared a salaries due

different segment. volumes concrete, of to increased sales increased a compared bag X% quarter on sales the fourth on due Moving price same well Cement, XXXX, precast of to period during price the XXXX mainly of and higher as costs XXXX, offset clinker, with XXXX of the fourth to as Gross to the cement as of of higher Gross partially imported production due prices. a period which of remained line in of use mainly during result the margin were margin. cement, by same higher of quarter concrete.

fourth-quarter, increased as in due inflation. concrete, same the XX.X%, cost with in mainly driven point cement, XX of offset full-year in favorable XX.X% XXXX and remained of volume, to cement prices Gross the sales substantial prices as in margin more and an increased increased in line sales on by precast For bucks. mix. both the concrete increase well cement to XXXX, increase Sales sales the

increased mainly the increase before. we due our in As sold margin type X.X% points, its average higher prices to of cement. Gross more of margins mentioned

increasing full-year the this an sales during the due to sales decreased year, margins the and Gross XX.X%, the quarter imported quarter of for increased quarter, increase special in the decreased compared the For to demand. increased due concrete because increased use satisfy margin [Indiscernible]. derived mainly Gross increased X.X% as to X.X cement points martyr of Concrete higher of year, this due percentage of mainly quarter price. the margins clinker X.X% in shipments in to to volumes. fourth period mainly a same X%, due of this as XXXX XXXX of last from fourth most points, to sales volume cost pavement, increased mainly well --

of XXXX. XXXX, due of a a price, due Precast to as of negative sales, Gross the commercialization costs, quarter basis XXXX in full-year margin as from higher the Paint second demand to increase to terms compared inventories of well as less halted. For XXXX, volumes a sales an comparative to off quarter concrete quarter a quarter costs. second the tax XX.X% when quarter mainly increased fourth stop compared sharp of this XXXX, well up fourth due the dilution and which as base to sales in some during and XX.X% complete sales the XXXX. mainly both increasing fixed due generates of was decreased comparison from low in of was right the of mainly to in

[Indiscernible] have mainly This the against cash and the points regain when same to before. related to the the able for sales light Gross we mainly in precast XXXX inventories since fourth decreased volume percentage margin compared compared the sales pavement been quarter XX% to last of increased to such reconstruction mentioned of XX.X as sales last fourth when we quarter due X.X to due pass sell of line compared quick year for to increased the full blocks have The some average increased clients. our XXXX, to increased period the quick products, of For XXXX, quarter XXXX. when of projects. year, XXXX

more However, there these either plenty contribution the since was spare costs capacity. are higher are by margin distance, large of so

X.X% period sales mainly the During mentioned period increased mentioned XXXX, compared to Sales mainly margin, Gross year decreased full to of XX.X% year, cost full before. the the infectious. last to of our XXXX, to due due XXXX sales increased of quicklime of points the during same the compared before. however, volume year same right

on XXXX, of cost Mainly During increased due unusually sales compared mainly fourth the of the material, XXXX as to of XXXX steel same fourth year year, well increased when the an bars. rate with XXXX as the respectively. as quarter margin and same period in in the the last to due affected remained XX.X% imported XXXX. sales in the second quarter quarter year, whole that fourth of of with during low exchange such periods line XX.X% in last the in the Gross quarter

and -- XXXX, of quarter higher X% revenues primarily XXXX, During due the million, fourth X.X the the quarter period the from increase the profit fourth prices. was to to for increased of increased $XX.X average compared

million, quarter's $XXX.X lockdown as loss XXXX, million more was To For profit the XXXX increased the revenues of losses increase effect compared to $XXX.X despite all as to the some results period. complex. the of summarize, the volumes XXXX this -- basis during well to full year comparative our continue show strength in as the net mainly during become the slowdown during

XXXX outstanding Phase open full-year efficiency. are results and in as please with this growing focuses our financial for steadily now substantially. we operational difficult that prudent to some cash-generating financial the position as to call questions? on times can and believe is For and a flexibility are We increasing, during management show future the and demand We continue sign-ins payout financial strong

Operator

pick now posing listening Certainly. is quality. poll Instruction]. hold floor Ladies speakerphone [Operator sound provide your your open you. handset for up questions. while that if do you're to on and questions. optimum Please Thank We we for while the please ask question, gentlemen,

Please question question. Huerta. Your Adrian first your your from announce then coming affiliation, is pose

Adrian Huerta

Thank has on JP Hi, Manuel. from and and My Morgan. question to congrats Huerta do demand. I'm results. taking you. question you with Humberto my Thank for the

self-construction the what year? just cement was volumes the full And your of reconstruction done efforts what in from for If you on percentage country? can was growth the tell last the year demand us during

Humberto Nadal

Hi, Adrian. Good to hear you. from

tons was to two months million I through XX% XXXX, the X.X we really the year mine we which probably million, XXXX, last record around -- Like, and I on Reconstruction higher. mean, was outstanding. mean, were was cost it of previous think, not closer the X.X, it which gives in that was were you the were mean, X%. even after I relevant. lockdown, is X.X year, a I

we or when the So from really going extremely coming seeing has high projects see informal see, materialize. are they I reconstruction what year also, demand made, with probably to more that employment the things mean, need that find to even houses to younger their demand. this generating agriculture We're some months sector. need we or it do like some lock to people when I home. believe in of a much strong fishing, And realize that's a other people levels is try lot all terms And some construction. on all But improvement, houses so you families in for -- even they many be new

our point And selling think also we we're XXXX probably firm I number demand were working cement So been two, basis That were -- we've pushing is so we before mean, solutions. being important building there. I and sold. clay bricks has from were still been very

So I of all think combination it's those a things.

Adrian Huerta

for the Humberto to the want I inflation year another throughout Growth try quarter catch was it there question. another the quarter, year? if And at the that strong [Indiscernible] year? a add and how X%, and with you fourth X% on the may to up you, year, prices you is last increase was bit even in this this thank had least whole what and

Humberto Nadal

prices. the CEO, as Last don't recall our rates. we in above here, in important X%. this our above level rule raise keep which think keep to year increase profitability. was and out was I competitive. -- year way extremely, -- But at price years the overall, the inflation -- extremely [Indiscernible] of small was to of we opportunities there's seeing rate able was XX%, will It we I already a close we're all It's were to very

Adrian Huerta

didn't in increases increase you. not this Thank January? price January, far in on all year, It's price have so you even

Humberto Nadal

price yes. on of We January, little bit a moved

Adrian Huerta

you. Thank Okay.

Humberto Nadal

Adrian. care. you, Thank Take

Operator

you. There queue switch no We'll to Thank webcast at time. now questions. questions further the in this are

Claudia Bustamante

all And continue Ricardo. if the the Okay. favorable to for Paulo question XXXX. expect use I during mix information changes in have you additional provide a Can you effect sales quarter? this on in mix

Manuel Ferreyros

infrastructure, profitable cement. than pushing profitable public MF expensive they're the they also type the all-purpose that into Hopefully cement. more little of And The answers more the is a or cement more the questions. Yes. spend that self-construction a bit

Claudia Bustamante

volumes mix Yes, is The we on question What second thank improvement, dynamic come are -- next XXXX? much you from a color (ph). project? And How the in more part, think for which reconstruction just provide the expectations you. could Ramal Louis from of this will your I

Humberto Nadal

to volume. XX% That's the and I mean, we're volume tons cement we my I X.X of the XX%. to like representation. an of I million in mean, demand said really used incredible is have national up

at think we higher to manage an outstanding I if the will prices volumes So results. keep be

really terms will to In we of of be number, a will that reconstruction, south X%. relevant XXXX XXXX to grow X%, so it's have not in

Claudia Bustamante

what [Indiscernible] XXXX sales question, one for we for have and margins targets on are your

Humberto Nadal

of of X.X in like I to terms margins, therefore, is have In our our tons. before, [Indiscernible] XX.X%. million sales mentioned terms And idea

Claudia Bustamante

as will Regarding competition to prices, them remain do foresee or down return we prices -pandemic drive supply pre levels? to chain

Humberto Nadal

the -- were we last before, increase mentioned last the in even year, price quarter. I buy Like over able to substantial the

X%, with priced. to sales up as went even [Indiscernible] revenues were down though recent Our XX%, fundamentally

this moving We January bit on February started a and year. little have

on keep going competitive situation. see if to And the watching we're depending still increased. that to be can we're going prices So

Claudia Bustamante

of on couple A the questions dividend.

regarding question from We [Indiscernible] have first our dividends. from [Indiscernible]

You mentioned XXX per results $X.XX XXXX That [Indiscernible]? dividends of general are take million. enough. is the you From about which share. accounts not will accumulated

Humberto Nadal

that also -- still very out most levels earnings. from And what of dividend year many, for that sure absolutely the to past A our high mean, gave should this normal year of we return understand. that the a to more return in but I investors you back past, we're many the in this exceptional payout we're dividend year I'm And mind was we fact mind year. keep go resources. This recovering

to first in to And the going a how pandemic. two of coming a see will probably before quarters results it go to we're was what year. of have level this south the So somewhere

Claudia Bustamante

to 'XX on financial you from Ashmore. guidance and this competition How do environment strong see for needs provide Moving XXXX? question of from Could a for demands CapEx you under prices? higher and [Indiscernible]

Humberto Nadal

mean, either even import cement. those to up back Well, dollar competitive very I a or less in to people thing of much heating Fortinet's XXX, with competition, by for terms its one

So to I we the we still levels, logistic us of and in concern much, not remains I are but -pandemic expensive think that confusing. and extremely, in chain will extremely saying non-concern, was pretty were seems competition This world's pre huge the that I'm terms less -- it be in a year issue

Manuel Ferreyros

This should similar as be the last year.

of around XXXX So million. $XXX

Humberto Nadal

plus. Yes, so basically million around was it $XX

Manuel Ferreyros

number upgrade the the include Pacasmayo the visual queue doesn't That over Capex for four.

Claudia Bustamante

finally So what -- recurred? levels then [Indiscernible] We from from And to are SG&A? levels this be expected similar [Indiscernible], the will expect of

Humberto Nadal

to Yeah XXXX. similar should be

worth up the volume the many commitment profitable optimization will investment We in within in the And site to macro for you been supply and everybody saw XXXX successful for the company's environment remarkably questions the an our friends. you to it year uncertain company. that to This year in sales closing us decision so clinker Thank record needed. order these very Okay. has ratifies development. really Pacasmayo lead taken be the

verified to of here our commitment commitment of the our But undoubtedly level, shady, think we of XX more us, than the the it's team, level I they biggest you Peru, professionals from be been The talented, has every really for have both professional challenging committed of could country for fully maybe more uncertain. the make and have have things all personal source two achieved success. are here convinced and none up stress on engagement the reason remain without the in years maybe we'll achieved single we group Again, complicated, every year. Pacasmayo, we none, extremely that an outstanding are goal plus have years. are possible I'm when maybe I come. that to been to I of the our mentioned word to achievements. these also absolutely decades many

be without will without absolutely people. nothing our We our team,

Our prosperous we now to our for current sustain management. proving that is sustainability results future. The financial continuing foundation challenge our and allow independent

today. in myself leave prepare back here, have go also, now fundamentally always, hopefully behind, challenge the Have our Claudia, back a the and taking very nice an always close in to much and COVID centered for want our the way Thank office as to anymore in questions. well-being and time and if enormous a please stay you Manuel, to we centered to As client. to go we safe. we're way being always we you day And have want in people's you fundamentally

Operator

and concludes This Thank gentlemen. you, event. today's ladies

and disconnect day. you for may You at your this time wonderful a have Thank participation.

Cementos Pacasmayo S.A.A. (CPAC) 15 Feb 222021 Q4 Earnings call transcript