LIMA, Peru--Cementos Pacasmayo S.A.A. and subsidiaries (NYSE:CPAC; BVL:CPACASC1) (“the Company” or “Cementos Pacasmayo”) a leading cement company serving the growing Peruvian construction industry, announced today its consolidated results for the fourth quarter (“4Q16”) and full year (2016) ended December 31, 2016. 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:
(All comparisons are to 4Q15, unless otherwise stated)
- Sales Volume of cement, concrete and blocks decreased by 12.7%. It is important to note that there was extraordinary spending associated with El Niño prevention in 4Q15. Compared to 3Q16, volumes increased 1.3%.
- Revenues decreased 9.8% to S/ 316.7 million.
- Consolidated EBITDA of S/ 88.8 million, a 20.4% decrease, primarily due to higher fixed costs resulting from lower sales volume, as well as one-off expenses related to the permanent environmental closure of our zinc operations and the dissolution of Calizas del Norte, the subsidiary which used to exploit the limestone mines that are now operated by third parties.
- Net income of Continuing Operations of S/ 10.2 million, an 83.3% decrease, primarily due to increased depreciation and the termination of borrowing cost capitalization following the conclusion of the Piura plant project, as well as an increase in income tax rate and an adverse exchange rate effect.
- In January, the Company announced that it had established March 1, 2017 as the effective spin-off date for FOSSAL S.A.A. The registration and exchange date will also be March 1, 2017.
(All comparisons are to 2015, unless otherwise stated)
- Sales volume of cement, concrete and blocks decreased 1%.
- Revenues increased by 0.7% to S/ 1,240.2 million.
- Consolidated EBITDA of S/ 371.9 million, down 2.4% excluding non-operating income booked in 2Q15 from the sale of real estate assets. This EBITDA includes one-off expenses; excluding these expenses EBITDA would have been similar to 2015.
- Net income of Continuing Operations of S/ 119.5 million; a 43.6% decrease excluding non-operating income. This decrease is fully attributable to increased depreciation and to the termination of borrowing cost capitalization following the conclusion of the Piura plant project, as well as an increase in income tax rate and an adverse exchange rate effect. Without these effects net income would have increased.
For a full version of Cementos Pacasmayo’s Fourth Quarter 2016 Earnings Release, please visit http://www.cementospacasmayo.com.pe/investors/.
CONFERENCE CALL INFORMATION:
Cementos Pacasmayo will host a conference call on Wednesday, February 15, 2017, to discuss these results at 10:00 a.m. Lima Time/Eastern Time.
To access the call, please dial:
+1 888 419 5570 (From within the U.S.)
+1 617 896 9871 (From outside the U.S.)
Participant Passcode: 158 338 85
There will also be a live Audio Webcast of the event at:
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 58 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
Note: The Company presented some figures converted from Soles to U.S. Dollars for comparison purposes. The exchange rate used to convert Soles to U.S. dollars was S/ 3.356 per US$ 1.00, which was the exchange rate, reported as of December 31, 2016 by the Superintendencia de Banca, Seguros y AFP’s (SBS). The information presented in U.S. dollars is for the convenience of the reader only. Certain figures included in this report have been subject to rounding adjustments. Accordingly, figures shown as totals in certain tables may not be arithmetic aggregations of the figures presented in previous quarters.
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.