Loading...
01/11 11:26
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call presents mixed signals: positive revenue growth, improved net profit, and deleveraging are offset by increased expenses and margin declines in key segments. The Q&A reveals management's optimism about future volumes and stable EBITDA margins, but concerns about labor costs and unclear responses temper enthusiasm. No new partnerships or shareholder return plans were announced. Overall, the sentiment is neutral as the positives are balanced by potential risks and uncertainties.
Revenue PEN499.2 million, up 4.8% year-over-year due to stronger demand for bagged cement and concrete for infrastructure projects.
Consolidated EBITDA PEN134.7 million, a 1.4% increase year-over-year, driven by increased operating income, partially offset by higher expenses related to collective bargaining negotiations.
Gross Profit Increased by 5.5% year-over-year, mainly due to a slight decrease in the cost of raw materials.
Administrative Expenses Increased by 22.4% year-over-year, primarily due to increased personnel expenses from union bonuses.
Selling Expenses Increased by 18.8% year-over-year, mainly due to higher advertising and promotion expenses and union bonuses.
Cement Sales Increased by 3.9% year-over-year, driven by increased demand.
Gross Margin Increased by 2.6% year-over-year, mainly due to lower costs of raw materials.
Concrete, Pavement and Mortar Sales Increased by 22.3% year-over-year, driven by sales for major infrastructure projects.
Gross Margin (Concrete, Pavement and Mortar) Decreased by 6.5 percentage points year-over-year, mainly due to execution costs of the Piura Airport project.
Precast Materials Sales Increased by 6.8% year-over-year, mainly due to increased sales volume to the public sector.
Gross Margin (Precast Materials) Decreased by 1.8 percentage points year-over-year, mainly due to lower dilution of fixed costs.
Net Profit Increased by 6.5% year-over-year, driven by increased revenues, gross profit, and a reduction in financing expenses.
Net Debt-to-EBITDA Ratio 2.6 times, improved from previous quarter as the company continues to deleverage.
Sales of Concrete, Pavement, and Mortar: Sales increased 22.3% year-over-year, driven by three major infrastructure projects.
Sales of Cement: Sales increased 3.9% this quarter compared to the same period of last year.
Precast Materials: Sales increased 6.8% this quarter compared to the first quarter of 2024.
Market Positioning in Infrastructure Development: Positioned as a preferred choice for infrastructure development in northern Peru.
Consolidated EBITDA: Consolidated EBITDA was $134.7 million, a 1.4% increase year-over-year.
Administrative Expenses: Increased 22.4% due to personnel expenses related to union bonuses.
Selling Expenses: Increased 18.8% due to advertising and promotion expenses.
Decarbonization Strategy: Advancing trials with biomass and waste-derived fuels to reduce coal use.
Long-term Strategy: Focus on improving products and services to promote concrete over other materials.
Revenue Recovery Risks: Despite a 4.8% year-over-year increase in revenues, the company faced challenges due to adverse weather conditions, specifically rain in March, which impacted sales.
Labor Cost Risks: Increased expenses related to collective bargaining negotiations with labor unions, which occur every three years, have led to higher personnel costs and bonuses in the first year of agreements.
Project Execution Risks: The execution of major infrastructure projects, such as the Piura Airport project, has resulted in increased costs and a decrease in gross margin due to extended execution periods and exchange rate discrepancies.
Supply Chain Risks: The company is experiencing increased operating expenses, particularly in administrative and selling expenses, which are influenced by rising costs of raw materials and advertising.
Regulatory and Environmental Risks: The company is focused on decarbonization and finding cleaner alternatives to coal, which presents challenges in balancing environmental goals with affordability for consumers.
Revenue Growth: Revenues increased by 4.8% year-over-year, driven by stronger demand for bagged cement and concrete for infrastructure projects.
Infrastructure Projects: Successful execution of three major infrastructure projects, including Motupe riverbank defenses, Yanacocha, and Tarata bridge, contributing to a 22.3% increase in concrete, pavement, and mortar sales.
Decarbonization Strategy: Advancing decarbonization efforts by exploring biomass from sugarcane and end-of-life tires as alternative fuels.
Long-term Strategy: Focus on improving products and services, positioning as a preferred choice for infrastructure development in northern Peru.
Future Revenue Expectations: Confidence in positive momentum carrying through the rest of the year.
EBITDA Projections: Consolidated EBITDA was $134.7 million, with expectations of continued growth despite increased expenses.
Gross Margin Outlook: Gross margin decreased 6.5 percentage points due to project execution costs, but long-term growth is anticipated.
Debt Management: Net debt-to-EBITDA ratio improved to 2.6 times, indicating effective deleveraging.
Share Buyback Program: None
The earnings call highlights strong financial performance with increased sales volumes and net income, improved cost efficiency, and a positive outlook on infrastructure projects. Despite increased expenses, the company's net profit rose, and debt levels improved. The Q&A session revealed continued strong volume and margin expectations, with no significant electoral impact anticipated. The company's strategic focus on infrastructure and marketing investments suggests a positive sentiment, likely leading to a stock price increase over the next two weeks.
The earnings call presents a mixed picture: revenue and EBITDA growth are positive, but increased expenses and declining margins pose concerns. The Q&A session reveals positive volume and dividend expectations but unclear competitive impacts from Chancay port. Overall, the financial performance and strategic updates balance out risks, suggesting a neutral stock price reaction.
The earnings call presents mixed signals: positive revenue growth, improved net profit, and deleveraging are offset by increased expenses and margin declines in key segments. The Q&A reveals management's optimism about future volumes and stable EBITDA margins, but concerns about labor costs and unclear responses temper enthusiasm. No new partnerships or shareholder return plans were announced. Overall, the sentiment is neutral as the positives are balanced by potential risks and uncertainties.
The earnings call summary and Q&A indicate strong financial performance with record EBITDA and net profit growth, improved debt ratios, and positive revenue expectations. The share buyback program also supports a positive sentiment. However, concerns about demand fluctuations, regulatory challenges, and supply chain issues slightly temper the outlook. Overall, the sentiment is positive, with potential for stock price appreciation, especially given the share buyback program and operational efficiencies.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
