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01/11 11:26
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
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.
Sales Volume Increased by 9% year-over-year, driven by stronger demand from infrastructure projects and consistent performance in the Self-construction segment.
Gross Profit Increased by 14.4% year-over-year, reflecting improved cost efficiency and strengthened profitability.
Net Income Increased by 14.4% year-over-year, reaching PEN 71.5 million, due to improved cost efficiency and profitability.
Revenues Increased by 10.9% year-over-year, reaching PEN 574.1 million, mainly due to higher sales of concrete and pavement for infrastructure projects and bagged cement.
Consolidated EBITDA Increased by 3.9% year-over-year, reaching PEN 160.6 million, driven by increased operating income.
Administrative Expenses Increased by 20.2% year-over-year, mainly due to higher personnel expenses from the union bonus.
Selling Expenses Increased by 25.5% year-over-year, mainly due to higher advertising and promotion expenses and the union bonus.
Cement Sales Increased by 10.4% year-over-year, driven by increased demand. Gross margin increased by 1.6 percentage points due to lower costs of coal and energy.
Concrete, Pavement, and Mortar Sales Increased by 26.3% year-over-year, driven by infrastructure projects like the Tarata Bridge and Yanacocha water treatment plant. Gross margin increased by 2.6 percentage points due to higher dilution of fixed costs.
Precast Materials Sales Increased by 23% year-over-year, driven by strong sales of the most profitable product within the precast line. Gross margin increased by 5.6 percentage points.
Net Income (Consolidated Results) Increased by 14.4% year-over-year, primarily due to higher operating income, lower interest payments from debt amortization, and favorable foreign exchange rate effects.
Net Debt-to-EBITDA Ratio Improved to 2.5x, reflecting higher EBITDA and debt amortization payments.
Innovative building solutions: Developed solutions promoting efficient, safe, and sustainable construction, including an industrial langard integrating prefabrication and B-methodology technologies.
Water treatment plant: Collaborated with Newmont and Bechtel Corporation to construct a water treatment plant at the Yanacocha operation, focusing on treating acidic water for environmental sustainability.
Sales growth: Sales volume increased by 9% compared to the same period last year, driven by infrastructure projects and the Self-construction segment.
Concrete and pavement sales: Increased by 26.3% this quarter due to infrastructure projects like the Tarata Bridge and Yanacocha water treatment plant.
Cost efficiency: Gross profit increased by 14.4% due to lower raw material costs and operational efficiencies.
Debt management: Net debt-to-EBITDA ratio improved to 2.5x due to higher EBITDA and debt amortization payments.
Reputation ranking: Ranked among the top 10 companies in the American corporate reputation ranking for the third consecutive year, emphasizing responsible and ethical management.
Administrative Expenses: Administrative expenses for the third quarter of 2025 increased 20.2% compared to the third quarter of 2024, and for the first 9 months of the year, they increased 18.7%. This was mainly due to higher personnel expenses because of the union bonus, which could strain operational budgets.
Selling Expenses: Selling expenses increased 25.5% during the third quarter of 2025 and 24% during the first 9 months of the year compared to the same period in 2024. This increase was mainly due to higher advertising and promotion expenses as part of the commercial strategy, which could impact profitability.
Gross Margin for Concrete, Pavement, and Mortar: While sales of concrete, pavement, and mortar increased, the gross margin for the first 9 months of the year decreased by 2.3 percentage points compared to the same period last year, indicating potential challenges in cost management or pricing strategy.
Union Bonus Impact: The union bonus contributed to increased administrative and selling expenses, which could pose a challenge to maintaining cost efficiency.
Debt Levels: Although the net debt-to-EBITDA ratio improved to 2.5x due to debt amortization and higher EBITDA, the company still carries significant debt, which could pose risks in less favorable market conditions.
Future demand and client-centric approach: The company is adapting its products and services to meet current and future demand, emphasizing a client-centric approach. This includes innovative building solutions and sustainable construction methods.
Environmental sustainability initiatives: Collaboration with Newmont and Bechtel Corporation on a water treatment plant at the Yanacocha operation to treat acidic water in mining, ensuring proper water management and reducing environmental impact.
Market momentum and long-term success: The company expects the positive momentum in sales and profitability to continue strengthening in the coming quarters, driven by doing what is right for clients, communities, and the country.
The selected topic was not discussed during the call.
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.
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