Cementos Pacasmayo, a leading cement company serving the growing Peruvian construction industry, announced its consolidated results for the fourth quarter and full year 2016 ended Dec. 31.
Sales volume of cement, concrete and blocks decreased by 12.7 percent in the fourth quarter compared to the prior year. However, it is important to note that there was extraordinary spending associated with El Niño prevention in the fourth quarter of 2015. Compared to third quarter of 2016, volumes increased 1.3 percent.
Revenues for the quarter decreased 9.8 percent compared to 2015. Consolidated EBITDA of S/ 88.8 million ($27.2 million), a 20.4 percent 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 the company’s 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 was S/ 10.2 million ($3.1 million), an 83.3 percent 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.
For 2016, the company said sales volume of cement, concrete and blocks decreased 1 percent compared to 2015. Revenues increased by 0.7 percent for the year. Consolidated EBITDA was S/ 371.9 million ($114.1 million), down 2.4 percent excluding non-operating income booked in the second quarter of 2015 from the sale of real estate assets. This EBITDA includes one-off expenses; excluding these expenses, the EBITDA would have been similar to 2015, noted the company.
Net income of continuing operations for the full year 2016 was S/ 119.5 million ($36.6 million); a 43.6 percent 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 2016.