Mixed results for Peru's biggest cement maker in H1

Unacem, Peru's largest cement maker, reported mixed results in January-June, with revenues up but net profit down.

The company's revenues grew 4.9% year-on-year to 219 million soles (US$58.7mn) in the first half of the year, but net profit for the period dipped 31.5% to 90.7mn soles.

According to the company, the contraction in profits was due to higher financial expenses for interest from tax obligations (28.7mn soles) and for the payment of taxes corresponding to 2010 (21.5mn soles) that were recognized in the results for 2Q24.

Although revenues were positive at the aggregate level, the results varied by productive sector (the company produces cement, ready-mix concrete and generates electricity) and by country (Unacem has operations in Peru, Chile, Ecuador and the US).

CEMENT

With the exception of operations in the US, cement dispatches dropped in both volume and revenues. In the case of Peru, cement dispatches reached 1.37Mt in 2Q24, sliding 2.8% year-on-year, with revenues of 653mn soles, down 1.6% compared with 2Q23.

According to the company, the drop in revenue was partially offset by a higher average price. Ebitda for the quarter totaled 232mn soles thanks to operational efficiencies in fuel.

In Chile, dispatches fell 11.7% to 113,000t in 2Q24, but revenues were up 12.5% to 12.5 billion pesos (US$13.2mn). 

The Ecuadoran operation dispatched 295,000t in 2Q24, which was a 2.6% decline from the same period of last year. According to the report, between the cement and ready-mixed concrete units, Unacem Ecuador's revenues totaled US$41.1mn, slipping only slightly from the US$41.4mn reported in 2Q23.

Unlike the Latin American operations, the US cement unit dispatched 324,000t, some 96.4% more than in 2Q23, but that was explained by the incorporation of the Tehachapi cement plant that Unacem acquired in August last year. 

The purchase made the US operations the second largest in terms of revenue generation. The US cement and ready-mixed concrete units together generated US$104mn in 2Q24.

READY-MIX CONCRETE

The company performed well in ready-mix concrete dispatches. In Peru, they reached 729,000m3 in 2Q24, up 21.5% compared with 2Q23, while revenues surged 18.5% to 333mn soles. According to the company, the larger volume sold was explained by large infrastructure works that required more material.

In Chile, dispatches grew 0.6% to 170,000m3 in 2Q24, generating 14.1bn pesos, up 3.9% year-on-year. In the US, the firm's volume sold was down 5.1% to 254,000m3.

ELECTRICITY GENERATION

Finally, the company's electricity generation units – Celepsa and Termochilca – contributed US$45.7mn in revenues. 

Although Celepsa saw revenues slide 5.5% to 30mn soles in 2Q24, the result was offset by Termochilca.

“The results of Celepsa and Termochilca compensate each other as Termochilca's generation is the natural coverage of our water platform. The consolidated results of the energy business in 2Q24 reached an Ebitda of US$12mn,” the company stated.