Cementos Pacasmayo SAA (CPAC) 2024 Q2 法說會逐字稿

Good day, ladies and gentlemen. Welcome to Pacasmayo's second-quarter 2024 earnings conference call. (Operator Instructions) Please note that this call is being recorded. (Operator Instructions)

美好的一天，女士們先生們。歡迎參加 Pacasmayo 的 2024 年第二季財報電話會議。（操作員說明）請注意，此通話正在錄音。（操作員說明）

I would now like to introduce your host for today's call, Mrs. Claudia Bustamante, Sustainability and Investor Relations Manager. Mrs. Bustamante, you may begin.

現在我想介紹今天電話會議的主持人，可持續發展和投資者關係經理 Claudia Bustamante 女士。布斯塔曼特夫人，您可以開始了。

Thank you, Tim. Good morning, everyone. Joining me on the call today is Mr. Humberto Nadal, our Chief Executive Officer; and Mr. Manuel Ferreyros, our Chief Financial Officer. Mr. Nadal will begin our call with an overview of the quarter, focusing primarily on our strategic outlook for the short and medium term. Mr. Ferreyros will then follow with additional commentary on our financial results. We'll then turn the call over to your questions.

謝謝你，提姆。大家早安。今天和我一起參加電話會議的是我們的執行長溫貝托·納達爾 (Humberto Nadal) 先生；以及我們的財務長 Manuel Ferreyros 先生。納達爾先生將在我們的電話會議中概述本季度，主要關注我們的中短期戰略前景。Ferreyros 先生隨後將對我們的財務表現發表補充評論。然後我們會將電話轉至您的問題。

Please note that this call will include certain forward-looking statements. These statements relate to expectations, beliefs, projections, trends, and other matters that are not historical facts, and are therefore subject to risks and uncertainties that might affect future events or results. Descriptions of these risks are set forth in the company's regulatory filings.

請注意，本次電話會議將包含某些前瞻性陳述。這些陳述涉及預期、信念、預測、趨勢和其他非歷史事實的事項，因此存在可能影響未來事件或結果的風險和不確定性。這些風險的描述載於公司的監理文件中。

With that, I'd now like to turn the call over to Mr. Humberto Nadal.

現在，我想將電話轉給溫貝托·納達爾先生。

Thank you, Claudia. Welcome, everyone, to our quarterly results conference call. And thank you so much for joining us today. This quarter, revenues increased 3.4% year-over-year, showing a reversal of a negative trend that started almost two years ago. The increase in revenues were mainly driven by concrete and pavement sales related to the Piura Airport project, which almost doubled in this quarter as compared to the second quarter of 2023.

謝謝你，克勞迪婭。歡迎大家參加我們的季度業績電話會議。非常感謝您今天加入我們。本季營收年增 3.4%，扭轉了近兩年前開始的負面趨勢。收入的成長主要是由皮烏拉機場專案相關的混凝土和路面銷售推動的，與 2023 年第二季相比，本季幾乎翻了一番。

Furthermore, we were able to achieve a 6% increase in consolidated EBITDA, mainly due to operational efficiencies derived from our new kiln in Pacasmayo as well as favorable raw material prices. We are confident that the efficiencies achieved will be sustainable over time, and top line growth should sustain by the continued delivery of concrete and pavement for the airport projects and increased participation on public investment projects. These factors certainly make for a more promising second half of the year.

此外，我們的綜合 EBITDA 實現了 6% 的成長，這主要歸功於我們位於帕卡斯馬約的新窯帶來的營運效率以及有利的原材料價格。我們相信，隨著時間的推移，所取得的效率將是可持續的，並且透過持續交付機場項目的混凝土和路面以及增加對公共投資項目的參與，收入增長將得以維持。這些因素無疑地使下半年的前景更加光明。

Despite this increase in infrastructure-related demand, the housing sector in Peru is still by far the biggest driver of demand. According to a study conducted by GRADE, a private research center in Peru, there is a requirement of 142,000 new homes every single year. Social housing programs only cover 30% of this requirement, leaving the remaining 70% up to self-construction. On average, we have to mention that self-construction process takes an appalling 16 years from the acquisition or occupational property to the completion of the home.

儘管與基礎設施相關的需求增加，但秘魯的住房部門仍然是迄今為止最大的需求驅動力。根據秘魯私人研究中心 GRADE 進行的一項研究，每年需要 142,000 套新住房。社會住宅計畫僅符合此要求的 30%，其餘 70% 需要自行建造。值得一提的是，自建房屋從購買或占用房產到竣工平均需要長達16年的時間。

During this time, families spend about eight years in a completely precarious home, and an additional eight years in a home under construction. Dirt floors are known to harbor parasites and bacteria that can cause serious illnesses, including respiratory illnesses and anemia among many others. To tackle this extremely hard reality, we are working on a variety of different fronts.

在此期間，家庭在完全不穩定的房屋中度過大約八年，並在正在建造的房屋中度過另外八年。眾所周知，泥土地板上藏有寄生蟲和細菌，可能導致嚴重疾病，包括呼吸道疾病和貧血等。為了應對這極為嚴峻的現實，我們正在各個不同方面開展工作。

First, to decrease anemia and illnesses as part of our corporate social responsibility efforts, we are changing dirt floors and replacing them by concrete starting in our areas of influence. By the end of July, 255 floors will be completed, and our target is to build 1,000 for their homes by the end of this year. Additionally, we want to go one step beyond and ensure improvement in their overall health, this program will also provide health counseling to help our beneficiary families understand how to make and sustain those healthy lifestyle changes.

首先，為了減少貧血和疾病，作為我們企業社會責任努力的一部分，我們正在更換泥土地板，並在我們的影響範圍內用混凝土開始取代它們。到7月底，將竣工255層，我們的目標是到今年年底為他們建造1000層。此外，我們希望更進一步並確保改善他們的整體健康狀況，該計劃還將提供健康諮詢，幫助我們的受益家庭了解如何進行和維持這些健康的生活方式改變。

As you probably already know, the self-construction segment represents over 17% of our sales. As mentioned before, self-construction process takes on an average 16 years. It is unacceptable for a family trust to wait this long for a proper home. These families are our consumers, and we know that when they buy a bag of cement, what they really want is their dream home. Therefore, we are committed and working on solutions aimed at easing this unnecessary long journey.

您可能已經知道，自建部分占我們銷售額的 17% 以上。如前所述，自建過程平均需要16年。對於家庭信託來說，等待這麼長時間才找到合適的房子是不可接受的。這些家庭就是我們的消費者，我們知道，當他們購買一袋水泥時，他們真正想要的是他們夢想中的家。因此，我們致力於並致力於尋找旨在緩解這一不必要的漫長旅程的解決方案。

We're developing a temporary housing service that will help low-income families to live in a better-quality temporary homes. This temporary solution can be transferred without additional expenses to their permanent home, avoiding precarious situations and enabling transformation for future years.

我們正在開發臨時住房服務，幫助低收入家庭住在品質更好的臨時住房。這種臨時解決方案可以在無需額外費用的情況下轉移到他們的永久住所，從而避免不穩定的情況並實現未來幾年的轉型。

On the financing side, a tremendous challenge at this point, we have AYU, our solution designed as an intelligent purchasing method so that people are able to define their project and buy the materials that they need, month by month, until we have all of the materials needed to carry out their chosen project. All of these programs are absolutely aligned with our purpose of building together the future you dream of.

在融資方面，這是目前面臨的巨大挑戰，我們有 AYU，我們的解決方案設計為一種智慧採購方法，以便人們能夠定義他們的專案並逐月購買他們需要的材料，直到我們擁有所有執行他們選擇的項目所需的材料。所有這些計劃都完全符合我們共同建立您夢想的未來的目的。

Finally, I would like to mention that we are very pleased with the performance of our building solutions this quarter. Concrete, mortar, and pavement sales increased 91% this quarter when compared to the same period last year. Concrete and pavements sales were mainly related to the Piura Airport as I mentioned before. This quarter, we finished Phase 1 of the project, which included the construction of the temporary runway. Phase 2 of the project will tackle the reconstruction of the main runway, which began at the end of this quarter and should be completed by December of this year.

最後，我想提一下，我們對本季建築解決方案的表現感到非常滿意。本季混凝土、砂漿和路面銷售額與去年同期相比成長了 91%。正如我之前提到的，混凝土和路面銷售主要與皮烏拉機場有關。本季度，我們完成了該專案的第一階段，其中包括臨時跑道的建設。該計畫第二階段將解決主跑道的重建問題，該計畫於本季末開始，預計今年12月完成。

Free cash sales this quarter also increased 46% year-over-year, positively affected by the acceleration of public sector projects. We expect this trend to continue, as public works continues its execution, and new projects start coming in line in the upcoming months.

受公共部門專案加速的正面影響，本季的自由現金銷售也較去年同期成長 46%。我們預計這種趨勢將持續下去，因為公共工程將繼續執行，並且新專案將在未來幾個月開始投入使用。

I will now turn the call over to Manuel to go into more detailed financials. Manuel?

我現在將把電話轉給曼努埃爾，以了解更詳細的財務狀況。曼努埃爾？

Thank you, Humberto. Good morning, everyone. Our second quarter 2024 revenues were PEN457.1 million, a 3.4% increase when compared to the same period of last year, mainly due to increased sales of concrete, mortar, pavements, and precast, as Humberto mentioned before.

謝謝你，溫貝托。大家早安。正如 Humberto 先前所提到的，我們 2024 年第二季的營收為 4.571 億先令，比去年同期成長 3.4%，主要是由於混凝土、砂漿、路面和預製件的銷售增加。

Gross profit increased 5.9%, achieving PEN161.6 million, mainly due to lower production costs as we discontinue the use of imported clinker and maximize the use of our new and more efficient kiln in Pacasmayo as well as lower cost of raw material, mainly the coal.

毛利成長5.9%，達到1.616 億先令，主要是由於我們停止使用進口熟料並最大限度地利用位於帕卡斯馬約的新的、更高效的窯爐，生產成本降低，以及原材料成本降低，主要是由於煤炭。

Consolidated EBITDA increased 6.1% this quarter compared to the same period of last year, mainly due to these efficiencies as well as to increase revenues.

本季綜合 EBITDA 與去年同期相比成長了 6.1%，這主要是由於這些效率以及收入的增加。

For the first six months of the year, revenues increased 1.3% when compared to the same period of 2023. Gross profit for the first six months of the year increased 7.1% when compared to the same period of previous year, mainly due to efficiencies derived from the -- our optimization capacity as well as lower cost of raw material. Likewise, EBITDA increased 8.1% and EBITDA margin increased 1.7 percentage points for the first six months of the year when compared to the same period of last year.

今年前六個月，營收較 2023 年同期成長 1.3%。今年前六個月的毛利比去年同期成長了7.1%，主要是由於我們的最佳化能力以及原材料成本降低所帶來的效率。同樣，與去年同期相比，今年前六個月的 EBITDA 成長了 8.1%，EBITDA 利潤率成長了 1.7 個百分點。

Turning to operating expenses. Administrative expenses increased 6% in the second quarter of 2024 and 2.1% in the six months 2024 compared to the same period of last year, mainly due to a slight increase in personnel expenses and property taxes. Selling expenses increased 11.5% and 10.2% in the second quarter 2024 and the six months of 2024 compared to the same period of last year, mainly due to increased software and licenses, third-party services and personnel expenses.

轉向營運費用。與去年同期相比，2024年第二季管理費用成長6%，2024年前六個月成長2.1%，主要是因為人事費用和財產稅略有增加。2024年第二季和2024年前六個月銷售費用年增11.5%和10.2%，主要是由於軟體和授權、第三方服務和人員費用增加。

Moving on to the different segments. Sales of cement decreased 3.6% in the second quarter of 2024, and 4.1% during the first six months of the year compared to the same period of last year, respectively, mainly due to decreased demand from the self-construction segment. However, gross margin increased 3.7 percentage points during the second quarter of this year, and 4.4 percentage points during the first six months of the year when compared to the second quarter of 2023 and the first six months of last year, respectively, mainly due to the cost optimization related to our optimized clinker capacity and more favorable raw material costs, as mentioned before.

繼續到不同的部分。與去年同期相比，2024年第二季和今年前六個月水泥銷售量分別下降3.6%和4.1%，主要是因為自建部門的需求減少。然而，與2023年第二季和去年前六個月相比，今年第二季和今年前六個月的毛利率分別增加了3.7個百分點和4.4個百分點，主要是由於如前所述，成本優化與我們優化的熟料產能和更有利的原料成本有關。

During this quarter, we are glad to report that sales of concrete, pavements, and mortar increased 91.1% during the second quarter of this year, and 82% during the first six months of the year when compared to the second quarter of 2023 and the first six months of 2023 mainly due to increased sales of concrete and pavement to the Piura Airport project. Gross profit -- or gross margin in the second quarter of 2024 was in line with the same period of last year.

在本季度，我們很高興地報告，與2023 年第二季度和2023 年第二季度相比，今年第二季度混凝土、路面和砂漿的銷售額增長了91.1%，今年前六個月增長了82 %。2024年第二季的毛利－或毛利率與去年同期持平。

Sales of precast materials also increased 68.2% this quarter and 46.2% during the first six months of the year compared to the second quarter and the six months of last year, respectively, mainly due to increased public sector investments. Gross margin increased 21.3 percentage points and 19.9 percentage points in the second quarter and the first six months of the year compared to the same period of last year, mainly due to higher dilution of fixed cost as volume increase.

與去年第二季和前六個月相比，本季預製材料的銷售額也分別成長了 68.2% 和今年前六個月的 46.2%，這主要是由於公共部門投資的增加。第二季和今年前六個月的毛利率比去年同期增加了21.3個百分點和19.9個百分點，主要是因為銷售量增加導致固定成本攤薄程度更高。

And profit decreased 15.4% this quarter compared to the same period of last year, mainly due to a one-off exchange rate gain in the second quarter of 2023 due to the completion of our Pacasmayo plant project as the equipment was paid in euros. During the first six months of the year, net profit remained in line with the same period of last year.

本季獲利較去年同期下降15.4%，主要是由於我們的帕卡斯馬約工廠專案完工，設備以歐元支付，導致2023年第二季出現一次性匯率收益。今年前六個月，淨利與去年同期持平。

In terms of debt, our net debt-to-EBITDA ratio was 3.1 times, which is a level we expect to sustain and progressively decrease as EBITDA increase sales, we currently do not plan to incur an additional debts.

在債務方面，我們的淨債務與 EBITDA 的比率為 3.1 倍，我們預計這一水平將維持下去，並隨著 EBITDA 銷售的增加而逐步下降，我們目前不打算承擔額外的債務。

To summarize this quarter's results, show the benefits of our continued focus on cost management in operational efficiencies, and efficiencies allow us to capitalize on profitability beyond top line growth. We are confident that we will continue delivering positive results during the following quarters.

總結本季的業績，展現了我們持續專注於成本管理對營運效率的好處，而效率使我們能夠利用營收成長以外的獲利能力。我們有信心在接下來的幾個季度繼續取得積極的成果。

Operator, can we please now open the line for questions?

接線員，現在可以撥打電話提問嗎？

(Operator Instructions) Marcelo, Itau.

（操作員指示）Marcelo，Itau。

Yes. Hi, everyone. Good morning. Can you hear me?

是的。大家好。早安.你聽得到我嗎？

Yes, we can.

是的，我們可以。

Okay. So my question is related to cement volumes for the second half of this year. I mean you guys mentioned that volumes from precast and concrete for better, given the Piura Airport project and also higher product investments and so on. But on the low light here, we had this still weak bagged cement and sales volumes. So could you please give a little bit more color regarding in terms of what can you expect in terms of the bagged cements volume for the second half? As we also could expect a better macro trends and so on, if this could help to support a higher bagged cement for the second half? So this is my first question.

好的。我的問題與今年下半年的水泥產量有關。我的意思是，你們提到，考慮到皮烏拉機場專案以及更高的產品投資等，預製件和混凝土的產量會更好。但在光線較暗的情況下，我們的袋裝水泥和銷售量仍然疲軟。那麼，您能否就下半年袋裝水泥數量的預期提供更多資訊？由於我們還可以預期更好的宏觀趨勢等，這是否有助於支撐下半年袋裝水泥的上漲？這是我的第一個問題。

And the second question is related to capital allocation as the company doesn't have any major growth projects under rate. If you could explain or give more color about what is the management views for capital allocation going forward? So these are my two questions. Thank you.

第二個問題與資本配置有關，因為該公司沒有任何重大成長項目正在評估中。您能否解釋或詳細說明管理階層對未來資本配置的看法是什麼？這是我的兩個問題。謝謝。

Yeah, Marcelo, thank you for the question. Like I mentioned in my brief speech, I mean, we are optimistic about the second semester in terms of volumes, usually, I mean, if you take the history, the second semester usually comes better. And we are seeing quite a few public projects getting traction over the last weeks. So I think the volumes on the second semester for sale will be higher than the volumes on the first semester.

是的，馬塞洛，謝謝你的提問。就像我在簡短的演講中提到的，我的意思是，我們對第二學期的數量持樂觀態度，通常，我的意思是，如果你回顧歷史，第二學期通常會更好。我們看到很多公共項目在過去幾週受到關注。所以我認為第二學期的銷售量將高於第一學期的銷售量。

And regarding capital allocation, I think, like Manuel said, I mean, we are in a comfortable debt level at this point. We have a club deal that we have to honor over the last six years, and we intend to do strictly with that. And we have no need for any further debt or capital at this moment.

關於資本配置，我認為，就像曼努埃爾所說，我的意思是，我們目前處於舒適的債務水平。我們在過去六年必須遵守俱樂部的協議，我們打算嚴格遵守這項協議。目前我們不需要任何進一步的債務或資本。

Okay. Thank you, guys.

好的。謝謝你們，夥計們。

Natalia Leo, JPMorgan.

娜塔莉亞·利奧，摩根大通。

Thank you. Good morning, everyone. Thank you for taking my question. I just wanted to understand a bit better the dynamics for concrete. And if you expect this volume of sales -- or this amount of sales to continue in the second half and maybe in 2025? And also, what can you tell us about the margins on concrete as well that we still be low in the second quarter? Thank you.

謝謝。大家早安。感謝您回答我的問題。我只是想更了解混凝土的動力學。如果您預計這個銷售量——或者這個銷售量將在下半年甚至 2025 年持續下去？另外，關於混凝土的利潤率，您能告訴我們什麼嗎？謝謝。

Yes. I mean, to complement my answer to Marcelo, one of -- also besides the fact that I mentioned the public investment is getting a lot of traction. We have to understand that. I mean deficiency has been extremely good this past month, and that will translate on the coming months on higher demand for cement and concrete. The same applies to agriculture.

是的。我的意思是，為了補充我對馬塞洛的回答，除了我提到的公共投資正在受到很大關注這一事實之外。我們必須明白這一點。我的意思是，過去一個月的短缺情況非常好，這將在未來幾個月轉化為對水泥和混凝土的更高需求。這同樣適用於農業。

As you know, both fishing and agriculture are good sort of business because they employ thousands of people. And these people usually what they do with their exceeding income is invested in improving or starting to build a home. So besides the public investments, I think, we'll come stronger, we're going to see a higher pull in terms of self-construction, in terms of people that are employed and are having higher salary.

如您所知，漁業和農業都是不錯的行業，因為它們僱用了數千人。這些人通常將超額收入用於投資改善或開始建造房屋。因此，我認為，除了公共投資之外，我們將變得更強大，我們將看到自我建設、就業人員和薪水更高方面的更大拉力。

Regarding the margins, concrete and cement also, I mean, are very affected by the level of activity, as conclude recuperates, I mean their margins, we will also see better numbers.

關於利潤率，我的意思是，混凝土和水泥也受到活動水準的極大影響，隨著結論的恢復，我的意思是它們的利潤率，我們也會看到更好的數字。

Okay. Thank you.

好的。謝謝。

(Operator Instructions) Okay. We have a text question from Gerard Fort at Integra. He asks what explained the lower gross margins in concrete and pavement, considering revenue increased 91%, but we saw a decrease on margins year-on-year?

（操作員指示）好的。我們收到來自 Integra 的 Gerard Fort 的文字問題。他詢問，考慮到收入增長了 91%，但我們看到利潤率同比下降，是什麼解釋了混凝土和路面毛利率較低？

Yes. Hello. Good morning. Basically, the -- it's basically the mix of the products that we sell in concrete. The bigger the infrastructure project is, the lower margin you have. So the big advantage of that is that you can be use fixed cost debt.

是的。你好。早安.基本上，它基本上是我們銷售的混凝土產品的混合。基礎建設項目越大，利潤就越低。因此，這樣做的一大優點是您可以使用固定成本債務。

Okay. Thank you. We have one more text question. (Operator Instructions) So we have a text question from Marco Mejía at Kallpa, who asks, do you see a recovery of cement dispatches for the second semester? You mentioned new projects for the next quarters. Do you think that this will maintain the concrete demand at these levels?

好的。謝謝。我們還有一個文字問題。（操作員說明）因此，我們收到了來自 Kallpa 的 Marco Mejá 的文字問題，他問，您認為第二學期的水泥發貨量是否有所恢復？您提到了下幾個季度的新項目。您認為這會將具體需求維持在這些水準嗎？

Thank you for your question, Marco. Like I mentioned in the previous questions. I see a much stronger second semester than the first one. Absolutely. And I think the fact that public works are going to come into place. Yeah, concrete, I think we'll hear a very good second semester also.

謝謝你的提問，馬可。就像我在前面的問題中提到的。我看到第二學期比第一學期強得多。絕對地。我認為公共工程即將到位。是的，具體地說，我想我們也會聽到一個非常好的第二學期。

[Steven Mattos]

[史蒂文·馬托斯]

You all pay in dividends?

你們都分紅嗎？

That's a question?

這是一個問題嗎？

Yeah.

是的。

Well, the dividend policy is something that is a decision of the Board. The only thing I can say, I mean, we've been pretty consistent over the last year on our dividend policy. And I think I see no reason why that should change this year. But like I said, that's a decision that has to be made by the Board.

嗯，股利政策是董事會的決定。我唯一能說的是，去年我們的股利政策非常一致。我認為今年沒有理由改變這種情況。但正如我所說，這是必須由董事會做出的決定。

Okay. What does this company do?

好的。這家公司是做什麼的？

Sorry. Can you repeat the question?

對不起。你能重複一下這個問題嗎？

Yeah. What does this company do?

是的。這家公司是做什麼的？

What do you mean by what this company do? I'm confused by your question.

你說的這家公司是做什麼的？我對你的問題感到困惑。

Like, a business as a company?

比如，一個企業作為一個公司？

Well, I would think that if you joined the call, we are fundamentally a cement and building solutions company.

好吧，我認為如果您加入電話會議，我們基本上是一家水泥和建築解決方案公司。

(Operator Instructions) Okay. So I'm not seeing any more questions. So perhaps we can pass the line back over to Humberto for closing remarks.

（操作員指示）好的。所以我沒有看到更多問題。因此，也許我們可以將這句話轉回溫貝托進行結束語。

Thank you so much. Well, surprised by that, of course, but this quarter, we started seeing some signs of recovery in demand, which we hope can be sustained in the coming quarters. The effect that even a moderate increase in public and private investment can happen, our revenues has been evident this quarter.

太感謝了。當然，對此感到驚訝，但本季度，我們開始看到需求復甦的一些跡象，我們希望這種情況能夠在未來幾季持續下去。即使公共和私人投資適度增加，我們的收入也會在本季顯現出來。

We foresee this positive trend to continue and are very confident that our focus on innovation and overall business sustainability provides us with a tool to take our alignments of this positive scenario. Overall, we also have a very promising second semester.

我們預計這種積極趨勢將持續下去，並且非常有信心我們對創新和整體業務可持續性的關注為我們提供了一個工具來適應這種積極的情況。總的來說，我們的第二學期也非常有希望。

Thanks to everybody for joining this call. And as always, if you should have any further questions, you can always contact us. Thank you and have a very nice day.

感謝大家加入本次通話。像往常一樣，如果您還有任何其他問題，可以隨時與我們聯繫。謝謝您，祝您有個愉快的一天。

That concludes the call for today. Thank you and have a nice day.

今天的電話會議到此結束。謝謝您，祝您有愉快的一天。