Cementos Pacasmayo SAA Q1 FY2026 earnings call

• Completion of acquisition of Inversiones ASPEE by Holcim Limited on March 30, 2026, with Holcim holding 50.01% controlling interest in Cementos Pacasmayo.
• First quarter 2026 results: 11.7% increase in sales volume year over year driven by higher demand for cement and concrete; consolidated EBITDA reached $177.9 million, a 32.1% increase; EBITDA margin reached 32% up from 27% in Q1 2025.
• Sustainability achievements: Secured position in S&P Global Sustainability Yearbook 2026 for sixth consecutive year and entered global top 10% of construction materials industry; formalized strategic partnership with ISEM and Habitat for Humanity to integrate Sueños en Concreto program into 100,000 Floors to Play On initiative.

Cement revenues grew 16% to $466.4 million, representing 86.5% of total sales for the quarter. The sandwiched segment and mortar segments had revenue decrease of 15.2% to $56 million. Precast sales increased 4.8% to $6.6 million this quarter. Cement's gross margin expanded to 48.2% from 1.3% in Q1 2025. The sandwiched and mortar segments saw a remarkable expansion of 18.3% in growth margin. Precast's gross margin reached 9.1%, a significant increase over the previous year.

Q: Congratulations on the strong Q1 2026 results. Margins and profitability clearly exceeded expectations. How much of the improvement in cement unit cost do you consider structural operational efficiencies, energy bagging versus more cyclical factors such as volume and mix? Selling expenses increased meaningfully this quarter, driven by marketing and higher credit provisions. How much of this increase should we view as recurring versus one-off or timing-related?

A: In terms of your question, these are not really cyclical factors. As you know, our cement sales in the past is very little cyclical in the second semester of the year. Usually the first quarter is the weakest one, but not by a long shot. So I think in terms of selling expenses, we keep investing in positioning our brand. We keep investing in securing a lot of ID notes. A lot of people are very happy. So I think, I mean, our challenge now is to maintain the current market in terms of a bit of profitability. Just to add in terms of the marketing, I mean, to be absolutely precise, I mean, in the second semester, they may be a little more independent of how we are doing the provision.

Q: Now that Holstein has completed the acquisition and the controlling state, can you elaborate on any change that should we expect on capital allocations, strategic priorities, perhaps dividends?

A: I mean, I think so far we've We'll have to wait to see what they decide as new shareholders. By the time we keep the course steady.