Financial Data and Key Metrics Changes - In Q4 2024, revenue increased by 3% year-over-year, reaching PEN 526.7 million, while gross profit decreased by 2.1% due to higher costs related to the Piura airport project [19][20] - For the full year 2024, revenues increased by 1.4%, and consolidated EBITDA reached a record PEN 549.3 million with an EBITDA margin of 27.8% [8][20] - The net profit increased by 39.3% in Q4 and by 17.8% for the entire year compared to the previous year [27] Business Line Data and Key Metrics Changes - Cement sales increased by 1.8% in Q4 2024 compared to the same period in 2023, while for the full year, cement sales decreased by 2.2% due to lower demand from the self-construction segment [22][23] - Concrete payments and mortar sales surged by 30.9% and 48.8% for the full year 2024, primarily driven by increased sales volume for the Piura airport project [23] - Precast material sales increased by 18% in 2024 compared to 2023, with gross margin improving by 10.7 percentage points due to higher sales volume [26] Market Data and Key Metrics Changes - The company noted a positive trend in sales volumes for 2025, expecting similar growth rates as seen in Q4 2024 [36] - The company highlighted that 80% of its sales are directed towards self-construction, making employment levels a key indicator for demand [49] Company Strategy and Development Direction - The company is focusing on digital transformation, enhancing operational efficiency through AI and machine learning, and has achieved ISO 27001 certification for information security [10][13] - The company is committed to developing value-added building solutions, with significant projects like the Piura airport reconstruction, which involved direct participation in construction [14][16] - Sustainability remains a core strategy, with the company being the first Peruvian cement company to obtain environmental product declarations for three plants, representing 75% of its portfolio [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving better results in 2025 due to a stronger demand scenario and ongoing strategic initiatives [8][9] - The new Minister of Economics is expected to unlock infrastructure projects, which could further boost demand [51] Other Important Information - The CFO, Manuel Ferreyros, announced his retirement effective March 31, 2025, after a 17-year tenure, with Eli Hayashi set to succeed him [6][27] Q&A Session Summary Question: Expectations for sales volumes in 2025 - Management expects positive trends in sales volumes for 2025, similar to Q4 2024 [36] Question: Details on higher costs and expenses in Q4 - Increased costs were attributed to a larger workforce and higher personnel expenses due to company growth [38] Question: Capital allocation and CapEx forecast for 2025 - Sustaining CapEx is projected to remain around PEN 100 million, with no additional CapEx expected in the coming years [37] Question: Energy cost behavior in 2024 - Energy costs decreased in 2024 compared to 2023 and are expected to remain flat in 2025 [43] Question: Impact of upcoming elections on cement volume recovery - Management does not foresee upcoming elections as a significant risk to volume recovery, although security concerns may affect operations [71] Question: Cost overruns in the Piura airport project - All cost overruns have been accounted for in the results, and no future negative effects on gross margins are expected [72]
Cementos Pacasmayo(CPAC) - 2024 Q4 - Earnings Call Transcript