Unacem sees 9% advance in 2Q revenues

ICR Newsroom By 21 August 2023

Peruvian Unacem Group saw a nine per cent increase in its 2Q revenues to PEN1559m (US$419.8m) in the 2Q23. The advance was attributed mainly to the incorporation of thermo-electric company Termochilca last May.



In the core cement and ready-mix concrete businesses, sales volumes in Peru and Chile fell with sales in Peru, down 13.2 per cent YoY.



"The incorporation of Termochilca and higher sales prices in all units helped to offset the sharp drop in cement dispatches in Peru, which was affected by an adverse macroeconomic situation," explained Kallpa SAB.



Ready-mix concrete sales in Chile fell 27.8 per cent YoY while cement sales in the USA declined bye 7.4 per cent YoY in the 2Q23.



The drop in cement volumes and other factors resulted in a contraction of its EBITDA margin from 25 per cent in the 2Q22 to 23.5 per cent in the 2Q23.



According to Álvaro Morales, Unacem’s corporate financial director, the fluctuation in construction costs will normalise by the end of 2023. "Better revenues and margins are expected, given the expectation of a gradual recovery in cement dispatches in Peru and Ecuador, as well as a normalization in Celepsa's margins," projected Kallpa SAB.



Unacem Group invested PEN224m in the 2Q23 when compared with PEN151m invested in the 2Q22. The group invested in new packaging machines and the reinforcement of the multi-silo in Peru, as well as the mill at Drake Cement, USA, and fixed assets for aggregate production in the USA.

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