UNACEM Corp (UNACEMC1) Q1 2023 earnings summary

Executive summary

• Q1 revenue rose 2.6% to PEN 1,409.5m from PEN 1,374.3m, while EBITDA fell 7.1% to PEN 392m from PEN 422m as costs pressured margins.

• Net profit was PEN 170.6m, down from PEN 191.4m; net debt/EBITDA was 2.3x.

• Cash and cash equivalents reached PEN 447.1m at March 31, 2023, up from PEN 334.8m at year-end 2022.

Financial highlights

• Cost of goods sold rose 5.1% to PEN 1,006m; gross margin declined to 28.6% from 30.4%.

• Gross profit was PEN 403.7m versus PEN 417.7m; operating profit was PEN 269.8m versus PEN 297.9m.

• Profit before tax was PEN 236.4m versus PEN 300.1m; income tax expense declined to PEN 65.7m from PEN 108.6m.

• Net profit attributable to parent owners was PEN 164.5m versus PEN 174.7m; non-controlling interest profit was PEN 6.1m versus PEN 16.7m.

• Operating cash flow was negative PEN 20.3m versus positive PEN 163.4m; investing cash outflow was PEN 120.8m and financing cash inflow was PEN 256.1m.

Outlook and guidance

• Peru GDP growth forecast for 2023 was revised to 2.0% from 2.2%, with social unrest and heavy rains cited as factors.

• Peru operations anticipated an improved self-construction environment with lower inflation and fewer external disruptions.

• Chile cement market share target was ~10% by year-end 2023.