UNACEM Corp (UNACEMC1) Q3 2023 earnings summary

Executive summary

• Q3 revenue rose 11.4% YoY to PEN 1,749.8m, while EBITDA fell to PEN 354.9m as lower volumes and margins offset revenue growth and Termochilca gains.

• Q3 net profit declined to PEN 78.6m from PEN 162.7m; Tehachapi closed after quarter-end and the 2024 outlook targeted mid-teens EBITDA growth.

Financial highlights

• 9M revenue increased 7.9% to PEN 4,717.9m; net profit fell to PEN 377.8m from PEN 465.0m.

• Q3 operating profit was PEN 225m, down 22.7% YoY; 9M operating profit was PEN 732.4m versus PEN 825.3m.

• Q3 EBITDA was PEN 354.9m versus PEN 406.5m; EBITDA margin declined to 20.3% from 25.9%.

• Q3 COGS rose 21.5% YoY to PEN 1,391m; gross margin fell to 20.5% from 27.1%.

• Q3 financial expenses increased 34.5% to PEN 67.4m; FX loss was PEN 50m versus PEN 40m a year earlier.

Outlook and guidance

• FY2023 was expected to close with EBITDA in line with 2022 and record revenue, including eight months of Termochilca and two months of Tehachapi.

• 2024 inorganic expansions were expected to add $30–40m of EBITDA, supporting mid-teens consolidated EBITDA growth.

• 2024 cement dispatches were expected to rise ~2% in Peru and ~4% in Ecuador; CapEx was expected above the PEN 300m 2023 budget.

• CALCEM’s 600-tonne/day quicklime and calcium carbonate plant was planned with USD 40m investment; construction was expected to start in Q4 2023 and operations in H1 2025.

• Outlook remained cautious amid Latin American uncertainty; U.S. conditions were favorable, and Ecuador showed improving growth.