UNACEM Corp (UNACEMC1) Q4 2023 earnings summary

Executive summary

• FY2023 revenue rose 6.6% to PEN 6,375.5m, while EBITDA fell 5.1% to PEN 1,492m and net income declined to PEN 513.9m.

• Resilient Peruvian and growing U.S. operations were offset by weaker Latin American volumes and challenging conditions in Chile and Ecuador.

Financial highlights

• Q4 revenue was PEN 1,657.6m, up 3.3% YoY; Q4 EBITDA was PEN 381m versus PEN 386m, with margin at 23.0% versus 24.0%.

• FY gross margin fell to 24.7% from 27.2%; COGS rose 10.3% to PEN 4,799m, partly reflecting Termochilca’s incorporation.

• FY operating profit was PEN 989.6m versus PEN 1,085.4m; net income was PEN 513.9m versus PEN 659.6m.

• FY administrative expenses rose 20%, including PEN 20m of non-recurring inorganic-growth costs; financial expenses increased 42.6% to PEN 274.7m.

Segment performance

• Peru Q4 cement dispatches fell 14.08% to 1.5m tons; FY dispatches declined 12.5% to 5.8m tons, while estimated market share remained above 48%.

• Peru Q4 EBITDA increased 6.5% YoY, supported by cement pricing, cost efficiencies, infrastructure-related ready-mix pricing and Termochilca.

• Ecuador FY cement volumes fell 9.5% and ready-mix volumes 6.5%; Q4 cement volumes declined 17.3% to 290,000 tons amid unrest and weak demand.

• U.S. cement volumes rose 55.7% in Q4, including 80,000 tons from Tehachapi; comparable Q4 EBITDA grew 8%, while aggregate volumes fell 31.4%.

• Chile FY cement dispatches rose 11.4% to 479,000 tons; ready-mix volumes fell 24.1% to 712,000 cubic meters amid difficult industry conditions and adverse peso FX.