Release Date: May 19, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Unacem Corp SAA (LIM:UNACEMC1, Financial) reported a 4.1% increase in consolidated revenues year over year for the first quarter of 2025.
- The energy business, TLIPSA, experienced strong top-line growth of 16.2%, supported by new long-term clients.
- Operations in California posted a 49% increase in volumes year over year, reflecting strong demand and successful commercial efforts.
- The company completed the refinancing structure of its debt in local currency, improving its debt profile with 85% of debt now long-term.
- Unacem Corp SAA (LIM:UNACEMC1) signed an agreement to acquire an additional 88 acres in Arizona, with estimated reserves of 25 million tons, indicating future growth potential.
Negative Points
- Consolidated EBITDA for the quarter decreased by 7% year over year, with margins declining from 26.1% to 23.3%.
- Peruvian cement and ready-mix markets saw a decline in volumes, although this was partially offset by better pricing.
- The ready-mix business in Peru recorded an 18% decrease in volumes due to the completion of major infrastructure projects.
- Consolidated cost of sales increased by 4.6% due to higher production costs in UNACEM Peru and higher marginal costs in the energy platform.
- Administrative expenses rose by 8% compared to the first quarter of 2024, driven by new operations, insurance expenses, and higher depreciation in the US.
Q & A Highlights
Q: What are Unacem Corp's expectations regarding CapEx for 2025?
A: Alvaro Antonio Morales Puppo, Chief Financial Officer, stated that the budget for CapEx in 2025 is approximately $289 million, which is around PEN1,000 million across the different companies within the group.
Q: What are the expectations for the US market for this year?
A: Alvaro Antonio Morales Puppo, Chief Financial Officer, mentioned that they expect to achieve double-digit growth in volumes for the US market this year and are working hard to reduce production costs to improve results.
Q: Can you provide guidance for Chile and Ecuador?
A: Alvaro Antonio Morales Puppo, Chief Financial Officer, indicated that in Ecuador, they expect a slight improvement in volumes by 3% to 4% for the year. In Chile, significant projects in the ready-mix and precast business are expected to drive double-digit volume growth.
Q: What is the expected impact of recent actions taken by Trump, such as tariffs?
A: Pedro Lerner Rizo Patron, Chief Executive Officer, stated that they do not expect any short-term impact on the construction industry from Trump's actions. The broader economic effects remain to be seen.
Q: Can you provide details on the maintenance at UNACEM Peru?
A: Pedro Lerner Rizo Patron, Chief Executive Officer, explained that maintenance started in the first quarter and is expected to end in early the second quarter. They have five kilns across two plants, with maintenance scheduled for 130 days per kiln annually.
Q: What is the status of the share repurchase program, and will it expire soon?
A: Alvaro Antonio Morales Puppo, Chief Financial Officer, reported that there is a remaining budget of around PEN30 million, equivalent to approximately 9 million shares, for the rest of 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
