Cementos Pacasmayo S.A.A. (NYSE:CPAC) Q2 2022 Results Conference Call July 25, 2022 11:00 AM ET

Company Participants

Claudia Bustamante - Investor Relations Manager

Humberto Nadal - Chief Executive Officer

Manuel Ferreyros - Chief Financial Officer

Conference Call Participants

Francisco Suarez - Scotiabank

Adrian Huerta - JPMorgan

Marco Mejía - Kallpa

Operator

Good morning, ladies and gentlemen, and welcome to the Cementos Pacasmayo Second Quarter 2022 Earnings Conference Call. At this time, all participants have been placed on listen-only mode and the floor will open for questions and comments after the presentation.

It is now my pleasure to turn the floor over to your host, Mrs. Claudia Bustamante, Investor Relations Manager. Claudia, over to you.

Claudia Bustamante

Thank you, Jenny. Good morning, everyone. Joining me on the call today is Mr. Humberto Nadal, our Chief Executive Officer; and Mr. Manuel Ferreyros, our Chief Financial Officer.

Mr. Nadal will begin our call with an overview of the quarter, focusing primarily on our strategic outlook for the short and medium term. Mr. Ferreyros will then follow with additional commentary on our financial results. We'll then turn the call over to your questions.

Please note that this call will include certain forward-looking statements. These statements relate to expectations, beliefs, projections, trends and other matters that are not historical facts and are therefore subject to risks and uncertainties that might affect future events or results. Descriptions of these risks are set forth in the Company's regulatory filings.

With that, I'd now like to turn the call over to Mr. Humberto Nadal.

Humberto Nadal

Thank you, Claudia. Welcome, everyone, to today's conference call, and thank you once again for joining us today. This quarter's results so our ability to sustain profitability even in the slide of a slowdown in demand. Even when there has been a slight deceleration in terms of volumes, consolidated EBITDA was $120.5 million, a 33.9% increase when compared to the same period of last year, achieving a margin of 24%. Moreover, our net profit increased 74% year-over-year, reaching $48 million. This is especially relevant considering the current context with a significant decrease in coal and energy prices and overall inflationary pressures throughout the global economy.

We have been able to achieve this by focusing on operational efficiencies, prioritizing the use of our own clinker and implementing an accurate pricing strategy across both bag cement and concrete. We are certain that this approach and our sustained focus on efficiency will continue to reap benefits in this extremely difficult environment. The most significant actions we have taken to decrease our exposure to these external factors is the optimization of our current capacity in our Pacasmayo plant.