Peruvian Cement Company Unacem Reports Increased Revenue Despite Construction Sector Decline
Unacem, the largest cement company in Peru, concluded 2023 with revenues of 6.376 billion soles (US$1.690 billion), marking a 6.6% year-on-year increase, despite a significant downturn in the Peruvian construction industry.
The company's EBITDA margin decreased from 26.3% in 2022 to 23.4%, while net profit dropped by 22.1% to 514 million soles. Unacem operates in Peru, Chile, Ecuador, the United States, and Colombia, with the Peruvian market contributing 66% of its fourth-quarter revenue, followed by the U.S. (19%), Ecuador (9%), and Chile (6%).
The company's ability to offset internal sales decline was supported by strategic acquisitions such as the purchase of Termochilca, a power generator, for US$141 million in January 2023 and Tehachapi cement plant for US$317 million in August of the same year. Despite these challenges, Scotiabank forecasts a more than 5% growth in cement consumption in the first quarter of 2024 and a 3.7% expansion in the construction sector throughout 2024 after a 7.86% decline in the previous year.
This news is crucial for experts and researchers in the cement market as it sheds light on Unacem's resilience amidst industry challenges and provides insights into the Peruvian cement sector's performance and future projections.
Source: BNamericas
