Cementos Pacasma Stock Price, News & Analysis

Cementos Pacasmayo S.A.A. (NYSE: CPAC) is a Peruvian cement company that focuses on the production, distribution and sale of cement and cement-related materials. According to the company’s disclosures, it is located in the northern region of Peru and its products are primarily used in construction. The company also produces and sells quicklime for use in mining operations.

Cementos Pacasmayo has a long operating history of more than six decades. The company states that its shares were listed on the New York Stock Exchange under the ticker symbol CPAC in February 2012. Over this period, it has developed a business centered on supplying cement, ready-mix concrete, precast materials and other cement-related products to the Peruvian construction industry, as well as quicklime to mining customers.

Business activities and products

The company describes its core business as the production, distribution and sale of cement and cement-related materials. These materials include ready-mix concrete, precast materials and, in some descriptions, concrete blocks. Cementos Pacasmayo notes that its products are mainly used in construction, which it characterizes as one of the fastest-growing segments of the Peruvian economy in recent years. In addition, the company produces and sells quicklime that is used in mining operations.

Based on available information, Cementos Pacasmayo serves the construction industry in the northern region of Peru. The company has indicated that it is a cement company serving the Peruvian construction industry, and that its cement, concrete and precast products are sold for both bagged cement demand and infrastructure-related projects, as reflected in its periodic results announcements.

Geographic focus and facilities

The company identifies itself as a cement company located in the northern region of Peru. Earlier descriptions indicate that Cementos Pacasmayo sells its products mainly in the northern part of Peru. It has also been described as owning three cement production and transportation facilities, with a flagship facility in Pacasmayo in the northwest region of Peru, and additional plants in Piura and Rioja in the northeast region of the country.

This regional focus supports the company’s role in supplying cement and related materials for residential, commercial and infrastructure construction in northern Peru, as well as quicklime for mining operations in the country.

Stock listing and regulatory reporting

Cementos Pacasmayo’s common shares trade on the New York Stock Exchange under the symbol CPAC, and on the Peruvian stock exchange (BVL) under the symbol CPACASC1, as referenced in multiple press releases. The company files reports with the U.S. Securities and Exchange Commission as a foreign private issuer, including annual reports on Form 20-F and current reports on Form 6-K. These filings provide information on its financial results, interim consolidated financial statements and material events.

The company has reported that its financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) and stated in Peruvian soles. Regular 6-K filings have included interim consolidated financial statements and quarterly results, as well as notices of dividends and other shareholder-related information.

Role in the Peruvian construction and mining sectors

Cementos Pacasmayo describes itself as a cement company serving the Peruvian construction industry, with products primarily used in construction. The company’s press releases highlight sales volumes of cement, concrete and precast materials, including demand related to infrastructure projects and bagged cement. This indicates a focus on both project-based and retail or smaller-scale construction demand within its operating region.

In addition to construction, the company produces and sells quicklime for use in mining operations. This positions Cementos Pacasmayo as a supplier to mining activities that require quicklime as an input, adding another industrial end-market alongside construction.

Corporate developments and shareholder structure

According to a material event reported in a Form 6-K and related press release, majority shareholders of Inversiones ASPI S.A., a holding company of the Hochschild Group that owns 50.01% of the share capital of Cementos Pacasmayo S.A.A., entered into a share purchase agreement with Holcim Ltd., a Swiss corporation. The agreement covers the sale of 99.99% of the shares of Inversiones ASPI S.A. to Holcim Ltd., subject to conditions precedent and regulatory approvals, including authorization from the Peruvian competition authority (INDECOPI). The company has clarified that, as of the date of that communication, the transfer of ownership of the shares representing the share capital of Inversiones ASPI S.A. to Holcim or its affiliates had not yet taken place and that the market would be informed when it occurs.

The company has also communicated decisions of its Board of Directors and shareholders regarding dividend distributions, including an annual cash dividend related to retained earnings and results from prior years, and the procedures for payment to holders of common shares, investment shares and American Depositary Shares (ADSs).

Corporate governance and shareholder meetings

Cementos Pacasmayo follows the requirements of Peruvian corporate law and its bylaws regarding shareholder meetings. A notice of a mandatory Annual Shareholders’ Meeting outlined agenda items such as the statement on social management and economic results (including the integrated annual report, external audit report and financial statements), ratification of dividend distributions, appropriation of profits and delegation to the Board for payment of dividends.

The notice also mentioned a report on environmental, social and corporate governance (ESG) matters, including the company’s approach to sustainability and climate risks, commitments to emissions reduction and carbon neutrality, promotion of gender equity and diversity, and implementation of climate change risk and opportunity reporting. The company indicated that documentation related to the meeting agenda is made available to shareholders at its corporate domicile and on its website.

Recognition and sustainability

In its earnings releases, Cementos Pacasmayo has highlighted external recognition related to corporate reputation and sustainability. The company has reported being included in the Merco business and leadership ranking, where it notes that it has led the cement sector for several consecutive years and has been part of the Top 10 list in that ranking. It has also reported inclusion in an S&P sustainability yearbook and a ranking of responsible companies in terms of sustainability in Peru.

These references indicate that the company publicly emphasizes ESG topics such as sustainability, climate risks and social issues in its communications with investors and shareholders.

Investor information and reporting cadence

The company regularly announces its consolidated results for each quarter and for the full year through press releases and accompanying 6-K filings. These communications typically summarize sales volumes of cement, concrete and precast materials, revenue trends, EBITDA and net income, and provide context such as demand from infrastructure projects, bagged cement demand, public sector investment and operational efficiencies. The company also hosts conference calls and audio webcasts to discuss its results with investors.

Cementos Pacasmayo has stated that it files an annual report on Form 20-F with the SEC, which includes audited financial statements for the fiscal year. It has also indicated that hard copies of the complete annual audited financial statements can be requested from the company.