Danielle: Good day, ladies and gentlemen. Welcome to Pacasmayo's second quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode, and please note that this call is being recorded. At the conclusion of our prepared remarks, we will conduct a question and answer session. I would now like to introduce your host for today's call, Mrs. Claudia Bustamante, Investor Relations Managing Director. Mrs. Bustamante, you may begin.
Claudia Bustamante: Thank you, Danielle. Good morning, everyone. Joining me on the call today is Mr. Humberto Nadal, our Chief Executive Officer, and Ms. Ely Hayashi, 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. Ms. Hayashi 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 findings. 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 for joining us today. In the second quarter of 2026, we demonstrated outstanding operational execution and financial discipline. We experienced a strong 15.5% increase in our sales volume for cement, concrete, and precast. It was primarily driven by a robust performance in the self-construction segment and higher demand for back cement. Consequently, our revenues grew by 15.4% reaching 558.9 million soles. Even more impressive is the profitability achieved from this top-line growth. Our consolidated EBITDA reached 174.8 million, an impressive 34.3% increase compared to the second quarter of last year. This resulted in our EBITDA margin expanding by 4.4 percentage points to 31.3%. Furthermore, our net income surged by 61% to $77 million. This peak in profitability is a direct result of operational efficiencies, our extremely solid commercial strategy, and a shift towards higher-margin concrete solutions. In honor of financial metrics, which are always important, we continue to lead the industry through sustainability, innovation, and specialized solutions. We recently received the official verification for our 2025 organizational carbon footprint from EconTech Peru, which validates the real emission reductions we are achieving across our operations. On the innovation front, we successfully secured a tax benefit from Concitec following the approval of our technological innovation project, reinforcing our commitment to long-term competitors and R&D. Our technical expertise is also shaping high-impact infrastructure across the country. To give you a couple of examples, We successfully prefabricated foundations at over 5,000 meters above sea level for the Anacorta-Sucuros project. We also secured the specification of an additional 4.4 kilometers of concrete sheet piles for the Riverbank Defense Project in Ciudad, a crucial endeavor as we prepare for a new phenomenon. None of this could be possible without our absolutely exceptional team. We are deeply honored to have entered the top 15 of the MERCO Talent 2026 Index nationwide, maintaining our position as the number one company to attract and retain talent in the cement sector for the 11th consecutive year. We also recently concluded a new edition of our ALAS, Mujeres que Inspiran, Women that Inspire program, empowering 25 women with Pacasmayo to drive our inclusive culture forward. Recently, Semana Economica published its ranking of the most profitable CEOs in Peru, placing us in the top six. And let me stress the word us, because there's no me in CEO. I receive this recognition with deep humility, humility knowing full well that profitability is never driven by a leader behind a desk. This is a record start of a daily effort, resilience, and unwavering commitment on every single person at the Mentos Pacasmayo. This achievement belongs truly, entirely to our team. I will now turn the call over to Ely to go into more detail financial analysis.
Ely Hayashi: Thank you, Humberto, and good morning, everyone. For the second quarter of 2026, our revenue growth remained very strong, reaching 558.9 million soles, up 15.4% compared to the second quarter of 2035. This brought our total cumulative revenue for the first six months of the year to 1,114.5 million soles. representing a robust 13.3% increase year over year. This performance was primarily driven by its strong core demand, with total shipment increasing by 15.5% in the second quarter of 26 and 13.6% for the sixth month of 26, led consistently by the vast cement segment in the self-construction market across northern Peru. To monitor gross profit for the sixth month grew significantly by 25.4%, to 455.5 million soles, following a 23% increase in the quarter, supported by structural operational efficiencies and higher shipments. Turning to operating expenses, administrative expenses decreased by 7.5% in the second quarter of 2016 to 65.1 million soles, and by 4.1% for the sixth month of 2016 to 134.6 million soles. His reduction across both periods was mainly driven by lower personal expenses, specifically reaching $35.5 million in the 6 months of 2016, primarily reflecting a lower collective bargaining bonus compared to the last year. On the other hand, selling expenses for the quarter remained completely stable year over year at $22.4 million. However, for the first six months, selling expenses increased by 16.9% to $62.7 million, Acquired advertising and promotion initiatives related to marketing and loyalty programs for affiliate retailers were partially offset by decreased provision for household payments. Moving to overall profitability, our Consolidated EBITDA reached $144.8 million for the quarter, an outstanding 34.3% increase. For the first half of the year, cumulative EBITDA rose 33.1%, to 352.7 million dollars. Consequently, our EBITDA margin expanded by 4.4% points to 31.6% in the second quarter of 2016 and expanded by 4.7% points to 31.6% for the sixth month of 2016. This remarkable profitability across both the quarter and the six-month period reflects our continuous focus on operational experience, discipline, expense management, and a high profitability product need. Breaking down our results by business segments, SEMEN continues to be our primary driver. SEMEN revenues grew 90.5% to $469.5 million in the second quarter 2016, representing 86.3% of our quarterly segments. For the first six months, SEMEN revenues reached $935.9 million, a 17.7% increase year-over-year. In terms of margins, the gross margin for salmon in the second quarter of 2013 adjusted a slightly down by 1.5%, to 45.2%. Affected by a slight increase in coal prices and higher consumption of imported drinkers during a special kiln maintenance. For the sixth month of 2013, however, the gross margin remained incredibly stable at around 46.7%. For accomplished payments and mortals payments, quarterly revenues decreased slightly by 2.6% to $66.8 million, while six-month revenues decreased 9.3% to $132.8 million. This decline across both years is entirely due to a high comparative pay last year, which included substantial volume from the Pura Airport project that concluded. Despite lower volumes, the payment profitability experienced a massive surge. Gross margins expanded by a remarkable 17.9 percentage points in the second quarter to reach 16% and by an 80.1 percentage point for the sixth quarter to reach 16.2%. This spectacular expansion reflects a regularization of profitability as a segment shifts away from low-margin infrastructures toward highly specialized, higher-margin concrete solutions, such as our work for the Alcana Cocha Project. Our pre-caps segment also delivers solid progress. Revenue rose 2.6% to 7.9 million soles in the second quarter of 2016 and 3.6% to 14.5 million soles for the sixth month of 2016 fueled primarily by steady public sector infrastructure demand. Due to higher volumes and an optimal dilution of fixed production costs per ton, Precast Road Margin Come 6.2% to 10.1% in the quarter. Agnes Planes 6.8% to 9.7% for the cumulative six-month period. Finally, our Consolidated Net Income for the second quarter increased by 61.5% to $77.2 million, bringing cumulative net income to 159.2 million dollars, a remarkable 58.4% increase year-over-year. This strong bottom line growth stems directly from higher variation operating profits and reduced financial expenses. As we continue to constantly reduce leverage, our net debt to EBITDA raises to 2.13. To summarize both, our quarterly and six-month performance reflects a highly successful Thank you. So we will now move to the question and answer section. If you would like to ask a question, please press star 2 on your phone and wait to be prompted. If you are dieting by the web,
Danielle: You can type your question in the box provided or request to ask a voice question. We'll just wait a moment or two for the questions to come in. Our first question comes from Francisco Suarez from Scotiabank. Your line is open. Please go ahead.
Francisco Suarez: Thank you. Good morning. Thank you, Claudia, Ely, and Humberto, and congrats for such an outstanding result. My question relates with the following. I mean, you have for years developed Cementos Pacasmayo from a single, basically from a single plant or isolated set of plants to a multi-plant ecosystem. You have also developed a lot of building solutions, precast model. And I wonder, now that you are part of the ecosystem of Holcim, Where do you see the opportunities to integrate further in building solutions or perhaps with other operations with Holcim? Can you give us an idea of what to expect ahead?
Humberto Nadal: Thank you, Francisco. It was nice to hear from you. Definitely, if we share something with Holcim, besides we share many things, it's our vision in terms of building solutions. I mean, they are an outstanding building solution provider on a worldwide basis. We're trying to do the same thing in Latin America. So, of course, I mean, we're looking into things that they can help us with. I mean, in terms of collaboration, the cooperation of the solutions, efficiency of the plants and the kilns on ready mix operations. So, yes, I mean, we're talking, trying to tropicalize the solutions they may have to make our solutions to our customers even better.
Francisco Suarez: Got you. And if I may, a follow-up question on that. Do you think that there is room for opportunity to provide those building solutions also in the city of Lima now that, as you know, we've already bought a couple of assets over there, so perhaps you can actually create some sort of synergies over there? Or the synergies will be at the... I think, I mean, I can only talk for Pacasmayo.
Humberto Nadal: We are an independent company. So, the students I'm talking to are things that I think we are learning and we are going to be able to do a much better job in the region we supply, which is fundamentally a northern part of the jungle of Peru.
Francisco Suarez: Fantastic. Thank you so much and congrats again. Take care.
Danielle: Thank you so much. Just a reminder, if you would like to ask a question, please press star 2 on your phone and wait to be prompted. If you are guided in by the web, you can either type your question in the box provided or request to ask a voice question. You just wait a moment or two for the questions to come in. Our next question comes from Gerard Ford from AFP Integra. Concrete margins include from minus 1.9% to 16%, largely driven by the Pianacocha project. Given that Pianacocha is expected to contribute only until around the third quarter, how should we think about the sustainability of these margins going forward?
Humberto Nadal: The 1.9 negative margin was explained not by Anacosta so much by the fact that we were finishing the airport project computer, which was very complex, complicated for us. So, yeah, looking forward, I think 16% is more of a going concern, a sustainable number we should be able to achieve in the coming months or years.
Danielle: Thank you very much. Another text question from Jared Ford. What projects in the current pipeline could replace that contribution? And could you provide an update on the outlook for riverbank protection projects and Xavi Mochiche?
Humberto Nadal: Thank you for the question. I think, I mean, we are extremely excited with the new government coming in. We've seen clear signs of them really wanting to tackle not only infrastructure, but also, I mean, as you are all aware, a new phenomenon is expected to hit Peru around September. So I think the new government is very interested in moving prevention decisions in terms of riverbanks, in terms of of lots of things. So yeah, I think in the coming probably 120 days, we should see a lot of movement in terms of this kind of building solutions.
Danielle: Thank you so much. Our next question comes from Christian Chofecuta from La Positiva Seguros. Thank you for the presentation. Could you please share your thoughts on the El Niño phenomenon? Could it boost demand for cement or concrete?
Humberto Nadal: The answer is my thoughts on El Niño, as Peruvian, as CEO of a very large company in North Park, Peru, we are concerned, and we are trying to really plan ahead of things happening, so we are fully, fully prepared to face El Niño Nori as a company, as a very influential player in North Park, Peru, so we can help our communities, our customers, our clients. As you see in the past in El Niño, El Niño may cause a lot of struggle for some couple of weeks probably, Thank you so much. Just another reminder, if you would like to ask a question, please press star 2 on your phone and wait to be prompted.
Danielle: If you are guided by the web, you can either type your question in the box provided or request to ask a voiced question. Our next question comes from Diego Corzo from Interligo Group. I have two questions. First, what level of capex should we expect for this and next year? What is your outlook for cement prices over the remainder of the year and into next year?
Humberto Nadal: Thank you for the question. In terms of capex, I mean, it's around 100 million soles per year. That's been our sustaining capex for the last two, three years since we finished number four in Pacasmayo. That should be the number remaining on that. And second, I mean, we've had some price adjustments over the last months. So we're going to keep monitoring the market to see if there's any opportunities for some price increases for the remaining part of the year.
Danielle: Thank you so much. And just a final reminder, if you'd like to ask a question, please press start you on your phone and wait to be prompted. Or you can request to ask a voice question via web. I'm not seeing any more questions, so perhaps I can hand it back to Mr. Humberto Nadal for closing remarks.
Humberto Nadal: In closing, our second quarter and first half results are a true testament for the strategic vision and enduring strength of our northern Peruvian market. As we move forward alongside Holcim, we are uniquely positioned to merge our deep local roots with world-class capabilities. But as we look ahead, we must also remember that true profitability is not measured solely on a financial balance sheet. It is measured on the real well-being we leave for our people and our country. Running a responsible business goes far beyond financial figures. It is about building solid foundations of trust and opening paths of opportunity for Peruvian families. The future of Peru does not depend on luck. That concludes the call for today. Thank you and have a nice day.
