NYSE:DLNG Dynagas LNG Partners Q3 2024 Earnings Report $3.32 +0.02 (+0.45%) As of 10:50 AM Eastern This is a fair market value price provided by Polygon.io. Learn more. Earnings History Dynagas LNG Partners EPS ResultsActual EPS$0.16Consensus EPS $0.15Beat/MissBeat by +$0.01One Year Ago EPSN/ADynagas LNG Partners Revenue ResultsActual Revenue$137.76 millionExpected Revenue$140.30 millionBeat/MissMissed by -$2.54 millionYoY Revenue GrowthN/ADynagas LNG Partners Announcement DetailsQuarterQ3 2024Date10/29/2024TimeN/AConference Call DateTuesday, October 29, 2024Conference Call Time12:00PM ETUpcoming EarningsDynagas LNG Partners' Q1 2025 earnings is scheduled for Thursday, June 26, 2025, with a conference call scheduled on Friday, June 27, 2025 at 10:00 AM ET. Check back for transcripts, audio, and key financial metrics as they become available.Conference Call ResourcesConference Call AudioConference Call TranscriptSlide DeckReportEarnings HistoryCompany ProfileSlide DeckFull Screen Slide DeckPowered by Dynagas LNG Partners Q3 2024 Earnings Call TranscriptProvided by QuartrOctober 29, 2024 ShareLink copied to clipboard.There are 6 speakers on the call. Operator00:00:00Good day, ladies and gentlemen, and welcome to Pacasmayo's 3rd Quarter 2024 Earnings Conference Call. At this time, all participant lines are in listen only mode, and please note that the call today is being recorded. At the conclusion of our prepared remarks, we will conduct a question and answer session. I would now like to introduce you to our host for today's call, Ms. Claudia Bustamante, Investor Relations Manager. Operator00:00:22Mrs. Bustamante, you may begin. Speaker 100:00:26Thank you, Michael. Good morning, everyone, and thank you for your patience. Joining me on the call today is Mr. Humberto Nadal, our Chief Financial Chief Executive Officer and Mr. Manuel Ferreiro, our Chief Financial Officer. Speaker 100:00:38Mr. Nadal will begin our call with an overview of the quarter, focusing primarily on our strategic outlook for the short and medium term. Mr. Ferreiro will then follow with additional commentary on our financial results. We'll then turn the call over to your questions. Speaker 100:00:53Please 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 Nardi. Speaker 200:01:22Thank you, Thiago. Welcome, everyone, to today's conference call, and thank you for joining us today. My apologies for the delays, I guess, that was landing on a trade. This quarter, we delivered very solid results in terms of margins, EBITDA and profitability. Sales volumes this quarter were covered on a sequential basis, although still slightly behind the same quarter of 2023. Speaker 200:01:47Despite this slight decrease in demand, we are able to achieve a record consolidated EBITDA of BRL 154,600,000, an increase of almost 20% year over year as well as a remarkable increase of 35.9% in net income. By basically focusing on operational efficiencies related to quicker production in our most efficient kilns as well as cost efficiencies in our source of raw material. In our journey to continue developing our building solutions, this quarter, we have embarked into very relevant projects. 1st, we designed an innovative solution for riverbank protection. As you probably already know, the north of Peru is consistently affected by Aliminas, resulting in strong winds that overflowed the rivers and therefore caused significant flooding. Speaker 200:02:38Traditionally, this the riverbank protection is done with steel and rocks. But if there are parts of the North of rocks are not readily available, we defined a new solution using mainly cement, local materials and mortar that is both most cost effective and more durable. We are currently implementing this in Amaliecki, but the solution is scalable and we look to expand it to other areas. Secondly, we are taking on our new talents by converting the agreement and decking operations in the construction of our water treatment plant at the Minera Yalacos operation. The treatment of acidic water in mining is absolutely crucial for environmental sustainability and thus we enable to maintain a balance between economic and social development in our country. Speaker 200:03:26Corporate management of water resources not only minimize the environmental impact, but also generate efficient use of the natural resources we have today, preserving them from major races. These projects are other examples of how we are innovating and adopting our products and services to satisfy the current and potential demand for building solutions. Always, and I want to say always in a time sensitive view underlying with our purpose. I would like now to focus on some that is actually the crucial future for business, including our own artificial intelligence and machine learning. New technologies within a wide variety of activities and there is no doubt that early adopters will be the biggest beneficiary. Speaker 200:04:13Pacasmayo's AI strategy has been crafted to a multi phased approach, starting with a very deep understanding of the business and its needs. Our robust operational and organizational model was designed key corporate expansion and deepening strategy, capabilities assessment and a clear governance model. Implementation of government focus on 3Q4. We are on 3Q fronts, preparing the registration for AI adoption, experimenting with AI solutions and expanding the impact of AI across the enterprise. The strategy has resulted in high engagement and restructuring with 86% of employee participation and 84% rate satisfaction. Speaker 200:04:58We also developed 7 successful pilot projects, including a fragmentation model, a commercial virtual assistant and an automatic bag and counter assistance. Overall, we must see that this strategy has also allowed us to prioritize these cases across various departments and positively impact the value chain. It has not only delivered tangible results and has also laid the foundation for Pacasmayo to be the largest and I mean, truly data and AI driven company. The next steps involve defining the scope and resources of full scale implementation in 2025, further cementing Pacasmayo's position as a leader in their adoption to the industry. I would now like to turn all the call over to Manuel to go into Amoriza's financial analysis. Speaker 200:05:46Manuel? Speaker 300:05:48Thank you, Humberto. Good morning, everyone. This quarter revenues increased 0.2% compared to the Q3 of 2023, reaching BRL517,800,000. However, during this same period, gross profit increased 12.1% when compared to the previous year, mainly due to the cost efficiencies throughout our operations, including our new kiln in Pacasmayo as well as lower cost of raw material, mainly coal. Consolidated EBITDA was a record of $154,600,000 this quarter, and EBITDA margin was 29.9%, a 19.9% and a 5 percentage point increase, respectively, when compared to the same period of 2023. Speaker 300:06:42The trend was similar for the 1st 9 months of the year with revenues increasing 0.9 percent, consolidated EBITDA 12.3 percent and EBITDA margin 2.8 percentage points when compared to the same period of last year. Turning to operating expenses. Administrative expenses for the Q3 of 2024 increased 15.4% and 6.7% during the 9 months of this year when compared to the same period of the previous year, respectively, mainly due to an increase in personnel expenses as a result of increased workers' profit sharing and higher IT, research and cybersecurity related expenses. Selling expenses during this quarter increased 10.7% and 10.4% during the 1st 9 months of the year when compared to the Q3 of 2023 and the 1st 9 months of 2023, respectively, mainly due to increase in personnel expenses mentioned before. Moving on to different segments. Speaker 300:07:53Sales of cement decreased 2.7% this quarter and 3.6% during the 1st 9 months of the year when compared to the same period of 2023, respectively, mainly due to decreased demand from the sales construction segment. Nonetheless, due to our continued focus on efficiency, gross margin increased 7.3 percentage points in the Q3 of 2024 and 5.5 percentage points in the 1st 9 months of this year. When compared to the Q3 of 2023 and the 1st 9 months of last year, respectively, mainly due to a cost optimization and lower cost of raw material mentioned before. During this quarter, concrete pavement and mortar sales increased 25.6% 57.9% during the 1st 9 months of the year when compared to the same period of 2023, mainly due to increased sales volume as payment for the Pura Airport project. Gross margin decreased during the quarter and the 1st 9 months of the year, mainly due to a difference in exchange rate between the projected rate at the time that the contract was signed and the current rate. Speaker 300:09:17Most of this impact was already been accurate for so we expect the margin to improve in the upcoming quarters. Sales of precast materials during the Q3 of 2024 and the 9 months of 2024 increased 10.4% and 31% compared to the 3rd quarter and 1st 9 months of 2023, respectively, mainly due to increased demand from the public sector for the construction project among others. Moving back to our consolidated results. Net profit increased 35.9% this quarter and 11.9% during the 1st 9 months of the year when compared to the same period of last year, respectively, mainly due to increase in operating profit, as mentioned before. In terms of debt, our net debt to EBITDA ratio was 2.8x below the level obtained the previous quarter. Speaker 300:10:20To summarize, this quarter financial results show our ability to manage cost and focus on efficiencies to provide outstanding profitability. We are confident that we will continue delivering positive results during the rest of the year. Can we please open the questions? Operator00:11:05And we also acknowledge the text messages that will be asked by Mr. Luis Ramos and Mr. Marco Mejia, which we'll get to in a moment. Our first voice question comes from Mr. Marcelo Furlan from Itau B. Operator00:11:26C. Speaker 400:12:19Medium and long term here? So these are my 2 questions. Thank you. Speaker 100:12:25Excuse me. We couldn't hear the question at all. There was a lot of interference. I'm not sure if you could ask the question again. Operator00:13:25Of the concrete is going to replace in volume the dispatches to the project at Pura Airport. Speaker 300:13:56A and Operator00:14:39Claudia? Hello, yes. Yes. Hi, Claudia. So just once again, we will try to get in touch with Mr. Operator00:14:48Marcelo from Itau BBA. He's reconnected with the telephone line. Mr. Marcelo? Speaker 400:14:56Yes. Hi, guys. Can you hear me now? Speaker 100:14:58Yes. We can hear you Operator00:14:59loud and clear. Please go ahead, Mr. Marcelo. Speaker 400:15:02Okay. Thank you, guys. Sorry for the interference before. So guys, I have two questions here. The first one is related to cement volumes. Speaker 400:15:10So we saw these volumes increasing by 16% on a quarter over quarter basis. And then my question here is, if you guys see actually the cement volumes in Peru on a better momentum vis a vis what we have seen in the first half of this year. So this is my first question here. And then a follow-up on that. How are you guys seeing cement volumes growth for 2025? Speaker 400:15:33So this is my first question. My second question is related to margins. You guys reached this 30 percent margin in the Tertill and cumulative numbers for 2024 is around 28%. So my question here is related to if you could expect now Cementos Arcos with these margins or sustainable margins hovering around 30% or close to that? So could we expect these margins going forward? Speaker 400:15:59So this is my second question here. Thank you guys and I'm sorry for the interference before. Speaker 500:16:04Let me take that question. Now, relating to volumes, I mean, we are seeing an increase in the Q3. We are anticipating when our call in the Q2 that the 2nd part of the year will be better. We're seeing increased government spending in many things. And next year, we are still running on the budget. Speaker 500:16:24We have to bear in mind that they are very important public projects going on in the north. It needs to have a logic phase that's only be done under a G2G agreement with the Canadian government will be undergo. So I think we're pretty optimistic that next year, volumes should increase with respect to this year. We don't have a specific number right now. In terms of margins, I think the increase we have seen as to the most of these operational efficiencies with our new clients and everything. Speaker 500:16:55So I think going to the future, they should remain. Speaker 400:16:59Okay. Thank you so much, guys. Operator00:17:04Okay. Thank you very much. We will now be reading out the text questions. The first text question is from Mr. Marco Mejia from Talpa SAB. Operator00:17:13How long is it going to impact the new project of Yanacocha to the dispatches of the concrete? Is it going to replace in the volume of the dispatches to the project at Piura Airport? Speaker 500:17:28Could you repeat the question, please? I couldn't hear it. Operator00:17:32Yes. First question is, how long is it going to impact the new project of Yanacocha to the dispatches of the concrete? Is it going to replace the volume of the dispatches to the project at Piura Airport? Speaker 500:17:45I can take your question, Andreas. Speaker 300:17:50Yes. I can take this question. Yes, this project will last approximately 18 months, and the volume is quite similar as the one that we've been in the Pura Airport. Operator00:18:09Okay. Thank you very much. The next question is from Mr. Luis Ramos from La Reine Vial. Hi, Humberto, Manuel and Claudia. Operator00:18:17Congrats on the results. I have three questions. I'll read the first one. First one regarding the volume dynamics. What are your expectations for 2025? Speaker 500:18:28My expectation, like I mentioned before, 2025, we should see an increase in volumes compared to 2024. Operator00:18:36Which are the drivers that should enable growth in self construction? Speaker 500:18:43The driving in self construction are fundamentally 2. 1, I mean, employment is very important. And I think the fishing and agriculture are extremely important for employment in our region. Fishing has had a tremendous year and so has agriculture. So I think the big driver towards that construction is the fact they want to have thousands of people very well employed and are very well paid and that usually translates into cement demand later in the year. Operator00:19:10Okay. Thank you. The follow-up question from Mr. Luis. Regarding prices, it seems that there is a room for price hikes seems limited. Operator00:19:18What do you expect for the price mix improvements in 2025? Speaker 500:19:24I think, I mean, there's not such thing as unlimited space for price hikes. We're always very cautious about price in terms of taking care of the brand, in terms of profitability and in terms of market share. And I think we've done a tremendous job in the past of maximizing price. Bear in mind, there are 2 variables and we're going to keep on the same policy. Operator00:19:45A follow-up question from Mr. Luis. EBITDA margins hovered almost 30% this quarter. What is your guidance on margins for next year? Speaker 300:19:57For the guidance for next year, EBITDA margin for the whole year should be a little bit over 29%. Operator00:20:11Okay. Thank you very much. We have a text question from Mr. Gerard Ford from AFP Integra. A few questions. Operator00:20:19Congratulations on the results. Number 1, we have seen an improvement in gross margins throughout the year. However, this quarter's improvement has been above the improvement seen in recent quarters. While this is attributed to the efficiencies at the Pacasmayo plant and lower coal costs, this has also been the case in previous quarters. Could you comment on what has been the main driver for this quarter's improvement? Speaker 500:20:45The main driver here, I mean operational efficiency is something that we keep pushing. So every time necessary is an opportunity to keep increasing. I mean, you have to realize, I mean, there's always a process of learning the nuclear on Clean 4 now, which we are running like a fantastic ship. And in terms of coal, I mean, we also achieved interesting prices and all those things translate to the fact of inputs and weaknesses. Operator00:21:12The second question from Mr. Ford is related to the long term expected margins for concrete and prefabricated products. Given that there is an effort to expand the participation of these businesses? Speaker 500:21:27I think concrete profitability is going to have to do a lot with the size of the projects. I mean, when we get a Savimotri in hand, when we get a llana coxa, achievement plant design, those things are much more profitable than small concrete operations. As we see, probably can drive an investment hopefully picking up in the coming year, then the margin for concrete to increase accordingly. Operator00:21:50Okay, perfect. Thank you very much. You may also Okay. So it looks like we have no questions at this point. I'll pass the line back to the management team for the concluding remarks. Speaker 500:22:32Thank you. I would like to finish. Speaker 300:22:51Alberto, are you there? Speaker 500:23:05Yes. Sorry for your delay. I would like to finish by briefly sharing. We do that last week I had the chance along with several other Latin American CEOs to visit 3 projects in Europe currently at the forefront of carbon capture. Although reality of Europe is clearly very different from that of Latin America in terms of regulatory framework, economic incentives, research availability and funding, it is nonetheless very gratifying to see such concrete steps towards carbon neutrality in the cement industry. Speaker 500:23:36We are grateful for the opportunity to continue our learning journey in this field, consistent with our And I need to stress needs of our country. I think the balance is going to be within protected environment, within carbon and solvency and being able to provide gross 2,000,000 per year without a home and home for the future. With this, thank you very much for the good interest in our company. And as always, should you have any further questions, we will remain here at your disposal. Thank you very much. Speaker 500:24:12Have a very good day. Operator00:24:14Thank you very much. This concludes today's conference call. We'll now be closing all the lines. Thank you andRead morePowered by Conference Call Audio Live Call not available Earnings Conference CallDynagas LNG Partners Q3 202400:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsSlide DeckReport Cementos Pacasmayo S.A.A. Earnings HeadlinesCementos Pacasmayo S.A.A. American Depositary Shares (Each representing five Common Shares) (CPAC)April 11, 2025 | nasdaq.comCementos Pacasmayo May Offer An Adjusted 13% Earnings Yield, But Is Fairly ValuedFebruary 18, 2025 | seekingalpha.comBiggest AI gains still ahead…? (Major announcement coming)You’ve seen the headlines about Nvidia. Now Tim Sykes is sounding the alarm — because what CEO Jensen Huang is about to announce could change the AI market once again. Experts already predict the total addressable market could climb past $20 trillion. But Sykes believes most investors have missed what’s coming next. He’s tracking a new shift — and says the biggest gains are still ahead.April 22, 2025 | Timothy Sykes (Ad)Cementos Pacasmayo price target lowered to $6 from $6.50 at JPMorganFebruary 17, 2025 | markets.businessinsider.comCEMENTOS PACASMAYO S.A.A. R.U.C. N° 20419387658: Notice of Mandatory Annual Shareholders' MeetingFebruary 14, 2025 | finance.yahoo.comCementos Pacasmayo projects sustained EBITDA margins at 27% in 2025 amid volume growthFebruary 14, 2025 | msn.comSee More Cementos Pacasmayo S.A.A. Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Cementos Pacasmayo S.A.A.? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Cementos Pacasmayo S.A.A. and other key companies, straight to your email. Email Address About Cementos Pacasmayo S.A.A.Cementos Pacasmayo S.A.A. (NYSE:CPAC), a cement company, produces, distributes, and sells cement and cement-related materials in Peru. It operates through three segments: Cement, Concrete, Mortar and Precast; Quicklime; and Sales of Construction Supplies. The company's cement and concrete products are used in residential and commercial construction, and civil engineering; ready-mix concrete used in construction sites; concrete precast, such as paving units or paver stones for pedestrian walkways, as well as other bricks for partition walls and concrete precast for structural and non-structural uses; and cement-based products. It also produces and distributes quicklime for use in steel, food, fishing, and chemical industries. In addition, the company sells and distributes other construction materials manufactured by third parties, such as steel rebar, plastic pipes, and electrical wires. It offers its products directly to other retailers, private construction companies, and government entities through a network of independent retailers and hardware stores. The company was incorporated in 1949 and is headquartered in Lima, Peru. Cementos Pacasmayo S.A.A. is a subsidiary of Inversiones ASPI S.A.View Cementos Pacasmayo S.A.A. 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There are 6 speakers on the call. Operator00:00:00Good day, ladies and gentlemen, and welcome to Pacasmayo's 3rd Quarter 2024 Earnings Conference Call. At this time, all participant lines are in listen only mode, and please note that the call today is being recorded. At the conclusion of our prepared remarks, we will conduct a question and answer session. I would now like to introduce you to our host for today's call, Ms. Claudia Bustamante, Investor Relations Manager. Operator00:00:22Mrs. Bustamante, you may begin. Speaker 100:00:26Thank you, Michael. Good morning, everyone, and thank you for your patience. Joining me on the call today is Mr. Humberto Nadal, our Chief Financial Chief Executive Officer and Mr. Manuel Ferreiro, our Chief Financial Officer. Speaker 100:00:38Mr. Nadal will begin our call with an overview of the quarter, focusing primarily on our strategic outlook for the short and medium term. Mr. Ferreiro will then follow with additional commentary on our financial results. We'll then turn the call over to your questions. Speaker 100:00:53Please 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 Nardi. Speaker 200:01:22Thank you, Thiago. Welcome, everyone, to today's conference call, and thank you for joining us today. My apologies for the delays, I guess, that was landing on a trade. This quarter, we delivered very solid results in terms of margins, EBITDA and profitability. Sales volumes this quarter were covered on a sequential basis, although still slightly behind the same quarter of 2023. Speaker 200:01:47Despite this slight decrease in demand, we are able to achieve a record consolidated EBITDA of BRL 154,600,000, an increase of almost 20% year over year as well as a remarkable increase of 35.9% in net income. By basically focusing on operational efficiencies related to quicker production in our most efficient kilns as well as cost efficiencies in our source of raw material. In our journey to continue developing our building solutions, this quarter, we have embarked into very relevant projects. 1st, we designed an innovative solution for riverbank protection. As you probably already know, the north of Peru is consistently affected by Aliminas, resulting in strong winds that overflowed the rivers and therefore caused significant flooding. Speaker 200:02:38Traditionally, this the riverbank protection is done with steel and rocks. But if there are parts of the North of rocks are not readily available, we defined a new solution using mainly cement, local materials and mortar that is both most cost effective and more durable. We are currently implementing this in Amaliecki, but the solution is scalable and we look to expand it to other areas. Secondly, we are taking on our new talents by converting the agreement and decking operations in the construction of our water treatment plant at the Minera Yalacos operation. The treatment of acidic water in mining is absolutely crucial for environmental sustainability and thus we enable to maintain a balance between economic and social development in our country. Speaker 200:03:26Corporate management of water resources not only minimize the environmental impact, but also generate efficient use of the natural resources we have today, preserving them from major races. These projects are other examples of how we are innovating and adopting our products and services to satisfy the current and potential demand for building solutions. Always, and I want to say always in a time sensitive view underlying with our purpose. I would like now to focus on some that is actually the crucial future for business, including our own artificial intelligence and machine learning. New technologies within a wide variety of activities and there is no doubt that early adopters will be the biggest beneficiary. Speaker 200:04:13Pacasmayo's AI strategy has been crafted to a multi phased approach, starting with a very deep understanding of the business and its needs. Our robust operational and organizational model was designed key corporate expansion and deepening strategy, capabilities assessment and a clear governance model. Implementation of government focus on 3Q4. We are on 3Q fronts, preparing the registration for AI adoption, experimenting with AI solutions and expanding the impact of AI across the enterprise. The strategy has resulted in high engagement and restructuring with 86% of employee participation and 84% rate satisfaction. Speaker 200:04:58We also developed 7 successful pilot projects, including a fragmentation model, a commercial virtual assistant and an automatic bag and counter assistance. Overall, we must see that this strategy has also allowed us to prioritize these cases across various departments and positively impact the value chain. It has not only delivered tangible results and has also laid the foundation for Pacasmayo to be the largest and I mean, truly data and AI driven company. The next steps involve defining the scope and resources of full scale implementation in 2025, further cementing Pacasmayo's position as a leader in their adoption to the industry. I would now like to turn all the call over to Manuel to go into Amoriza's financial analysis. Speaker 200:05:46Manuel? Speaker 300:05:48Thank you, Humberto. Good morning, everyone. This quarter revenues increased 0.2% compared to the Q3 of 2023, reaching BRL517,800,000. However, during this same period, gross profit increased 12.1% when compared to the previous year, mainly due to the cost efficiencies throughout our operations, including our new kiln in Pacasmayo as well as lower cost of raw material, mainly coal. Consolidated EBITDA was a record of $154,600,000 this quarter, and EBITDA margin was 29.9%, a 19.9% and a 5 percentage point increase, respectively, when compared to the same period of 2023. Speaker 300:06:42The trend was similar for the 1st 9 months of the year with revenues increasing 0.9 percent, consolidated EBITDA 12.3 percent and EBITDA margin 2.8 percentage points when compared to the same period of last year. Turning to operating expenses. Administrative expenses for the Q3 of 2024 increased 15.4% and 6.7% during the 9 months of this year when compared to the same period of the previous year, respectively, mainly due to an increase in personnel expenses as a result of increased workers' profit sharing and higher IT, research and cybersecurity related expenses. Selling expenses during this quarter increased 10.7% and 10.4% during the 1st 9 months of the year when compared to the Q3 of 2023 and the 1st 9 months of 2023, respectively, mainly due to increase in personnel expenses mentioned before. Moving on to different segments. Speaker 300:07:53Sales of cement decreased 2.7% this quarter and 3.6% during the 1st 9 months of the year when compared to the same period of 2023, respectively, mainly due to decreased demand from the sales construction segment. Nonetheless, due to our continued focus on efficiency, gross margin increased 7.3 percentage points in the Q3 of 2024 and 5.5 percentage points in the 1st 9 months of this year. When compared to the Q3 of 2023 and the 1st 9 months of last year, respectively, mainly due to a cost optimization and lower cost of raw material mentioned before. During this quarter, concrete pavement and mortar sales increased 25.6% 57.9% during the 1st 9 months of the year when compared to the same period of 2023, mainly due to increased sales volume as payment for the Pura Airport project. Gross margin decreased during the quarter and the 1st 9 months of the year, mainly due to a difference in exchange rate between the projected rate at the time that the contract was signed and the current rate. Speaker 300:09:17Most of this impact was already been accurate for so we expect the margin to improve in the upcoming quarters. Sales of precast materials during the Q3 of 2024 and the 9 months of 2024 increased 10.4% and 31% compared to the 3rd quarter and 1st 9 months of 2023, respectively, mainly due to increased demand from the public sector for the construction project among others. Moving back to our consolidated results. Net profit increased 35.9% this quarter and 11.9% during the 1st 9 months of the year when compared to the same period of last year, respectively, mainly due to increase in operating profit, as mentioned before. In terms of debt, our net debt to EBITDA ratio was 2.8x below the level obtained the previous quarter. Speaker 300:10:20To summarize, this quarter financial results show our ability to manage cost and focus on efficiencies to provide outstanding profitability. We are confident that we will continue delivering positive results during the rest of the year. Can we please open the questions? Operator00:11:05And we also acknowledge the text messages that will be asked by Mr. Luis Ramos and Mr. Marco Mejia, which we'll get to in a moment. Our first voice question comes from Mr. Marcelo Furlan from Itau B. Operator00:11:26C. Speaker 400:12:19Medium and long term here? So these are my 2 questions. Thank you. Speaker 100:12:25Excuse me. We couldn't hear the question at all. There was a lot of interference. I'm not sure if you could ask the question again. Operator00:13:25Of the concrete is going to replace in volume the dispatches to the project at Pura Airport. Speaker 300:13:56A and Operator00:14:39Claudia? Hello, yes. Yes. Hi, Claudia. So just once again, we will try to get in touch with Mr. Operator00:14:48Marcelo from Itau BBA. He's reconnected with the telephone line. Mr. Marcelo? Speaker 400:14:56Yes. Hi, guys. Can you hear me now? Speaker 100:14:58Yes. We can hear you Operator00:14:59loud and clear. Please go ahead, Mr. Marcelo. Speaker 400:15:02Okay. Thank you, guys. Sorry for the interference before. So guys, I have two questions here. The first one is related to cement volumes. Speaker 400:15:10So we saw these volumes increasing by 16% on a quarter over quarter basis. And then my question here is, if you guys see actually the cement volumes in Peru on a better momentum vis a vis what we have seen in the first half of this year. So this is my first question here. And then a follow-up on that. How are you guys seeing cement volumes growth for 2025? Speaker 400:15:33So this is my first question. My second question is related to margins. You guys reached this 30 percent margin in the Tertill and cumulative numbers for 2024 is around 28%. So my question here is related to if you could expect now Cementos Arcos with these margins or sustainable margins hovering around 30% or close to that? So could we expect these margins going forward? Speaker 400:15:59So this is my second question here. Thank you guys and I'm sorry for the interference before. Speaker 500:16:04Let me take that question. Now, relating to volumes, I mean, we are seeing an increase in the Q3. We are anticipating when our call in the Q2 that the 2nd part of the year will be better. We're seeing increased government spending in many things. And next year, we are still running on the budget. Speaker 500:16:24We have to bear in mind that they are very important public projects going on in the north. It needs to have a logic phase that's only be done under a G2G agreement with the Canadian government will be undergo. So I think we're pretty optimistic that next year, volumes should increase with respect to this year. We don't have a specific number right now. In terms of margins, I think the increase we have seen as to the most of these operational efficiencies with our new clients and everything. Speaker 500:16:55So I think going to the future, they should remain. Speaker 400:16:59Okay. Thank you so much, guys. Operator00:17:04Okay. Thank you very much. We will now be reading out the text questions. The first text question is from Mr. Marco Mejia from Talpa SAB. Operator00:17:13How long is it going to impact the new project of Yanacocha to the dispatches of the concrete? Is it going to replace in the volume of the dispatches to the project at Piura Airport? Speaker 500:17:28Could you repeat the question, please? I couldn't hear it. Operator00:17:32Yes. First question is, how long is it going to impact the new project of Yanacocha to the dispatches of the concrete? Is it going to replace the volume of the dispatches to the project at Piura Airport? Speaker 500:17:45I can take your question, Andreas. Speaker 300:17:50Yes. I can take this question. Yes, this project will last approximately 18 months, and the volume is quite similar as the one that we've been in the Pura Airport. Operator00:18:09Okay. Thank you very much. The next question is from Mr. Luis Ramos from La Reine Vial. Hi, Humberto, Manuel and Claudia. Operator00:18:17Congrats on the results. I have three questions. I'll read the first one. First one regarding the volume dynamics. What are your expectations for 2025? Speaker 500:18:28My expectation, like I mentioned before, 2025, we should see an increase in volumes compared to 2024. Operator00:18:36Which are the drivers that should enable growth in self construction? Speaker 500:18:43The driving in self construction are fundamentally 2. 1, I mean, employment is very important. And I think the fishing and agriculture are extremely important for employment in our region. Fishing has had a tremendous year and so has agriculture. So I think the big driver towards that construction is the fact they want to have thousands of people very well employed and are very well paid and that usually translates into cement demand later in the year. Operator00:19:10Okay. Thank you. The follow-up question from Mr. Luis. Regarding prices, it seems that there is a room for price hikes seems limited. Operator00:19:18What do you expect for the price mix improvements in 2025? Speaker 500:19:24I think, I mean, there's not such thing as unlimited space for price hikes. We're always very cautious about price in terms of taking care of the brand, in terms of profitability and in terms of market share. And I think we've done a tremendous job in the past of maximizing price. Bear in mind, there are 2 variables and we're going to keep on the same policy. Operator00:19:45A follow-up question from Mr. Luis. EBITDA margins hovered almost 30% this quarter. What is your guidance on margins for next year? Speaker 300:19:57For the guidance for next year, EBITDA margin for the whole year should be a little bit over 29%. Operator00:20:11Okay. Thank you very much. We have a text question from Mr. Gerard Ford from AFP Integra. A few questions. Operator00:20:19Congratulations on the results. Number 1, we have seen an improvement in gross margins throughout the year. However, this quarter's improvement has been above the improvement seen in recent quarters. While this is attributed to the efficiencies at the Pacasmayo plant and lower coal costs, this has also been the case in previous quarters. Could you comment on what has been the main driver for this quarter's improvement? Speaker 500:20:45The main driver here, I mean operational efficiency is something that we keep pushing. So every time necessary is an opportunity to keep increasing. I mean, you have to realize, I mean, there's always a process of learning the nuclear on Clean 4 now, which we are running like a fantastic ship. And in terms of coal, I mean, we also achieved interesting prices and all those things translate to the fact of inputs and weaknesses. Operator00:21:12The second question from Mr. Ford is related to the long term expected margins for concrete and prefabricated products. Given that there is an effort to expand the participation of these businesses? Speaker 500:21:27I think concrete profitability is going to have to do a lot with the size of the projects. I mean, when we get a Savimotri in hand, when we get a llana coxa, achievement plant design, those things are much more profitable than small concrete operations. As we see, probably can drive an investment hopefully picking up in the coming year, then the margin for concrete to increase accordingly. Operator00:21:50Okay, perfect. Thank you very much. You may also Okay. So it looks like we have no questions at this point. I'll pass the line back to the management team for the concluding remarks. Speaker 500:22:32Thank you. I would like to finish. Speaker 300:22:51Alberto, are you there? Speaker 500:23:05Yes. Sorry for your delay. I would like to finish by briefly sharing. We do that last week I had the chance along with several other Latin American CEOs to visit 3 projects in Europe currently at the forefront of carbon capture. Although reality of Europe is clearly very different from that of Latin America in terms of regulatory framework, economic incentives, research availability and funding, it is nonetheless very gratifying to see such concrete steps towards carbon neutrality in the cement industry. Speaker 500:23:36We are grateful for the opportunity to continue our learning journey in this field, consistent with our And I need to stress needs of our country. I think the balance is going to be within protected environment, within carbon and solvency and being able to provide gross 2,000,000 per year without a home and home for the future. With this, thank you very much for the good interest in our company. And as always, should you have any further questions, we will remain here at your disposal. Thank you very much. Speaker 500:24:12Have a very good day. Operator00:24:14Thank you very much. This concludes today's conference call. We'll now be closing all the lines. Thank you andRead morePowered by