Peruvian cement producer Cementos Yura boosted its second quarter profit 7.6% from a year ago as both production and sales gained.

Net income was 42.5mn soles (US$13mn) in the quarter compared with a 39.5mn-sol profit a year earlier, the Lima-based company said in a corporate filing to securities regulator SMV. Sales rose 9% to 232mn soles from 212mn soles a year ago.

Yura produced 608,923t of cement, up 11% due to rising demand, while clinker output was little changed at 342,659t, it said. Local cement sales rose 10% to 522,378t, while cement exports climbed 3.5% to 84,197t.

Yura increased its market share to 22.4% in the quarter from 20.4% a year ago. Peru's total domestic cement sales were little changed at 2.33Mt in the quarter, according to cement producers association Asocem.

The company, which sold 502mn soles in bonds in May 2015 to finance its 2014 acquisition of Bolivia's Soboce, said it invested 20mn soles in capex in the first half, including in land, infrastructure and machinery.

The company, controlled by Gloria Group, competes in Peru with Unacem and Hochschild Group unit Cementos Pacasmayo. Unacem nearly tripled its second quarter profit to 74mn soles, while Pacasmayo saw its profit drop 19% to 31.3mn soles.

Peruvian President Pedro Pablo Kuczynski, who took office last week, has pledged to fast-track US$25bn in delayed infrastructure projects, in addition seeking investment for large-scale copper mines.

Infrastructure and mining projects will drive growth in Peru this year despite slumping commodities prices, according to the finance ministry. Peru's economy is expected to expand 3.8% in 2016 compared with 3.3% last year, according to the ministry.

 

Source: BNamericas

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