Cementos Pacasmayo S.A.A. (CPAC): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how a leading cement company in Northern Peru operates and generates revenue? Cementos Pacasmayo S.A.A. (CPAC), with its 65+ years of operating history, stands as a cornerstone in the Peruvian construction industry. With a diverse product portfolio ranging from cement to quicklime, and a market capitalization of $432.35 million, how does CPAC maintain its competitive edge, especially after a 1.4% revenue increase in 2024? Keep reading to discover the rich history, ownership structure, and the intricate mechanisms that drive Cementos Pacasmayo's success.

Cementos Pacasmayo S.A.A. (CPAC) History

[Company's] Founding Timeline

Year established

Cementos Pacasmayo S.A.A. was established in 1949.

Original location

The company was founded in Pacasmayo, Peru.

Founding team members

The founder of Cementos Pacasmayo was Don Carlos A. Vivanco.

Initial capital/funding

Information regarding the initial capital or funding for Cementos Pacasmayo's founding is not readily available in the provided context. Typically, this type of information would be found in the company's historical financial records or official filings.

[Company's] Evolution Milestones

[Company's] Transformative Moments

• Strategic Acquisitions: Cementos Pacasmayo has grown through strategic acquisitions, such as Cementos Norte Pacasmayo S.A. in 1998, which significantly expanded its production capabilities and market share in Northern Peru.
• Going Public: The IPO on the New York Stock Exchange in 2012 was a pivotal moment, providing the company with access to international capital markets and enhancing its corporate governance and transparency.
• Capacity Expansion: Investments in new plants, like the Piura Plant in 2014, have been crucial in increasing production capacity and meeting growing demand, reinforcing its market position. The Piura plant increased the company's cement production capacity in Northern Peru by approximately 30%.
• Product Diversification: Diversifying into related products like concrete and precast construction materials has allowed Cementos Pacasmayo to capture more value in the construction supply chain and reduce reliance on cement sales alone.

To gain more insights into the financial aspects of the company, you might find this link helpful: Breaking Down Cementos Pacasmayo S.A.A. (CPAC) Financial Health: Key Insights for Investors

Cementos Pacasmayo S.A.A. (CPAC) Ownership Structure

Cementos Pacasmayo S.A.A. features a mixed ownership structure, with a blend of individual shareholders and institutional investors influencing its corporate governance.

Cementos Pacasmayo S.A.A.'s Current Status

Cementos Pacasmayo S.A.A. is a publicly traded company listed on both the Lima Stock Exchange and the New York Stock Exchange (NYSE) under the ticker symbol CPAC. This allows both local and international investors to participate in the company's equity.

Cementos Pacasmayo S.A.A.'s Ownership Breakdown

The ownership of Cementos Pacasmayo S.A.A. is distributed among various shareholders, including families, individuals, and institutional investors. Here’s a simplified overview:

Cementos Pacasmayo S.A.A.'s Leadership

The leadership team is responsible for the strategic direction and operational management of the company. As of April 2025, key figures include:

• Humberto Nadal Del Carpio serves as the Chief Executive Officer (CEO).
• Manuel Ferreyros Moreyra holds the position of Chairman of the Board.

These individuals, along with other key executives and board members, guide Cementos Pacasmayo S.A.A.'s strategic initiatives and oversee its operations. More details about the company's mission can be found at: Mission Statement, Vision, & Core Values of Cementos Pacasmayo S.A.A. (CPAC).

Cementos Pacasmayo S.A.A. (CPAC) Mission and Values

Cementos Pacasmayo S.A.A. strives to create value for its shareholders, customers, employees, and the communities it serves, emphasizing sustainable development and innovation. The company's core values reflect a commitment to ethical conduct, quality, and social responsibility.

Cementos Pacasmayo S.A.A.'s Core Purpose

Official mission statement

Cementos Pacasmayo S.A.A.'s mission statement is: 'To create value for our shareholders, customers, collaborators and the community, producing and marketing cement, concrete, precast and other construction materials, with a focus on sustainable development.'

• Creating value for shareholders, customers, collaborators, and the community.
• Producing and marketing cement, concrete, precast, and other construction materials.
• Focusing on sustainable development.

Vision statement

Cementos Pacasmayo S.A.A.'s vision is to be the leading corporation providing construction solutions in the Peruvian market.

• To be the leading corporation
• Providing construction solutions
• Focusing on the Peruvian market

Company slogan/tagline

Cementos Pacasmayo S.A.A. does not have a widely publicized official slogan or tagline. The company's communication generally emphasizes its commitment to quality, innovation, and sustainable development within the construction industry.

To delve deeper into the financial aspects of Cementos Pacasmayo S.A.A., consider exploring: Breaking Down Cementos Pacasmayo S.A.A. (CPAC) Financial Health: Key Insights for Investors

Cementos Pacasmayo S.A.A. (CPAC) How It Works

Cementos Pacasmayo S.A.A. (CPAC) operates as an integrated cement producer in Peru, involved in the production and distribution of cement, concrete, and other construction materials. The company leverages its strategically located production plants and distribution network to serve a diverse range of customers, from individual homeowners to large-scale construction projects.

Cementos Pacasmayo's Product/Service Portfolio

Cementos Pacasmayo's Operational Framework

Cementos Pacasmayo's operations are structured to ensure efficiency and quality across its entire value chain:

• Raw Material Extraction: CPAC extracts raw materials such as limestone, clay, and gypsum from its own quarries, ensuring a consistent supply and quality control.
• Cement Production: The cement manufacturing process involves crushing, grinding, and mixing raw materials, followed by heating in kilns to produce clinker. The clinker is then ground with gypsum to produce various types of cement.
• Concrete Production: CPAC operates ready-mix concrete plants that combine cement, aggregates, water, and admixtures to produce concrete mixes tailored to specific project requirements.
• Distribution Network: The company utilizes a network of distribution centers and authorized dealers to reach customers across northern Peru, ensuring timely delivery and customer service.
• Quality Control: CPAC maintains rigorous quality control standards throughout its operations, from raw material testing to finished product inspection, to ensure compliance with Peruvian and international standards.

Cementos Pacasmayo's Strategic Advantages

• Integrated Operations: CPAC's integrated business model, from raw material extraction to finished product distribution, provides cost efficiencies and quality control.
• Strategic Locations: The company's production plants are strategically located near key markets and raw material sources, reducing transportation costs and improving delivery times.
• Product Diversification: CPAC offers a wide range of products, including cement, concrete, and lime, allowing it to serve diverse customer needs and reduce its reliance on any single product.
• Strong Brand Reputation: Cementos Pacasmayo has a strong brand reputation in northern Peru, built on its commitment to quality, reliability, and customer service.
• Focus on Sustainability: CPAC is committed to sustainable business practices, including reducing its carbon footprint, conserving water, and promoting responsible mining practices.

For more information, you might find this link helpful: Mission Statement, Vision, & Core Values of Cementos Pacasmayo S.A.A. (CPAC).

Cementos Pacasmayo S.A.A. (CPAC) How It Makes Money

Cementos Pacasmayo S.A.A. generates revenue primarily through the production and sale of cement and other construction materials.

Cementos Pacasmayo S.A.A.'s Revenue Breakdown

Cementos Pacasmayo S.A.A.'s Business Economics

Cementos Pacasmayo S.A.A.'s business economics are influenced by several factors, including:

• Pricing Strategy: The company employs a competitive pricing strategy, adjusting prices based on market demand, competitor pricing, and production costs.
• Economic Fundamentals: The overall health of the Peruvian economy, particularly the construction sector, significantly impacts Cementos Pacasmayo S.A.A.'s revenue. Increased construction activity drives higher demand for cement and related products.
• Production Costs: Efficient management of production costs, including raw materials, energy, and labor, is crucial for maintaining profitability.
• Distribution Network: A well-established distribution network ensures timely delivery of products to customers, enhancing market reach and customer satisfaction.

Cementos Pacasmayo S.A.A.'s Financial Performance

Cementos Pacasmayo S.A.A.'s financial performance can be assessed through the following key metrics:

• Revenue Growth: Monitoring the year-over-year revenue growth indicates the company's ability to expand its market share and capitalize on opportunities.
• Gross Profit Margin: The gross profit margin, which was 40.3% in 2023, reflects the efficiency of production processes and pricing strategies. A higher margin indicates better cost management and pricing power.
• Net Income: Net income, which totaled S/ 239.7 million in 2023, represents the company's profitability after all expenses and taxes.
• EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) provides a clear picture of the company's operating profitability.
• Debt Levels: Managing debt levels is essential for financial stability. Cementos Pacasmayo S.A.A. maintains a conservative approach to debt.
• Capital Expenditures: Strategic investments in capital projects, such as plant upgrades or expansions, can drive future growth and improve operational efficiency.

To gain more insights into the company's values and objectives, explore: Mission Statement, Vision, & Core Values of Cementos Pacasmayo S.A.A. (CPAC).

Cementos Pacasmayo S.A.A. (CPAC) Market Position & Future Outlook

Cementos Pacasmayo S.A.A. maintains a strong foothold in the Northern Peruvian cement market, leveraging its integrated business model and strategic locations. The company is poised to capitalize on infrastructure development and housing demand, while also navigating potential economic headwinds and increasing competition.

Competitive Landscape

Opportunities & Challenges

Industry Position

• Cementos Pacasmayo benefits from its strategic positioning in Northern Peru, where it holds a significant market share.
• The company's integrated operations, from raw material extraction to cement production and distribution, provide a competitive advantage in terms of cost control and supply chain management.
• Cementos Pacasmayo focuses on sustainable practices and operational efficiency to maintain its industry standing.
• Breaking Down Cementos Pacasmayo S.A.A. (CPAC) Financial Health: Key Insights for Investors