Cementos Pacasmayo S.A.A. (CPAC): ANSOFF MATRIX [Dec-2025 Updated]

You're looking for a clear, actionable breakdown of Cementos Pacasmayo S.A.A. (CPAC)'s growth vectors, and honestly, the Ansoff Matrix is the defintely the right tool here. As an analyst who has spent two decades mapping out corporate strategy, I can tell you this isn't abstract theory; we're looking at concrete plans like boosting current cement sales by 3% via market penetration, expanding the existing product line into the vital Lima metropolitan area, developing a new high-performance cement for specialized infrastructure, and earmarking $5 million for R&D on advanced additives. This matrix distills the near-term risks and opportunities into four distinct paths-from securing shelf space to exploring renewable energy diversification-giving you a precise playbook for Cementos Pacasmayo S.A.A. (CPAC)'s next phase. See the specific actions below.

Cementos Pacasmayo S.A.A. (CPAC) - Ansoff Matrix: Market Penetration

Market Penetration for Cementos Pacasmayo S.A.A. centers on deepening its presence in existing markets, primarily Northern Peru, leveraging recent volume momentum. The company reported that for the first nine months of 2025, the sales volume of cement, concrete, and precast increased by 9.0% in the third quarter alone, following a 7.1% increase in the second quarter and a 4.1% increase in the first quarter of 2025, compared to the same periods in 2024.

The strategy targets an increase in market share in Northern Peru's self-construction segment. This segment is noted as 'starting to pick up' after a period of moderate volumes, providing a clear opportunity for deeper penetration. The overall construction sector in Peru is growing at almost 5% year-over-year, largely supported by infrastructure.

To secure distribution channels, the plan involves offering loyalty discounts to high-volume distributors. This action is set against a backdrop where operating expenses have risen, with selling expenses increasing by 25.5% in the third quarter of 2025 year-over-year. Securing shelf space is vital to maintain or grow the company's position in the North, where its historical market share was reported at 27 per cent.

A targeted campaign is designed to boost sales of existing cement types by a goal of 3%. This goal is set while the company is already seeing strong volume results, with Q3 2025 cement sales increasing by 10.4% compared to Q3 2024. Revenues for the first nine months of 2025 grew 7.3%, with Q3 2025 revenues reaching S/574.1 million.

Optimizing logistics is a key operational lever, aiming to reduce delivery times by a target of 15% in key urban centers. This focus on efficiency supports the coordinated supply chain designed to minimize delays across construction cycles. The company's divisions reinforce distribution efficiency, with ready-mix concrete operations prioritizing timely dispatch to avoid site application delays.

The final element of market penetration involves aggressively pricing standard cement to counter local competitors' new capacity. The competitive landscape in the Northern region includes Cementos Selva. The company reported 'Good volumes and pricing' in the third quarter of 2025. This pricing action must be managed carefully, as the Q3 2025 EBITDA margin was 27.3%, down from 28.0% in Q3 2024, partly due to higher personnel expenses from a union bonus. Management aims to maintain EBITDA margins around 27% for 2025.

The financial performance underpinning these market penetration efforts in 2025 is summarized below:

Key operational and strategic data points supporting the market penetration focus include:

• Cementos Pacasmayo S.A.A. has three key projects providing a tailwind into FY25 and H1 2026: Motupe riverbanks, Yanacocha mine, and Tarata bridge.
• The company's cash profitability is estimated around $70 million against a market cap of $600 million.
• The announced dividend for the year was PEN 190 million, representing a 9.3% yield on the current market cap.
• Sustaining capital expenditures are projected at PEN100 million for both 2025 and 2026.
• The current market cap is listed as $585.4M.

Cementos Pacasmayo S.A.A. (CPAC) - Ansoff Matrix: Market Development

Cementos Pacasmayo S.A.A. operates with a total installed cement capacity of 4.9 million MT/year across its Pacasmayo, Rioja, and Piura plants.

The company's sales volume for cement, concrete, and precast materials showed growth in the first nine months of 2025, increasing by 6.8% compared to the same period in 2024. For the third quarter of 2025 specifically, the sales volume increase was 9.0% year-over-year. As of September 30, 2025, the trailing 12-month revenue stood at $558M.

The focus on infrastructure projects is evident in the operational results, with Q3 2025 sales volume growth being mainly attributed to higher sales for infrastructure related projects. The company has been actively investing in capacity to support this growth, with capital expenditures totaling PEN62.7m in the first six months of 2025. Furthermore, a specific investment of US$70 million is earmarked for the Pacasmayo plant to add an additional 600,000 MT of cement production annually.

The financial position as of September 30, 2025, shows total assets of S/3,292,562,000 and equity of S/1,384,796,000, with a debt-to-equity ratio of 0.73.

The company's existing operational footprint and logistics capabilities, such as having 123 mixers and 30 telescopic pumps, support a broad distribution base, though these assets are noted to be concentrated in the northern part of Peru.

Key Financial and Operational Metrics as of September 30, 2025 (or latest reported period):

The company's current operational focus includes specific investments in its plants, such as the PEN22.6m allocated to projects at the Piura plant and PEN11.8m for Pacasmayo plant projects within the first half of 2025.

The company's product portfolio is used in various segments, including:

• Professional segment
• Edificaciones (Buildings)
• Infraestructura vial (Road infrastructure)
• Industria (Industry)
• Energía y minas (Energy and mining)

Cementos Pacasmayo S.A.A. (CPAC) - Ansoff Matrix: Product Development

You're looking at how Cementos Pacasmayo S.A.A. is growing its existing product lines, which is the Product Development quadrant of the Ansoff Matrix. The numbers from the first nine months of 2025 definitely show momentum in their current material offerings.

For instance, the sales volume of cement, concrete, and precast materials saw a solid increase of 6.8% for the first nine months of 2025 compared to the same period in 2024. This growth in volume drove revenues up by 7.3% across the same nine-month period. Honestly, you can see the success in the top line; the consolidated revenue for the third quarter of 2025 hit S/ 484.1 million, or about $136.1 million for that quarter alone, which is a 5.9% uptick year-over-year for 2Q25. For 3Q25 specifically, revenues were up 10.9% compared to 3Q24.

Regarding investment in improving materials, while I don't see a specific R&D line item for exactly $5 million, we can look at capital expenditures (Capex) which often funds product improvement and capacity. For the first half of 2025, Cementos Pacasmayo S.A.A. invested a total of PEN 62.7 million in Capex projects. Here's a quick breakdown of where that investment went:

This investment supports enhancements to their existing product lines, like ready-mix concrete and precast elements, which are already key parts of their business.

The focus on existing markets with improved offerings is also reflected in how they are selling their core cement product. For the third quarter of 2025, sales of cement itself represented 83.9% of the total cement, concrete, and precast sales. This segment saw sales increase by 10.4% in 3Q25 compared to 3Q24.

To support these material enhancements and sales, Cementos Pacasmayo S.A.A. is also focusing on bundling services. While I don't have a specific revenue number for technical consulting, the company supports contractors with guidance on material selection and application techniques for their ready-mix concrete, precast elements, and cement varieties.

The success in volume growth across their established product categories is clear:

• Sales volume of cement, concrete, and precast increased by 9.0% in 3Q25.
• Sales volume increased by 4.1% in 1Q25, driven by bagged cement and concrete.
• Cement production volume at the Pacasmayo plant increased 12.0% in 3Q25 versus 3Q24.
• Net income for 3Q25 was S/ 71.5 million, a 14.4% increase.
• The company reported $0.24 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.19.

Cementos Pacasmayo S.A.A. (CPAC) - Ansoff Matrix: Diversification

You're looking at how Cementos Pacasmayo S.A.A. can expand beyond its core cement and concrete business, which is showing solid momentum. For instance, in the first nine months of 2025 (9M25), revenues grew 7.3% year-over-year, reaching S/425.5 million in Consolidated EBITDA. Still, the company is managing cost pressures, as seen by the Q3 2025 EBITDA margin of 28.0%, which was impacted by a union bonus, though lower raw material, coal, and energy costs helped gross profit increase 14.4% in that quarter.

The existing strength in related products is a clear launchpad. Concrete, pavement, and mortar sales saw a 22.3% increase in Q1 2025 compared to Q1 2024, and grew 16.1% for the first six months of 2025. This existing expertise helps frame the next steps in diversification.

Here's a quick look at the recent financial scale you're working with:

Sustaining capital expenditures are projected at PEN100 million for both 2025 and 2026, which gives you a baseline for new investment requirements.

Acquire a local quarrying operation to secure raw material supply and reduce costs.

Securing raw materials directly addresses margin pressures. The fact that Q3 2025 gross profit increased 14.4% was partly driven by lower raw material costs. Vertical integration via quarry acquisition aims to make those lower costs more structural, rather than relying on market fluctuations. This move directly mitigates the risk of input price volatility that can affect the gross margin, which saw pressure in segments like concrete in Q2 2025.

Enter the pre-fabricated housing market using existing concrete expertise.

The existing business shows strong movement here already. Concrete, pavement, and mortar sales grew 22.3% in Q1 2025 and 16.1% in the first six months of 2025. This suggests a high appetite for Cementos Pacasmayo S.A.A.'s ready-mix concrete and precast materials, which are foundational to pre-fabricated construction. You could target specific growth areas, like the 4.1% sales increase seen in precast materials in 6M25 due to public sector volume.

• Precast materials sales increased 5.3% in the first six months of 2025 year-over-year.
• Concrete sales for infrastructure projects, like the Piura Airport, show high demand potential.

Establish a construction waste recycling and aggregate production business.

This aligns with broader regional trends. The South American Waste Management Market size is estimated at USD 40.03 billion in 2025. Within that, recycling and resource recovery services are projected to expand at a 6.64% CAGR through 2030. Furthermore, rising landfill taxes in Peru specifically incentivize crushing and reuse businesses, which directly relates to producing recycled aggregates. Globally, the construction waste market was valued at USD 232.1 billion in 2024.

Develop and market digital construction management software for small contractors.

Cementos Pacasmayo S.A.A. is already focused on digital transformation, including AI-driven solutions and ISO 27001 certification for cybersecurity, as noted in late 2024/early 2025 updates. This internal capability suggests a foundation for productizing internal efficiencies. While specific software revenue figures aren't available, the company's administrative expenses rose 20.2% in Q3 2025, partly due to personnel costs, so efficiency-driving software could offer a counter-balance.

Invest in renewable energy generation (solar/wind) to power operations and sell surplus.

This addresses the goal of stable energy costs, which positively impacted Q3 2025 margins via lower coal and energy costs. Peru is aggressively pursuing solar. The country expects to add 1.24 GW of grid-connected PV capacity in 2025 alone, aiming for nearly 3 GW total by 2028. For industrial scale, commercial solar payback periods can be as short as 3 to 4 years for systems around 1000 kWp. The government is also extending tax incentives, including corporate income tax exemptions, to 2035.

• Peru's current installed PV capacity is 528 MW (as per IRENA 2025 report).
• The average cost for residential solar in Peru is around $4 per watt.
• Policy aims for 35% of power generation from photovoltaic and wind by 2030.