Cementos Pacasmayo S.A.A. (CPAC): BCG Matrix [Dec-2025 Updated]

You're looking at Cementos Pacasmayo S.A.A.'s (CPAC) current strategic map as of late 2025, and it's a fascinating mix of heavy hitters and potential pivots. We've got infrastructure cement firing on all cylinders as a clear Star, fueled by that massive 30% concrete growth, while the core bagged cement business keeps printing cash with a 27.3% margin, making it a rock-solid Cash Cow. Still, the export side is definitely lagging, and the quicklime venture needs a clear call-invest or divest-to capitalize on the mining sector's potential. Dive in below to see exactly where CPAC needs to deploy its capital next.

Background of Cementos Pacasmayo S.A.A. (CPAC)

You're looking at Cementos Pacasmayo S.A.A. (CPAC), which stands as a key player in the Peruvian construction materials sector. The company has a long operating history, starting way back in 1949, and it focuses its main operations in the Northern region of Peru. Cementos Pacasmayo S.A.A. is publicly traded, with its shares listed on the New York Stock Exchange under the ticker CPAC and also on the Lima Stock Exchange (BVL: CPACASC1). This dual listing has been in place since February 2012.

Cementos Pacasmayo S.A.A. structures its business across three primary segments. The first, and likely the largest, is Cement, Concrete, Mortar and Precast, supplying materials for residential, commercial construction, and civil engineering projects. The second segment is Quicklime, which serves industrial clients in sectors like mining, steel, and food processing. Finally, the company has a segment for Sales of Construction Supplies, where it distributes materials made by third parties, such as steel rebar and plastic tubes.

The overall market context has been supportive, as the Peruvian construction segment has been one of the economy's faster-growing areas recently. Looking at the latest available operational data for the third quarter of 2025 (3Q25), Cementos Pacasmayo S.A.A. saw its sales volume for cement, concrete, and precast jump by 9.0% year-over-year. This momentum carried through to the top line, with revenues increasing by 10.9% to S/574.1m for the quarter.

For the first nine months of 2025 (9M25), the company reported a 6.8% increase in sales volume, leading to a 7.3% rise in revenues, reaching S/425.5 million in consolidated EBITDA for that period. Net income showed strong growth, rising 15.6% year-to-date to S/ 172.0 million. Honestly, the operational performance in 2025 reflects solid demand, though some expense increases, like a union bonus, did temper the EBITDA margin slightly in 3Q25.

If you check the balance sheet as of June 30, 2025, the company shows a stable financial standing. Total assets were reported at S/3,228,413,000, against total liabilities of S/1,914,964,000. This resulted in an equity base of S/1,313,449,000. Furthermore, the firm maintained a debt-to-equity ratio of 0.73 and, as of the 9M25 reporting, its net debt/EBITDA stood at 2.5x, signaling a focus on deleveraging while supporting capital needs.

Cementos Pacasmayo S.A.A. (CPAC) - BCG Matrix: Stars

You're looking at the core growth engine for Cementos Pacasmayo S.A.A. (CPAC) right now, the segment that defines its current market leadership and future potential. This is where high market share meets a rapidly expanding market, primarily driven by government spending on infrastructure.

The Star quadrant for Cementos Pacasmayo S.A.A. is characterized by its strong position in infrastructure-driven cement and concrete sales. This is directly fueled by major public works projects across Peru, which demand high volumes of their specialized products.

Consider the volume performance in the third quarter of 2025 (3Q25). The combined sales volume for cement, concrete, and precast materials saw a solid increase of $\text{9.0%$ year-over-year. To be fair, the concrete segment is showing even more explosive growth, which is what you'd expect from a Star product line heavily tied to major construction.

Here's a quick look at the growth dynamics:

• Sales volume of cement, concrete, and precast up $\text{9.0%$ in 3Q25.
• Revenues for 3Q25 grew $\text{10.9%$ year-over-year.
• Concrete, pavement, and mortar sales jumped $\text{26.3%$ in 3Q25.
• Overall cement demand in Peru grew $\text{9.4%$ YoY in October 2025.

This high demand necessitates significant investment to keep pace. Cementos Pacasmayo S.A.A. is actively supporting this growth with substantial capital expenditure (CapEx). The company has already committed capital, reporting $\text{PEN62.7m$ in CapEx projects in the first six months of 2025, covering equipment and work at its Piura and Rioja plants.

The most concrete evidence of this Star positioning is the planned expansion at the flagship facility. Cementos Pacasmayo S.A.A. decided to invest $\text{US$70 million$ in the Pacasmayo plant specifically to increase cement production capacity by an additional $\text{600,000 MT$ annually. That's the kind of cash burn you expect when you're trying to maintain leadership in a booming market.

The market context supports this aggressive stance. National cement consumption in Peru showed high growth, advancing $\text{9.4%$ year-over-year in October 2025. Cementos Pacasmayo S.A.A. primarily serves the northern part of Peru, suggesting a strong regional share that is benefiting disproportionately from this national uptrend.

You can see how these key metrics illustrate the Star profile:

If Cementos Pacasmayo S.A.A. successfully manages this CapEx and the associated operating expenses-like the one-time union bonus that impacted 3Q25 margins-these high-growth concrete and infrastructure sales are set up to transition into Cash Cows when the current infrastructure boom inevitably slows down.

Cementos Pacasmayo S.A.A. (CPAC) - BCG Matrix: Cash Cows

The Core Bagged Cement for the self-construction segment in Northern Peru represents the quintessential Cash Cow for Cementos Pacasmayo S.A.A. This business unit commands a dominant market share in the Northern region, which translates directly into strong pricing power and a foundation of stable demand, even when the broader market faces volatility.

This segment is the primary engine for corporate liquidity. For the first nine months of 2025 (9M25), this core business contributed significantly to the company's financial strength, generating a Consolidated EBITDA of S/425.5 million. You see, cash cows are the units that fund everything else.

The high-margin nature of this product line is key to its cash-generating ability. Bagged cement constitutes approximately 91% of the product mix. This favorable composition sustained a robust EBITDA margin of 27.3% for the 9M25 period. That margin is what allows Cementos Pacasmayo S.A.A. to generate more cash than it consumes.

Growth in this mature segment is stable, providing predictable cash flows, which is exactly what you want from a Cash Cow. While overall sales volume for cement, concrete, and precast grew by 6.8% in 9M25, and revenues grew by 7.3%, this reflects consistent underlying demand in the core operating area, despite the temporary margin compression noted from union-related bonus expenses in 3Q25.

Here are the key financial metrics underpinning this Cash Cow status for 9M25:

The strategy here is clear: maintain productivity and milk the gains passively. Investments should focus on efficiency improvements rather than aggressive market expansion, as the market is mature. You should look at supporting infrastructure investments that can further reduce operating costs, thereby increasing the cash flow extracted from this unit.

The operational focus for this Cash Cow includes:

• Maintaining the dominant market share in Northern Peru.
• Ensuring the cost structure remains competitive to protect the 27.3% EBITDA margin.
• Sustaining operational efficiency, as seen by the 6.8% volume growth in 9M25.
• Managing personnel costs, which temporarily pressured margins due to a union bonus in 3Q25.

The expectation is that growth will stabilize at mid-single digits going forward, which aligns perfectly with the low-growth characteristic of a Cash Cow, allowing the unit to continue its primary function of funding the rest of the business portfolio.

Cementos Pacasmayo S.A.A. (CPAC) - BCG Matrix: Dogs

You're looking at the segment of Cementos Pacasmayo S.A.A. (CPAC) that consistently underperforms and demands minimal attention-the Dogs. These are units in slow-growth markets with a small slice of that market, and honestly, they often just tie up capital.

For Cementos Pacasmayo S.A.A., the export business clearly fits this profile. It is positioned as a non-core, low-volume activity, especially when you look at the robust performance of the core domestic operations in Northern Peru.

Here are the key indicators that classify Cement Exports as a Dog:

• Cement Exports represent a non-core, low-volume activity.
• The market position is clearly declining.
• It receives minimal strategic focus or investment capital.
• It has a low relative market share in the global or regional export space.

The most concrete evidence of this segment's weakness comes from the latest monthly figures. For October 2025, the overall Peruvian cement export volume fell by 7% year-over-year, dropping from 11,600t in October 2024 to 10,837t in October 2025. This national trend reflects the low-growth environment this segment operates in.

To give you a sense of scale, in the third quarter of 2025, Cementos Pacasmayo S.A.A. reported total revenues of S/574.1 million. The export component is a small fraction of this, and its declining trend suggests it is a cash trap rather than a growth engine. The company's strategic decision is clear: they are heavily prioritizing the high-growth domestic Northern Peru market, where sales volume for cement, concrete, and precast materials increased by 9.0% year-over-year in 3Q25.

When you compare the two sides of the business, the picture for the export unit becomes stark. We can map out the contrast in focus:

Expensive turn-around plans are rarely justified here. The data suggests that capital tied up in trying to revitalize this low-share, low-growth export activity would be better deployed into the core business, which is showing strong returns, like the 14.4% increase in net income reported for 3Q25. The unit's low relative market share in the global or regional export market offers limited future prospects, making divestiture a prime consideration for resource allocation.

Finance: draft the capital allocation proposal prioritizing domestic CapEx over export development by next Wednesday.

Cementos Pacasmayo S.A.A. (CPAC) - BCG Matrix: Question Marks

The quicklime production line for the Peruvian mining sector fits the Question Mark quadrant for Cementos Pacasmayo S.A.A. (CPAC). This business unit operates in a market segment with clear growth drivers, yet CPAC currently holds a low relative market share, consuming cash without delivering substantial returns yet.

The market context is one of growth potential. The Peru Lime Market is projected to grow at a rate beginning at 1.32% in 2025, climbing to a high of 1.74% in 2027. This growth is supported by the mining sector, where increasing demand for elements like copper drives the need for quicklime as a settling aid. This positions the market as high-potential for CPAC.

However, the relative market share is low, evidenced by the significant gap between sales and installed capacity. In 2024, Cementos Pacasmayo S.A.A. sold approximately 46 thousand metric tons of quicklime. This contrasts sharply with the company's installed annual production capacity of 240,000 metric tons of quicklime. This underutilization suggests high fixed costs relative to revenue generation from this line, which is characteristic of a Question Mark.

The financial impact reflects this status. In 2024, the cost of sales for quicklime saw a 32.6%, or S/7.9 million, decrease, which the company attributed mainly to lower production volumes. This indicates that the unit is not yet generating positive cash flow to justify its operational scale, despite the overall company posting H1 2025 revenue of PEN983.3 million and Q3 2025 EBITDA of PEN160.6 million.

To move this unit to a Star, significant investment is required to rapidly capture market share. The strategy revolves around scaling production and distribution to meet the demand from the mining supply chain. The current situation demands a decision: either invest heavily to increase sales volume significantly above the 46 thousand metric tons sold in 2024, or divest.

Here are the key metrics defining the Question Mark status for CPAC's quicklime business as of the latest available data:

The required actions for this segment center on market penetration:

• Increase quicklime sales volume above 46 thousand metric tons annually.
• Secure long-term supply contracts within the Peruvian mining sector.
• Determine the necessary capital expenditure to efficiently utilize capacity up to 240,000 metric tons.
• Monitor copper commodity prices for demand correlation.
• Evaluate the return on investment against the core cement business's EBITDA margin, which was approximately 27.1% in Q4 2024.