The firm reported a net profit of S/ 51 million (approximately US$ 13.5 million), while in the same period of the previous year it recorded a net profit of S/ 18 million (US$ 4.8 million).
During the second quarter of 2024, Corporación Aceros Arequipa (CAASA) reported a net profit of S/ 51 million (approximately US$ 13.5 million). This figure represented an increase of 180%, compared to the same period of the previous year, in which a net profit of S/ 18 million (US$ 4.8 million) was recorded. The results show a notable improvement in profits despite the challenges in the markets where it operates.
In terms of sales, last year, higher income was recorded in non-recurring markets and in Bolivia, as well as the sale of billet (a product that is not sold regularly), which did not happen this year. However, this decrease was partially offset by an increase in sales in Peru, Ecuador and Colombia, as well as higher sales of byproducts.
From the point of view of operating results, despite the lower sales, gross profit and EBITDA had significant growth due to the recovery of profitability in Peru, followed by Colombia and Bolivia, sales in Ecuador and the sale of byproducts. . It should be added that since the third quarter of 2023, the company has shown a sustained positive trend in its EBITDA, which is the approximate measure of its operating cash generation. During the second quarter of 2024, CAASA has continued to reduce its inventories, which translated into lower financing needs for working capital. This inventory reduction, along with lower interest rates, resulted in lower financial expense, thus improving the Company's cost structure.
CAASA has invested S/199 million (US$52.6 million) so far this year and plans to continue with investments in the coming months, although to a lesser extent and in line with a cycle of large investments that began in 2018. reference, to date this cycle (2018 to Q2 2024) has represented more than US$ 800 million in investments, which demonstrates Aceros Arequipa's commitment to growth in the markets where it operates. During Q2 2024, S/100 million were invested, which were allocated to the construction of a new rolling mill, the wire and nail plant, the improvement of the lime kiln, the scrap metal cleaning machine and the Distribution Center. Lurín, among others. These investments are crucial to improve the company's productive capacity and operational efficiency.
