Corporación Aceros Arequipa, a leading steel company in the market with more than 55 years of solid experience offering products and services of international quality, presented its results for the third quarter of 2021.
During the third quarter of 2021, sales were S/. 1,382 million, 72% higher when compared to the same period of the previous year; namely, S/ 804 million and 23% higher compared to the second quarter of 2021, equivalent to S/ 1,124 million. This was mainly due to a higher sales price and secondly to a higher volume sold.
Likewise, a gross profit of S/ 342 million was recorded, which was higher than that of the same period of the previous year and higher than that of the second quarter of 2021. The gross margin recorded in the third quarter of 2021 was 24.8%, higher than that obtained during the same quarter of the previous year (20.5%) due to higher volumes sold and higher sales prices and lower than the margin obtained in the second quarter of 2021 (26.8%).
Operating income and EBITDA for the third quarter of 2021 were S/. 351 million and S/. 364 million, respectively. EBITDA in this quarter was higher than during the same period of the previous year mainly due to higher gross profit and higher operating income due to the resolution of the dispute with the gas supplier.
The EBITDA margin obtained during the third quarter of 2021 was 26.4%, higher than the figure obtained during the same period of the previous year, which was 16.9%, and higher than the second quarter of 2021 (22.4%).
Likewise, the company obtained a profit of S/. 245 million, higher than the result recorded in the same period of the previous year at S/. 83 million, which is mainly explained by an increase in gross profit and operating income, partially offset by higher administrative and selling expenses.
Furthermore, operating working capital requirements reached S/ 1734.4 million due to higher inventories and a reduction in trade payables.
CAPEX was S/ 248.0 million, which mainly corresponds to the asset acquisition of two scrap yards in the US and the new steel mill.
In addition, the Company stated in its report: "In terms of sustainability, since November 2020 the Company is part of the Dow Jones Sustainability MILA Pacific Alliance Index, which is a stock market index composed of those companies that meet certain sustainability requirements better than their peers within a given industry. In February 2021, the company was included in The Sustainability Yearbook 2021, an important yearbook that highlights the companies with the best performance in environmental, social, and governance issues in each industry worldwide. Aceros Arequipa is the first Peruvian company in the steel sector to enter and the second Peruvian company to enter this yearbook."
