6-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15b-16 OF
THE SECURITIES EXCHANGE ACT OF 1934

For the month of October 2023

Commission File Number 001-35401

CEMENTOS PACASMAYO S.A.A.
(Exact name of registrant as specified in its charter)

PACASMAYO CEMENT CORPORATION
(Translation of registrant’s name into English)

Republic of Peru
(Jurisdiction of incorporation or organization)

Calle La Colonia 150, Urbanización El Vivero
Surco, Lima
Peru
(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F  ☒          Form 40-F  ☐

CEMENTOS PACASMAYO S.A.A.

The following exhibit is attached:

EXHIBIT NO.	DESCRIPTION
99.1	Unaudited interim condensed consolidated financial statements as of September 30, 2023 and for the three and nine-month periods then ended.

1

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

CEMENTOS PACASMAYO S.A.A.
By:	/s/ CARLOS JOSE MOLINELLI MATEO
Name:	Carlos Jose Molinelli Mateo
Title:	Stock Market Representative
Date:	October 25, 2023

2

EX-99.1

Exhibit 99.1

Cementos Pacasmayo S.A.A. and Subsidiaries

Unaudited interim condensed consolidated financial statements
as of September 30, 2023 and for the three and nine-month periods then ended

Cementos Pacasmayo S.A.A. and Subsidiaries

Unaudited interim condensed consolidated financial statements as of September 30, 2023 and for the three and nine-month periods then ended

Content

Report on review of interim condensed consolidated unaudited financial statements	1
Interim condensed consolidated unaudited financial statements
Interim condensed consolidated unaudited statements of financial position	2
Interim condensed consolidated unaudited statements of profit or loss	3
Interim condensed consolidated unaudited statements of other comprehensive income	4
Interim condensed consolidated unaudited statements of changes in equity	5
Interim condensed consolidated unaudited statements of cash flows	6
Notes to the interim condensed consolidated unaudited financial statements	8

i

Report on review of interim condensed consolidated unaudited financial statements

To the Board of Directors and Shareholders of Cementos Pacasmayo S.A.A.

Introduction

We have reviewed the accompanying interim condensed consolidated unaudited statement of financial position of Cementos Pacasmayo S.A.A. (a Peruvian company) and its Subsidiaries (together the “Group”) as of September 30, 2023, and the related interim condensed consolidated unaudited statements of profit or loss, other comprehensive income, changes in equity and cash flows for the three and nine-month periods then ended, and explanatory notes. Management is responsible for the preparation and presentation of these interim condensed consolidated unaudited financial statements in accordance with IAS 34 Interim Financial Reporting (IAS 34). Our responsibility is to express a conclusion on these interim condensed consolidated unaudited financial statements based on our review.

Scope of review

We conducted our review in accordance with International Auditing Standard on Review Engagements (ISRE) 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of the persons responsible for financial and accounting matters and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated unaudited financial statements are not prepared, in all material respects, in accordance with IAS 34.

Lima, Peru

October 25, 2023

Countersigned by:

Manuel Arribas Zevallos

C.P.C. Register No. 45987

1

Cementos Pacasmayo S.A.A. and Subsidiaries

Interim condensed consolidated unaudited statements of financial position

As of September 30, 2023 (unaudited) and December 31, 2022 (audited)

	Note	As of September 30, 2023			As of December, 2022
		S/(000)			S/(000)
Assets
Current assets
Cash and cash equivalents	3	177,124			81,773
Term deposits with maturity greater than ninety days	3		8,500			-
Derivative financial instruments	15		-			86,893
Trade and other receivables	4		96,078			101,491
Income tax prepayments			4,369			8,268
Inventories	5		817,685			884,969
Prepayments			21,595			25,059
Total current asset			1,125,351			1,188,453
Non-current assets
Trade and other receivables	4		43,928			43,543
Financial instruments designated at fair value through other comprehensive income	15		274			274
Property, plant and equipment	6		2,151,371			2,007,838
Intangible assets			60,882			56,861
Goodwill			4,459			4,459
Deferred income tax assets			11,220			9,005
Right of use asset	7		6,470			3,639
Other assets			78			89
Total non-current assets			2,278,682			2,125,708
Total assets			3,404,033			3,314,161
Liability and equity
Current liabilities
Trade and other payables	8		277,535			284,554
Financial obligations	9 and 15		345,146			618,907
Lease liabilities	7		3,184			2,005
Income tax payable			9,159			16,340
Provisions	10		56,120			31,333
Total current liabilities			691,144			953,139
Non-current liabilities
Financial obligations	9 and 15		1,228,637			974,264
Lease liabilities	7		3,804			2,350
Non-current provisions	10		20,675			47,638
Deferred income tax liabilities			130,082			141,635
Total non-current liabilities			1,383,198			1,165,887
Total liability			2,074,342			2,119,026
Equity
Capital stock			423,868			423,868
Investment shares			40,279			40,279
Investment shares held in treasury			(121,258	)		(121,258	)
Additional paid-in capital			432,779			432,779
Legal reserve			168,636			168,636
Other accumulated comprehensive loss			(16,272	)		(17,787	)
Retained earnings			401,659			268,618
Total equity			1,329,691			1,195,135
Total liability and equity			3,404,033			3,314,161

The accompanying notes are an integral part of the interim condensed consolidated unaudited financial statements.

2

Cementos Pacasmayo S.A.A. and Subsidiaries

Interim condensed consolidated unaudited statements of profit or loss

For the three and nine-month periods ended September 30, 2023 and September 30, 2022 (unaudited)

		For the three-month period ended September 30,						For the nine-month period ended September 30,
	Note	2023			2022			2023			2022
		S/(000)			S/(000)			S/(000)			S/(000)
Sales of goods	12		516,664			553,556			1,438,698			1,581,851
Cost of sales			(342,025	)		(387,695	)		(950,886	)		(1,092,943	)
Gross profit			174,639			165,861			487,812			488,908
Operating expense
Administrative expenses			(55,099	)		(58,149	)		(171,155	)		(166,399	)
Selling and distribution expenses			(17,689	)		(17,242	)		(50,897	)		(51,237	)
Other operating expense, net			(10,290	)		(688	)		(8,814	)		(2,023	)
Total operating expenses, net			(83,078	)		(76,079	)		(230,866	)		(219,659	)
Operating profit			91,561			89,782			256,946			269,249
Other income (expenses)
Finance income			2,063			855			4,254			2,425
Finance costs			(26,907	)		(24,999	)		(76,784	)		(71,607	)
Net profit (loss) for valuation of trading derivative financial instruments	15(a)		-			62			19			(2	)
Gain (loss) from exchange difference, net			376			(1,832	)		5,717			(1,481	)
Total other expenses, net			(24,468	)		(25,914	)		(66,794	)		(70,665	)
Profit before income tax			67,093			63,868			190,152			198,584
Income tax expense	11		(20,978	)		(19,667	)		(57,111	)		(60,679	)
Profit for the period			46,115			44,201			133,041			137,905
Earnings per share
Basic profit for the period attributable to equity holders of common shares and investment shares of the parent (S/ per share)	14		0.11			0.10			0.31			0.32

The accompanying notes are an integral part of the interim condensed consolidated unaudited financial statements.

3

Cementos Pacasmayo S.A.A. and Subsidiaries

Interim condensed consolidated unaudited statements of other comprehensive income

For the three and nine-month periods ended September 30, 2023 and September 30, 2022 (unaudited)

		For the three-month period ended September 30,					For the nine-month period ended September 30,
	Note	2023		2022			2023			2022
		S/(000)		S/(000)			S/(000)			S/(000)
Profit for the period			46,115		44,201			133,041			137,905
Other comprehensive income
Other comprehensive income to be reclassified to profit or loss in subsequent periods:
Net gain on cash flow hedges	15(a)		-		1,256			2,154			1,647
Deferred income tax	11		-		(370	)		(634	)		(486	)
Other comprehensive income for the period, net of income tax			-		886			1,520			1,161
Total comprehensive income for the period, net of income tax			46,115		45,087			134,561			139,066

The accompanying notes are an integral part of the interim condensed consolidated unaudited financial statements.

4

Cementos Pacasmayo S.A.A. and Subsidiaries

Interim condensed consolidated unaudited statements of changes in equity

For the nine-month period ended September 30, 2023 and September 30, 2022 (unaudited)

	Capital stock		Investment shares		Investments shares held in treasury			Additional paid-in capital		Legal reserve		Unrealized loss on financial instruments designated at fair value			Unrealized gain (loss) on cash flow hedge			Retained earnings		Total equity
	S/(000)		S/(000)		S/(000)			S/(000)		S/(000)		S/(000)			S/(000)			S/(000)		S/(000)
Balance as of January 1, 2022		423,868		40,279		(121,258	)		432,779		168,636		(15,869	)		(4,225	)		271,595		1,195,805
Profit for the period		-		-		-			-		-		-			-			137,905		137,905
Other comprehensive income for the period, net of income tax		-		-		-			-		-		-			1,161			-		1,161
Total comprehensive income		-		-		-			-		-		-			1,161			137,905		139,066
Balance as of September 30, 2022		423,868		40,279		(121,258	)		432,779		168,636		(15,869	)		(3,064	)		409,500		1,334,871
Balance as of January 1, 2023		423,868		40,279		(121,258	)		432,779		168,636		(16,267	)		(1,520	)		268,618		1,195,135
Profit for the period		-		-		-			-		-		-			-			133,041		133,041
Other comprehensive income for the period, net of income tax		-		-		-			-		-		-			1,520			-		1,520
Others		-		-		-			-		-		(5	)		-			-		(5	)
Total comprehensive income		-		-		-			-		-		(5	)		1,520			133,041		134,556
Balance as of September 30, 2023		423,868		40,279		(121,258	)		432,779		168,636		(16,272	)		-			401,659		1,329,691

The accompanying notes are an integral part of the interim condensed consolidated unaudited financial statements.

5

Cementos Pacasmayo S.A.A. and Subsidiaries

Interim condensed consolidated unaudited statements of cash flows

For the three and nine-month period ended September 30, 2023 and September 30, 2022

		For the three-month period ended September 30						For the nine-month period ended September 30
	Note	2023			2022			2023			2022
		S/(000)			S/(000)			S/(000)			S/(000)
Operating activities
Profit before income tax			67,093			63,868			190,152			198,584
Non-cash adjustments to reconcile profit before income tax to net cash flows :
Depreciation and amortization			37,377			34,959			105,283			103,621
Finance costs			26,907			24,999			76,784			71,607
Long-term incentive plan	13		1,854			2,235			5,775			6,039
Estimate expected credit loss	4		231			-			1,746			1,893
Net (gain) loss on the settlement of trading derivative financial instruments	15(a)		-			(62	)		(19	)		2
Unrealized exchange difference related to monetary transactions			(725	)		(3,927	)		(545	)		295
Net gain on disposal of property, plant and equipment	6		(308	)		(53	)		(695	)		(460	)
Finance income			(2,063	)		(855	)		(4,254	)		(2,425	)
Other operating, net			1,100			2,428			2,940			3,345
Working capital adjustments
(Increase) decrease in trade and other receivables			(5,401	)		(20,603	)		1,866			(11,674	)
Decrease (increase) in prepayments			4,783			(8,194	)		(580	)		(22,933	)
Decrease (increase) in inventories			111,814			(92,610	)		65,669			(209,102	)
Increase in trade and other payables			59,916			45,770			4,322			60,406
			302,578			47,955			448,444			199,198
Interests received			2,133			1,900			4,194			3,188
Interests paid			(31,642	)		(35,447	)		(77,768	)		(72,761	)
Income tax paid			(25,212	)		(16,987	)		(78,938	)		(68,087	)
Net cash flows provided (used in) by operating activities			247,857			(2,579	)		295,932			61,538

6

Interim condensed consolidated unaudited statements of cash flows (continued)

		For the three-month period ended September 30,						For the nine-month period ended September 30,
	Note	2023			2022			2023			2022
		S/(000)			S/(000)			S/(000)			S/(000)
Investing activities
Purchase of property, plant and equipment			(94,885	)		(56,239	)		(243,598	)		(95,155	)
Purchase of intangible assets			(3,577	)		(4,438	)		(10,940	)		(9,590	)
Loans to third parties			(702	)		-			(1,202	)		(141	)
Opening of term deposits with original maturity greater than 90 days			(8,500	)		-			(18,500	)		-
Collection of loan to third parties			-			-			150			149
Proceeds from sale of property, plant and equipment			536			398			1,221			1,519
Redemption of term deposits with original maturity greater than 90 days			10,000			-			10,000			-
Net cash flows used in investing activities			(97,128	)		(60,279	)		(262,869	)		(103,218	)
Financing activities
Loan paid	9		(39,091	)		(69,984	)		(546,429	)		(228,984	)
Bank overdraft paid			-			-			(85,333	)		-
Payment of hedge finance cost			-			(7,708	)		(7,708	)		(15,390	)
Payment of lease liabilities	7		(935	)		(628	)		(2,322	)		(1,821	)
Dividends paid			(127	)		(135	)		(583	)		(774	)
Loan received	9		-			70,000			525,000			229,000
Income from settlement of derivative financial instrument			-			-			93,323			-
Bank overdraft			-			-			85,333			-
Dividends returned			163			2			462			172
Net cash flows provided by (used in) financing activities			(39,990	)		(8,453	)		61,743			(17,797	)
Net increase (decrease) in cash and cash equivalents			110,739			(71,311	)		94,806			(59,477	)
Net foreign exchange difference			725			4,971			545			(2,275	)
Cash and cash equivalents at the beginning of the period			65,660			277,990			81,773			273,402
Cash and cash equivalents at the end of the period	3		177,124			211,650			177,124			211,650
Transactions with no effect in cash flows:
Unrealized exchange difference related to monetary transactions			(725	)		(3,927	)		(545	)		295
Outstanding accounts payable related to acquisition of property, plant and equipment as of September 30	6		1,104			1,995			12,140			8,022
Recognition of right-of-use assets and lease liabilities during the period	7		4,829			-			4,829			305

The accompanying notes are an integral part of the interim condensed consolidated unaudited financial statements.

7

Cementos Pacasmayo S.A.A. and Subsidiaries

Notes to interim condensed consolidated unaudited financial statements

As of September 30, 2023 and 2022, and December 31, 2022

1. Economic activity

(a) Economic activity -

Cementos Pacasmayo S.A.A. (hereinafter “the Company”) was incorporated in 1957 and, in accordance with the Law of Peruvian Companies, is an open stock corporation, its shares are listed in the Lima and New York Stock Exchange. The Company is a subsidiary of Inversiones ASPI S.A., which holds 50.01 percent of the Company’s common shares as of September 30, 2023, December 31, 2022 and September 30, 2022.

The address registered by the Company is Calle La Colonia No.150, Urbanización El Vivero, Santiago de Surco, Lima, Peru.

The main activity of the Company is the production and commercialization of cement, precast, concrete and quicklime in the northern region of Peru.

The interim condensed consolidated unaudited financial statements of the Company and its subsidiaries (hereinafter the “Group”) as of September 30, 2023 and for the nine-month period then ended, were approved for issuance by the Company’s Management on October 25, 2023. The consolidated audited financial statements as of December 31, 2022 have been approved by the General Meeting of Shareholders, on March 24, 2023.

2. Basis of preparation and changes to the Group’s accounting policies

2.1 Basis of preparation -

The interim condensed consolidated unaudited financial statements of the Group have been prepared in accordance with IAS 34 Interim Financial Reporting as issued by the International Accounting Standards Board (IASB) and have been prepared on a historical cost basis, except for financial instruments designated at fair value through other comprehensive income (OCI) and derivatives financial instruments that have been measured at fair value. The interim condensed consolidated unaudited financial statements are presented in soles and all values are rounded to the nearest thousand (S/000), except when otherwise indicated. The Group has prepared the financial statements on the basis that it will continue to operate as a going concern. The Management consider that there are no material uncertainties that may cast doubt significant doubt over this assumption. They have formed a judgement that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, and not less than 12 months from the end of the reporting period.

The interim condensed consolidated unaudited financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with Group’s annual consolidated financial statements as of December 31, 2022.

8

Notes to interim condensed consolidated unaudited financial statements (continued)

New standards, interpretations and amendments

The accounting policies adopted in the preparation of the interim condensed consolidated unaudited financial statements are consistent with the policies considered in the preparation of the consolidated financial statements of the Group at December 31, 2022, except for the adoption of new standards effective as of 1 January 2022. The standards and interpretations relevant to the Group, that are effective since January 1, 2023 are disclosed below.

Definition of Accounting Estimates - Amendments to IAS 8

The amendments to IAS 8 clarify the distinction between changes in accounting estimates, and changes in accounting policies and the correction of errors. They also clarify how entities use measurement techniques and inputs to develop accounting estimates.

The amendments had no impact on the Group’s interim condensed consolidated unaudited financial statements.

Disclosure of Accounting Policies - Amendments to IAS 1 and IFRS Practice Statement 2

The amendments to IAS 1 and IFRS Practice Statement 2 Making Materiality Judgements provide guidance and examples to help entities apply materiality judgements to accounting policy disclosures. The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ‘significant’ accounting policies with a requirement to disclose their ‘material’ accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures.

The amendments had no impact on the Group’s interim condensed consolidated unaudited financial statements but are expected to affect the accounting policy disclosures in the Group’s annual consolidated financial statements.

Deferred Tax related to Assets and Liabilities arising from a Single Transaction – Amendments to IAS 12

The amendments to IAS 12 Income Tax narrow the scope of the initial recognition exception, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences such as leases and decommissioning liabilities. The amendments had no impact on the Group’s interim condensed consolidated financial statements.

2.2 Basis of consolidation -

The interim condensed consolidated unaudited financial statements comprise the financial statements of the Company and its subsidiaries as of September 30, 2023 and 2022, and for the three and nine-month period ended September 30, 2023 and 2022 (unaudited).

For the three and nine-month period ended September 30,2023 and 2022, there was no changes in the participation of the common shares that the Company’s had in its subsidiaries; the main activities and information about subsidiaries are revealed on the consolidated financial statements as of December 31, 2022.

9

Notes to interim condensed consolidated unaudited financial statements (continued)

2.3 Seasonality of operations -

Seasonality is not relevant to the Group’s activities.

3. Cash and cash equivalents

(a) This caption consists of the following:

	As of September 30, 2023		As of December 31, 2022
	S/(000)		S/(000)
Cash on hand		153		161
Cash at banks (b)		71,236		39,112
Term deposits with original maturities of ninety days or less (c)		105,735		42,500
Cash balances included in statements of cash flows		177,124		81,773
Term deposit with original maturity greater than ninety days (c)		8,500		-
		185,624		81,773

(b) Cash at banks is denominated in local and foreign currencies, is deposited in domestic and foreign banks and is freely available. The cash at banks interest yield is based on daily bank deposit rates.

(c) As of September 30, 2023, the short-term deposits held in domestic banks and are comprised of S/105,735,000, with annual interest of term deposits and original maturity of less than three months.

As of September 30, 2023, long-term deposits with original maturities greater than ninety days comprehend S/8,500,000 with an annual interest rate of 8.05 percent, and original maturity of 96 days.

4. Trade and other receivables

As of September 30, 2023 and December 31, 2022 this caption mainly includes trade receivables, value-added tax credit (VAT), interest receivables and accounts receivables from related parties. At those dates, approximately 60% and 63% of trade receivables were guaranteed by bank guarantees and mortgages amounting to S/53,911,000 and S/ 49,162,000, respectively.

On March 22, 2021, the Company received Tax Court Resolution N° 00905-4-21 that declares the calculation of Mining Royalty should be based on gross sale of the final product (cement) for the years 2008 and 2009. This is an opposite position to what is established by the Constitutional Court in the STC Exp. N° 1043-2013-PA/TC that declares founded the writ of protection presented by the Company and its right to calculate the Mining Royalty exclusively based on the value of the mining component, without considering in any way the value of the final products derived from industrial and manufacturing processes.

10

Notes to interim condensed consolidated unaudited financial statements (continued)

The Company has made, under protest, partial payments of the debts arbitrarily placed in collection. These payments as of September 30, 2023 and December 31, 2022 amount to approximately S/29,559,000, and are presented in the caption “Trade and other receivables” as non-current assets. To date, the Company has already initiated the corresponding legal actions to recover said payments and in the opinion of Management and its external legal advisors, it has a high probability of obtaining a favorable result.

For the nine-month period ended September 30, 2023 and 2022, the Group recorded S/1,746,000 and S/1,893,000, respectively, related to the provision for expected credit losses for trade receivables, which are presented in the caption “Selling and distribution expenses” of the interim condensed consolidated unaudited statement profit or loss and; corresponds to the best estimate of Management considering the current situation. The Group’s Management will continue evaluating the conditions of its client portfolio and, if deemed necessary, the corresponding provisions will be made.

The movement of the allowance for expected credit losses on trade and others receivable for the nine-month period ended as of September 30, 2023 and 2022 is as follows:

	2023			2022
	S/(000)			S/(000)
Opening balance		16,467			14,573
Additions		1,746			1,893
Recoveries and others		(69	)		(62	)
Ending balance		18,144			16,404

5. Inventories

As of September 30, 2023 and December 31, 2022 includes goods and finished products, work in progress, raw materials and other supplies to be used in the production process.

6. Property, plant and equipment, net

During the three-and nine-month periods ended September 30, 2023 the Group’s additions amounted approximately to S/95,989,000 and S/241,178,000, respectively (S/58,234,000 and S/95,562,000 during the three- and nine-month periods ended September 30, 2022, respectively), mainly as a result of the optimization of the Clinker lines of the Pacasmayo Plant - Kiln 4 and which began operations in the third quarter of 2023.

Assets with a net book value of S/423,000 were sold during the nine-month period ended September 30, 2023 (S/690,000 for the nine-month period ended September 30, 2022), resulting in a net gain on disposal of S/695,000 (S/460,000 for the nine-month period ended September 30, 2022).

As of September 30, 2023 the Group maintains accounts payable related to the acquisition of property, plant and equipment for S/12,140,000 (S/14,560,000 as of December 31, 2022).

11

Notes to interim condensed consolidated unaudited financial statements (continued)

7. Leases

The Group has lease contracts with third parties, mainly 4 to 5-year lease contracts of front loaders and trucks.

The annual incremental interest rate used for the initial recognition of the right-of-use asset and the lease liability ranges between 5.2 and 6.2 percent.

The Group also leases certain minor equipment for less than 12 months, the Group has decided to apply the recognition exemption for short term leases (less than 12 months) and for leases of low value assets. The expense for this type of lease amounted to S/1,653,000 for the nine-month period ended September 30, 2023 (S/1,011,000 as of September 30, 2022) and was recognized in the “Administrative expenses” caption of the interim condensed consolidated unaudited statement of profit or loss.

The movement of the right of use assets recognized by the Group is shown below:

	Transportation units			Machinery and equipment		Other		Total
	S/(000)			S/(000)		S/(000)		S/(000)
Cost -
Balance as of January 1, 2022		7,721			-		35		7,756
Additions		305			-		-		305
Balance as of September 30,2022		8,026			-		35		8,061
Balance as of January 1, 2023		8,029			-		307		8,336
Additions		136			4,693		-		4,829
Sales and/or retirement		(344	)		-		-		(344	)
Balance as of September 30, 2023		7,821			4,693		307		12,821
Accumulated depreciation -
Balance as of January 1, 2022		3,053			-		35		3,088
Additions		1,211			-		-		1,211
Balance as of September 30, 2022		4,264			-		35		4,299
Balance as of January 1, 2023		4,672			-		25		4,697
Additions		959			845		79		1,883
Sales and/or retirement		(229	)		-		-		(229	)
Balance as of September 30, 2023		5,402			845		104		6,351
Net book value
As of December 31, 2022		3,357			-		282		3,639
As of September 30, 2023		2,419			3,848		203		6,470

12

Notes to interim condensed consolidated unaudited financial statements (continued)

The movement of the lease liabilities recognized by the Group is shown below:

	2023			2022
	S/(000)			S/(000)
Balance as of January 1		4,355			5,829
Additions		4,829			305
Disposals		(166	)		-
Financial interest expense		318			226
Lease payments		(2,322	)		(1,821	)
Other		(26	)		54
Balance as of September 30		6,988			4,593
Maturity
Current portion		3,184			1,923
Non-current portion		3,804			2,670
Balance as of September 30		6,988			4,593
Net book value
As of December 31, 2022					4,355
As of September 30, 2023					6,988

The future cash disbursements in relation to lease liabilities have been disclosed in note 9.

8. Trade and other payables

As of September 30, 2023 and December 31, 2022, this caption includes trade payables, value-added tax debt (VAT), account payables to related parties, interest payable, dividends payable among other minor payables.

As of September 30, 2023 dividends payable amounted to S/9,643,000 (S/9,764,000 as of December 31, 2022).

9. Financial Obligations

(a) Corporate bonds

On January 31, 2019, corporate bonds were issued in soles for S/260,000,000 at a rate of 6.688 percent per year and maturity of 10 years and; 15-year bonds for S/310,000,000 at a rate of 6.844 percent per year. As of December 31, 2022 the corporate bonds issued in US Dollars amounts to US$131,612,000 with an annual rate of 4.5 percent and these have been paid with the corporate loan indicated in section (d) in February 2023.

For the nine-month period ended September 30, 2023 and 2022, the corporate bonds generated interests that have been recognized in the interim condensed consolidated unaudited financial statement of profit or loss for S/29,039,000 and S/45,704,000, respectively. 

13

Notes to interim condensed consolidated unaudited financial statements (continued)

(b) Short-term promissory notes

As of September 30, 2023 and December 31, 2022, the Company maintains two loans of S/38,000,000 each with maturity in December 2023 and at an effective annual interest rate of 8.93 percent. In addition, the Company acquired two promissory notes in January 2023 for S/38,000,000 each, with maturity in January 2024 and an effective annual interest rate of 9.78 percent and 9.44 percent, respectively. In march 2023, the Company acquired two promissory notes of S/19,000,000 each, with maturity in March 2024 and an effective annual interest rate of 8.83 percent.

(c) Financial covenants –

The contracts for corporate bonds issued in soles have the following covenants to limit incurring indebtedness for the Company and its guarantor subsidiaries, which are measured prior to the following transactions: issuance of debt or equity instruments, merger with another company or disposal or rental of significant assets. The covenants are the following:

- The debt service coverage ratio (includes amortization plus interest) must be at least 2.5 to 1.

- The financial debt to Ebitda ratio may not be greater than 3.5 to 1.

(d) Medium-term Corporate Loan under “Club deal” modality -

On August 6, 2021, the Company established the conditions of a medium-term corporate loan under “Club Deal” modality with Banco de Crédito del Perú S.A. and Scotiabank Perú S.A.A. The loan amounts to S/ 860,000,000 that allowed the payment of all the financial obligations that the Company maintained with maturity until February 2023. The loan conditions include a grace/availability period of 18 months from August 6 and a payment term of 7 years from the last disbursement, which was in February 2023. Since that date, the loan will be paid in 22 equal quarterly installments and has an annual interest rate of 5.82 percent.

As of September 30, 2023, the Company paid S/39,091,000 for the first installment of the loan.

As part of the loan conditions, the Company would assume the following obligations:

I. Comply with the following financial safeguards:

(a). Debt Ratio (Financial Debt / EBITDA) <= 3.50x

(b). Debt Service Coverage Ratio (FCSD / SD) > = 1.15x

(c). Debt Service Coverage Ratio (EBITDA / SD) >= 1.50x

These financial safeguards will be calculated and verified at the end of each calendar quarter, considering the information of consolidated financial statements of the Company for the last 12 months, prepared in accordance with International Financial Reporting Standards - IFRS.

14

Notes to interim condensed consolidated unaudited financial statements (continued)

As of September 30, 2023, the Company complies with the ratios contained in the conditions of the Club Deal and corporate bonds and has certain do’s and don’ts obligations that it has been complying with to date.

The table below summarizes the maturity profile of the Group’s financial liabilities based on contractual undiscounted payments:

	Less than 3 months		3 to 12 months		1 to 5 years		More than 5 years		Total
	S/(000)		S/(000)		S/(000)		S/(000)		S/(000)
As of September 30, 2023
Financial obligations		115,092		231,272		625,452		609,093		1,580,909
Interests		13,405		74,613		240,042		78,485		406,545
Trade and other payables		153,581		107,298		-		-		260,879
Lease liabilities		865		2,319		3,804		-		6,988
As of December 31, 2022
Financial obligations		414,290		116,818		326,544		651,638		1,509,290
Interest		36,222		45,282		213,427		119,201		414,132
Trade and other payables		231,698		41,510		-		-		273,208
Hedge finance cost payable		7,473		-		-		-		7,473
Lease liabilities		502		1,503		2,350		-		4,355

10. Provisions

As of September 30, 2023 and December 31, 2022, this caption includes workers’ profit sharing, provision for contingencies, long-term incentive plan and rehabilitation provision.

11. Income tax

The Group calculates income tax expense of the period using the tax rate that would be applicable to the expected total annual earnings.

The major components of the income tax expense in the interim condensed consolidated unaudited statement of profit or loss and interim condensed consolidated unaudited statement of other comprehensive income are:

	For the three-month period ended September 30,						For the nine-month period ended September 30,
	2023			2022			2023			2022
	S/(000)			S/(000)			S/(000)			S/(000)
Current income tax		(22,878	)		(21,974	)		(71,513	)		(66,557	)
Deferred income tax		1,900			2,307			14,402			5,878
Income tax expense		(20,978	)		(19,667	)		(57,111	)		(60,679	)
Deferred Income tax recognized in other comprehensive income		-			(370	)		(634	)		(486	)
Total income tax		(20,978	)		(20,037	)		(57,745	)		(61,165	)

15

Notes to interim condensed consolidated unaudited financial statements (continued)

The movement of the Group’s deferred income tax assets and liabilities is shown below:

	For the three-month period ended September 30,					For the nine-month period ended September 30,
	2023		2022			2023			2022
	S/(000)		S/(000)			S/(000)			S/(000)
Increase (decrease) of deferred income tax asset		347		(154	)		2,215			564
Increase of deferred income tax liability		1,553		2,091			11,553			4,828
Total variation of deferred income tax		1,900		1,937			13,768			5,392
Deferred income tax benefit recognized in interim condensed consolidated unaudited statements of profit or loss		1,900		2,307			14,402			5,878
Deferred income tax recognized in other comprehensive income		-		(370	)		(634	)		(486	)
Total variation of deferred income tax		1,900		1,937			13,768			5,392

Following is the composition of deferred tax related to items recognized in interim condensed consolidated unaudited statements of other comprehensive income:

	For the three-month period ended September 30,					For the nine-month period ended September 30,
	2023		2022			2023			2022
	S/(000)		S/(000)			S/(000)			S/(000)
Loss unrealized on derivative financial instruments		-		(370	)		(634	)		(486	)
Total deferred income tax recognized in OCI		-		(370	)		(634	)		(486	)

16

Notes to interim condensed consolidated unaudited financial statements (continued)

12. Sales of goods

This caption is made up as follows:

	Cement, concrete, mortar and precast		Quicklime		Construction  Supplies		Other		Total
	S/(000)		S/(000)		S/(000)		S/(000)		S/(000)
For the three-month period ended September 30, 2023
Revenue from external customers		497,008		3,279		16,377		-		516,664
Revenue from external customers		497,008		3,279		16,377		-		516,664
For the nine-month period ended September 30, 2023
Revenue from external customers		1,364,763		19,576		54,326		33		1,438,698
Revenue from external customers		1,364,763		19,576		54,326		33		1,438,698
For the three-month period ended September 30, 2022
Revenue from external customers		516,178		9,681		27,683		14		553,556
Revenue from external customers		516,178		9,681		27,683		14		553,556
For the nine-month period ended September 30, 2022
Revenue from external customers		1,463,214		31,493		87,126		18		1,581,851
Revenue from external customers		1,463,214		31,493		87,126		18		1,581,851

13. Related party transactions

During the three and nine-months periods ended September 30, 2023 and 2022, the Group carried out the following main transactions with Inversiones ASPI S.A. and its related parties:

	For the three-month period ended September 30,				For the nine-month period ended September 30,
	2023		2022		2023		2022
	S/(000)		S/(000)		S/(000)		S/(000)
Income
Parent
Inversiones ASPI S.A.
Fees for management and administrative services		22		25		66		75
Fees from office lease		4		4		12		12
Other related parties
Compañía Minera Ares S.A.C. (Ares)
Fees from land rental services		284		300		860		878
Fees from leasing of parking		64		68		194		199
Fosfatos del Pacífico S.A. (Fospac)
Fees for management and administrative services		36		12		107		34
Fees from office lease		4		4		12		12
Fossal S.A.A.  (Fossal)
Fees for management and administrative services		11		13		33		39
Fees from office lease		4		4		12		12
Asociación Sumac Tarpuy
Fees from office lease		4		4		12		12
Expenses
Other related parties
Security services provided by Compañía Minera Ares S.A.C.		660		660		1,980		1,980

17

Notes to interim condensed consolidated unaudited financial statements (continued)

As a result of these and other transactions, the Group had the following rights and obligations with Inversiones ASPI S.A. and its related parties as of September 30, 2023 and December 31, 2022:

	September 30, 2022				December 31, 2022
	Accounts receivable		Accounts payable		Accounts  receivable		Accounts payable
	S/(000)		S/(000)		S/(000)		S/(000)
Parent
Inversiones ASPI S.A.		63		-		-		5
		63		-		-		5
Other related parties
Fosfatos del Pacífico S.A.		1,365		122		1,123		461
Compañía Minera Ares S.A.C.		372		700		564		2,220
Fossal S.A.A.		37		-		75		-
Other		103		-		96		-
		1,877		822		1,858		2,681
		1,940		822		1,858		2,686

Outstanding balances are unsecured and interest free. There have been no guarantees provided or received from any related party. As of September 30, 2023 and December 31, 2022, the Group has not recorded any allowance for expected credit losses on receivables from related parties.

Compensation of key management personnel of the Group –

The compensation paid to key management personnel includes expenses for profit-sharing, compensation and other concepts for members of the Board of Directors and the key management. The total short-term compensation expense amounted to S/8,377,000 and S/20,486,000 during the three and nine-month periods ended September 30, 2023, respectively (S/7,353,000 and S/18,291,000, during the three and nine-month periods ended September 30, 2022), and the total long-term compensations expense amounted to S/1,854,000 and S/5,775,000 during the three and nine-month periods ended September 30, 2023, respectively (S/2,235,000 and S/6,039,000 during the three and nine-month period ended September 30, 2022, respectively). The Group does not compensate Management with post-employment or contract termination benefits or share-based payments.

14. Earnings per share (EPS)

Basic earnings per share amounts are calculated by dividing net profit for the nine-month period ended September 30, 2023 and 2022 by the weighted average number of common and investment shares outstanding during those periods.

The Group has no dilutive potential common shares as of September 30, 2023 and 2022.

18

Notes to interim condensed consolidated unaudited financial statements (continued)

Calculation of the weighted average number of shares and the basic earnings per share is presented below:

	For the three-month period ended September 30,				For the nine-month period ended September 30,
	2023		2022		2023		2022
	S/(000)		S/(000)		S/(000)		S/(000)
Numerator
Net profit attributable to ordinary equity holders of the Parent		46,115		44,201		133,041		137,905
Denominator
Weighted average number of common and investment shares (thousands)		428,107		428,107		428,107		428,107
Basic profit for common and investment shares		0.11		0.10		0.31		0.32

There have been no other transactions involving common and investment shares between the reporting date and the date of completion of these interim condensed consolidated unaudited financial statements.

15. Financial assets and liabilities

(a) Financial asset –

Derivatives assets of hedging –

Foreign currency risk –

As of December 31, 2022, the Group maintains cross currency swap contracts for a nominal amount of US$132,000,000, with maturity in February 2023 and a rate of 2.97%. Of this total, US$131,612,000 have been designated as hedging instruments for Senior notes that are denominated in U.S. dollars, with the intention of reducing the foreign exchange risk.

The cash flow hedge of the expected future payments was assessed to be highly effective and in the interim condensed consolidated unaudited statement of other comprehensive income is included an unrealized gain of S/2,154,000 and S/1,647,000 for the nine-month period ended September 30, 2023 and September 30, 2022, respectively.

As of September 30, 2023 the Group settled the Cross currency swap contracts on their maturity date in relation with the payment of international bonds in dollars mentioned in note 9(a).

Derivative assets from trading -

As of September 30, 2022, cross currency swaps that do not have an underlying relationship amounts to US$388,000, have been designated as trading. The effect on profit or loss from its measurement at fair value was a loss of S/2,000 for the nine-month period ended September 30,2022.

19

Notes to interim condensed consolidated unaudited financial statements (continued)

In February 2023, cross currency swaps from trading have been settled and obtained a gain of S/19,000 which was recognized in the interim condensed consolidated unaudited statement of profit or loss for the nine-month period ended September 30, 2023 presented in “Net profit (loss) for valuation of trading derivative financial instruments” caption.

(b) Fair values and fair value accounting hierarchy –

Set out below is a comparison of the carrying amounts and fair values of financial instruments of the Group, as well as the fair value accounting hierarchy:

	Carrying amount				Fair value				Fair value hierarchy
	2023		2022		2023		2022		2023/2022
	S/(000)		S/(000)		S/(000)		S/(000)
Financial assets
Cash and cash equivalents		177,124		81,773		177,124		81,773	Level 1
Term deposit with original maturity greater than ninety days		8,500		-		8,500		-	Level 1
Trade and other receivables		140,006		145,034		140,006		145,034	Level 2
Derivative financial assets -“cross currency swaps”		-		86,893		-		86,893	Level 2
Financial instruments at fair value through other comprehensive income		274		274		274		274	Level 3
Total financial assets		325,904		313,974		325,904		313,974
Financial liabilities
Trade and other payables		277,535		284,554		277,535		284,554	Level 2
Senior notes		569,165		1,071,781		525,110		996,156	Level 1
Fixed rate notes		1,004,618		521,390		914,267		459,117	Level 2
Total financial liabilities		1,851,318		1,877,725		1,716,912		1,739,827

All financial instruments for which fair value is recognized or disclosed are categorized within the fair value hierarchy, based on the lowest level input that is significant to the fair value measurement as a whole, as follows:

Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

20

Notes to interim condensed consolidated unaudited financial statements (continued)

For assets and liabilities that are recognized at fair value on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy. As of September 30, 2023 and December 31, 2022, there were no transfers between the fair value hierarchies.

Management assessed that cash and cash equivalents, trade and other receivables and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

The following methods and assumptions were used to estimate the fair values:

- The fair value of cross currency swaps is measured by using valuation techniques where inputs are based on market data. The most frequently applied valuation techniques include swap valuation models, using present value calculations. The models incorporate various inputs, including the credit quality of counterparties, foreign exchange, forward rates and interest rate curves.

A credit valuation adjustment (CVA) is applied to the “Over-The-Counter” derivative exposures to take into account the counterparty’s risk of default when measuring the fair value of the derivative. CVA is the mark-to market cost of protection required to hedge credit risk from counterparties in this type of derivatives portfolio. CVA is calculated by multiplying the probability of default (PD), the loss given default (LGD) and the expected exposure (EE) at the time of default.

A debit valuation adjustment (DVA) is applied to incorporate the Group’s own credit risk in the fair value of derivatives (that is the risk that the Group might default on its contractual obligations), using the same methodology as for CVA.

- The fair value of the quoted senior notes is based on the current quotations value at the reporting date.

- The fair value of the promissory note is calculated using the results of cash flow discounted at the indebtedness market rates effective as of the date of estimation.

- The fair value of financial instruments designated at fair value through other comprehensive income has been determined using the percentage of shareholding of the Company on the equity of Fossal S.A.

16. Commitments and contingencies

Operating lease commitments – Group as lessor

As of September 30, 2022, the Group, as lessor, has a land lease with Compañía Minera Ares S.A.C., a related party of Inversiones ASPI S.A. This lease is annually renewable, and provided a rent for the nine-month period ended September 30, 2023 and 2022 for S/860,000 and S/878,000, respectively.

21

Notes to interim condensed consolidated unaudited financial statements (continued)

Consortium contract –

On December 19, 2022, Distribuidora Norte Pacasmayo S.R.L., subsidiary of the Group, has subscribed a collaboration contract with a third party, with the purpose to participate together in the project “Mejoramiento del Sistema de Pistas y Cerco Perimétrico del Aeropuerto de Piura”. The mentioned contract is valid for a maximum of 2 years and 11 months.

On this matter, the Company has communicated to the tax authority the subscription of the collaboration contract which will take independent accounting and Distribuidora Norte Pacasmayo S.R.L. will be the contracting party that will act as operator of the contract.

Capital commitments

As of September 30, 2023, the Group had no significant capital commitments.

Environmental matters

The Group exploration and exploitation activities are subject to environmental protection standards. Such standards are the same as those disclosed on the consolidated financial statement as of December 31, 2022.

Tax situation

The Company is subject to Peruvian tax law. As of September 30, 2023 and 2022, the income tax rate is 29.5 percent of the taxable profit after deducting employee participation, which is calculated at a rate of 8 to 10 percent of the taxable income.

For purposes of determining income tax, transfer pricing transactions with related companies and companies resident in territories with low or no taxation, must be supported with documentation and information on the valuation methods used and the criteria considered for determination. Based on the analysis of operations of the Group, Management and its legal advisors believe that as a result of the application of these standards will not result in significant contingencies for the Group as of September 30, 2023 and December 31, 2022.

During the four years following the year tax returns are filed, the tax authority has the power to review and, as applicable, correct the income tax computed by each individual company.

The income tax and value-added tax returns for the following years are open for review by the tax authority

	Years open to review by Tax Authorities
Entity	Income tax	Value-added tax
Cementos Pacasmayo S.A.A.	2019-2022	Dec.2018-2023
Cementos Selva S.A.	2018-2022	Dec.2018-2023
Distribuidora Norte Pacasmayo S.R.L.	2018-2022	Dec.2018-2023
Empresa de Transmisión Guadalupe S.A.C.	2018-2022	Dec.2018-2023
Salmueras Sudamericanas S.A.	2018-2022	Dec.2018-2023
Soluciones Takay S.A.C.	2019-2022	May to Dec.2019-2023

Due to possible interpretations that the tax authorities may give to legislation in effect, it is not possible to determine whether any of the tax audits that may be performed will result in increased liabilities for the Group. For that reason, tax or surcharge that could arise from future tax audits would be applied to the income during the period in which it is determined. However, in management’s opinion, any possible additional payment of taxes would not have a material effect on the interim condensed consolidated financial statements as of September 30, 2023 and the consolidated financial statements as of December 31, 2022.

Legal claim contingency

As of September 30, 2023, the Group has received claims from third parties in relation with its operations which in aggregate represent S/929,000 that corresponded to labor claims from former employees.

Management expects that these claims will be resolved within the next five years based on prior experience; however, the Group cannot assure that these claims will be resolved within this period because the authorities do not have a maximum term to resolve cases.

The Group has been advised by its legal counsel that it is only possible, but not probable, that these actions will succeed. Accordingly, no provision for any liability has been made in these interim condensed consolidated unaudited financial statements.

Mining royalty

The Group signed agreements with third parties and with Peruvian Government related to the use of concessions for extraction activities on process of cement production. The information of the payment of royalties are reveled on the consolidated audited financial statements of the Group as of December 31, 2022.

22

Notes to interim condensed consolidated unaudited financial statements (continued)

17. Segment information

For management purposes, the Group is organized into business units based on their products and activities, and have three reportable segments as follows:

- Production and marketing of cement, concrete, mortar and precast in the northern region of Peru.

- Sale of construction supplies in the northern region of Peru.

- Production and marketing of quicklime in the northern region of Peru.

No operating segments have been aggregated to form the above reportable operating segments.

Management monitors the profit before income tax of each business units separately for the purpose of making decisions about resource allocation and performance assessment.

Transfer prices between operating segments are on an arm’s length basis in a similar manner to transactions with third parties.

	For the three-month period ended September 30, 2023															For the three-month period ended September 30, 2022
	Cement, concrete, mortar and precast			Construction supplies			Quicklime			Other			Total consolidated			Cement, concrete, mortar and precast			Construction supplies			Quicklime			Other			Total consolidated
	S/(000)			S/(000)			S/(000)			S/(000)			S/(000)			S/(000)			S/(000)			S/(000)			S/(000)			S/(000)
Sales of goods		497,008			16,377			3,279			-			516,664			516,178			27,683			9,681			14			553,556
Gross profit (loss)		174,570			281			(214	)		2			174,639			164,109			806			1,162			(216	)		165,861
Administrative expenses		(54,030	)		(663	)		(300	)		(106	)		(55,099	)		(57,021	)		(700	)		(316	)		(112	)		(58,149	)
Selling and distribution expenses		(17,346	)		(213	)		(96	)		(34	)		(17,689	)		(16,908	)		(208	)		(94	)		(32	)		(17,242	)
Other operating income (expense), net		(10,285	)		(5	)		-			-			(10,290	)		(690	)		4			-			(2	)		(688	)
Finance income		2,039			3			-			21			2,063			844			3			-			8			855
Finance cost		(26,906	)		-			-			(1	)		(26,907	)		(24,999	)		-			-			-			(24,999	)
Net profit gain on derivative financial instruments		-			-			-			-			-			62			-			-			-			62
Gain (loss) from exchange difference, net		390			1			(17	)		2			376			(1,827	)		(2	)		(4	)		1			(1,832	)
Profit (loss) before income tax		68,432			(596	)		(627	)		(116	)		67,093			63,570			(97	)		748			(353	)		63,868
Income tax expense		(21,389	)		191			181			39			(20,978	)		(19,578	)		29			(227	)		109			(19,667	)
Profit (loss) for the year		47,043			(405	)		(446	)		(77	)		46,115			43,992			(68	)		521			(244	)		44,201

23

Notes to interim condensed consolidated unaudited financial statements (continued)

	For the nine-month period ended September 30, 2023															For the nine-month period ended September 30, 2022
	Cement, concrete, mortar and precast			Construction supplies			Quicklime			Other			Total consolidated			Cement, concrete, mortar and precast			Construction supplies			Quicklime			Other			Total consolidated
	S/(000)			S/(000)			S/(000)			S/(000)			S/(000)			S/(000)			S/(000)			S/(000)			S/(000)			S/(000)
Sales of goods		1,364,763			54,326			19,576			33			1,438,698			1,463,214			87,126			31,493			18			1,581,851
Gross profit (loss)		486,340			297			1,594			(419	)		487,812			485,583			3,209			678			(562	)		488,908
Administrative expenses		(167,835	)		(2,061	)		(931	)		(328	)		(171,155	)		(163,171	)		(2,004	)		(905	)		(319	)		(166,399	)
Selling and distribution expenses		(49,909	)		(613	)		(277	)		(98	)		(50,897	)		(50,243	)		(617	)		(279	)		(98	)		(51,237	)
Other operating income (expense), net		(8,811	)		(6	)		-			3			(8,814	)		(2,057	)		21			-			13			(2,023	)
Finance income		4,195			3			-			56			4,254			2,385			19			-			21			2,425
Finance cost		(76,782	)		-			-			(2	)		(76,784	)		(71,603	)		(3	)		-			(1	)		(71,607	)
Net profit (loss) gain on (settlement of) derivative financial instruments		19			-			-			-			19			(2	)		-			-			-			(2	)
Gain (loss) from exchange difference, net		5,699			-			29			(11	)		5,717			(1,478	)		9			(4	)		(8	)		(1,481	)
Profit (loss) before income tax		192,916			(2,380	)		415			(799	)		190,152			199,414			634			(510	)		(954	)		198,584
Income tax expense		(57,941	)		715			(125	)		240			(57,111	)		(60,933	)		(194	)		156			292			(60,679	)
Profit (loss) for the year		134,975			(1,665	)		290			(559	)		133,041			138,481			440			(354	)		(662	)		137,905

	As of September 30, 2023										As of December 31, 2022
	Cement, concrete and precast		Construction supplies		Quicklime		Other		Consolidated		Cement, concrete and precast		Construction supplies		Quicklime		Other		Consolidated
	S/(000)		S/(000)		S/(000)		S/(000)		S/(000)		S/(000)		S/(000)		S/(000)		S/(000)		S/(000)
Segment assets		3,260,838		46,869		64,696		31,356		3,403,759		3,086,104		38,353		70,327		32,210		3,226,994
Other assets (*)		-		-		-		274		274		86,630		-		-		537		87,167
Total assets		3,260,838		46,869		64,696		31,630		3,404,033		3,172,734		38,353		70,327		32,747		3,314,161
Operating liabilities		1,997,577		76,169		-		596		2,074,342		2,041,923		76,780		-		323		2,119,026
Capital expenditure (**)		256,947		-		-		-		256,947		190,126		-		-		-		190,126

(*) As of September 30, 2023, corresponds to the financial instruments designated at fair value through other comprehensive income for S/274,000. As of December 31, 2022, corresponds to the financial instruments designated at fair value through other comprehensive income and to the fair value of derivative financial instruments (cross currency swap) for approximately S/274,000 and S/86,893,000, respectively. The fair value of hedge derivative financial instruments is allocated to the segment of cement, and the financial instruments designated at fair value through other comprehensive income and the fair value of the trading derivative financial instrument are presented as “Other”.

(**) The capital expenditures amount to S/256,947,000 and S/190,126,000 as of September 30, 2023 and December 31, 2022, respectively corresponds to purchases of property, plant and equipments, intangible assets and other minor non-current assets.

Geographic information

As of September 30, 2023 and December 31, 2022, all non-current assets are located in Peru and all revenues are from Peruvian clients.

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Notes to interim condensed consolidated unaudited financial statements (continued)

18. Financial risk management, objectives and policies

The Group´s main financial assets include cash and short-term deposits (with maturity less than 360 days) and trade and other receivables that derive directly from its operations. The Group also holds financial instruments designated at fair value through OCI, cash flow hedges instruments and derivative financial instruments of trading. The Group’s main financial liabilities comprise trade payables and other payables, loans and borrowings, with short-term and long-term maturities. The main purpose of these financial liabilities is to finance the Group’s operations.

The Group is exposed to market risk, credit risk and liquidity risk. The Group’s senior management oversees the management of these risks. The Group’s senior management is supported by financial management that advises on financial risks and the appropriate financial risk governance framework for the Group. The financial management provides assurance to the Group’s senior management that the Group’s financial risk-taking activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Group´s policies and risk objectives.

The Management reviews and agrees policies for managing each of these risks as mentioned in the consolidated financial statements as of December 31, 2022.

Foreign currency risk -

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Group’s exposure to the risk of changes in foreign exchange relates primarily to the Group’s operating activities (when revenue or expense is denominated in a different currency from the Group’s functional currency).

The Group hedged its exposure to fluctuations on the translation into soles of its Senior Notes which are denominated in US dollars, by using cross currency swaps contracts, see note 15.

Foreign currency sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in the US dollar exchange rate, with all other variables held constant. The impact on the Group’s profit before income tax is due to changes in the fair value of monetary assets and liabilities.

For the nine-month period ended September 30, 2023	Change in US$ rate		Effect on consolidated profit before tax
U.S. Dollar	%		S/(000)
		+5		(495	)
		+10		(991	)
		-5		495
		-10		991

25

Notes to interim condensed consolidated unaudited financial statements (continued)

For the nine-month period ended September 30, 2022	Change in US$ rate		Effect on consolidated profit before tax
U.S. Dollar	%		S/(000)
		+5		9,334
		+10		18,667
		-5		(9,334	)
		-10		(18,667	)

Liquidity risk -

The Group monitors its risk of shortage of funds using a recurring liquidity planning tool.

The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans and debentures of long term. The Group generates positive cash flows by operating activities and has sources of financing sufficiently available according to its good credit record. Debt maturing within 12 months can be rolled over under the same conditions with existing lenders, if necessary.

Risk management activities –

As a result of its activities, the Group is exposed to the foreign currency exchange rate risk, thereof the Company has acquired hedging financial instruments to cover this risk. Since November 2014, the Group has hedged its exposure to foreign currency from its corporate bonds (denominated in US dollars). During the nine-month period ended September 30, 2023, there was moderate volatility in the US dollar exchange rate with respect to the soles, whose effects were partially mitigated by the exchange rate hedge maintained by the Company.

As of December 31, 2022, except for the derivatives financial instruments (cross currency swaps) signed by the Company to hedge the foreign currency risk of its Senior Notes, the Group had no other financial instruments to hedge its foreign exchange risk, interest rates or market price (purchase price of coal) fluctuations.

As of September 30, 2023 derivatives financial instruments (cross currency swaps) were fully settled in relation with the payment of international bonds in dollars.

26