| 31. | 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 and blocks in the northern region of Peru. |
| - | Sale of construction supplies (steel rebar and building materials) 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 unit separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit before income tax and is measured consistently with profit before income tax in the consolidated financial statements.
Transfer prices between operating segments are on an arm’s length basis in a manner similar to transactions with third parties.
| Revenues from external customers | Gross profit margin | Other operating income, net | Administrative expenses | Selling and distribution expenses | Impairment on brine project | Finance costs | Finance income | (Loss) gain from exchange difference, net | Profit before income tax | Income tax expense | Net income from continuing operations | Net loss from discontinued operations | Profit for the year | ||||||||||||||||
| S/(000) | S/(000) | S/(000) | S/(000) | S/(000) | S/(000) | S/(000) | S/(000) | S/(000) | S/(000) | S/(000) | S/(000) | S/(000) | S/(000) | ||||||||||||||||
| 2017 | |||||||||||||||||||||||||||||
| Cement, concrete and blocks | 1,076,648 | 476,919 | (4,127 | ) | (174,087 | ) | (44,223 | ) | — | (73,759 | ) | 5,779 | (2,012 | ) | 184,490 | (67,568 | ) | 116,922 | — | 116,922 | |||||||||
| Construction supplies | 66,442 | 1,873 | 36 | (1,499 | ) | (2,287 | ) | — | — | 48 | (17 | ) | (1,846 | ) | 676 | (1,170 | ) | — | (1,170 | ) | |||||||||
| Quicklime | 80,707 | 13,671 | — | (15,613 | ) | — | — | — | — | (183 | ) | (2,125 | ) | 778 | (1,347 | ) | — | (1,347 | ) | ||||||||||
| Other | 1,842 | 220 | (266 | ) | (4,418 | ) | (57 | ) | (47,582 | ) | — | 15 | (14 | ) | (52,102 | ) | 19,082 | (33,020 | ) | (754 | ) | (33,774 | ) | ||||||
| Consolidated | 1,225,639 | 492,683 | (4,357 | ) | (195,617 | ) | (46,567 | ) | (47,582 | ) | (73,759 | ) | 5,842 | (2,226 | ) | 128,417 | (47,032 | ) | 81,385 | (754 | ) | 80,631 | |||||||
| 2016 | |||||||||||||||||||||||||||||
| Cement, concrete and blocks | 1,103,426 | 487,671 | 1,907 | (173,200 | ) | (38,070 | ) | — | (75,397 | ) | 3,194 | (2,238 | ) | 203,867 | (80,912 | ) | 122,955 | — | 122,955 | ||||||||||
| Construction supplies | 59,888 | 1,220 | 136 | (1,051 | ) | (1,643 | ) | — | — | 24 | (19 | ) | (1,333 | ) | 529 | (804 | ) | — | (804 | ) | |||||||||
| Quicklime | 75,090 | 14,216 | — | (14,464 | ) | — | — | — | — | (118 | ) | (366 | ) | 145 | (221 | ) | — | (221 | ) | ||||||||||
| Other | 1,765 | 532 | 401 | (4,661 | ) | (186 | ) | — | — | 22 | (166 | ) | (4,058 | ) | 1,611 | (2,447 | ) | (6,589 | ) | (9,036 | ) | ||||||||
| Consolidated | 1,240,169 | 503,639 | 2,444 | (193,376 | ) | (39,899 | ) | — | (75,397 | ) | 3,240 | (2,541 | ) | 198,110 | (78,627 | ) | 119,483 | (6,589 | ) | 112,894 | |||||||||
| 2015 | |||||||||||||||||||||||||||||
| Cement, concrete and blocks | 1,089,232 | 517,266 | 3,877 | (161,950 | ) | (29,687 | ) | — | (36,807 | ) | 3,384 | 11,141 | 307,224 | (89,515 | ) | 217,709 | — | 217,709 | |||||||||||
| Construction supplies | 75,565 | 2,506 | 4 | (1,228 | ) | (1,519 | ) | — | — | 32 | 19 | (186 | ) | 54 | (132 | ) | — | (132 | ) | ||||||||||
| Quicklime | 64,140 | 15,116 | — | (11,306 | ) | — | — | — | — | 969 | 4,779 | (1,392 | ) | 3,387 | — | 3,387 | |||||||||||||
| Other | 2,078 | 370 | 32 | (5,239 | ) | (275 | ) | — | — | — | 65 | (5,047 | ) | 1,470 | (3,577 | ) | (5,720 | ) | (9,297 | ) | |||||||||
| Consolidated | 1,231,015 | 535,258 | 3,913 | (179,723 | ) | (31,481 | ) | — | (36,807 | ) | 3,416 | 12,194 | 306,770 | (89,383 | ) | 217,387 | (5,720 | ) | 211,667 |
| Segment assets |
Other assets |
Assets held for distribution | Total assets |
Operating liabilities | Liabilities held for distribution | Total liabilities |
Capital expenditure | Depreciation and amortization | Provision of inventory net realizable value and obsolescence | ||||||||||||
| S/(000) | S/(000) | S/(000) | S/(000) | S/(000) | S/(000) | S/(000) | S/(000) | S/(000) | S/(000) | ||||||||||||
| 2017 | |||||||||||||||||||||
| Cement, concrete and blocks | 2,607,334 | 489 | — | 2,607,823 | 1,274,322 | — | 1,274,322 | 69,717 | (119,518 | ) | (2,718 | ) | |||||||||
| Construction supplies | 30,791 | — | — | 30,791 | 31,966 | — | 31,966 | — | — | — | |||||||||||
| Quicklime | 118,712 | — | — | 118,712 | — | — | — | — | (4,504 | ) | — | ||||||||||
| Other | 35,583 | 21,206 | — | 56,789 | 1,119 | — | 1,119 | 15 | (184 | ) | — | ||||||||||
| Consolidated | 2,792,420 | 21,695 | — | 2,814,115 | 1,307,407 | — | 1,307,407 | 69,732 | (124,206 | ) | (2,718 | ) | |||||||||
| 2016 | |||||||||||||||||||||
| Cement, concrete and blocks | 2,678,871 | 69,912 | — | 2,748,783 | 1,316,144 | — | 1,316,144 | 101,729 | (102,900 | ) | (1,499 | ) | |||||||||
| Construction supplies | 27,652 | — | — | 27,652 | 20,760 | — | 20,760 | — | — | — | |||||||||||
| Quicklime | 122,446 | — | — | 122,446 | — | — | — | — | (4,377 | ) | — | ||||||||||
| Other | 82,674 | 657 | 338,411 | 421,742 | 986 | 2,704 | 3,690 | 16,072 | (3,989 | ) | — | ||||||||||
| Consolidated | 2,911,643 | 70,569 | 338,411 | 3,320,623 | 1,337,890 | 2,704 | 1,340,594 | 117,801 | (111,266 | ) | (1,499 | ) | |||||||||
| 2015 | |||||||||||||||||||||
| Cement, concrete and blocks | 2,743,007 | 124,770 | — | 2,867,777 | 1,326,650 | — | 1,326,650 | 454,275 | (67,221 | ) | 426 | ||||||||||
| Construction supplies | 27,719 | — | 27,719 | 30,182 | — | 30,182 | — | — | — | ||||||||||||
| Quicklime | 125,584 | — | 125,584 | — | — | — | — | (2,264 | ) | — | |||||||||||
| Other | 392,278 | 436 | — | 392,714 | 10,828 | — | 10,828 | 36,532 | (1,325 | ) | (9,335 | ) | |||||||||
| Consolidated | 3,288,588 | 125,206 | — | 3,413,794 | 1,367,660 | — | 1,367,660 | 490,807 | (70,810 | ) | (8,909 | ) |
During 2017, revenues from two customers, arising from sales within the quicklime segment, amounted to S/65,784,198. During 2016 and 2015, revenues from one customer, arising from sales within the quicklime segment, amounted to S/55,657,000 and S/27,182,000, respectively.
Capital expenditures consist of S/69,732,000, S/117,801,000 and S/490,807,000 during the years ended December 31, 2017, 2016 and 2015, respectively, and are related to additions of property, plant and equipment, exploration and evaluation assets and other minor non-current assets. During 2017, 2016 and 2015, there were no purchases of assets through capital leases.
Inter-segment revenues obtained during the years ended December 31, 2017, 2016 and 2015 were eliminated for consolidation.
The “other” segment includes activities that do not meet the threshold for disclosure under IFRS 8.13 and represent non-material operations of the Group (including phosphates and brine projects).
Other assets
As of December 31, 2017, corresponds to the available-for-sale investments caption and fair value of financial derivate instrument (cross currency swap) for approximately S/21,206,000 and S/489,000, respectively (2016: S/657,000 and S/69,912,000; 2015: S/436,000 and S/124,770,000, respectively), which are not allocated to a segment.
Geographic information
All revenues are from Peruvian clients.
As of December 31, 2017 and December 31, 2016, all non-current assets are located in Peru.