Cemex reported another quarter of growth, with a 9% increase in sales and 32% increase in EBITDA in the third quarter of 2023. For the first time since the launch of Cemex’s pricing strategy in 2021, designed to regain profitability after a surge in input cost inflation, quarterly EBITDA margin exceeded its goal of recovering 2021 margins, the company stated.
Results were bolstered by Cemex’s strong pricing across all markets, decelerating input cost inflation, contributions from Cemex’s growth investment strategy and Urbanization Solutions business. In the third quarter of 2023, growth investments contributed 11% of incremental EBITDA and 10% of total EBITDA.
- Net sales in Cemex’s operations in the United States rose 5% to $1,394 million. Net sales for the first nine months of the year were $4,069 million, an increase of 7%.
- Net sales in Mexico increased 21%, to $1,361 million, while EBITDA grew 31% to $399 million.
- In the Europe, Middle East, Africa and Asia region, net sales were up 2%, to $1,306 million.
- Cemex’s operations in South, Central America and the Caribbean region reported net sales of $442 million, an 11% growth.
“2023 is proving to be an exceptional year for our company, and I am especially encouraged by our recovery of EBITDA margins to 2021 levels, a key strategic priority,” said Fernando A. González, CEO of Cemex. “The success of our pricing strategy, contribution of growth investments and our fast-growing Urbanization Solutions business, as well as decelerating cost inflation, are contributing to profitability in a very meaningful way. Importantly, we are making significant progress on our decarbonization roadmap, reducing Scope 1 and Scope 2 carbon emissions by 12% and 11%, respectively, since 2020. Prior to the introduction of our Future in Action program in 2020, a reduction of this magnitude would have taken almost 15 years.”