CEMEX, S.A.B. de C.V. announced continued solid top-line growth, with third-quarter net sales growing 13%. Pricing was the main driver with cement, ready-mix and aggregates, increasing double digits. EBITDA and EBITDA margin continued to be impacted by persistent inflationary headwinds that outpaced the company’s pricing efforts.
Third quarter highlights include:
- Net sales increased 13% to $3,956 million.
- Operating EBITDA decreased 6% to $649 million.
- Operating EBITDA margin declined by 3.2 pp year-over-year.
- Free cash flow after maintenance capital expenditures was $182 million.
- Net Income of $494 million.
“Our pricing achievements this year have allowed us to more than offset inflationary costs in dollar terms, but stubbornly high inflation and supply chain headwinds have delayed our ability to regain margins. We are fully committed to margin recovery and will continue our efforts in fourth quarter, as well as into 2023,” said Fernando A. González, CEO of CEMEX. “Importantly, we are making significant progress in decarbonizing our operations, reducing our carbon emissions by more than 8% since we introduced our climate action program, Future in Action. This achievement was driven by record levels of alternative fuel usage and clinker factor substitution. Our success to date gives us confidence that a more accelerated pathway for 2030 is possible, and we have submitted our new, more aggressive goals to the Science Based Targets initiative to be validated for alignment with their 1.5 degrees scenario.”
Regional highlights:
- CEMEX’s operations in the United States reported net sales of $1,324 million, an increase of 19%. Operating EBITDA increased 10% to $197 million.
- Net sales in Mexico increased 9%, to $948 million. Operating EBITDA decreased 12% to $255 million.
- In the Europe, Middle East, Africa and Asia region, net sales increased 16% to $1,252 million. Operating EBITDA was $186 million, 8% higher.
- CEMEX’s operations in the South, Central America, and the Caribbean region reported net sales of $393 million, an increase of 2%. Operating EBITDA declined 11% to $90 million.