Profitability

Profitability

Profitability

CEMEX Reports Strong Top-Line Growth Driven by Volumes and Pricing

4th November, 2021

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CEMEX announced recently that its consolidated net sales increased 8% during the third quarter of 2021 to $3.8 billion versus the comparable period in 2020. Despite the strong top-line growth, operating EBITDA decreased 1% to $740 million, due to supply chain disruptions as well as a sudden rise in energy and transportation costs. The company continued making progress in de-leveraging, reaching 2.74 times leverage at the end of the quarter.

CEMEX’s Consolidated Third Quarter 2021 Financial and Operational Highlights

  • Net Sales increased 8%, to $3,769 million.
  • Consolidated cement and aggregates volumes grew 1%, while ready-mix grew 3%. Urbanisation Solutions sales grew 16%.
  • Prices in local currency terms were up 6% for cement, and 3% for ready-mix and aggregates.
  • Operating EBITDA decreased 1%, to $740 million.
  • Operating EBITDA margin decreased by 1.6pp from 21.2% in the third quarter of 2020 to 19.6% this quarter.
  • Free Cash Flow after Maintenance Capital Expenditures reached $368 million.
  • Controlling interest net income (loss) resulted in a loss of $376 million in the third quarter of 2021 versus a loss of $1,535 million in the same quarter of 2020. The improvement in net income primarily reflects a smaller non-cash impairment charge in comparison with 2020, higher operating earnings before other expenses net and lower financial expenses.
  • Net debt and leverage were reduced during the third quarter. Net debt decreased $248 million versus the second quarter of 2021.
  • Leverage ratio was 2.74 times, a reduction of 0.11 times compared to end of second quarter 2021, and 1.53 times lower versus third quarter of 2021.

Geographical Markets: Third Quarter 2021 Highlights

Net Sales in Mexico increased 10%, to $868 million. Operating EBITDA rose 7% to $289 million.

In the United States, Net Sales reached $1.1 billion, an increase of 10%. Operating EBITDA fell 10% to $179 million.

In our Europe, Middle East, Africa and Asia region, Net Sales rose by 1%, reaching $1.3 billion. Operating EBITDA was $200 million for the quarter, or 9% lower.

South, Central America and the Caribbean region had Net Sales of $429 million, an increase of 10%. Operating EBITDA improved 3% to $112 million.

All CEMEX Press Releases: https://www.cemex.com/media/press-releases