Cemex reported today another quarter of exceptional results, with a 9% growth in Sales and 32% increase in EBITDA, and EBITDA Margin expansion of 3.5pp to 19.9%. 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 our goal of recovering 2021 margins. Free cash flow after maintenance capex grew significantly, reflecting EBITDA growth and lower working capital spending. Leverage ratio stood at 2.16x, marking the third consecutive quarter of declining leverage, accelerating the path to an investment grade rating.
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.
“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,” says Fernando A. González, CEO of Cemex. “The success of our pricing strategy, contribution of growth investments and our fastgrowing 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 by12% 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”.
Cemex’s Consolidated 2023 Third Quarter Financial and Operational Highlights
• Net Sales increased 9% to US$4,571 million.
• EBITDA increased 32% to US$910 million.
• EBITDA margin increased 3.5pp to 19.9%, commensurate to third quarter 2021 levels.
• Free Cash Flow after Maintenance Capital Expenditures was US$475 million, approximately US$300 million higher YoY.
• Leverage ratio at 2.16x, a sequential decline of almost 1/3 of a turn.
• Growth investments accounting for 10% of total EBITDA and 11% of incremental EBITDA.
• 31% increase in EBITDA for our Urbanization Solutions business.
• Controlling interest net income after adjusting for an extraordinary gain from the sale of assets in the prior year, was approximately $130 million lower YoY, due to higher taxes. Geographical Markets 2023 Third Quarter Highlights
• Net Sales in Mexico increased 21%, to US$1,361 million, while EBITDA grew 31% to US$399 million. EBITDA margin expanded 2.4pp to 29.3%.
• Net Sales in Cemex’s operations in the United States rose 5% to US$1,394 million. EBITDA
increased 36% to US$268 million, and EBITDA Margin reached 19.3%, a 4.4pp expansion.
• In the Europe, Middle East, Africa, and Asia region, Net Sales were up 2%, to US$1,306
million. EBITDA was US$213 million, 12% higher, while EBITDA Margin increased 1.5pp to
16.3%.
• Cemex’s operations in South, Central America, and the Caribbean region reported Net Sales of US$442 million, an 11% growth, while EBITDA rose 18% to US$105 million. EBITDA Margin increased 1.0pp, to 23.8%.
Note: All percentage variations related to Net Sales and EBITDA are on a like-to-like basis for the ongoing operations and for foreign exchange fluctuations compared to the same period of last year.
All mentions to EBITDA refers to Operating EBITDA, which equals operating earnings before other income and expenses, net, plus depreciation and amortization.
About Cemex
Cemex is a global construction materials company that is building a better future through sustainable products and solutions. Cemex is committed to achieving carbon neutrality through relentless innovation and industry-leading research and development. Cemex is at the forefront of the circular economy in the construction value chain and is pioneering ways to increase the use of waste and residues as alternative raw materials and fuels in its operations with the help of new technologies. Cemex offers cement, ready-mix concrete, aggregates, and urbanization solutions in growing markets around the world, powered by a multinational workforce focused on providing a superior customer experience enabled by digital technologies. For more information, please visit: www.cemex.com
