At the beginning of May 2023, Cemex reported a 9% growth in Sales and a 6% growth in EBITDA in the first quarter of 2023. The strong results are attributable to pricing, decelerating input cost inflation, and contributions from the company’s growth investments and the Urbanization Solutions business. EBITDA margin showed significant sequential improvement, with a 1.9 percentage points increase.
“I am quite pleased with our first quarter growth achieved against a backdrop of challenging weather in our footprint in the U.S. and a strong prior year comparison base,” said Fernando A. González, CEO of Cemex. “I believe this quarter marks an important inflection point in our mission to recover 2021 margins and compensate for the steep cost inflation we’ve experienced over the past two years. Importantly, our pipeline of growth investments and our Urbanization Solutions business were a significant contributor to EBITDA growth. And, of course, we never lose sight of our decarbonization roadmap, with our Future in Action program resulting in a 3% decline in CO2 emissions versus the first quarter of 2022.”
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Cemex’s Consolidated 2023 First Quarter Financial and Operational Highlights
- Net Sales increased 9% to US$4,036 million.
- Operating EBITDA increased 6% to US$733 million.
- Operating EBITDA margin of 18.2%, with a strong sequential improvement of 1.9pp and the lowest year-over-year margin decline in five quarters.
- Free Cash Flow after Maintenance Capital Expenditures was negative US$55 million, a year-over-year improvement of US$120 million.
- Year-over-year reduction of 3% in CO2 levels.
- Issued US$1 billion of subordinated perpetual notes, the first of its kind in the industry, accelerates the path towards investment grade.
- Leverage ratio at 2.62x1, a reduction of 0.22x versus fourth quarter of 2022.
- EBITDA growth of 34% in Urbanization Solutions business.
- Incremental EBITDA contribution of US$40 million from growth investments and Urbanization Solutions.
Geographical Markets 2023 First Quarter Highlights
- Net Sales in Mexico increased 13% in the first quarter, to US$1,097 million, while Operating EBITDA increased 9% to US$344 million. Sequential EBITDA margin improved 4.7pp to 31.4%.
- Cemex’s operation in the United States reported record EBITDA2 with a growth of 15%, despite significant weather challenges impacting most markets. Net Sales increased 5% to US$1,255 million. EBITDA Margin increased 1.5pp to 18.3% while improving sequentially for the third straight quarter.
- In the Europe, Middle East, Africa and Asia region, Net Sales increased 14% in the First Quarter, to US$1,234 million. Operating EBITDA was US$148 million, 15% higher. EBITDA Margin of 12.0% was down 0.3pp.
- Cemex’s operations in South, Central America, and the Caribbean region, reported Net Sales of US$411 million in the First Quarter, an increase of 4%. Operating EBITDA decreased 21% to US$84 million. EBITDA Margin declined 5.9pp, to 20.4%. Decreases in EBTIDA and EBITDA Margin are mainly attributable to higher energy and maintenance costs and lower cement volumes.
1) As calculated under Cemex’s main debt agreements
2) On a reported basis since 2006
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.
About Cemex
Cemex, S.A.B. de C.V. (“Cemex”) (NYSE: CX) 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
