Cemex reported third-quarter results today, achieving an EBITDA of US$747 million and Net Sales of US$4.09 billion in a period impacted by adverse weather conditions in all its markets and significant FX movements. Weather impact accounted for a little less than half of the like-to-like EBITDA shortfall in the quarter. Consolidated Net Income grew more than 200% compared to the prior year. Cemex’s pricing strategy continued to be supportive in a lower volume environment, with prices for its products rising low-single digits. During the quarter, Cemex announced divestments of $1.4 billion, bringing year-to-day announced divestitures of non-core assets to $2.2 billion.
“I am pleased with the significant progress we have made this year with our portfolio optimization
efforts. With the proceeds, we will continue to execute on our capital allocation framework where we intend to prioritize growth investments with particular focus on the US, while continuing to deleverage and build on our recently instituted progressive shareholder return program” said Fernando A. González, CEO of Cemex. “Our growth strategy adopted since 2019 has proven to be a great complement to organic growth, and together, both levers have delivered a compounded annual growth rate of 14% for the company. With the proceeds from recent divestitures, we will continue toexecute our small bolt on investment strategy while accelerating growth through small to midsize M&A transactions to serve our existing geographic footprint”.
In Climate Action, the company is progressing against its Future in Action roadmap, reducing year to-date scope 1 and 2 CO2 emissions by 3% and 4%, respectively, through its “Reduce before Capture” approach. Additionally, with the aim to drive decarbonization from 2030 and beyond, Cemex is focused on developing innovative breakthrough climate technology. In this regard, a Cemex led consortium was recently selected to receive €157 million of EU Innovation funding for a carbon capture project at its Rüdersdorf cement plant in Germany, with the objective to capture 1.3 million tons of CO2 per year.
Cemex’s Consolidated 2024 Third Quarter Financial and Operational Highlights
- Net Sales decreased 3% to US$4,090 million.
- EBITDA decreased 9% to US$747 million.
- EBITDA margin decreased 1.4pp to 18.3%.
- Free Cash Flow after Maintenance Capital Expenditures, adjusting for the extraordinary
payment of a tax fine in Spain, was US$420 million. - Net Income grew 222%, reaching $406 million in the quarter, and $891 million year-to-date.
- Growth investments account for 13% of consolidated EBITDA.
- EBITDA margin for the Urbanization Solutions business rose 1.7 percentage points, reflecting
favorable pricing/cost dynamics.
Geographic Markets 2024 Third Quarter Highlights
- Sales in Mexico decreased 5%, to US$1,136 million, while EBITDA declined 8% to US$319
million. EBITDA Margin contracted 1.2pp to 28.1%. - Sales in the United States declined 4% to US$1,335million. EBITDA decreased by 4% to
US$258 million, and EBITDA Margin remained at 19.3%. - In the Europe, Middle East, and Africa region, Sales increased 1% to US$1,243 million.
EBITDA was flat at US$201 million, while EBITDA Margin decreased 0.2pp to 16.2%.
- Cemex’s operations in South, Central America, and the Caribbean region reported Sales of
US$311 million, a decrease of 1%, while EBITDA declined 27% to US$48 million. EBITDA
Margin decreased 5.4pp to 15.4%.
Note: All percentage variations related to 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
references to EBITDA mean Operating EBITDA.
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
Photo credits: Cemex.com