CEMEX, S.A.B. de C.V. ("CEMEX"), announced today 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 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 deleveraging, reaching 2.74 times leverage at the end of the quarter.
CEMEX’s Consolidated Third Quarter 2021 Financial and Operational Highlights:
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Net Sales increased 8%, to $3,769 million.
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Consolidated cement and aggregates volumes grew 1%, while ready-mix grew 3%. Urbanization Solutions sales grew 16%.
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Prices in local currency terms were up 6% for cement, and 3% for ready-mix and aggregates.
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Operating EBITDA decreased 1%, to $740 million.
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Operating EBITDA margin decreased by 1.6pp from 21.2% in the third quarter of 2020 to 19.6% this quarter.
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Free Cash Flow after Maintenance Capital Expenditures reached $368 million.
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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.
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Net debt and leverage were reduced during the third quarter. Net debt decreased $248 million versus the second quarter of 2021.
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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 2020.
“We are pleased to report strong top-line growth reflecting continued growth in demand for our products, coupled with an acceleration in pricing momentum. We are confident that our pricing strategy will more than compensate for the sudden runup in input cost inflation we have experienced. We remain optimistic regarding outlook, as most of our markets are operating at high-capacity utilization and sustainable midcycle levels that will be supported by monetary and fiscal stimulus, while others are just beginning an upcycle.” said Fernando A. González, CEO of CEMEX.
“Regarding our Future in Action initiative, we continue to advance on our climate action goals. During the quarter, we received validation from SBTi of our 2030 decarbonization roadmap and joined the Race to Zero initiative.”
Geographical Markets: Third Quarter 2021 Highlights:
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Net Sales in Mexico increased 10%, to $868 million. Operating EBITDA rose 7% to $289 million.
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In the United States, Net Sales reached $1.1 billion, an increase of 10%. Operating EBITDA fell 10% to $179 million.
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In 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.
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South, Central America and the Caribbean region had Net Sales of $429 million, an increase of 10%. Operating EBITDA improved 3% to $112 million.
