Cemex reports EBITDA growth and highest EBITDA margin in eight years

EBITDA margin was propelled by favourable price-to-cost dynamics, with prices rising mid-single digits amidst decelerating costs. Net Sales were flat compared to the second quarter of 2023, reflecting difficult weather conditions in key markets offset by pricing momentum.

“Our strong second quarter results demonstrate the efficacy of our commercial approach and growth strategy. Pricing contribution of our products continues to exceed decelerating input cost inflation, while our bolt-on investments, mainly in the US, and our Urbanisation Solutions business, continued to support EBITDA growth”, said Fernando A. González, CEO of Cemex. “On Climate Action, we continue to make steady progress in decarbonisation with a 3% decline in Scope 1 emissions year-to-date. European operations are leading the way, with emissions today already at European industry 2030 targets and within reach of Cemex’s consolidated 2030 targets, almost six years ahead of time.”

During the quarter, Cemex achieved another important milestone with its second Investment Grade rating from Fitch Ratings. Cemex was also recognised as the top-scoring company in the World Benchmarking Alliance’s 2024 Climate and Energy Benchmark, among 91 of the world’s most influential aluminium, cement, and steel companies, evidence that Cemex’s leadership in sustainability holds up well even beyond the cement industry.

Cemex’s consolidated 2024 second quarter financial and operational highlights

• Net Sales were flat at US$4494 million.
• EBITDA increased 2% to US$965 million.
• EBITDA margin increased 0.3pp to 21.5%.
• Free Cash Flow after Maintenance Capital Expenditures was US$252 million.
• Growth investments account for 10% of total EBITDA.
• Urbanisation Solutions business EBITDA increased 10%.
• European operations have nearly reached Cemex consolidated 2030 CO₂ reduction target, ~6 years in advance.
• Controlling interest Net Income was US$230 million.

Geographical markets 2024 second quarter highlights

• Net Sales in Mexico increased 6%, to US$1381 million, while EBITDA grew 14% to US$454 million, a record level. EBITDA Margin expanded 2.1pp to 32.9%.
• Net Sales in the United States declined 2% to US$1392 million. EBITDA decreased 2% to US$297 million, and EBITDA Margin reached a peak level of 21.4%, a 0.1pp expansion.
• In the Europe, Middle East, and Africa region, Net Sales were down 7%, to US$1190 million. EBITDA was US$175 million, 12% lower, while EBITDA Margin decreased 0.9pp to 14.7%.
• Cemex’s operations in South, Central America, and the Caribbean region reported Net Sales of US$457 million, an increase of 3%, while EBITDA declined 2% to US$110 million. EBITDA Margin decreased 1pp, to 24.2%.

Read the article online at: https://www.worldcement.com/europe-cis/29072024/cemex-reports-ebitda-growth-and-highest-ebitda-margin-in-eight-years/