CEMEX shares Q2 2021 financial results
Published by Emily Thomas,
CEMEX has reported strong results in the second quarter of 2021 with EBITDA growing in all regions. Consolidated net sales increased 25%, to US$3.9 billion, while Operating EBITDA improved 39%, to US$818 million. The EBITDA margin increased 2.1 percentage points year over year, to 21.2%. The robust EBITDA performance in the quarter is attributable to significant momentum in cement volumes, higher prices, increased contribution from our growth investment portfolio, operational leverage, and a favourable base effect. EBITDA in the quarter is 31% higher than pre-pandemic second quarter 2019 EBITDA. The company also achieved an investment-grade capital structure of 2.85 times leverage at the end of the quarter.
CEMEX’s Consolidated Second Quarter 2021 Financial and Operational Highlights
- Net Sales increased 25%, to US$3,855 million.
- Consolidated cement volumes grew 22%, to levels higher than pre-pandemic second quarter 2019.
- Operating EBITDA rose 39%, to US$818 million.
- Operating EBITDA margin increased by 2.1pp, to 21.2%, well above the company´s Operation Resilience target of ≥20%.
- Free Cash Flow after Maintenance Capital Expenditures reached US$401 million, with a conversion rate of EBITDA to Free Cash Flow after Maintenance Capital Expenditures of 49%, the highest in a second quarter since 2017.
- Controlling Interest Net Income was US$270 million versus a loss of US$44 million in the same quarter of 2020.
- Net debt and leverage were reduced materially during the second quarter. Net debt decreased US$743 million versus the first quarter of 2021, due to the issuance of subordinated notes and free cash flow.
- Leverage ratio was 2.85 times, a reduction of 0.76 times compared to end of first quarter 2021, and 1.72 times lower versus second quarter of 2020.
“We are quite pleased to report another strong consecutive performance. During the quarter, we accomplished some important milestones in our growth story. Quarterly highlights include the achievement of our long-time leverage goal, a 39% increase in quarterly EBITDA, and our announcement of industry leading Climate Action targets”, said Fernando A. González, CEO of CEMEX. “Our growth in the quarter, which exceeded pre-pandemic levels, gives us confidence that this performance is sustainable in the second half of the year. We are optimistic and we will take advantage of this favourable backdrop to focus on our bolt-on investment strategy, further deleveraging and investing to reach our new Climate Action targets.”
Geographical Markets Second Quarter 2021 Highlights
Net Sales in Mexico increased 43%, to US$935 million. Operating EBITDA rose 58% to US$332 million.
In the United States, Net Sales reached US$1.1 billion, an increase of 13%. Operating EBITDA grew 7% to US$212 million.
In the Europe, Middle East, Africa and Asia regions, Net Sales rose by 21%, reaching US$1.3 billion. Operating EBITDA was US$198 million for the quarter, or 25% higher.
South, Central America and the Caribbean region had Net Sales of US$418 million, an increase of 50%. Operating EBITDA improved 79% to US$117 million.
Read the article online at: https://www.worldcement.com/europe-cis/30072021/cemex-shares-q2-2021-financial-results/
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