Cemex announces record annual EBITDA and proposal to initiate a dividend programme

This performance, coupled with the Board’s confidence in the medium-term outlook and strong free cash flow generation over the last few years, allows Cemex to initiate a formal shareholder return programme, subject to approval at the next Annual Shareholders’ Meeting.

Cemex reported an EBITDA margin of 19.2%, an expansion of 2.0pp, achieving its stated goal of recovering 2021 margin. Record EBITDA of approximately US$3.35 billion, and a turnaround in working capital investment, significantly contributed to a 6-year high in Free Cash Flow after maintenance CAPEX. Results were bolstered by strong pricing for its products across all markets, decelerating input cost inflation, and contributions from Cemex’s growth investment strategy and Urbanisation Solutions business. Cemex’s leverage ratio declined to 2.06x, within investment grade parameters.

“I am pleased to announce that 2023 is a record year for our company where we delivered not only great results and recovered from the extraordinary inflationary pressures of the last few years, but also continued executing against our ambitious decarbonisation commitments, reducing our CO2 emissions by 4% this year and by 13% since 2020”, said Fernando A. González, CEO of Cemex. “Despite the significant macro challenges of the last four years, we have proven not only the resilience of our business model but also our ability to pivot and adjust rapidly to changing global conditions. This foundation gives us additional flexibility in capital allocation, where we continue to accelerate investments in our bolt-on growth strategy, initiate a sustainable return programme for shareholders, and bolster our capital structure.”

Cemex proposes the initiation of a quarterly dividend programme:

• Subject to approval at Cemex’s Annual Shareholder Meeting to be scheduled on 22 March.
• Equal quarterly dividend distribution totalling US$120 million in first year; first payment commencing in 2nd quarter of 2024 and final payment in 1st quarter of 2025.
• Subsequent dividend distributions under the programme will be subject to shareholder approval.

Cemex’s Consolidated 2023 Full Year and 4th Quarter Financial and Operational Highlights.

• Net Sales increased 8%, to US$17 416 million in 2023, and 5% to US$4243 million in the 4th quarter.
• EBITDA increased 20%, to US$3347 million in 2023, and 13%, to US$743 million in the 4th quarter.
• EBITDA margin increased 2.0pp in 2023, to 19.2%, and by 1.2 pp, to 17.5% in the 4th quarter.
• Free Cash Flow after Maintenance Capital Expenditures was US$1208 million in 2023, and US$511 million in 4th quarter.
• For the full year, EBITDA from Cemex’s Urbanisation Solutions business increased by 27%.
• Continued execution of Cemex’s decarbonisation roadmap, with a 4% y/y CO2 reduction in 2023 and 13% since 2020.
• Controlling interest net income after adjusting for a previously disclosed adverse tax judgement in Spain of US$613 million in 4th quarter, was US$63 million lower y/y for the full year, and was US$271 million higher y/y for the fourth quarter.

Geographical Markets 2023 Full Year and 4th Quarter Highlights.

• Net Sales in Mexico increased 16% in 2023, to US$5088 million, and 17% in 4th quarter, to US$1333 million. EBITDA increased 15% in 2023, to US$1488 million, and increased 13% in 4th quarter, to US$346 million.
• Cemex’s operations in the United States reported Net Sales of US$5338 million in 2023, an increase of 6%, and US$1269 million in 4th quarter, an increase of 4%. EBITDA increased 37% in 2023, to US$1040 million, and increased 18% to US$239 million in the 4th quarter.
• In the Europe, Middle East, Africa and Asia region, Net Sales increased by 5% in 2023, to US$5059 million, and decreased 4% in 4th quarter, to US$1166 million. EBITDA was US$703 million in 2023, 7% higher, and US$129 million for 4th quarter, a 14% decrease.
• Cemex’s operations in the South, Central America, and the Caribbean region, reported Net Sales of US$1725 million in 2023, an increase of 8%, and US$425 million in 4th quarter, an increase of 7%. EBITDA increased 5% to US$399 million in 2023 and increased 14% to US$98 million in the 4th quarter.

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. All references to EBITDA mean Operating EBITDA.

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