3Q14 financial and operating results
Cemex Latam Holdings, S.A. (CLH) has reported a 3% y/y fall in consolidated net sales. However, this has been attributed to a lower revenue contribution from its housing solutions projects. If adjusted for the effect of this, then net sales increased by 6% y/y during the quarter.
Coming in at US$160 million, operating EBITDA improved by 12% when compared to 2Q14, boosted by higher EBITDA generation in Colombia and Panama. Operating EBITDA was 5% lower than in 3Q13 due to a lower EBITDA contribution from the housing solutions projects, lower product prices and scheduled maintenance work in Colombia.
CLH’s net debt stood at US$1.088 billion at the close of 3Q14, after decreasing by US$89 million.
- Colombia: operating EBITDA declined by 13% y/y to US$100 million and net sales were down by 7% y/y to US$267 million. Adjusting for the housing solutions project, net sales were up 8% on 3Q13.
- Panama: net sales grew by 10% y/y to US$93 million and operating EBITDA improved by 7% y/y to US$42 million. Ready-mix concrete volumes were up by 4% y/y and aggregates sales volumes increased by 7% y/y during the quarter. Cement consumption was hit by lower demand from the Panama Canal expansion project this year, but adjusting for this, cement daily volume sales grew by 8%.
- Costa Rica: operating EBITDA totalled US$18 million, up 2% y/y. However, net sales dropped by 6% y/y to US$38 million.
- Rest of CLH region: net sales came in at US$67 million and operating EBITDA improved by 9% y/y to reach US$20 million.
January – September 2014
In the first nine months of this year, CLH achieved a 3% y/y increase in consolidated net sales, which totalled US$1.324 billion. If the effect of its housing solutions projects is taken into account then consolidated net sales grew by 5% during the period. Meanwhile, sales volumes improved for cement, aggregates and ready-mix concrete, up 7%, 19% and 7% y/y, respectively. In Colombia alone, sales of cement grew by 18% y/y, while aggregates and ready-mix concrete sales volumes increased by 24% y/y and 14% y/y.
“During the third quarter we continued to enjoy a favourable demand environment in most of our markets. In Colombia, once again, we reached a new sales volume record in all three products. In Nicaragua we reported double-digit growth rates in all products, and in our operations in Panama we reached new records in terms of net sales and operating EBITDA,” commented Carlos Jacks, CEO of CLH.
“We remain very optimistic on the growth prospects for the construction industry throughout the region. Over the past years we have worked intensively to expand our operations in our markets, and we continue strengthening our footprint with expansion projects like the new cement plant in Colombia and the grinding facility in Nicaragua. Our solid asset base together with our unique portfolio of building solutions, will allow us to continue promoting growth in our markets,” added Jacks.
Adapted from press release by Louise Fordham
Read the article online at: https://www.worldcement.com/the-americas/23102014/cemex-latam-3q14-results-721/