Cemex reports record first quarter EBITDA

Three of four regions, markets accounting for 90% of consolidated EBITDA, experienced a combined growth rate of 15%. EBITDA margin expanded by half a percentage point, driven by favourable price-cost dynamics. These strong results were further bolstered by growth investments and Urbanisation Solutions, contributing to over 50% of incremental EBITDA in the quarter.

“Our first quarter in 2024 continued to build on an exceptional 2023”, said Fernando A. González, CEO of Cemex. “EBITDA represents a first quarter record for the company, despite fewer working days and difficult weather conditions in many markets. Our pricing strategy effectively outpaced input cost inflation, while our growth investments and Urbanisation Solutions business were instrumental in driving EBITDA growth in the quarter".

Cemex’s consolidated 2024 first quarter financial and operational highlights

• Net Sales increased 3% to US$4138 million.
• EBITDA increased 5% to US$772 million.
• EBITDA margin increased 0.5pp to 18.7%.
• Free Cash Flow after Maintenance Capital Expenditures was negative US$212 million, a y/y decline of US$157 million.
• Growth investments account for 10% of total EBITDA and 26% of incremental EBITDA.
• 15% increase in EBITDA from Urbanisation Solutions.
• Controlling interest net income increased 13%, due primarily to better operational results and lower taxes.

Geographical markets 2024 first quarter highlights

• Sales in Mexico increased 20%, to US$1314 million, while EBITDA grew 22% to US$420 million. EBITDA Margin expanded 0.5pp to 31.9%.
• Sales in the United States declined 2% to US$1234 million. EBITDA increased 3% to US$237 million, and EBITDA Margin reached 19.2%, a 0.9pp expansion.
• In the Europe, Middle East, Africa, and Asia region, Sales were down 9%, to US$1115 million. EBITDA was US$88 million, 41% lower, while EBITDA Margin decreased 4.2pp to 7.8%.
• Cemex’s operations in South, Central America, and the Caribbean region reported Sales of US$422 million, an increase of 3%, while EBITDA rose 22% to US$103 million. EBITDA Margin increased 3.8pp, to 24.3%.

Read the article online at: https://www.worldcement.com/the-americas/26042024/cemex-reports-record-first-quarter-ebitda/