CEMEX Latam Holdings reports 1Q19 results
Published by Lucy Stewardson,
CEMEX Latam Holdings (CLH) SA has announced that its consolidated net sales reached US$258 million during 1Q19. This is a decline of 12% in US dollar terms, or of 4% in local-currency terms, compared to the figures for 1Q18. Operating EBITDA reached US$55 million in 1Q19, which was a decline of 19% in US dollar terms, or of 14% in local-currency terms, on a y/y basis.
During 1Q19, the company’s consolidated domestic grey cement, ready-mix, and aggregates volumes decreased by 1%, 4%, and 11% respectively compared to 1Q18. Its consolidated prices in local-currency terms for domestic grey cement and ready-mix decreased by 1% and 2% respectively, while aggregates increased by 3% during the quarter on a y/y basis.
During 1Q19, controlling interest net income was US$16 million, compared to US$30 million during 1Q18.
The company has also stated that free cash flow reached US$17 million in 1Q19, which was an improvement of US$45 million compared to that of 1Q18. Its controlling interest net income reached US$16 million. In addition, its net debt was reduced by US$30 million during 1Q19, from US$827 million as of December 2018, to US$797 million as of March 2019.
Operating EBITDA in Colombia reached US$22 million, which is 13% lower in US dollar terms or 4% lower in local currency terms compared to 1Q18. Net sales during the quarter declined by 6% in US dollar terms, but increased by 4% in local currency terms, to US$128 million during 1Q19.
In Panama, operating EBITDA decreased by 33% to US$14 million during 1Q19. Net sales reached US$50 million during 1Q19, which was an 18% decline compared to those of 1Q18.
In Costa Rica, operating EBITDA reached US$10 million during 1Q19, which was 3% higher in US dollar terms of 10% higher in local currency terms on a y/y basis. Net sales reached US$28 million, which was a decline of 22% in US dollar terms or 17% lower in local currency terms, compared to those of 1Q18.
In the rest of CLH, operating EBITDA declined by 22% in US dollar terms, or by 19% in local currency terms, to US$17 million in 1Q19. Net sales reached US$57 million in 1Q19, which was 10% lower in US dollar terms or 6% lower in local currency terms, compared to those of 1Q18.
In accordance with its vision, CLH will continue to constantly evolve to become more flexible in its operations, more creative in its commercial offerings, more sustainable in its use of resources, more innovative in conducting its business, and more efficient in its capital allocation. CLH is a regional leader in the building solutions industry that provides high-quality products and reliable services to customers and communities in Colombia, Panama, Costa Rica, Nicaragua, El Salvador, and Guatemala.
“We are encouraged by the positive trends in Colombian national cement demand and by our cement volume and price performance during the quarter,” said Jaime Muguiro, CEO of CLH. “Nevertheless, this positive trend in Colombia is not strong enough to offset weak markets across Central America. To respond to this challenging environment, we launched the cost saving programme ‘Stronger CEMEX,’ which would deliver up to US$10 million/year of savings. So far we have captured US$3 million.”
Read the article online at: https://www.worldcement.com/the-americas/30042019/cemex-latam-holdings-reports-1q19-results/
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