Cemex Latam Holdings SA (CLH) announced that its consolidated net sales reached US$1012m in the 9M16. This is a fall of eight per cent during the first nine months of 2016 compared to same period of 2015. The decline was mainly explained as a result of foreign exchange fluctuations and the effect of lower cement volumes from our operations in Panama and Costa Rica.
Jaime Muguiro, CEO of CLH, said: "Despite challenging demand dynamics in markets like Colombia, Panama and Costa Rica, we have delivered strong results. Our EBITDA increased three per cent despite of a decline of four per cent in net sales [in 3Q16], supported by EBITDA margin expansion in all of our operations, compared with the same period in 2015."
Operating EBITDA during the third quarter of 2016 increased by three per cent, while for the first nine months of the year decreased by two per cent, compared to the same periods in 2015. Adjusting for foreign-exchange fluctuations, operating EBITDA in the first nine months of the year increased by six per cent versus the same period in 2015.
During the first nine months of 2016, consolidated cement, ready-mix and aggregates volumes declined by one, 10 and 15 per cent, respectively, compared to 2015. Adjusting for the effect of foreign-exchange fluctuations, net sales and EBITDA in Colombia increased by five and six per cent, respectively, during the first nine months of the year on a YoY basis.
During the first nine months of the year, cement volumes in Colombia increased by two per cent, while ready-mix and aggregates volumes decreased by nine and 15 per cent, respectively, compared with the same period a year ago. Operating EBITDA in Colombia decreased by one per cent to US$60m versus US$61m in 3Q15, with a decline of two per cent in net sales reaching US$173m.
In Panama during the third quarter EBITDA and EBITDA margin increased by eight per cent and 5.1 percentage points, respectively, compared to same period in 2015. Operating EBITDA increased by eight per cent to US$32m during the quarter. Net sales reached US$70m in the third quarter of 2016, a decrease of four per cent compared with the same period in 2015.
In Costa Rica operating EBITDA reached US$14m during the quarter, decreasing by six per cent compared to the same period a year ago. Net sales declined by nine per cent to US$38m, compared with 3Q15.
Free cash flow after total capital expenditures reached US$73m during the 9M16. Strategic capital expenditures were US$32m in the quarter used mainly for our capacity expansion project in Colombia.
Jaime Muguiro added, "We are encouraged by our free-cash-flow generation after total capex, which during the third quarter increased 90 per cent year over year. Our strong cash flow generation was supported by successful working capital initiatives. Our average working capital days in the third quarter were negative for the second consecutive quarter, decreasing by 18 days compared with the third quarter 2015. We have released close to US$70m in working capital investment in the past 12 months."
During the third quarter of 2016, controlling interest net income reached US$43m, increasing 23 per cent compared to the same period of 2015. Net debt was reduced during the third quarter of 2016 to US$969m.
