Cemex Latam Holdings sees an 11% decline in 1Q20 net sales

Cemex Latam Holdings (CLH) announced consolidated net sales of US$214m in 1Q20, a decline of 11 per cent compared to 1Q19. Operating EBITDA reached US$46m in the period, down 12 per cent YoY.

Consolidated prices of grey cement and aggregates rose by three per cent and 11 per cent, respectively in 1Q20. Consolidated volumes of grey cement, ready-mix and aggregates declined by 11, 25 and 33 per cent, respectively in 1Q20 compared to 1Q19. Total debt declined by eight per cent YoY, reaching US$766m.

Geographical highlights
EBITDA in Colombia reached US$17m, 24 per cent lower in US$ terms than in 1Q19. Net sales decreased by 21 per cent YoY in US dollar terms to US$102m.

In Panama operating EBITDA fell by 25 per cent to US$10m. Net sales totalled US$35m, a decline of 31 per cent compared to 1Q19.

Costa Rican net sales reached US$25m, down nine per cent in US dollar terms.  Operating EBITDA totalled US$8m in 1Q20, down 21 per cent in US dollar terms.

In the rest of CLH, operating EBITDA rose by two per cent in US dollar terms to US$17m. First-quarter net sales reached US$57m in 2020, up one per cent in US dollar terms on the 1Q19.

Jesus Gonzalez, CLH’s CEO, said: "We came into 2020 with favourable demand momentum in Colombia, Nicaragua, Guatemala and El Salvador, and a stabilising trend in Costa Rica. The positive developments began to be impacted in March, as the COVID-19 pandemic spread and governments started implementing restrictions.

"We are responding to the COVID-19 crisis focussing on three priorities: first, we are strengthening health and safety, completing our existing standards by developing and implementing special protocols and guidelines designed to protect our employees, customers and communities from the risks of CIVID-19; second, we are taking steps to strengthen our cash position. We are suspending or reducing capital expenditures, operating expenses, production and inventory levels. With respect to Capex, US$20m have been postponed until 2021.

"Also, members of CLH's Board and senior leadership have agreed to voluntarily waive a percentage of their salaries or allowances during the next three months. Other salaried employees voluntarily deferred a percentage of their salaries for the same period. I would like to take this opportunity to thank my colleagues for their support in these challenging times."