After Cemex reported strong 2Q21 results and reiterating US$3.1bn EBITDA guidance for 2021, market analysts UBS state that it has confidence that the company will reach its 2021 EBITDA guidance of US$3.1bn. This was the company's strongest financial performance in the last decade.
In Mexico Cemex recorded positive results in the 2Q21 mainly on the back of strong volumes and prices. Net sales in Mexico increased 65 per cent YoY and EBITDA expanded 82 per cent YoY, driven by bagged cement double-digits increase and operating leverage.
Cemex also achieved good 2Q21 results in the US market where plants are running at full capacity, and volumes are also arriving from Cemex plants in Mexico, Central America and Europe. In the US, residential remains the main driver of demand with sales was up 13 per cent YoY, while higher imports, logistics and maintenance costs impacted EBITDA, which increase by seven per cent YoY.
However, cement prices in the US were lower than expected. Cemex said it is expecting another increase in prices in the US market for the summer.
Looking forward, Cemex has given double-digits growth guidance for 2022 EBITDA while UBS has estimated a figure ‘about mid-single growth’ for the company in 2022.
