Cemex reports net sales of US$3.8bn in 3Q21

Cemex reports consolidated net sales of US$3.8bn in the 3Q21, a rise of eight per cent versus the 3Q20. EBITDA fell by one per cent to US$740m, due mainly to supply chain disruption and a sudden rise in energy and transportation costs.

Consolidated cement and aggregate sales volume grew by one per cent while ready-mix grew by three per cent and urbanisation solutions grew by 16 per cent in the 3Q21. 

Net debt for the company declined by US$248m versus the 2Q21 and the leverage ratio dropped to 2.74 times, a reduction of 0.11 times compared to the 2Q21.

Regional results
Cemex’s net sales in Mexico rose by 10 per cent in the 3Q21, while operating EBITDA rose by seven per cent to US$289m. In the USA net sales reached US$1.1bn, a rise of 10 per cent, but operating EBITDA fell by 10 per cent to US$179m. The company’s results in Europe, Middle East, Africa and Asia saw net sales rise by one per cent to US$1.3bn, while operating EBITDA slipped to US$200m, down nine per cent. Finally, South/Central America and the Caribbean had net sales of US$429m, an increase of 10 per cent, while operating EBITDA rose by three per cent to US$112m.

Fernando A González, Cemex CEO, said: “We are pleased to report strong top-line growth reflecting continued growth  in demand for our products, coupled with an acceleration in pricing momentum. We are confident that our pricing strategy will remain more than compensate for the sudden runup in input cost inflation we have experienced. We remain optimistic regarding outlook, as most of our markets ate operating at high-capacity utilisation and sustainable mid cycle levels that will be supported by monetary and fiscal stimulus, while other are just beginning an upcycle.”  

Analysts UBS commented that Cemex reported lower than expected results but as expected, the company reduced its 2021 EBITDA to US$2.95bn-US$3bn (from US$3.1bn) due to the increasing energy costs and weather conditions in the 3Q21.