CEMEX reports 8% sales growth in 4Q23

CEMEX has reported an eight per cent growth in sales in the 4Q23, plus a 20 per cent increase in EBITDA and a more than doubling of free cash flow (FCF) after maintenance capex to US$1.2bn. 

CEMEX reported an EBITDA margin of 19.2 per cent, an expansion of  two percentage points, achieving its stated goal of recovering 2021 margin. Record EBITDA of approximately US$3.35bn and a turnaround in working capital investment significantly contributed to a six-year high in FCF after maintenance capex. Results were bolstered by strong pricing for its products across all markets, decelerating input cost inflation, and contributions from CEMEX ’s growth investment strategy and Urbanisation Solutions business which saw EBITA increase by 27 per cent. CEMEX ’s leverage ratio declined to 2.06, within investment grade parameters.

Fernando A González, CEO of CEMEX, said: “Despite the significant macro challenges of the last four years, we have proven not only the resiliency of our business model but also our ability to pivot and adjust rapidly to changing global conditions. This foundation gives us additional flexibility in capital allocation, where we continue to accelerate investments in our bolt-on growth strategy, initiate a sustainable return program for shareholders, and bolster our capital structure.”

Full-year and 4Q23 highlights
Net sales in Mexico increased 16 per cent in 2023, to US$5088m, and 17 per cent in 4Q23, to US$1333m. EBITDA increased 15 per cent in 2023, to US$1488m and increased 13 per cent in the 4Q23 to US$346m.

CEMEX s operations in the United States reported net sales of US$5338m in 2023, an increase of six per cent, and US$1269m in the 4Q23, an increase of four per cent. EBITDA increased 37 per cent in 2023, to US$1040m, and increased 18 per cent to US$239m in the 4Q23.

In the Europe, Middle East, Africa and Asia regions, net sales increased by five per cent in 2023 to US$5059m, and decreased four per cent in the 4Q23 to US$1166m. EBITDA was US$703m in 2023, seven per cent higher, and US$129m for the 4Q23, a 14 per cent decrease.

CEMEX operations in the South, Central America, and the Caribbean region, reported net sales of US$1725m in 2023, an increase of eight per cent, and US$425m in the 4Q23, an increase of seven per cent. EBITDA increased five per cent to US$399m in 2023 and increased 14 per cent to US$98m in the 4Q23.