Cemex reports 3Q24 net sales of US$4bn

Cemex reported an EBITDA of US$747m and net sales of US$4.09bn in the 3Q24 in a period. Weather impact accounted for a little less than half of the LtL EBITDA shortfall in the quarter. Consolidated net income grew more than 200 per cent compared to the prior year. Cemex’s pricing strategy continued to be supportive in a lower volume environment, with prices for its products rising low-single digits. During the quarter, Cemex announced divestments of US$1.4bn, bringing YtD announced divestitures of non-core assets to US$2.2bn.

“I am pleased with the significant progress we have made this year with our portfolio optimisation efforts. With the proceeds, we will continue to execute on our capital allocation framework where we intend to prioritise growth investments with particular focus on the US, while continuing to deleverage and build on our recently instituted progressive shareholder return program” said Fernando A González, CEO of Cemex. "Our growth strategy adopted since 2019 has proven to be a great complement to organic growth, and together, both levers have delivered a compounded annual growth rate of 14 per cent for the company. With the proceeds from recent divestitures, we will continue to execute our small bolt on investment strategy while accelerating growth through small to midsize M&A transactions to serve our existing geographic footprint”.

In Climate Action, the company is progressing against its Future in Action roadmap, reducing year-to-date scope 1 and 2 CO₂ emissions by  three and four per cent respectively, through its “Reduce before Capture” approach. Additionally, with the aim to drive decarbonisation from 2030 and beyond, Cemex is focussed on developing innovative breakthrough climate technology. In this regard, a Cemex led consortium was recently selected to receive EUR157m of EU Innovation funding for a carbon capture project at its Rüdersdorf cement plant in Germany, with the objective to capture 1.3Mt of CO₂ per year. 

Cemex's consolidated  3Q24  financial and operational highlights 
• Net sales decreased three per cent to US$4090m.
• EBITDA decreased nine per cent to US$747m.
• EBITDA margin decreased 1.4pp to 18.3 per cent.
• Free cash flow after maintenance capital expenditures, adjusting for the extraordinary payment of a tax fine in Spain, was US$420m.
• Net income grew 222 per cent, reaching US$406m in the quarter, and US$891m YtD.
• Growth investments account for 13 per cent of consolidated EBITDA.
• EBITDA margin for the Urbanisation Solutions business rose 1.7 percentage points, reflecting favourable pricing/cost dynamics. 

Regional market performance
Sales in Mexico decreased five per cent, to US$1136m, while EBITDA declined eight per cent to US$319m in the 3Q24 while the EBITDA margin contracted 1.2pp to 28.1 per cent.

In the US sales  declined four per cent to US$1335m in the 3Q24. EBITDA decreased by four per cent to US$258m and EBITDA margin remained at 19.3 per cent.

In the Europe, Middle East, and Africa region, sales increased one per cent to US$1243m in the July-September 2024 quarter. EBITDA was flat at US$201m, while EBITDA margin decreased 0.2pp to 16.2 per cent.

Meanwhile, Cemex’s operations in south, central America, and the Caribbean region reported 3Q24 sales of US$311m, a decrease of one per cent, while EBITDA declined 27 per cent to US$48m. EBITDA margin decreased 5.4pp to 15.4 per cent.