Cemex reports 6% rise in net consolidated sales and EBITDA

Cemex reports 6% rise in net consolidated sales and EBITDA
Published: 27 July 2016

Tagged Under: Cemex business results Mexico 

Cemex reported a six per cent YoY rise ­– on a like-for-like basis for the ongoing operations and adjusting for currency fluctuations ­– in net consolidated sales for the second quarter of 2016.

The company saw its operating EBITDA advance by six per cent during the quarter to US$771m when compared with 2Q15 although on a like-for-like basis the increase was 16 per cent. The corresponding EBITDA margin saw a 1.3 per cent rise YoY to 20.9 per cent.

The company attributed the rise in consolidated net sales due to higher price realisations in local currency terms in most of its operations as well as higher volumes in Mexico, the USA and Europe.

In addition, Cemex’s free cash flow for the quarter reached US$422m, an improvement of US$359m when compared with a year ago.

Fernando A Gonzalez, Cemex Chief Executive Officer, said: “Our solid second quarter and first half 2016 results demonstrate the resilience of our portfolio, which is largely comprised of high-growth markets that are experiencing attractive supply-demand conditions.

“We saw higher consolidated cement and aggregates volumes during the quarter as well as continued favourable results from our value-before-volume strategy, which led to a growth in sales of six per cent on a like-to-like basis. Operating EBITDA increased by 16 per cent  also on a like-to-like basis with a margin expansion of 1.3 percentage points. Free cash flow after maintenance capex reached US$478m during the quarter, an increase of US$376m from last year’s level.

“Our pro-forma debt, reflecting our cash reserve and the proceeds from our Philippines transaction, among other items, is close to US$1.3bn lower than that at the end of 2015. This is an additional step in our path to reach an investment-grade capital structure as soon as possible.

In terms of geographical markets, net sales in the company’s domestic market increased seven per cent in the second quarter of 2016 to US$796m, compared with US$745m in the 2Q15. Operating EBITDA increased 18 per cent to US$302m versus the same period of last year.

Across the northern border, Cemex operations in the United States reported net sales of US$1.036bn in the 2Q16, up three per cent YoY. Operating EBITDA increased 10 per cent to US$172m in the quarter, versus US$156m in the same quarter of 2015.

In Latin America, Cemex reported net sales of US$466m, representing a 10 per cent YoY decrease. Operating EBITDA fell by five per cent to US$153m in the 2Q15, from US$160m a year earlier.

Net European sales for the period under review decreased two to US$910m, compared with US$926m the previous year. Operating EBITDA was US$122m ­– four per cent higher than in 2Q15.

Operations in Africa, Middle East and Asia reported a four per cent YoY fall in net sales to US$407m and 2Q16 operating EBITDA was US$93m, down two per cent from the same period last year.