Cemex Latin American Holdings - April 2018

Cemex Latin American Holdings' turnover declined by 8.4 per cent in the 1Q18 to US$301.1m, while EBITDA came off by 28.8 per cent to US$65.9m. At the trading level there was a 36 2. per cent profit reduction to US$44.1m. After an 11.4 per cent decline in the interest charge to US$14.8m and other items, the pretax profit showed a 15.9 per cent reduction to US$48.2m and the net attributable profit emerged 15.3 per cent lower at US$30m. 

Net debt at the end of March was 3.4 per cent lower than a year earlier at US$903m, giving a gearing level of 56.8 per cent, down from 60.9 per cent a year earlier and 72.6 per cent a year before that. Cement shipments in the quarter were seven per cent lower at 1.76Mt, of which grey cement sales into the domestic markets accounted for 1.53Mt, or 86.9 per cent of the total. Aggregates sales were 4.9 per cent lower at 1.68Mt, while the ready-mixed concrete deliveries down by 11.4 per cent to 0.67Mm³. 

The Colombian turnover declined by 12 per cent to US$136m, but the drop in EBITDA was notably greater at 34 per cent to US$25m as the margin contracted from 24.3 to 18.2 per cent. Domestic cement shipments decreased by 11 per cent compared with a two per cent fall a year ago and a nine per cent drop the year before. Local currency prices came down by five per cent, having fallen by 18 per cent last year. The decline in dollar terms was reduced from 10 per cent to two per cent. Aggregates volumes decreased by 16 per cent, while ready-mixed concrete deliveries were also off by 16 per cent, with local prices being off by four per cent in aggregates and by one per cent in ready-mixed concrete, but by less in dollar terms.

In Panama the turnover declined by 12 per cent to US$60m. EBITDA fell by 34 per cent to US$20m with the EBITDA margin decreasing from 44.3 to 33.1 per cent. Cement shipments fell by 18 per cent and the dollar-denominated price remained stable. Aggregates deliveries improved by four per cent, but the average price was five per cent lower. Ready-mixed concrete deliveries declined by 10 per cent and prices were six per cent off. Demand is anticipated to remain weak in the near future, reflecting a high supply of residential buildings and a slow rate of approval for infrastructure projects.

The Costa Rican turnover was off by five per cent to US$36m and EBITDA declined by 21 per cent to US$10.1m with the margin declining from 32.3 per cent to 26.7 per cent. Cement shipments improved by five per cent and the local currency price advanced by one per cent. The aggregates volumes rose by 31 per cent, but the average price fell by 28 per cent. Ready-mixed concrete deliveries advanced by 11 per cent while the average price by fell by two per cent.

In the remainder of the region turnover was one per cent lower at US$72m, and EBITDA came off by 10 per cent to US$22m. The cement volume declined by four per cent, while the average price improved by the same percentage in local currency terms. Exports to Brazil were ahead, but deliveries to Nicaragua were lower. Aggregates shipments rose by a further 36 per cent with prices declining by three per cent. In ready-mixed concrete volumes rose by 20 per cent and prices improved by an average one per cent.