Cemex Latin American Holdings - February 2019

Cemex Latin American Holdings saw turnover recover by 5.4 per cent to US$14,374.6m, and to virtually the same level it had two years previously, but EBITDA was 0.6 per cent lower at US$2557.9m, with the margin coming down from 5.6 to 5.2 per cent. The trading profit deteriorated by 6.9 per cent to US$1420.5m and after a 64 per cent decline in financial expenses to US$63.6m and other items, the pretax profit recovered by 11 per cent to US$805.3m. After tax and minorities, the net attributable profit was 32.6 per cent higher at US$543.4m. The net debt was 8.7 per cent lower at US$805m.

The cement volume declined by 6.8 per cent to 6.65Mt and domestic deliveries of grey cement came down by 6.2 per cent to 5.86Mt. Aggregates shipments were 10.3 per cent lower at 6.26Mt and ready-mixed concrete deliveries down by 10.5 per cent to 2.60Mm³. The number of employees declined by a further 5.4 per cent to 4067.

In Colombia, the biggest single market, turnover declined by 7.4 per cent to US$524m and EBITDA dropped by a further 15.9 per cent, following the 47.3 per cent the previous day, to US$95m. Domestic cement deliveries were again six per cent lower but showed a four per cent recovery in the final quarter. Aggregates shipments fell by 14 per cent and ready-mixed concrete deliveries came down by 11 per cent. The price of cement recovered by a marginal two per cent in local currency and by one per cent in US dollar terms. Aggregates prices were stable and also in ready-mixed concrete. 

In Panama turnover declined by 17 per cent to US$222m and EBDITA came down by 41 per cent to US$64m. Domestic cement deliveries came down by 18 per cent recovery, again with a weaker the final quarter. The cement operations also had to deal with a strike among construction workers. Aggregates shipments declined by eight per cent in the year and rose to 10 per cent in the final quarter with prices up by one per cent over the year, but by eight per cent in the final quarter. Ready-mixed concrete deliveries were 15 per cent lower over the period, but by a more modest four per cent lower in the final quarter with the average price being off by seven per cent.

In Costa Rica the turnover eased by seven per cent to US$139m while EBITDA declined by 15 per cent to US$45m and the margin declined from 35.7 per cent to 30 per cent. Domestic cement deliveries were ahead by one per cent, but the price in US dollar terms was lower, more notably so in dollar terms. Aggregates shipments were ahead by a further nine per cent, but the average price claimed by just over 11 per cent, while ready-mixed concrete deliveries improved by eight per cent and prices improved by five per cent. 

Elsewhere in the region, which includes Nicaragua, Guatemala and El Salvador, turnover was four per cent lower at US$239m and EBITDA came off by 15 per cent to US$74m. Cement volumes declined by two per cent but rose by four per cent in the final quarter, while prices were again broadly stable. Aggregates volumes declined by 23 per cent following the previous year’s sharp rise while prices were again lower, while ready-mixed concrete volumes were just one per cent down, while prices were just somewhat lower.