Cemex Latin American Holdings - April 2019

Cemex Latin American Holdings' turnover declined by 11.5 per cent in the 1Q19 to US$258.2m, while EBITDA came off by 19.3 per cent to US$54.3m. At the trading level, there was a 25.4 per cent profit reduction to US$34m. After a 13.9 per cent interest charge and other items, the pretax profit showed a reduction to US$22.9m and the net attributable profit emerged at US$15.6m.

Net debt at the end of March was 16.3 per cent lower than a year earlier at US$797m, giving a gearing level of 51.6 per cent, down from 56.8 per cent a year earlier and 60.9 per cent a year before that. Cement shipments in the quarter were four per cent lower at 1.63Mt. Aggregates sales were 12.6 per cent lower at 1.49Mt, while the ready-mixed concrete deliveries were down by 4.2 per cent to 0.64Mm³. 

The Colombian turnover declined by 5.9 per cent to US$128.1m. EBITDA dropped from US$25.2m. to US$21.9m and the trading profit from 18 to 14.9 per cent. Domestic cement shipments recovered by eight per cent while the local price recovered by two per cent but there was an eight per cent rise in dollar terms. Aggregates volumes declined by four per cent while ready-mixed concrete deliveries improved by eight per cent, with local prices being up by eight per cent in aggregates and off by one per cent in ready-mixed concrete.

In Panama the turnover declined by 18.4 per cent to US$50m. EBITDA fell by 32.8 per cent to US$13.8m with the EBITDA margin dropping from 33.6 to 27.7 per cent. Cement shipments fell by 14 per cent and the dollar-denominated price remained stable. Aggregates deliveries declined by 31 per cent and the average price was four per cent lower. Ready-mixed concrete deliveries declined by 29 per cent and prices were two per cent lower. Demand is anticipated to show some recovery in due course.

The Costa Rican turnover was off by 22.2 per cent to US$27.8m. EBITDA improved by 3.3 per cent to US$9.9m with the margin improving from 26.8 to 35.6 per cent. Cement shipments declined by 20 per cent and the local currency price improved by two per cent. The aggregates volumes rose by 20 per cent, but the average price fell by three per cent. Ready-mixed concrete deliveries declined by eight per cent while the average price improved by nine per cent. 

In the remainder of the region turnover was 6.3 per cent lower at US$56.6m, and EBITDA came off by 4.8 per cent to US$17.1m. The cement volume declined by five per cent while the average price improved by one per cent. Sales in Nicaragua were lower by some 19 per cent, while Guatemalan volumes were ahead by around four per cent. Aggregates shipments declined by some 62 per cent with prices improving by five per cent. In ready-mixed concrete volumes declined by 39 per cent and prices improved by an average four per cent.