Cemex Latam net sales fall 7% in 4Q18

Cemex Latam net sales fall 7% in 4Q18
08 February 2019

Cemex LatAm Holdings (CLH) announced consolidated net sales of US$260m in 4Q18, a fall of seven per cent on the US$278m achieved in 4Q17. Operating EBITDA reached US$39m during 4Q18, down 24 per cent YoY.

Consolidated cement volumes for the 4Q18 amounted to 1,679,000t, no change from 4Q17. Consolidated grey cement volumes registered 1,489,000t in 4Q18, marginally up from 1,485,000t in 4Q17.

Ready-mix volumes declined in 4Q18 to 659,000m3, down seven per cent from 712,000m3 in 4Q17. Aggregate volumes reached 1,471,000t in 4Q18, falling by 16 per cent from 1,751,000t in 4Q17.

Consolidated prices in local currency for grey cement remained flat, improving by one per cent and five per cent for ready-mix and aggregates, respectively in 4Q18.

In Colombia grey cement volumes rose by four per cent. Ready-mix volumes fell by eight per cent and aggregate volumes slipped by 15 per cent. Operating EBITDA reached US$23m in Colombia, 24 per cent lower than 4Q17 and net sales fell six per cent to US$125m during the period under review.

Grey cement volumes in Panama fell by eight per cent, ready-mix volumes were down four per cent and aggregates decreased by 10 per cent, compared to 4Q17. Cemex LatAm estimates that national cement demand fell by six per cent in the 4Q18 and by 13 per cent in 2018. Operating EBITDA decreased by 37 per cent to US$13m in 4Q18. Net sales amounted to US$53m, a fall of three per cent on 4Q17.

Costa Rica
In Costa Rica grey cement volumes fell by 16 per cent in 4Q18, ready-mix volumes declined by four per cent and aggregates volumes increased by nine per cent. Domestic cement demand fell by seven per cent in 4Q18 and for the full year. Operating EBITDA fell by seven per cent to US$9m in 4Q18, and net sales achieved US$27m in 4Q18, 23 per cent down on 4Q17.

Rest of CLH
In the rest of CLH (Nicaragua, Guatemala and El Salvador) grey cement volumes rose by four per cent, while ready-mix and aggregates volumes slipped by 15 and 71 per cent, respectively in 4Q18, compared to 4Q17. Operating EBITDA fell by seven per cent to US$18m in 4Q18. Net sales amounted to US$59m in 4Q18, down two per cent on 4Q17


Cement volumes in Nicaragua in 4Q18 and for 2018 fell by 10 per cent and 14 per cent, respectively. In Guatemala Cemex's cement volumes rose for by seven per cent in 2018. 

Jamie Murguiro, CEO of CLH, said: "In 2018 we operated in a very challenging environment as we faced lower national cement demand in Panama, Costa Rica and Nicaragua, and flattish demand in Colombia. Additionally, we had a new competitor in Costa Rica and increased cement imports in Panama, as well as cost inflation, particularly in fuels and freights.

"In this environment, we remained focussed on the variables under our control as we improved service levels to our customers and reached high adoption rates of our Cemex Fo digital services. Also, we increased our prices in Colombia and Costa Rica. We reduced our financial expense and Capex, as well as managed our working capital effectively.

"Our free cash flow and the proceeds from the divestment of our business in Brazil were used to reduce our net debt, which declined by nine per cent during 2018.


Regarding our operations in Colombia, we are encouraged by the improving trends in the economy and in national cement demand which increased by four  per cent during the fourth quarter. Our cement volumes during the fourth quarter increased by four per cent YoY and seven per cent sequentially."

Published under Cement News