CEMEX grows sales by 10% in 2Q23

CEMEX has reported its 2Q23 results with a 10 per cent growth in sales to US$4566m, a 29 per cent increase in operating EBITDA to US$961m, and an EBITDA margin expanding by 3.3 percentage points to 21.1 per cent. With these results, CEMEX is close to its goal of recovering 2021 margins, set in 2022 in response to unprecedented inflation. 

Net sales in Mexico increased 14 per cent in the 2Q23 to US$1298m, while operating EBITDA increased nine per cent to US$399m. EBITDA margin declined 1.3 percentage points to 30.8 per cent. 

CEMEX’s operation in the USA reported a record quarter, with EBITDA growing 87 per cent, reaching US$303m. Net sales increased 10 per cent to US$1420m while EBITDA margin increased 8.8 percentage points to 21.3 per cent. 

In the Europe, Middle East, Africa and Asia region, net sales increased six per cent in the 2Q23, to US$1354m. Operating EBITDA was US$212m, 11 per cent higher, while the EBITDA margin increased 0.8 percentage points to 15.7 per cent. 

CEMEX’s operations in the South, Central America, and the Caribbean region reported net sales of US$447m in the 2Q23, an increase of 10 per cent, while operating EBITDA grew 15 per cent to US$112m. The EBITDA margin increased 1.4 percentage points, to 25.1 per cent. 

CEMEX also announced a YoY reduction of 4.4 per cent in CO₂ levels in the first half of 2023 versus the same period in the previous year. 

CEMEX’s strategy pays off
The improvement in EBITDA across all regions reflects not only the success of CEMEX’s pricing strategy and decelerating input cost inflation but also the incremental contribution from its growth investments portfolio and expanding urbanisation solutions business. CEMEX’s Urbanisation solutions business is the newest core business and a primary beneficiary of  investments, has been growing at a 20 per cent compound annual growth rate since its launch in 2019. Urbanisation solutions now represents nine per cent of CEMEX’s consolidated EBITDA. During the second quarter, the incremental EBITDA from growth investments and Urbanisation Solutions business was close to US$50m versus the same period of the previous year. 

“The success of our pricing strategy, bolt-on investments, and urbanisation solutions business, as well as decelerating cost inflation, are driving what is shaping up to be a very strong year for our company,” said Fernando A González, CEO of CEMEX. “One of our main priorities has been to recover 2021 margins, and we are getting very close. Our growth investment strategy and our Urbanisation solutions business are ramping up nicely and contributing to profitability in a meaningful way. Beyond our financial results, we continue progressing on the ambitious carbon reduction and circularity commitments of our Future in Action program, remaining on the path to becoming a net-zero CO₂ company by 2050.”