CEMEX posts highest quarterly EBITDA since 2016

Mexican building materials giant CEMEX has posted its highest quarterly EBITDA, EBITDA margin and free cash flow since 2016.

By Guy Woodford October 29, 2020 Read time: 2 mins

CEMEX has recorded its best quarterly EBITDA since 2016. Pictured are two of the company's cement mixer trucks

Strong third-quarter 2020 results saw all CEMEX regions increase their profitability. EBITDA (earnings before interest, taxes, depreciation & amortisation) not only recovered from COVID-19 disruptions of the prior quarter but grew double-digit on a year-on-year basis.

CEMEX sales increased 3% on a like-for-like basis to US$3.4 billion, while EBITDA for the quarter rose 15% to US$728 million. EBITDA margin increased by 1.8 percentage points due to higher prices, energy tailwinds, and cost efficiencies under CEMEX’s ‘Operation Resilience’ programme.

Fernando A. González, CEO of CEMEX, said: “We are pleased with our performance in the third quarter in which all regions participated in earnings recovery. Indeed, during the quarter, we experienced EBITDA recovery from the second-quarter decline, due to COVID-19, as well as strong year-over-year growth. Operation Resilience played a key role in this performance. We continued to de-risk the business with the reduction in our net leverage ratio and the extension of our bank maturities with the successful refinancing of the Facilities Agreement.”

CEMEX Q3 2020 sales in Mexico increased 14% on a like-for-like basis to US$723 million. Operating EBITDA, on a like-for-like basis, increased 16% to US$246 million in the quarter, versus the same period of the previous year.

CEMEX’s operations in the United States reported sales of US$1.0 billion, an increase of 1% from the same period in 2019. Operating EBITDA increased by 7% to US$199 million versus the same quarter of 2019.

In our Europe, Middle East, Africa and Asia region, CEMEX sales increased by 2% on a like-for-like basis, compared with the same period of the previous year, reaching US$1.2 billion. Operating EBITDA was US$220 million for the quarter, 8% higher than the same period last year on a like-for-like basis.

CEMEX’s operations in our South, Central America and the Caribbean region, posted sales of US$395 million, an increase of 1% on a like-for-like basis over the same period of 2019. Operating EBITDA increased by 31% on a like-for-like basis to US$109 million in the third quarter of 2020, in contrast to the same quarter of 2019.

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