Despite flat global sales, Cemex posted a 2% Q2 2024 increase in EBITDA to US$965mn, while the company's EBTIDA margin expanded to the highest level since 2016.
EBITDA margin was propelled by favourable price-to-cost dynamics, with prices rising mid-single digits amidst decelerating costs. Net sales of $4,494mn were flat compared to the second quarter of 2023, reflecting difficult weather conditions in key markets offset by pricing momentum.
“Our strong second quarter results demonstrate the efficacy of our commercial approach and growth strategy. Pricing contribution of our products continues to exceed decelerating input cost inflation, while our bolt-on investments, mainly in the US, and our Urbanisation Solutions business, continued to support EBITDA growth,” said Fernando A. González, CEO of Cemex.
“On Climate Action, we continue to make steady progress in decarbonisation with a 3% decline in Scope 1 emissions year-to-date. European operations are leading the way, with emissions today already at European industry 2030 targets and within reach of Cemex’s consolidated 2030 targets, almost six years ahead of time.”
During the quarter, Cemex achieved another important milestone with its second Investment Grade rating from Fitch Ratings. Cemex was also recognized as the top-scoring company in the World Benchmarking Alliance’s 2024 Climate and Energy Benchmark, among 91 of the world’s most influential aluminum, cement, and steel companies, evidence that Cemex’s leadership in sustainability holds up well even beyond the cement industry.
Cemex net sales in Mexico increased 6%, to $1,381mn, while EBITDA grew 14% to $454mn, a record level. EBITDA Margin expanded 2.1pp to 32.9%. Net sales in the United States declined 2% to $1,392mn. EBITDA decreased 2% to $297mn, and EBITDA margin reached a peak level of 21.4%, a 0.1pp expansion.
In the Europe, Middle East, and Africa region, Cemex net sales were down 7%, to $1,190mn. EBITDA was $175mn, 12% lower, while EBITDA margin decreased 0.9pp to 14.7%.
Cemex’s operations in South, Central America, and the Caribbean region reported net sales of $457mn, an increase of 3%, while EBITDA declined 2% to $110mn. EBITDA margin decreased 1pp, to 24.2%.
