Despite the strong top-line growth, the company adds that operating EBITDA (earnings before interest, taxes, depreciation and amortisation) decreased 1% to US$740m, due to supply chain disruptions as well as a sudden rise in energy and transportation costs.
CEMEX says it continued making progress in deleveraging, reaching 2.74 times leverage at the end of the quarter.
Net sales increased 8% year-on-year in Q3 to US$3,769m, and consolidated cement and aggregates volumes grew 1%, while ready-mix grew 3%, and urbanisation solutions sales grew 16%.
Prices in local currency terms were up 6% for cement, and 3% for ready-mix and aggregates, while operating EBITDA decreased 1% to US$740m.
Operating EBITDA margin decreased by 1.6pp from 21.2% in the third quarter of 2020 to 19.6% this quarter. Free cash flow after maintenance capital expenditures reached US$368m.
Controlling interest net income (loss) resulted in a loss of US$376m in the third quarter of 2021 versus a loss of US$1,535m in the same quarter of 2020. The improvement in net income primarily reflects a smaller non-cash impairment charge in comparison with 2020, higher operating earnings before other expenses net and lower financial expenses.
Net debt and leverage were reduced during the third quarter, with net debt decreasing to US$248m versus the second quarter of 2021.
“We are pleased to report strong top-line growth reflecting continued growth in demand for our products, coupled with an acceleration in pricing momentum,” said Fernando González, CEO of CEMEX. "We are confident that our pricing strategy will more than compensate for the sudden runup in input cost inflation we have experienced. We remain optimistic regarding outlook, as most of our markets are operating at high-capacity utilization and sustainable midcycle levels that will be supported by monetary and fiscal stimulus, while others are just beginning an upcycle."
Net Sales in Mexico increased 10% to US$868m, and operating EBITDA rose 7% to US$289m.
In the United States, net sales reached US$1.1 billion, an increase of 10%. Operating EBITDA fell 10% to US$179m.
In the Europe, Middle East, Africa and Asia region, net sales rose by 1% to US$1.3bn. Operating EBITDA was US$200m for the quarter, or 9% lower.
South, Central America and the Caribbean region had net sales of US$429m, an increase of 10%. Operating EBITDA improved 3% to US$112m.
