Cemex increases Q1 2016 sales by 3% to US$3.2 billion

Mexican cement giant 643 Cemex has posted sales of US$3.2 billion for Q1 2016, an increase of 3% on a like-for-like basis compared to the same quarter of 2015.

The company’s welcome sales rise was said to be due to higher prices of its products, in local currency terms, in most of its operations, as well as higher sales volumes in the US and Europe and AME&A regions.

Cemex’s operating EBITDA increased 12% year-on-year and on a like-for-like basis during the first quarter of 2016 to $583 million. And the firm’s operating earnings before other expenses, net, in the first quarter increased 19% year-on-year to $358 million.

Fernando A. Gonzalez, Cemex’s CEO, said:  “We continue to see favourable results from the implementation of our value-before-volume strategy, with increases in sequential pricing in our three core products. Higher consolidated prices led to a like-for-like increase in net sales of 3%. Prices increased more than our costs and we had a favourable operating leverage in many of our markets leading to a 12% increase in EBITDA on a like-for-like basis, as well as an EBITDA margin expansion of 1.2 percentage points.

“We are particularly pleased with both our free cash flow after maintenance capital expenditures and our net income being positive in a first quarter for the first time in 7 years.”