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 growth strategy, introduced in 2020, focuses on bolt-on and margin enhancement investments across its four core businesses, mainly in developed markets. Cemex’s Urbanisation Solutions business, Cemex’s newest core business and a primary beneficiary of these investments, has been growing at a 20% compound annual growth rate since its launch in 2019. Urbanisation Solutions now represents 9% of Cemex’s consolidated EBITDA. During the second quarter, the incremental EBITDA from growth investments and Urbanization Solutions business was close to $50 million dollars 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.”
