CEMEX says it saw strong results in the second quarter of 2021 with EBITDA (earnings before interest, taxes, depreciation and amortisation) growing in all regions.
The building materials giant’s consolidated net sales increased 25%, to US$3.9bn, while operating EBITDA improved 39% to US$818m.
The EBITDA margin increased 2.1 percentage points year over year, to 21.2%. CEMEX says the robust EBITDA performance in the quarter is attributable to significant momentum in cement volumes, higher prices, increased contribution from our growth investment portfolio, operational leverage, and a favourable base effect.
EBITDA in the quarter is 31% higher than pre-pandemic second quarter 2019 level. The company also achieved an investment-grade capital structure of 2.85 times leverage at the end of the quarter.
Consolidated cement volumes grew 22%, to levels higher than pre-pandemic second quarter 2019.
“We are quite pleased to report another strong consecutive performance,” said CEMEX CEO Fernando González. “During the quarter, we accomplished some important milestones in our growth story. Quarterly highlights include the achievement of our long-time leverage goal, a 39% increase in quarterly EBITDA, and our announcement of industry leading Climate Action targets.”
He added that CEMEX’s growth in Q2 exceeded pre-pandemic levels, giving confidence that this performance is sustainable in the second half of the year.
“We are optimistic and we will take advantage of this favourable backdrop to focus on our bolt-on investment strategy, further deleveraging and investing to reach our new Climate Action targets,” González said.
Net sales in Mexico increased 43%, to US$935m in Q2. Operating EBITDA rose 58% to US$332m.
In the United States net sales reached US$1.1bn, an increase of 13%. Operating EBITDA grew 7% to US$212m.
In the Europe, Middle East, Africa and Asia region, net sales rose by 21% to US$1.3bn. Operating EBITDA was US$198m for the quarter, or 25% higher.
The South, Central America and the Caribbean region had net sales of US$418m, an increase of 50%. Operating EBITDA improved 79% to US$117m.
