Mexican cement giant Cemex has posted a tenfold year-on-year increase in its net income for 2016. The company’s net income reached US$750 million in 2016, compared to $75 million in 2015. It represents Cemex’s highest annual net income generation since 2007. Meanwhile, Cemex’s operating EBITDA increased on a like-to-like basis by 15% during the full year versus 2015, while EBITDA margin increased 1.7% in the same period. The firm’s EBITDA and EBITDA margin were the highest achieved since 2008 and 2007, r
Mexican cement giant Cemex has posted a tenfold year-on-year increase in its net income for 2016. The company’s net income reached US$750 million in 2016, compared to $75 million in 2015. It represents Cemex’s highest annual net income generation since 2007.
Meanwhile, Cemex’s operating EBITDA increased on a like-to-like basis by 15% during the full year versus 2015, while EBITDA margin increased 1.7% in the same period. The firm’s EBITDA and EBITDA margin were the highest achieved since 2008 and 2007, respectively.
Further Cemex figures show that the company’s free cash flow after maintenance capex for the full 2016 year was US$1.7 billion, almost double last year’s level, and the highest since 2008.
Cemex has also released Q4 2016 trading figures. On a like-to-like basis for the ongoing operations and adjusting for currency fluctuations, the company’s consolidated net sales increased by 4% during Q4 2016 to $3.2 billion, and increased 4% for the full year 2016 to $13.4 billion. Operating EBITDA on a like-to-like basis increased by 10% during the fourth quarter of 2016 to $654 million and increased by 15% for the full year to $2.7 billion versus 2015.
The increase in quarterly consolidated net sales on a like-to-like basis was, says Cemex, due to higher prices of our products, in local currency terms, in most of the firm’s operations, as well as higher volumes in Mexico, the United Kingdom and Germany.
Cemex’s net sales in Mexico increased 25% on a like-to-like basis in the fourth quarter of 2016 to $701 million, compared with $672 million in the fourth quarter of 2015. Operating EBITDA increased by 28% on a like-to-like basis to $245 million versus the same period of last year.
Meanwhile, Cemex’s operations in the United States reported net sales of $880 million in the fourth quarter of 2016, flat on a like-to-like basis from the same period in 2015. Operating EBITDA increased by 16% on a like-to-like basis to $183 million in the quarter, versus a gain of $162 million in the same quarter of 2015.
Cemex’s operations in South, Central America and the Caribbean reported net sales of $403 million during the fourth quarter of 2016, representing a decrease of 6% on a like-to-like basis over the same period of 2015. Operating EBITDA decreased 12% on a like-to-like basis to $108 million in the fourth quarter of 2016, from $125 million in the fourth quarter of 2015.
In Europe, Cemex’s net sales for the fourth quarter of 2016 decreased 2% on a like-to-like basis to $759 million, compared with $834 million in the fourth quarter of 2015. Operating EBITDA was $76 million for the quarter, 3% lower on a like-to-like basis than the same period last year.
Finally, the company’s operations in Africa, Middle East and Asia reported a 9% decrease in net sales on a like-to-like basis for the fourth quarter of 2016, to $328 million, versus the fourth quarter of 2015. Operating EBITDA for the quarter was $76 million, up 5% on a like-to-like basis from the same period last year.
Fernando A. Gonzalez, Cemex’s chief executive officer, said: “2016 was a very good year for Cemex. Despite continued volatility and uncertainty in the markets, we were able to deliver strong underlying operational and financial results by remaining focused on the variables that we control.”
