CEMEX says it returned strong results for the first quarter of 2022, with consolidated net sales and EBITDA (earnings before interest, taxes, depreciation, and amortisation) growing 13% and 3% respectively year-on-year, despite a challenging cost environment.
The building materials multinational says growth was led by a 12% increase in cement prices in like-to-like terms, 8% in ready-mix, and 7% in aggregates, with all regions contributing to pricing gains.
CEMEX says its Developed Market portfolio continued to enjoy strong demand dynamics, with cement and ready-mix volumes growing high single to double-digits. The company maintained its 2022 EBITDA outlook, projecting mid-single digit growth.
The company added that Q1 net sales increased 13% to US$3,770m, operating EBITDA increased 3% to U$691m, while operating EBITDA margin declined by 1.7pp year-over-year with a sequential margin improvement.
Free cash flow after maintenance capital expenditures was negative US$175m, due primarily to higher investment in working capital and maintenance capex.
On a like to like basis, adjusting for an extraordinary gain on sale of assets in 2021, Controlling Interest Net Income tripled to US$198m.
Fernando González, CEO of CEMEX, commented: “We are quite pleased with our first quarter performance despite the unprecedented global macro challenges. Against the backdrop of the worst inflation headwinds in more than 40 years, we achieved strong pricing traction across our products.
“Given the tight supply/demand dynamics in most of our markets, we are optimistic that we can recover input cost inflation. In addition, our diversified energy, supply chain, and Climate Action strategies are paying off and helping us respond to energy cost pressures.”
In the Europe, Middle East, Africa and Asia region, net sales increased 14% in the first quarter, to US$1,185m. Operating EBITDA was US$145m for the quarter, 33% higher.
CEMEX’s operations in the United States reported net sales of US$1,196m in the first quarter, an increase of 18%. Operating EBITDA increased 2% to US$200m in the first quarter.
Net sales in Mexico increased 5% in Q1 to US$881m. Operating EBITDA decreased 6% in first the quarter, to US$286m.
CEMEX’s operations in the South, Central America and the Caribbean region, reported net sales of US$416m in the first quarter, an increase of 9%. Operating EBITDA decreased 3% to US$109m in the quarter.
