Cemex announce exceptional 2023 results
Company announces record annual EBITDA and proposal to initiate a dividend programme
CEMEX have today reported 'exceptional' 2023 results, with 8% growth in sales, a 20% increase in EBITDA, and a more than doubling of free cash flow after maintenance capex to US$1.2 billion.
This performance, coupled with the board’s confidence in the medium-term outlook and strong free cash flow generation over the last few years, allows Cemex to initiate a formal shareholder return programme, subject to approval at the next Annual Shareholders’ Meeting.
Cemex reported an EBITDA margin of 19.2%, an expansion of 2.0pp, achieving their stated goal of recovering 2021 margin. Record EBITDA of approximately US$3.35 billion, and a turnaround in working capital investment, significantly contributed to a six-year high in free cash flow after maintenance capex.
Results were bolstered by strong product pricing across all markets, decelerating input cost inflation, and contributions from Cemex’s growth investment strategy and Urbanization Solutions business.
‘I’m pleased to announce that 2023 is a record year for our company where we delivered not only great results and recovered from the extraordinary inflationary pressures of the last few years, but also continued executing against our ambitious decarbonization commitments, reducing our CO2 emissions by 4% this year and by 13% since 2020,’ said Fernando A. González, chief executive officer of Cemex.
‘Despite the significant macro challenges of the last four years, we have proven not only the resiliency of our business model but also our ability to pivot and adjust rapidly to changing global conditions. This foundation gives us additional flexibility in capital allocation, where we continue to accelerate investments in our bolt-on growth strategy, initiate a sustainable return programme for shareholders, and bolster our capital structure.’
Consolidated 2023 full-year financial and operational highlights:
Net sales increased 8%, to US$17,416 million
EBITDA increased 20%, to US$3,347 million
EBITDA margin increased 2.0pp, to 19.2%
Free cash flow after maintenance capital expenditures was US$1,208 million
EBITDA from Cemex’s Urbanization Solutions business increased by 27%
Continued execution of Cemex’s decarbonization roadmap saw a 4% year-on-year CO2 reduction (13% since 2020).
Geographical markets 2023 full-year highlights:
Net sales in Mexico increased 16%, to US$5,088 million, whilst EBITDA increased 15%, to US$1,488 million
Operations in the US reported net sales of US$5,338 million, an increase of 6%, whilst EBITDA increased 37%, to US$1,040 million
In the Europe, Middle East, Africa and Asia region, net sales increased by 5%, to US$5,059 million, whilst EBITDA was 7% higher at US$703 million
Operations in the South, Central America, and the Caribbean region reported net sales of US$1,725 million, an increase of 8%, whilst EBITDA increased 5% to US$399 million.
