Strong top-line growth despite supply chain disruptions and sudden rapid rise in input costs
CEMEX announced today that their consolidated net sales increased 8% during the third quarter of 2021 to US$3.8 billion versus the comparable period in 2020, driven by higher volumes and solid pricing performance in all core products.
Despite the strong top-line growth, operating EBITDA decreased 1% to US$740 million, due to supply chain disruptions as well as a sudden rise in energy and transportation costs.
Among CEMEX’s other consolidated third quarter 2021 financial and operational highlights:
- Consolidated cement and aggregates volumes grew 1%, whilst ready-mixed concrete grew 3%.
- Prices in local currency terms were up 6% for cement, and 3% for ready-mixed concrete and aggregates.
- Operating EBITDA margin decreased by 1.6pp from 21.2% in the third quarter of 2020 to 19.6% this quarter.
‘We are pleased to report strong top-line growth reflecting continued growth in demand for our products, coupled with an acceleration in pricing momentum,’ said Fernando A. González, chief executive officer of CEMEX. ‘We are confident that our pricing strategy will more than compensate for the sudden runup in input cost inflation we have experienced.’
He continued: ‘We remain optimistic regarding outlook, as most of our markets are operating at high-capacity utilization and sustainable mid-cycle levels that will be supported by monetary and fiscal stimulus, while others are just beginning an upcycle.
‘Regarding our Future in Action initiative, we continue to advance on our climate action goals. During the quarter, we received validation from SBTi of our 2030 decarbonization roadmap and joined the Race to Zero initiative.
‘Our climate action agenda is a fundamental element of our medium-term strategy not only because it creates value for stakeholders, but because it is the right thing to do for future generations.’
