Mexican cement maker, Cemex, has recorded a significant increase in sales and operating profit during the third quarter. The company attributes this growth to higher prices and a reduction in cost inflation. However, net profit fell by 75% compared to the same quarter last year, due to increased taxes and the absence of asset sales.
Sales and Profits
- Sales reached $4.57 billion, representing a 16% increase. This growth can be attributed to higher prices.
- Net profit amounted to $126 million, down from the previous year. The decline was influenced by higher taxes and the absence of asset sales.
- Cement sales by volume decreased by 4% to 13.3 million metric tons.
- The volume of ready mix concrete also dropped by 4%, totaling 12.2 million cubic meters.
- Aggregates volume remained steady at 36.2 million metric tons.
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)
Cemex achieved an EBITDA of $910 million for the July through September period, representing a 40% increase compared to the same quarter last year. This improvement in EBITDA margin can be attributed to Cemex’s pricing strategy, the contribution of investments, and a slowdown in cost inflation.
Cemex anticipates that its EBITDA for the full year 2023 will exceed $3.3 billion, surpassing its previous forecast of approximately $3.25 billion. Additionally, the company’s capital expenditures are projected to reach $1.35 billion, $100 million higher than previously estimated.