Mexican cement and building materials company Cemex saw a modest increase in net profit for the second quarter, along with double-digit growth in sales and operating profit.
Net Profit and Financials
Cemex reported a 2% increase in second-quarter net profit, reaching $272 million or 18 cents per American depositary share. While higher financial expenses and taxes partially offset the gains, the company experienced higher operating profit and foreign exchange gains.
For the April-June period, Cemex recorded sales of $4.57 billion, representing a 13% increase compared to the same quarter last year. This growth was mainly driven by higher prices across all regions. However, cement sales by volume decreased by 6% to 13.4 million metric tons, while aggregates volume grew by 3% to 36.7 million metric tons and ready-mix concrete sales decreased by 5% to 12.4 million cubic meters.
EBITDA and Operating Profit
Cemex’s earnings before interest, taxes, depreciation, and amortization (EBITDA) reached a record high of $961 million, reflecting a significant 34% increase. This growth can be attributed to higher prices, easing cost inflation, and the rapid expansion of the company’s Urbanization Solutions business. Additionally, operating profit grew by an impressive 51% to $651 million.
Outlook and Capital Expenditures
Cemex expects its EBITDA for the full year to be around $3.25 billion, indicating a 21% increase over 2022. This projection is more optimistic than the company’s previous expectation of low single-digit growth. Furthermore, Cemex plans to spend $1.25 billion in capital expenditures this year, including $850 million for maintenance.