Cemex LatAm 1Q 2022 Profits Soar 324% on Sales of Costa Rica, El Salvador Assets
Colombia-based Cemex LatAm Holdings announced today (April 28) that its first quarter (1Q) 2022 net income jumped 324% year-on-year, to US$16 million, from US$3.8 million in 1Q 2021 – following a US$$335 million gain from the sale of Costa Rica and El Salvador assets.
Revenues also rose 8%, to US$208 million, but operating earnings before interest, taxes, depreciation and amortization (EBITDA) actually declined 12%, to US$36 million, according to the company.
In Colombia, 1Q 2022 sales rose 9% year-on-year, to US$110 million, but operating EBITDA declined by 19%, US$17 million.
In Colombia, “our domestic gray cement, ready-mix and aggregates volumes increased by 4%, 14% and 16%, respectively, during the quarter. Regarding pricing, our cement prices improved by 5% and 1% on a sequential and year-over-year basis, respectively, in local currency terms.
“The 5% increase in cement pricing on a sequential basis was driven by our price increase executed in December.
“In the ready-mix concrete business, our volume growth during the quarter was supported by increased market demand in the formal sector, and our recent investments to increase the ready-mix footprint mainly in the metro areas of Bogota and Cali,” according to the company.
Meanwhile, 1Q 2022 sales in Panama jumped 25% year-on-year, to US$36 million, while operating EBITDA there dipped 7%, to US$7.8 million.
In Panama, “our domestic gray cement, ready-mix and aggregates volumes increased by 5%, 15% and 20%, respectively, during the quarter,” according to Cemex.
“Volume growth in our cement and ready-mix was businesses was driven primarily by increased activity in the infrastructure sector, mainly in the third line of the Metro. Despite the improvement, industry volumes are still below pre-pandemic levels.
“During the quarter, our cement plant exported more than 80,000 tons of cement and clinker to nearby markets with supply shortages,” the company added.
Sales in its other Central American markets — Guatemala and Nicaragua — rose 7%, to US$63 million, but operating EBITDA fell 8%, to US$10 million, according to the company.
“In Guatemala, cement volumes improved during the quarter on a year-over-year basis, mainly driven by increased activity in the self-construction sector and a recovery in the formal sector,” according to Cemex LatAm.
“In Nicaragua, cement volumes improved during the quarter mainly driven by increased activity in the infrastructure sector,” the company added.
Corporate-wide, “net sales during the first quarter of 2022 increased by 13% on a like-to-like basis adjusting for foreign exchange fluctuations, compared with those of the first quarter of 2021,” according to Cemex LatAm. “Higher consolidated volumes and cement prices were the main drivers of the improvement.”
Meanwhile, corporate-wide cost-of-sales as a percentage of net sales increased by 4.2 percentage-points, from 61.4% in 1Q 2021 to 65.6% in 1Q 2022. “The increase was primarily due to higher variable costs, mainly in kiln fuel,” driven by the world-wide hike in oil prices this year.
