Cemex LatAm 3Q 2021 Net Loss Improves Year-on-Year
Colombia-based Cemex LatAm Holdings – producer of cement, concrete and aggregates in six Latin American nations – on October 27 reported a third quarter (3Q) 2021 net loss of US$10.6 million, a big improvement over the US$110 million net loss in 3Q 2020.
Corporate-wide operating earnings before interest, taxes, depreciation and amortization (EBITDA) rose to US$56 million, up from US$50 million in 3Q 2020.
Net sales also improved year-on-year, to US$235 million, from US$209 million in 3Q 2020, once adjusting for foreign-currency fluctuations.
“Higher volumes in Costa Rica, Nicaragua, and Panama, as well as higher prices in Costa Rica and the ‘rest of CLH region’ [including Nicaragua, Guatemala, El Salvador], were the main drivers of the improvement,” according to the company.
In Colombia, “we estimate that our quarterly cement volumes slightly underperformed the industry on a year-over-year basis mainly due to our pricing strategy and competitive dynamics,” according to Cemex.
“In our ready-mix business [in Colombia], volumes improved 31% on a sequential basis, mainly due to a recovery in formal-sector activity and a base effect stemming from the protests that occurred mainly in May.
“We believe the outlook for cement volumes remains favorable [in Colombia], supported by record home sales, the resilience of the self-construction sector, the execution of the existing fourth-generation highway projects, as well as the rollout of new infrastructure programs,” the company added.
Colombia net sales for 3Q 2021 rose to US$117 million, versus US$115 million in 3Q 2020, but operating EBITDA dipped 5%, to US$27 million. Gray-cement prices in Colombia during 3Q 2021 fell 4% while aggregates dipped 1%, but ready-mix concrete prices stayed flat year-on-year.