Cemex LatAm Posts US$23 Million Loss for Full-Year 2021
Colombia-based cement/concrete giant Cemex LatAm Holdings (CLH) announced today (February 10) a full-year 2021 net loss of US$23 million — a big improvement over the US$121 million net loss for full-year 2020.
Fourth quarter (4Q) 2021 net loss came-in at US$17 million, down from a net profit of US$8 million in 4Q 2020, according to the company.
“Consolidated net sales during 4Q 2021 increased 8% in comparable terms adjusted for fluctuations in exchange rates, compared to 4Q 2020,” according to CLH.
“Higher volumes in Panama and in the rest-of-CLH-region, as well as higher prices were the main growth drivers,” the company added.
Earnings before interest, taxes, depreciation and amortization (EBITDA) during 4Q 2021 fell 10% versus 4Q 2020. “The decrease was mainly due to lower EBITDA in Colombia, partially offset by higher contributions from Panama and the rest-of-CLH region,” the company added.
For all of 2021, net debt decreased by US$67 million, down 10% year-on-year.
In Colombia, cement volumes dipped 4% during 4Q 2021 but rose 8% year-on-year. Colombia cement prices “remained stable during 2021 compared to with those of the previous year, despite a challenging competitive environment with pricing pressures,” according to CLH.
Inside Colombia, “we recently implemented a price increase of around 4.5% for bagged cement at beginning in December 2021. In 2022, we expect to continue closing the gap between our cement prices and the strong input cost inflation experienced by the industry during previous quarters.We expect our volumes to grow in the low-to-mid-single-digits in cement and in the low-double-digits in concrete.
“In the ready-mix [concrete] business, our volume growth should be supported by higher demand of the market and our recent investments to increase our assets in this business, mainly in the metropolitan areas of Bogotá and Cali,” CLH added.
In Panama, “our domestic cement volumes increased during the quarter and the full year by 8% and 41%, respectively,” according to CLH.
“During 2021, our [Panama] cement plant became a relevant exporter and a key component of our regional commercial network. During the year we exported more than 200,000 tons of cement and clinker to nearby markets lacking supplies.
“In 2022, we expect our volumes to grow by mid-single digits in cement and by at least 30% in concrete. Volume growth should be supported by the recent start of construction of the ‘Line 3 project’ for the Panama Metro.”
In Guatemala, cement volumes “remained strong during 2021 driven by higher activity in the self-construction sector and a recovery in the formal sector. Our cement prices in local currency terms increased 4% and 3% during the quarter and the full year, respectively, compared to the same period of the year last,” according to CLH.
In Nicaragua, “cement volumes remained strong during the year mainly driven by the cement sector in self-construction and government-sponsored projects. Cement consumption was supported by the increase in remittances” from Nicaraguans living and working in North America, the company added.