In the presentation of its financial results, Cemex Latam Holding announced today the 10% increase in net sales in the fourth quarter of 2022 compared to the same period of 2021. However, the macroeconomic situation has been a challenge for the company.
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“Higher prices and the increase in ready-mix volumes were the main drivers of the improvement”highlights the report.
Despite this, cost of sales as a percentage of net sales increased by 5.0ppfrom 63.6% in the fourth quarter of 2021 to 68.7% in the fourth quarter of 2022. The company explains that this increase was mainly due to higher variable costs, especially in fuel for furnaces. On the other hand, operating expenses as a percentage of net sales decreased by 3.3pp during the quarter, from 27.0% in 4Q21 to 23.7% in 4Q22.
“In Colombia, our domestic gray cement prices improved by 11% in local currency terms, and our volumes increased by 2%, during the fourth quarter compared to the same period last year. In January 2023 we announced a price increase of around mid double digits, applicable to all customer segments in our cement business, as part of our efforts to close the gap with the strong cost inflation we have experienced.“, they say.
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As a result of these increases, in the case of the concrete business, prices and volumes improved between 7% and 5% compared to the same period of 2021.
Our volume growth during the quarter and the full year was supported by higher market demand in the formal sector, and recent investments to increase our presence in the ready-mix business.
On the other hand, EBITDA during the fourth quarter of 2022 decreased by 17% On a comparable basis, compared to the fourth quarter of 2021, this was mainly due to higher costs, despite higher sales.
“EBITDA margin during the fourth quarter of 2022 decreased by 4.5pp, compared to the fourth quarter of 2021. The net loss of the controlling interest during the fourth quarter was US$115 million, compared to a loss of US$17 million during the same quarter of 2021. During the fourth quarter of 2022, the line Other expenses, net, includes a negative impact of US$125 million related to a non-monetary charge for goodwill impairment in Panama”, the report states.
In this regard, Fernando González Olivieri, General Director of CEMEX stated: “2022 was a uniquely challenging year as inflation reached 40-year highs, but I am pleased with how we responded and look forward to continuing to see the benefits of our strategy in 2023”.
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“It is important to highlight that, after several quarters in which we have been able to mitigate inflation in dollar terms, I see more evidence in the recovery of the margin. While EBITDA margin declined in the fourth quarter, the contraction was the lowest of the year and sequential margins leveled off in a quarter where we historically see a significant decline due to seasonality. We also continue to achieve record reductions in CO2 emissions. Since the introduction of our Future in Action program in 2020, we have managed to reduce emissions by approximately 9%, which previously took us more than a decade to achieve”he concluded.
PAULA ANDREA GALEANO BALAGUERA
Journalist Portfolio
