The company Cemex Latam Holding presented its financial results for the fourth quarter of 2022, in which it evidenced a 10% increase in net sales compared to the same period in 2021. Despite the good results, macroeconomic factors have affected the company’s numbers.
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Regarding sales, Cemex said that higher prices and the increase in ready-mix volumes were the main drivers of the improvement in its balance sheet.
However, cost of sales as a percentage of net sales increased by 5 percentage points, from 63.6% in the fourth quarter of 2021 to 68.7% in the fourth quarter of 2022. The company explains that this increase occurred mainly due to higher variable costs, especially in fuel for furnaces.
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“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.”, acknowledges the report.
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 in 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.
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On the other hand, EBITDA during the fourth quarter of 2022 decreased by 17% on a like-for-like basis, compared to the fourth quarter of 2021, this was mainly due to higher costs, despite higher sales. In addition, the operating cash flow margin during the fourth quarter of 2022 decreased by 4.5 pp, compared to the same period of 2021.
In this regard, Fernando González Olivieri, CEO of Cemex said: “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”.
“It is important to highlight that, after several quarters in which we have been able to mitigate inflation in dollar terms, I see greater evidence in the recovery of the margin,” remarked the CEO of the cement company.
PAULA ANDREA GALEANO BALAGUERA
Journalist Portfolio
