The following is a summary of the CEMEX, S.A.B. De C.V. (CX) Q1 2024 Earnings Call Transcript:
Financial Performance:
CEMEX reported strong Q1 results, outperforming expectations with a record quarterly EBITDA growth of 5%.
Financial growth was predominantly driven by growth in three of their four regional markets, giving a combined growth rate of 15%.
Net income growth was at 13%, with a newly acquired investment-grade rating of BBB- from Standard & Poor.
The company successfully refinanced their Eurobank facility, leading to EBITDA margin expansion year-on-year and sequentially.
Business Progress:
CEMEX has agreed to divest their assets in the Philippines for an enterprise value of $800 million, with proceeds aiding their U.S. growth strategy.
Despite volume declines, CEMEX increased net sales by 3% in the U.S., signaling effective capitalizing on market opportunities.
The company successfully reduced their CO2 emissions by 13%, aligning with their sustainable growth strategy.
Several projects showing a volume decline are recovering sequentially, and sustained growth is seen in aggregate volume in the U.S. due to increased sales of base materials.
The company is developing carbon capture and storage projects as part of their 'Future in Action' strategy, aiming at reducing carbon emissions by almost 50% by 2030.
CEMEX expects stable volumes in Mexico and improvements in Europe despite external circumstances. They also expect the French Olympics to support construction activities.
More details: Cemex IR
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