The increase in the cost of energy, transportation and logistics almost affected Cemex during the first quarter of the year.
Cost of sales grew 1.6% compared to last year, rising to 69.2%, however, a double-digit price increase in its products from four regions, as well as more sales and cost reductions, managed to reduce expenses of operation decreased 0.8% and cash flow grew 3%.
In the particular case of Mexico, the price of cement increased 13%, concrete 11% and aggregates 13%, which caused a 5% increase in net sales, despite the fact that cement volumes decreased 8% , mainly due to lower demand for sale in bags.
“While the formal sector continues to show improvement. The demand for our products was mainly driven by the activity of the industrial, commercial and formal housing sectors”, said Cemex in its quarterly report to the Mexican Stock Exchange (BMV).
The strategy will continue along the same path, since a second price increase was announced in April 2022, with which they seek to reduce the inflationary challenges in the country.
However, the positive figures were not enough to improve the company’s Ebitda in Mexico, which reported a 4% drop compared to last year.
“Due to the tight dynamics of supply and demand in most of our markets, we are optimistic in being able to recover the inflationary cost of our two inputs. In addition, our diversification in energy, supply chain, and Climate Action strategy are paying off and help us respond to energy cost pressures,” said Fernando González Olivieri, CEO of Cemex, in a statement.
