Form 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 or 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of July, 2021

Commission File Number: 001-14946

 

 

CEMEX, S.A.B. de C.V.

(Translation of Registrant’s name into English)

 

 

Avenida Ricardo Margáin Zozaya #325, Colonia Valle del Campestre,

San Pedro Garza García, Nuevo León 66265, México

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F  ☒            Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

 

 

 


Contents

 

1.    Second quarter 2021 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE: CX) (“CEMEX”).


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, CEMEX, S.A.B. de C.V. has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

     

CEMEX, S.A.B. de C.V.

     

(Registrant)

Date: July 29, 2021     By:  

/s/ Rafael Garza Lozano

      Name: Rafael Garza Lozano
      Title: Chief Comptroller

 

3


EXHIBIT INDEX

 

EXHIBIT
NO.
  

DESCRIPTION

1.    Second quarter 2021 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE: CX) (“CEMEX”).

 

4

Exhibit 1

Exhibit 1

 

LOGO

Stock Listing Information Bolsa de Valores de Colombia S.A. (Colombian Stock Exchange) Ticker: CLH Investor Relations Pablo Gutierrez +57 (1) 603-9051 E-mail: pabloantonio.gutierrez@cemex.com


FORWARD LOOKING INFORMATION    LOGO

 

 

 

This report contains forward-looking statements. In some cases, these statements can be identified by the use of forward-looking words such as “may,” “assume,” “might,” “should,” “could,” “continue,” “would,” “can,” “consider,” “anticipate,” “estimate,” “expect,” “envision,” “plan,” “believe,” “foresee,” “predict,” “potential” “target,” “strategy,” and “intend” or other similar words. These forward-looking statements reflect CEMEX Latam Holdings, S.A.’s (“CLH”) current expectations and projections about future events based on CLH’s knowledge of present facts and circumstances and assumptions about future events, as well as CLH’s current plants based on such facts and circumstances. These statements necessarily involve risks and uncertainties that could cause actual results to differ materially from CLH’s expectations. Some of the risks, uncertainties and other important factors that could cause results to differ, or that otherwise could have an impact on CLH or its subsidiaries (together, the “CLH Group”), include, but are not limited to, the cyclical activity of the construction sector; the CLH Group’s exposure to other sectors that impact the CLH Group’s business, such as, but not limited to, the energy sector; competition in the markets in which the CLH Group offers its products and services; availability of raw materials and related fluctuating prices; general political, social, economic, health and business conditions in the markets in which the CLH Group operates or that affect its operations and any significant economic, health, political or social developments in those markets, including any nationalization or privatization of any assets or operations; the regulatory environment, including environmental, tax, antitrust and acquisition-related rules and regulations; the CLH Group’s ability to satisfy its debt obligations and the ability of CEMEX, S.A.B. de C.V. (“CEMEX”), the ultimate parent company of the major shareholder of CLH, to satisfy CEMEX’s obligations under its material debt agreements, the indentures that govern CEMEX’s senior secured notes and CEMEX’s other debt instruments; the CLH Group’s and CEMEX’s ability to refinance their existing indebtedness; availability of short-term credit lines, which can assist the CLH Group in connection with market cycles; the impact of CEMEX’s below investment grade debt rating on the CLH Group’s and CEMEX’s cost of capital; loss of reputation of the CLH Group’s brands; the CLH Group’s and CEMEX’s ability to consummate asset sales and fully integrate newly acquired businesses; achieve cost-savings from the CLH Group’s cost-reduction initiatives and implement the CLH Group’s pricing initiatives for the CLH Group’s products; the increasing reliance on information technology infrastructure for the CLH Group’s operations, sales in general, sales invoicing, procurement, financial statements and other processes that can adversely affect operations in the event that the infrastructure does not work as intended, experiences technical difficulties or is subject to cyber-attacks; changes in the economy that affect demand for consumer goods, consequently affecting demand for the CLH Group’s products and services; the impact of pandemics, epidemics or outbreaks of infectious diseases and the response of governments and other third parties, including with respect to COVID-19, which have affected and may continue to adversely affect, among other matters, supply chains, international operations, availability of liquidity, investor confidence and consumer spending, as well as availability of, and demand for, the CLH Group’s products and services; weather conditions, including but not limited to, excessive rain and snow, and disasters such as earthquakes and floods; trade barriers, including tariffs or import taxes and changes in existing trade policies or changes to, or withdrawals from free trade agreements; terrorist and organized criminal activities as well as geopolitical events; declarations of insolvency or bankruptcy or becoming subject to similar proceedings; natural disasters and other unforeseen events (including global health hazards such as COVID-19); and the other risks and uncertainties described in CLH’s public filings. Readers are urged to read this document and carefully consider the risks, uncertainties and other factors that affect the CLH Group’s business. The information contained in this report is subject to change without notice, and CLH is not obligated to publicly update or revise forward-looking statements. Unless the context indicates otherwise, all references to pricing initiatives, price increases or decreases, refer to the CLH Group’s prices for the CLH Group’s products.

CEMEX Latam Holdings, S.A. and subsidiaries Copyright.

 

2021 Second Quarter Results    Page 2


OPERATING AND FINANCIAL HIGHLIGHTS    LOGO

 

 

 

     January - June     Second Quarter  
     2021     2020     % var     l-t-l
% var
    2021     2020     %var     l-t-l
% var
 

Consolidated cement volume

     3,086       2,444       26       1,568       1,019       54  

Consolidated domestic gray cement volume

     2,743       2,261       21       1,380       974       42  

Consolidated ready-mix volume

     850       715       19       398       235       69  

Consolidated aggregates volume

     1,854       1,496       24       832       494       68  

Net sales

     456       362       26     26     228       148       54     54

Gross profit

     181       141       28     29     92       54       69     70

as % of net sales

     39.7     39.0     0.7pp         40.4     36.6     3.8pp    

Operating earnings (loss) before other expenses, net

     65       37       75     78     35       11       >100     >100

as % of net sales

     14.3     10.3     4.0pp         15.3     7.3     8.0pp    

Controlling interest net income (loss)

     20       -20       N/A         16       11       49  

Operating EBITDA

     104       75       38     40     53       29       81     83

as % of net sales

     22.8     20.7     2.1pp         23.3     19.7     3.6pp    

Free cash flow after maintenance capital expenditures

     41       28       46       14       25       (45 %)   

Free cashflow

     38       27       39       12       25       (52 %)   

Net debt

     613       707       (13 %)        613       707       (13 %)   

Total debt

     630       785       (20 %)        630       785       (20 %)   

Earnings (loss) of continued operations per share

     0.04       (0.04     N/A         0.03       0.02       49  

Shares outstanding at end of period

     559       558       0       559       558       0  

Employees

     3,986       4,156       (4 %)        3,986       4,156       (4 %)   

Cement and aggregates volumes in thousands of metric tons. Ready-mix volumes in thousands of cubic meters.

In millions of US dollars, except volumes, percentages, employees, and per-share amounts.

Shares outstanding are presented in millions.

 

Consolidated net sales during the second quarter of 2021 increased by 54% on a like-to-like basis adjusting for foreign exchange fluctuations, compared with those of the second quarter of 2020. Higher cement volumes in all countries, as well as higher prices in Costa Rica and the Rest of CLH region, were the main drivers of the improvement. During the same period of last year, sales were impacted by COVID-19 restrictions in most of our markets.

Cost of sales as a percentage of net sales decreased by 3.7pp during the quarter, from 63.4% in 2Q20 to 59.6% in 2Q21.

Operating expenses as a percentage of net sales declined by 4.2pp during the quarter, from 29.3% in 2Q20 to 25.1% in 2Q21.

Operating EBITDA during the second quarter of 2021 increased by 83% on a like-to-like basis, compared with that of the second quarter of 2020. The growth was due to higher contributions from all our countries.

Operating EBITDA margin during the second quarter of 2021 increased by 3.6pp compared with that of the second quarter of 2020. The margin expansion was mainly driven by higher volumes and lower SG&A, despite higher maintenance expenses and expenses related to the social protests in Colombia.

Controlling interest net income during the second quarter was US$16 million, compared with US$11 million during the same quarter of 2020. The improvement was mainly driven by higher Operating earnings.

Net debt declined US$6 million from March to June, reaching US$613 million at the end of the quarter.

 

 

2021 Second Quarter Results    Page 3


OPERATING RESULTS    LOGO

 

 

 

Colombia

 

     January - June     Second Quarter  
     2021     2020     % var     l-t-l
% var
    2021     2020     % var     l-t-l
% var
 

Net sales

     212       169       26     24     102       67       52     49

Operating EBITDA

     42       28       47     45     20       12       68     64

Operating EBITDA margin

     19.6     16.7     2.9pp         19.3     17.4     1.9pp    

In millions of US dollars, except percentages.

 

     Domestic gray cement     Ready-Mix     Aggregates  
   January-June     Second Quarter     January-June     Second Quarter     January - June     Second Quarter  

Volume

     21     44     24     66     32     82

Price (USD)

     2     1     (0 %)      2     (5 %)      (2 %) 

Price (local currency)

     2     0     0     1     (4 %)      (2 %) 

Year-over-year percentage variation.

In Colombia, the growth momentum observed in industry cement volumes year-to-date April was interrupted by the social protests, mainly during May. We estimate industry activity returned to first quarter levels in June, as the road blockades and protests gradually eased. The housing and infrastructure sectors continued driving demand in the country.

We believe the outlook for cement volumes remains favorable, supported by the resilience of the self-construction sector, record home sales, the execution of the existing 4G highway projects, as well as the rollout of new infrastructure programs.

Panama

 

     January-June     Second Quarter  
     2021     2020     % var     l-t-l
% var
    2021     2020      % var     l-t-l
% var
 

Net sales

     59       41       44     44     30       7        >100     >100

Operating EBITDA

     18       7       >100     >100     10       -3        N/A       N/A  

Operating EBITDA margin

     30.8     16.8     14.0pp         32.2     N/A        N/A    

In millions of US dollars, except percentages.

 

     Domestic gray cement     Ready-Mix     Aggregates  
   January-June     Second Quarter     January-June     Second Quarter     January-June     Second Quarter  

Volume

     50     414     10     5409     12     1141

Price (USD)

     (4 %)      (5 %)      (7 %)      (29 %)      (16 %)      (15 %) 

Price (local currency)

     (4 %)      (5 %)      (7 %)      (29 %)      (16 %)      (15 %) 

Year-over-year percentage variation.

In Panama, our cement, ready-mix and aggregates volumes showed strong growth during the quarter due to an easy base of comparison in the same period of 2020, which was impacted by COVID-19 restrictions. However, industry cement volumes during the quarter remained weak, below those of 2019.

During the quarter, we continued selling domestic clinker and exporting cement and clinker, improving our capacity utilization in the country and balancing shortages in nearby markets. Please note that domestic clinker sales and exports are not included in the table above which refers to volume and price variations of “Domestic gray cement”.

 

2021 Second Quarter Results    Page 4


OPERATING RESULTS    LOGO

 

 

 

Costa Rica

 

     January-June     Second Quarter  
     2021     2020     % var     l-t-l
% var
    2021     2020     % var     l-t-l
% var
 

Net sales

     55       46       21     30     27       20       31     41

Operating EBITDA

     19       14       32     41     10       7       46     57

Operating EBITDA margin

     34.3     31.4     2.9pp         35.8     32.1     3.7pp    

In millions of US dollars, except percentages.

 

     Domestic gray cement     Ready-Mix     Aggregates  
   January-June     Second Quarter     January-June     Second Quarter     January-June     Second Quarter  

Volume

     11     16     (21 %)      (17 %)      (8 %)      (53 %) 

Price (USD)

     (3 %)      (3 %)      (4 %)      (5 %)      (23 %)      44

Price (local currency)

     3     4     3     3     (17 %)      55

Year-over-year percentage variation.

In Costa Rica, our cement volumes during the second quarter increased by 16% on a year-over-year basis. The positive volume trend in the industry continued during the quarter, mainly driven by the infrastructure and housing sectors. Our quarterly cement prices improved by 4% year-over-year and by 2% sequentially, in local currency terms.

During the quarter, we continued selling domestic clinker and exporting cement, improving our capacity utilization in Costa Rica and balancing shortages in nearby markets. Please note that domestic clinker sales and exports are not included in the table above which refers to volume and price variations of “Domestic gray cement”.

Rest of CLH

 

     January-June     Second Quarter  
     2021     2020     % var     l-t-l
% var
    2021     2020     % var     l-t-l
% var
 

Net sales

     142       114       25     27     75       56       33     34

Operating EBITDA

     46       37       22     24     25       20       23     24

Operating EBITDA margin

     32.2     33.0     (0.8pp       32.8     35.5     (2.7pp  

In millions of US dollars, except percentages.

 

     Domestic gray cement     Ready-Mix     Aggregates  
     January-June     Second Quarter     January-June     Second Quarter     January-June     Second Quarter  

Volume

     20     25     21     40     2     (12 %) 

Price (USD)

     1     2     29     24     56     35

Price (local currency)

     3     3     31     26     60     39

Year-over-year percentage variation.

In the Rest of CLH region, our cement volumes during the quarter improved by 25% year-over-year and 9% sequentially, reaching record levels. Cement volumes during the quarter increased year-over-year in Nicaragua, Guatemala, and El Salvador. Increased remittances supported cement consumption across the region.

In Guatemala, our cement volumes were driven mainly by strong activity in the self-construction sector—segment where we have a higher relative presence—and by a gradual recovery in the formal sector. Our cement prices improved by 2% year- over-year and 1% sequentially, in local-currency terms.

In Nicaragua, our cement volumes were driven mainly by the self-construction sector and by government-sponsored projects. Going forward, socio-political risk in the country could increase due to the presidential elections scheduled for this November.

 

2021 Second Quarter Results    Page 5


OPERATING EBITDA, FREE CASH FLOW AND DEBT RELATED INFORMATION    LOGO

 

 

 

Operating EBITDA and free cash flow

 

     January - June     Seecond Quarter  
     2021      2020     % var     2021      2020     %var  

Operating earnings before other expenses, net

     65        37       75     35        11       220

+ Depreciation and operating amortization

     38        38         18        18    
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Operating EBITDA

     104        75       38     53        29       81

- Net financial expense

     21        26         10        13    

- Capital expenditures for maintenance

     9        4         5        2    

- Change in working Capital

     10        19         13        (2  

- Taxes paid

     19        (4       9        (11  

- Other cash items (Net)

     3        2         2        1    
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Free cash flow after maintenance capital exp

     41        28       46     14        25       (45 %) 

- Strategic Capital expenditures

     3        1         2        0    
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Free cash flow

     38        27       39     12        25       (52 %) 
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

In millions of US dollars, except percentages.

Our free cash flow reached US$38 million year-to-date June, 39% higher on a year-over-year basis. The improvement was mainly driven by higher EBITDA, as well as lower financial expense and working capital investment. Our financial expense declined by US$5.2 million year-to-date June on a year-over-year basis.

During 2Q20, the taxes-paid line benefited from tax refunds in Colombia for US$16 million.

Information on Debt

 

     Second Quarter     First Quarter  
     2021     2020     % var     2021  

Total debt 1,2

     630       785         637  

Short term

     1     6       1

Longterm

     99     94       99
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents

     18       78       (77 %)      18  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net debt

     613       707       (13 %)      619  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net debt / LTM3 EBITDA

     3.0x       4.lx         3.4x  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

     Second Quarter  
     2021     2020  
Currency denomination     

U.S. dollar

     86     96

Colombian peso

     14     4
  

 

 

   

 

 

 

Interest rate

    

Fixed

     79     61

Variable

     21     39
  

 

 

   

 

 

 

 

 

 

In millions of US dollars, except percentages.

 

1 

Includes leases, in accordance with International Financial Reporting Standards (IFRS).

2 

Represents the consolidated balances of CLH and subsidiaries.

3 

Refers to “Last Twelve Months”

Reduced Net Debt by US$94 million from June 2020 to June 2021. Net-debt-to-EBITDA ratio improved to 3.0x in June 2021, from 4.1x in June 2020, due to higher EBITDA and lower debt.

 

2021 Second Quarter Results    Page 6


GUIDANCE 2021    LOGO

 

 

 

Guidance Full Year 20211

 

 

     Year 2021 vs. 2020  
     Colombia     Panamá     Costa Rica     CLH  

Cement volume

     9% - 11     34% - 36     7% - 9     10% - 12

Ready-mix volume

     14% - 16     40% - 42     (6%) - (4 %)      14% - 16

 

     Year 2021  

Total CAPEX

   $ 85  

Maintenance

   $ 45  

Strategic

   $ 40  

Cash taxes

   $ 55  

In millions of US dollars, except percentages.

We are guiding to a Strategic CAPEX of US$40 million for 2021. US$28 million is related to the development of our overall Maceo cement plant project in Colombia.

 

1 

Reflects current expectations

 

2021 Second Quarter Results    Page 7


OPERATING RESULTS    LOGO

 

 

 

Income statement & balance sheet

CEMEX Latam Holdings, S.A. and Subsidiaries

in thousands of U.S. Dollars, except per share amounts

 

INCOME STATEMENT    January-June    

Second Quarter

 
   2021     2020     % var     l-t-l
% var
    2021     2020     % var     l-t-l
% var
 

Net sales

     455,831       362,353       26     26     227,820       148,128       54     54

Cost of sales

     (274,925     (221,013     (24 %)        (135,823     (93,847     (45 %)   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     180,906       141,340       28     29     91,997       54,281       69     70

Operating expenses

     (115,535     (103,946     (11 %)        (57,185     (43,418     (32 %)   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating earnings (loss) before other expenses, net

     65,371       37,394       75     78     34,812       10,863       220     >100

Other expenses, net

     (3,058     (4,745     36       (2,113     (3,034     30  
  

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

Operating earnings (loss)

     62,313       32,649       91       32,699       7,829       318  

Financial expenses

     (21,253     (26,474     20       (10,396     (13,194     21  

Other income (expenses), net

     (5,905     (21,558     73       1,554       17,160       (91 %)   
  

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

Net income (loss) before income taxes

     35,155       (15,383     N/A         23,857       11,795       102  

Income tax

     (15,418     (4,493     (243 %)        (7,961     (1,184     (572 %)   
  

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

Consolidated net income (loss)

     19,737       (19,876     N/A         15,896       10,611       50  

Non-controlling interest net income

     (49     86       N/A         (30     17       N/A    
  

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

Controlling Interest Net Income (loss)

     19,688       (19,790     N/A         15,866       10,628       49  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating EBITDA

     103,715       75,054       38     40     53,007       29,252       81     83

Earnings (loss) of continued operations per share

     0.04       (0.04     N/A         0.03       0.02       49  
  

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

            as of June 30         
BALANCE SHEET    2021      2020      % var  

Total Assets

     2,574,302        2,861,981        (10 %) 

Cash and Temporary Investments

     17,792        78,360        (77 %) 

Trade Accounts Receivables

     54,951        61,748        (11 %) 

Other Receivables

     51,615        56,850        (9 %) 

Inventories

     73,621        74,793        (2 %) 

Other Current Assets

     21,457        24,510        (12 %) 

Current Assets

     219,436        296,261        (26 %) 

Fixed Assets

     973,304        1,024,614        (5 %) 

Other Assets

     1,381,562        1,541,106        (10 %) 
  

 

 

    

 

 

    

 

 

 

Total Liabilities

     1,233,649        1,390,363        (11 %) 

Current Liabilities

     229,959        254,823        (10 %) 

Long-Term Liabilities

     949,721        1,071,086        (11 %) 

Other Liabilities

     53,969        64,454        (16 %) 
  

 

 

    

 

 

    

 

 

 

Consolidated Stockholders’ Equity

     1,340,653        1,471,618        (9 %) 

Non-controlling Interest

     5,868        4,924        19

Stockholders’ Equity Attributable to Controlling Interest

     1,334,785        1,466,694        (9 %) 
  

 

 

    

 

 

    

 

 

 

 

2021 Second Quarter Results    Page 8


OPERATING RESULTS    LOGO

 

 

 

Income statement & balance sheet

CEMEX Latam Holdings, S.A. and Subsidiaries

in millions of Colombian Pesos in nominal terms, except per share amounts

 

INCOME STATEMENT    January-June     Second Quarter  
   2021     2020     % var     2021     2020     %var  

Net sales

     1,679,404       1,357,444       24     849,378       565,900       50

Cost of sales

     (1,012,899     (827,958     (22 %)      (506,389     (358,527     (41 %) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     666,505       529,486       26     342,989       207,373       65

Operating expenses

     (425,661     (389,400     (9 %)      (213,198     (165,874     (29 %) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating earnings (loss) before other expenses, net

     240,844       140,086       72     129,791       41,499       213

Other expenses, net

     (11,266     (17,775     37     (7,881     (11,590     32
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating earnings (loss)

     229,578       122,311       88     121,910       29,909       308

Financial expenses

     (78,302     (99,177     21     (38,760     (50,405     23

Other income (expenses), net

     (21,757     (80,761     73     5,794       65,557       (91 %) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) before income taxes

     129,519       (57,627     N/A       88,944       45,061       97

Income tax

     (56,803     (16,831     (238 %)      (29,680     (4,523     (556 %) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Consolidated net income (loss)

     72,716       (74,458     N/A       59,264       40,538       46

Non-controlling interest net income

     (182     321       N/A       (112     66       N/A  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Controlling Interest Net Income (loss)

     72,534       (74,137     N/A       59,152       40,604       46
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating EBITDA

     382,115       281,165       36     197,626       111,751       77

Earnings (loss) of continued operations per share

     130       (134     N/A       106       73       46
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

BALANCE SHEET    as of June 30  
   2021      2020      % var  

Total Assets

     9,670,804        10,757,927        (10 %) 

Cash and Temporary Investments

     66,837        294,547        (77 %) 

Trade Accounts Receivables

     206,434        232,107        (11 %) 

Other Receivables

     193,903        213,694        (9 %) 

Inventories

     276,570        281,139        (2 %) 

Other Current Assets

     80,608        92,132        (13 %) 

Current Assets

     824,352        1,113,619        (26 %) 

Fixed Assets

     3,656,381        3,851,433        (5 %) 

Other Assets

     5,190,071        5,792,875        (10 %) 
  

 

 

    

 

 

    

 

 

 

Total Liabilities

     4,634,412        5,226,248        (11 %) 

Current Liabilities

     863,878        957,858        (10 %) 

Long-Term Liabilities

     3,567,788        4,026,117        (11 %) 

Other Liabilities

     202,746        242,273        (16 %) 
  

 

 

    

 

 

    

 

 

 

Consolidated Stockholders’ Equity

     5,036,392        5,531,679        (9 %) 

Non-controlling Interest

     22,044        18,506        19

Stockholders’ Equity Attributable to Controlling Interest

     5,014,348        5,513,173        (9 %) 
  

 

 

    

 

 

    

 

 

 

 

2021 Second Quarter Results    Page 9


OPERATING RESULTS    LOGO

 

 

 

Operating Summary per Country

in thousands of U.S. dollars

Operating EBITDA margin as a percentage of net sales

 

     January – June     Second Quarter  
     2021     2020     % var     l-t-l
% var
    2021     2020     % var     l-t-l
% var
 
NET SALES                                                 

Colombia

     211,869       168,640       26     24     101,917       66,905       52     49

Panama

     59,415       41,184       44     44     30,399       6,668       >100     >100

Costa Rica

     55,295       45,672       21     30     26,648       20,322       31     41

Rest of CLH

     142,125       113,614       25     27     74,796       56,355       33     34

Others and intercompany eliminations

     (12,873     (6,757     (91 %)      (91 %)      (5,940     (2,122     (180 %)      (180 %) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL

     455,831       362,353       26     26     227,820       148,128       54     54
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
GROSS PROFIT                                                 

Colombia

     76,886       63,647       21     19     36,754       23,672       55     51

Panama

     20,198       10,009       >100     >100     11,110       (3,487     N/A       N/A  

Costa Rica

     26,842       22,379       20     28     13,481       10,218       32     42

Rest of CLH

     58,464       46,919       25     26     31,460       24,782       27     28

Others and intercompany eliminations

     (1,484     (1,614     8     N/A       (808     (904     11     11
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL

     180,906       141,340       28     29     91,997       54,281       69     70
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
OPERATING EARNINGS BEFORE OTHER EXPENSES, NET                                                 

Colombia

     28,337       16,270       74     71     13,215       6,100       >100     >100

Panama

     9,559       (1,080     N/A       N/A       5,777       (7,574     N/A       N/A  

Costa Rica

     16,693       11,946       40     49     8,517       5,229       63     75

Rest of CLH

     42,757       33,580       27     29     23,266       18,234       28     29

Others and intercompany eliminations

     (31,975     (23,322     (37 %)      (37 %)      (15,963     (11,126     (43 %)      (43 %) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL

     65,371       37,394       75     78     34,812       10,863       >100     >100
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
OPERATING EBITDA                                                 

Colombia

     41,510       28,242       47     45     19,624       11,654       68     64

Panama

     18,309       6,917       >100     >100     9,792       (3,429     N/A       N/A  

Costa Rica

     18,973       14,361       32     41     9,536       6,516       46     57

Rest of CLH

     45,756       37,448       22     24     24,567       20,002       23     24

Others and intercompany eliminations

     (20,833     (11,914     (75 %)      (75 %)      (10,512     (5,491     (91 %)      (91 %) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL

     103,715       75,054       38     40     53,007       29,252       81     83
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
OPERATING EBITDA MARGIN                                                 

Colombia

     19.6     16.7     2.9pp         19.3     17.4     1.9pp    

Panama

     30.8     16.8     14.0pp         32.2     N/A       N/A    

Costa Rica

     34.3     31.4     2.9pp         35.8     32.1     3.7pp    

Rest of CLH

     32.2     33.0     (0.8pp       32.8     35.5     (2.7pp  
  

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

TOTAL

     22.8     20.7     2.1pp         23.3     19.7     3.6pp    
  

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

2021 Second Quarter Results    Page 10


OPERATING RESULTS    LOGO

 

 

 

Volume Summary

Consolidated volume summary

Cement and aggregates in thousands of metric tons

Ready mix in thousands of cubic meters

 

     January-June            Second Quarter         
     2021      2020      % var     2021      2020      % var  

Total cement volume1

     3,086        2,444        26     1,568        1,019        54

Total domestic gray cement volume

     2,743        2,261        21     1,380        974        42

Total ready-mix volume

     850        715        19     398        235        69

Total aggregates volume

     1,854        1,496        24     832        494        68

 

1 

Consolidated cement volume includes domestic and export volume of gray cement, white cement, special cement, mortar and clinker.

Per-country volume summary

 

     January-June     Second Quarter     Second Quarter 2021  
DOMESTIC GRAY CEMENT    2021 vs. 2020     2021 vs. 2020     vs. First Quarter 2021  

Colombia

     21     44     (1 %) 

Panama

     50     414     (3 %) 

Costa Rica

     11     16     (4 %) 

Rest of CLH

     20     25     9
  

 

 

   

 

 

   

 

 

 
READY-MIX                   

Colombia

     24     66     (14 %) 

Panama

     10     5409     3

Costa Rica

     (21 %)      (17 %)      (22 %) 

Rest of CLH

     21     40     6
  

 

 

   

 

 

   

 

 

 
AGGREGATES                   

Colombia

     32     82     (17 %) 

Panama

     12     1141     16

Costa Rica

     (8 %)      (53 %)      (57 %) 

Rest of CLH

     2     (12 %)      (33 %) 
  

 

 

   

 

 

   

 

 

 

 

2021 Second Quarter Results    Page 11


OPERATING RESULTS    LOGO

 

 

 

Price Summary

Variation in U.S. dollars

 

     January-June     Second Quarter     Second Quarter 2021  
DOMESTIC GRAY CEMENT    2021 vs. 2020     2021 vs. 2020     vs. First Quarter 2021  

Colombia

     2     1     (4 %) 

Panama

     (4 %)      (5 %)      (1 %) 

Costa Rica

     (3 %)      (3 %)      2

Rest of CLH

     1     2     1
  

 

 

   

 

 

   

 

 

 
READY-MIX                   

Colombia

     (0 %)      2     (1 %) 

Panama

     (7 %)      (29 %)      (5 %) 

Costa Rica

     (4 %)      (5 %)      (3 %) 

Rest of CLH

     29     24     (7 %) 
  

 

 

   

 

 

   

 

 

 
AGGREGATES                   

Colombia

     (5 %)      (2 %)      4

Panama

     (16 %)      (15 %)      (2 %) 

Costa Rica

     (23 %)      44     66

Rest of CLH

     56     35     (26 %) 
  

 

 

   

 

 

   

 

 

 

For Rest of CLH. volume-weighted average prices.

Variation in local currency

 

     January-June     Second Quarter     Second Quarter 2021  
DOMESTIC GRAY CEMENT    2021 vs. 2020     2021 vs. 2020     vs. First Quarter 2021  

Colombia

     2     0     (2 %) 

Panama

     (4 %)      (5 %)      (1 %) 

Costa Rica

     3     4     2

Rest of CLH

     3     3     1
  

 

 

   

 

 

   

 

 

 
READY-MIX                   

Colombia

     0     1     1

Panama

     (7 %)      (29 %)      (5 %) 

Costa Rica

     3     3     (2 %) 

Rest of CLH

     31     26     (6 %) 
  

 

 

   

 

 

   

 

 

 
AGGREGATES                   

Colombia

     (4 %)      (2 %)      6

Panama

     (16 %)      (15 %)      (2 %) 

Costa Rica

     (17 %)      55     67

Rest of CLH

     60     39     (26 %) 
  

 

 

   

 

 

   

 

 

 

For Rest of CLH. volume-weighted average prices.

 

2021 Second Quarter Results    Page 12


DEFINITIONS OF TERMS AND DISCLOSURES    LOGO

 

 

 

Methodology for translation and presentation of results

Under IFRS, CLH reports its consolidated results in its functional currency, which is the US Dollar, by translating the financial statements of foreign subsidiaries using the corresponding exchange rate at the reporting date for the balance sheet and the corresponding exchange rates at the end of each month for the income statement.

For the reader’s convenience, Colombian peso amounts for the consolidated entity are calculated by converting the US dollar amounts using the closing COP/US$ exchange rate at the reporting date for balance sheet purposes, and the average COP/US$ exchange rate for the corresponding period for income statement purposes. The exchange rates are provided below.

Per-country/region selected financial information of the income statement is presented before corporate charges and royalties which are included under “other and intercompany eliminations.”

Consolidated financial information

When reference is made to consolidated financial information means the financial information of CLH together with its consolidated subsidiaries.

Presentation of financial and operating information

Individual information is provided for Colombia, Panama and Costa Rica.

Countries in Rest of CLH include Nicaragua, Guatemala and El Salvador.

 

 

Exchange rates

 

     January - June      January - June      Second Quarter  
     2021 EoP      2020 EoP      2021 average      2020 average      2021 average      2020 average  

Colombian peso

     3,756.67        3,758.91        3,684.27        3,746.19        3,728.28        3,820.34  

Panama balboa

     1.00        1.00        1.00        1.00        1.00        1.00  

Costa Rica colon

     621.92        583.49        618.24        577.49        620.53        577.29  

Euro

     0.84        0.89        0.83        0.91        0.83        0.90  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Amounts provided in units of local currency per US dollar.

 

2021 Second Quarter Results    Page 13


DEFINITIONS OF TERMS AND DISCLOSURES    LOGO

 

 

 

Definition of terms

Free cash flow equals operating EBITDA minus net interest expense, maintenance, and strategic capital expenditures, change in working capital, taxes paid, and other cash items (net other expenses less proceeds from the disposal of obsolete and/or substantially depleted operating fixed assets that are no longer in operation).

Maintenance capital expenditures investments incurred for the purpose of ensuring CLH’s operational continuity. These include capital expenditures on projects required to replace obsolete assets or maintain current operational levels, and mandatory capital expenditures, which are projects required to comply with governmental regulations or internal policies.

Net debt equals total debt minus cash and cash equivalents.

Operating EBITDA equals operating earnings before other expenses, net, plus depreciation and operating amortization.

pp equals percentage points.

EoP equals End of Period.

Strategic capital expenditures investments incurred with the purpose of increasing CLH’s profitability. These include capital expenditures on projects designed to increase profitability by expanding capacity, and margin improvement capital expenditures, which are projects designed to increase profitability by reducing costs.

Working capital equals operating accounts receivable (including other current assets received as payment in kind) plus historical inventories minus operating payables.

 

2021 Second Quarter Results    Page 14