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 Registrants 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 |
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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). |
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Exhibit 1
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 |
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 CLHs knowledge of present facts and circumstances and assumptions about future events, as well as CLHs current plants based on such facts and circumstances. These statements necessarily involve risks and uncertainties that could cause actual results to differ materially from CLHs 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 Groups exposure to other sectors that impact the CLH Groups 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 Groups 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 CEMEXs obligations under its material debt agreements, the indentures that govern CEMEXs senior secured notes and CEMEXs other debt instruments; the CLH Groups and CEMEXs 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 CEMEXs below investment grade debt rating on the CLH Groups and CEMEXs cost of capital; loss of reputation of the CLH Groups brands; the CLH Groups and CEMEXs ability to consummate asset sales and fully integrate newly acquired businesses; achieve cost-savings from the CLH Groups cost-reduction initiatives and implement the CLH Groups pricing initiatives for the CLH Groups products; the increasing reliance on information technology infrastructure for the CLH Groups 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 Groups 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 Groups 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 CLHs public filings. Readers are urged to read this document and carefully consider the risks, uncertainties and other factors that affect the CLH Groups 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 Groups prices for the CLH Groups products.
CEMEX Latam Holdings, S.A. and subsidiaries Copyright.
2021 Second Quarter Results | Page 2 |
OPERATING AND FINANCIAL HIGHLIGHTS |
January - June | Second Quarter | |||||||||||||||||||||||||||||||
2021 | 2020 | % var | l-t-l % var |
2021 | 2020 | %var | l-t-l % var |
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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.
2021 Second Quarter Results | Page 3 |
OPERATING RESULTS |
Colombia
January - June | Second Quarter | |||||||||||||||||||||||||||||||
2021 | 2020 | % var | l-t-l % var |
2021 | 2020 | % var | l-t-l % var |
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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 |
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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 |
Costa Rica
January-June | Second Quarter | |||||||||||||||||||||||||||||||
2021 | 2020 | % var | l-t-l % var |
2021 | 2020 | % var | l-t-l % var |
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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 |
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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 sectorsegment where we have a higher relative presenceand 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 |
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 | ||||||||||||||||||||
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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 | ||||||||||||||||||||
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Free cash flow after maintenance capital exp |
41 | 28 | 46 | % | 14 | 25 | (45 | %) | ||||||||||||||||
- Strategic Capital expenditures |
3 | 1 | 2 | 0 | ||||||||||||||||||||
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Free cash flow |
38 | 27 | 39 | % | 12 | 25 | (52 | %) | ||||||||||||||||
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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
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 |
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 |
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 |
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2021 | 2020 | % var | l-t-l % var |
2021 | 2020 | % var | l-t-l % var |
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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 | %) | ||||||||||||||||||||
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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 | %) | ||||||||||||||||||||
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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 | % | ||||||||||||||||||||
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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 | %) | ||||||||||||||||||||||
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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 | %) | ||||||||||||||||||||
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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 | ||||||||||||||||||||||||
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Controlling Interest Net Income (loss) |
19,688 | (19,790 | ) | N/A | 15,866 | 10,628 | 49 | % | ||||||||||||||||||||||||
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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 | % | ||||||||||||||||||||||||
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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 | %) | ||||||||
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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 | %) | ||||||||
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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 | %) | ||||||||
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2021 Second Quarter Results | Page 8 |
OPERATING RESULTS |
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 | %) | ||||||||||||
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Gross profit |
666,505 | 529,486 | 26 | % | 342,989 | 207,373 | 65 | % | ||||||||||||||||
Operating expenses |
(425,661 | ) | (389,400 | ) | (9 | %) | (213,198 | ) | (165,874 | ) | (29 | %) | ||||||||||||
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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 | % | ||||||||||||
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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 | %) | ||||||||||||||
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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 | %) | ||||||||||||
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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 | ||||||||||||||||
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Controlling Interest Net Income (loss) |
72,534 | (74,137 | ) | N/A | 59,152 | 40,604 | 46 | % | ||||||||||||||||
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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 | % | ||||||||||||||||
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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 | %) | ||||||||
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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 | %) | ||||||||
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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 | %) | ||||||||
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2021 Second Quarter Results | Page 9 |
OPERATING RESULTS |
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 |
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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 | %) | ||||||||||||||||
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TOTAL |
455,831 | 362,353 | 26 | % | 26 | % | 227,820 | 148,128 | 54 | % | 54 | % | ||||||||||||||||||||
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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 | % | |||||||||||||||||
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TOTAL |
180,906 | 141,340 | 28 | % | 29 | % | 91,997 | 54,281 | 69 | % | 70 | % | ||||||||||||||||||||
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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 | %) | ||||||||||||||||
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TOTAL |
65,371 | 37,394 | 75 | % | 78 | % | 34,812 | 10,863 | >100 | % | >100 | % | ||||||||||||||||||||
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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 | %) | ||||||||||||||||
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TOTAL |
103,715 | 75,054 | 38 | % | 40 | % | 53,007 | 29,252 | 81 | % | 83 | % | ||||||||||||||||||||
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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 | ) | ||||||||||||||||||||
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TOTAL |
22.8 | % | 20.7 | % | 2.1pp | 23.3 | % | 19.7 | % | 3.6pp | ||||||||||||||||||||||
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2021 Second Quarter Results | Page 10 |
OPERATING RESULTS |
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 | % | ||||||
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READY-MIX | ||||||||||||
Colombia |
24 | % | 66 | % | (14 | %) | ||||||
Panama |
10 | % | 5409 | % | 3 | % | ||||||
Costa Rica |
(21 | %) | (17 | %) | (22 | %) | ||||||
Rest of CLH |
21 | % | 40 | % | 6 | % | ||||||
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AGGREGATES | ||||||||||||
Colombia |
32 | % | 82 | % | (17 | %) | ||||||
Panama |
12 | % | 1141 | % | 16 | % | ||||||
Costa Rica |
(8 | %) | (53 | %) | (57 | %) | ||||||
Rest of CLH |
2 | % | (12 | %) | (33 | %) | ||||||
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2021 Second Quarter Results | Page 11 |
OPERATING RESULTS |
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 | % | ||||||
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READY-MIX | ||||||||||||
Colombia |
(0 | %) | 2 | % | (1 | %) | ||||||
Panama |
(7 | %) | (29 | %) | (5 | %) | ||||||
Costa Rica |
(4 | %) | (5 | %) | (3 | %) | ||||||
Rest of CLH |
29 | % | 24 | % | (7 | %) | ||||||
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AGGREGATES | ||||||||||||
Colombia |
(5 | %) | (2 | %) | 4 | % | ||||||
Panama |
(16 | %) | (15 | %) | (2 | %) | ||||||
Costa Rica |
(23 | %) | 44 | % | 66 | % | ||||||
Rest of CLH |
56 | % | 35 | % | (26 | %) | ||||||
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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 | % | ||||||
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READY-MIX | ||||||||||||
Colombia |
0 | % | 1 | % | 1 | % | ||||||
Panama |
(7 | %) | (29 | %) | (5 | %) | ||||||
Costa Rica |
3 | % | 3 | % | (2 | %) | ||||||
Rest of CLH |
31 | % | 26 | % | (6 | %) | ||||||
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AGGREGATES | ||||||||||||
Colombia |
(4 | %) | (2 | %) | 6 | % | ||||||
Panama |
(16 | %) | (15 | %) | (2 | %) | ||||||
Costa Rica |
(17 | %) | 55 | % | 67 | % | ||||||
Rest of CLH |
60 | % | 39 | % | (26 | %) | ||||||
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For Rest of CLH. volume-weighted average prices.
2021 Second Quarter Results | Page 12 |
DEFINITIONS OF TERMS AND DISCLOSURES |
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 | ||||||||||||||||||
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Amounts provided in units of local currency per US dollar.
2021 Second Quarter Results | Page 13 |
DEFINITIONS OF TERMS AND DISCLOSURES |
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 CLHs 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 CLHs 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 |