The cement company obtained a net profit of US$ 230 million in the quarter, slightly lower than the same period of the previous year.
The Mexican Cemex, one of the largest cement companies in the world, announced on Thursday a slight decrease in its net profit for the second quarter, mainly due to a negative exchange effect due to the depreciation of the Mexican peso.
Cemex obtained a net profit of US$230 million in the quarter, slightly lower than the same period of the previous year.
Like many Mexican companies operating abroad, Cemex saw its foreign profits diluted by the strength of the Mexican peso last year. However, the local currency weakened in the second quarter, falling almost 7% against the US dollar compared to a year ago.
Despite the rise in prices in local currency, its revenue remained stable at US$4.49 billion, below LSEG's forecast of US$4.67 billion.
Increased net sales in Mexico, Central and South America were offset by declines in the United States and Europe, the Middle East and Africa (EMEA).
The company said adverse weather conditions also contributed to lower consolidated volumes and stagnant revenues.
“Our strong second quarter results demonstrate the effectiveness of our business approach and growth strategy. Our products' contribution to prices continues to outpace the slowdown in input cost inflation, while our additional investments, primarily in the US, and our Urbanization Solutions business, continued to support EBITDA growth ”said Fernando A. González, CEO of Cemex .
“In terms of Climate Action, we continue to make constant progress in decarbonization with a 3% decrease in Scope 1 emissions so far this year. "European operations are leading the way, with emissions that today are already within the European industry's 2030 targets and within the scope of Cemex's consolidated 2030 targets, almost six years ahead of schedule," the statement said. Of the entity.
OVERALL PERFORMANCE.
In Mexico, Cemex's largest market, sales increased 6% year-on-year, reflecting solid growth in the formal and informal construction sectors despite weather disruptions in June.
The South America, Central America and Caribbean market recorded a 3% sales increase compared to last year, driven by positive price contributions, the company said.
In contrast, revenue and volumes in the United States fell slightly, largely due to poor weather.
In the EMEA region, sales fell 7% year-on-year due to sluggish demand in Europe and geopolitical turmoil in the Middle East, Cemex added.
The company operates in Israel, Egypt and the United Arab Emirates.
The cement maker said the sale of its Philippine operations, announced in the first quarter, was expected to close by the end of the year.
During the quarter, Cemex announced the achievement of another important milestone with its second Investment Grade rating from Fitch Ratings.
The firm was also recognized as the company with the highest score in the Climate and Energy Benchmark 2024 of the World Benchmarking Alliance, among 91 of the most influential aluminum, cement and steel companies in the world, evidence that Cemex's leadership in sustainability It continues well beyond the cement industry.
