Cemex , a Mexican cement company, announced on Thursday that it achieved a record profit of 939 million dollars (mdd) in 2024 , while in the fourth quarter of 2024 (4Q24) its sales totaled 3,811 million dollars (mdd) , which represented a 5% drop compared to the same period in 2023.
According to its 4Q24 results report , in the October-December period of last year, operating cash flow (Ebitda) also registered a 3% decrease to US$681 million , compared to the same period in 2023, when it was US$705 million , due to the dynamics of volumes.
The cement company reported that its net profit in 4Q24 was US $48 million , which meant a recovery from the loss of US$441 million in the same period in 2023.
Annual results
Regarding its annual results, Cemex indicated that its net income increased by 415% in 2024 to reach a record of 939 million dollars , compared to 182 million dollars in 2023.
In 2024, sales were US$16.2 billion , 2% less than the US$16.554 billion reported during 2023, while EBITDA reached US$ 3.079 billion , which meant an annual drop of 2 percent .
Regarding gross profit, the Mexican firm said it totaled $5.439 billion last year, which meant a 2% decrease compared to 2023.
“I am proud of this year’s achievements, as they mark a key moment in the corporate transformation we envision in 2020,” said Fernando González Olivieri, CEO of Cemex.
The executive noted that with the recovery of its investment grade, as well as “greater free cash flow generation and divestments of around $2.2 billion , we can now accelerate our capital allocation priorities through small and medium-sized acquisitions, mainly in the United States, additional debt reduction and the strengthening of our shareholder return programs.”
Results by region
In Mexico , the company indicated that its sales contracted 4% to US$4.881 billion in 2024 , while in 4Q24 they also showed a drop of 20% , compared to the same period in 2023. Ebitda reported a decrease of 1% to US$1.475 billion during the past year, while in 4Q24 it fell 18% , to US$283 million .
“The depreciation of the Mexican peso had an impact on operating cash flow of $52 million in 2024 results, as our foreign exchange hedging strategy continues to mitigate the impact on our leverage ratio,” the company said in its report.
In its operations in the United States , Cemex indicated that its sales were US $5.194 billion in 2024, an annual decrease of 3% , and US$1.233 billion in 4Q24, which meant a decrease of 3% over the same period in 2023. In its northern neighbor, annual EBITDA decreased 1% to US$1.031 billion and remained stable at US$238 million in the fourth quarter of 2024.
“The business’ resilience in the face of falling volumes is noteworthy, with an expansion in the operating cash flow margin, driven by our cost optimization efforts, lower energy prices and lower imports,” Cemex said.
In Europe , the Middle East and Africa , the company reported a 2% decrease in sales in 2024 to $4.631 billion , and an increase of 5% in the last quarter of last year to $1.155 billion . Operating cash flow was $ 637 million in 2024, 5% less than in 2023, and $177 million in the fourth quarter of 2024, an increase of 37% compared to the same period in 2023.
“In EMEA, the recovery trend continued in the fourth quarter, with our European operations recording the second consecutive quarter of EBITDA growth compared to the same period last year,” the cement company said.
In Central and South America and the Caribbean , Cemex reported stable sales of US$1.244 billion in 2024 and US$297 million in 4Q24. Operating cash flow increased 2% to US$234 million in 2024, compared to US$57 million in the fourth quarter of 2024 .
“In the Central, South America and Caribbean region, operating cash flow increased 2% on a comparable basis for both 2024 and the fourth quarter compared to the previous year. The higher operating cash flow margins were driven by positive price dynamics,” he stressed.
“Project Cutting Edge”, focused on supply chains
The Mexican cement company also launched the “Cutting Edge Project,” which is a three-year, $350 million savings initiative focused on optimizing operations and improving efficiency through the company’s digital technology.
“This program is expected to generate an additional $150 million in operating cash flow in 2025, with a projection of reaching $350 million by 2027. In addition, Project Cutting Edge contemplates savings at the level of free cash flow,” Cemex said.
This project will focus on supply chains, logistics and procurement, through the use of technology and Artificial Intelligence to simplify and automate processes and workflow.
It will also focus on continued optimization of the cement and ready-mix network, as well as additional free cash flow savings for 2025 and beyond.
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