Yahoo Finance CEMEX, S.A.B. de C.V. (NYSE:CX) Q1 2024 Earnings Call Transcript
CEMEX, S.A.B. de C.V. (NYSE:CX) Q1 2024 Earnings Call Transcript April 25, 2024
CEMEX, S.A.B. de C.V. beats earnings expectations. Reported EPS is $0.17, expectations were $0.13. CEMEX, S.A.B. de C.V. isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Operator: Good morning. Welcome to the CEMEX First Quarter 2024 Conference Call and Webcast. My name is Elliot, and I'll be your operator for today. At this time, all participants are in listen-only mode. Later we will conduct a question-and-answer session. [Operator Instructions]. And now I will turn the conference over to Lucy Rodriguez, Chief Communications Officer. Please proceed.
Lucy Rodriguez: Good morning. Thank you for joining us today for our first quarter 2024 conference call and webcast. We hope this call finds you in good health. I am joined today by Fernando Gonzalez, our CEO; and Maher Al-Haffar, our CFO. As always, we will spend a few minutes reviewing the business, and then we will be happy to take your questions. And now I will hand it over to Fernando.
Fernando Gonzalez: Thanks, Lucy, and good day to everyone. I am pleased with our first quarter results, which outperformed our expectations underlying our 2024 guidance. In fact, EBITDA represents a first quarter record for the company. Despite fewer working days and difficult weather conditions in many markets, EBITDA grew 5%. Three of our four regions markets accounting for 90% of consolidated EBITDA, experienced a combined growth rate of 15%. Mexico deserves special mention, setting a record in terms of quarterly EBITDA generation. EBITDA margin expanded year-over-year and sequentially, driven by a favorable price cost dynamic. Our prices rose mid-single digits, while input cost inflation slowed. Growth investments and urbanization solutions continue to materially support EBITDA growth.
Net income grew 13%. Our return on capital 2.4%, was slightly higher relative to the same period last year despite the impact of the Spanish tax fine that we recognized in fourth quarter 2023. In other highlights, last month, we achieved an important milestone with the receipt of an investment-grade rating of BBB- from Standard & Poors. This rating action was recognition of our medium-term financial strategy as well as consistent financial performance. In late March, we hosted our 2024 CEMEX Day presenting additional insights into our regions, decarbonization progress and goals, capital allocation and strategy. I would encourage you to access the replay on our website. This month, we refinanced our Eurobank facility, further improving our maturity schedule and liquidity position.
In March, we published our eighth integrated report as we continue to set the pace for our industry towards a profitable climate action transition. As part of our portfolio rebalancing efforts, we have announced an agreement to divest our interest assets and operations in the Philippines for a total enterprise value of $800 million. We currently expect to finalize this transaction before the end of year, aligned to our strategy. The majority of divestment proceeds would be repurposed to fund our growth strategy in the U.S. market. Net sales rose 3% with increases in Mexico and [indiscernible] partially offset by volume declines in the U.S. and EMEA. EBITDA rose mid-single digits, reflecting growth in Mexico, SAC and the U.S. We estimate that the impact of fewer working days in the quarter amounted to an additional $20 million in EBITDA or 3% in year-over-year growth.
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