The net sales of Cemex in Mexico increased 9% during the third quarter of 2022, driven by its pricing strategy and a rebound in the formal sector.

In local currency terms, cement prices increased 17%, ready-mix prices increased 16%, and aggregates prices increased 21%.

Cement volumes decreased 7%, mainly due to the normalization of bagged cement demand since the peak of the pandemic, as well as inflationary pressures affecting retail consumption, and the temporary loss of market share related to its pricing strategy.

Ready-mix and aggregates volumes increased 9% and 1%, respectively.

Growth in Mexico’s formal sector continues to be driven by the Industrial & Commercial sector, with volumes driven mainly by important nearshoring activity in border states, distribution and logistics, and tourism.

The company indicated that it continues to implement its pricing strategy with the objective of recovering margins, which is why it announced a 7.5% increase in bagged cement, effective October 10, 2022.

Cemex

In the United States, sales and EBITDA increased double-digit, despite the impact of Hurricane Ian that reached Florida during the quarter.

The company estimates that the storm impacted EBITDA by approximately US$11 million in the quarter.

Cemex achieved a sequential improvement of 2.4 percentage points in EBITDA margin, mainly reflecting the recovery from supply chain disruptions and maintenance costs in the second quarter.

Cement, ready-mix, and aggregates prices grew 16-19% versus a year ago.

At the same time, cement and aggregates volumes increased in the low single digits, while ready-mix volumes remained flat.

Supply/demand dynamics remain tight in Cemex’s markets, with many of its customers still on allocation.