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Friday, April 19, 2024

Cemex will focus on growth in the US – El Financiero

Cemex’s growth strategy for the coming years includes focusing on strengthening its performance in the United States, one of its main markets, said Fernando González, general director of the company during his presentation at Cemex Day.

To achieve the above, it will increase its exposure in the fastest growing region in this country.

He detailed that in 2019 its US operations contributed 24 percent of its consolidated Ebitda and last year this level rose to 29 percent.

The average annual growth of operating flow in the United States has been 13 percent from 2019 to 2023, while in its operations in the rest of the world it is seven percent.

He commented that they will continue with complementary investments, mainly in the United States, as well as their sustainability investment strategy.

They will also continue to improve their leverage level, further strengthen their capital structure, and maintain their systematic and progressive dividend policy.

It indicated that 55 percent of its investments aimed at growth are focused on the United States, which has resulted in an average annual growth in operating flow of 13 percent from 2019 to last year.

“We continue to prioritize investments in the United States, by recycling free cash flow and divestments mainly towards this country, two thirds of all our investments aimed at growth and divestments will be invested in the country,” González said.

He added that they will focus on expanding their reserves of aggregates, cement and as well as the Urban Solutions business.

“We expect an Ebitda growth rate of between 12 and 14 percent for our US operations over the next four years.

“Hoping that the operating flow of this country increases its weight within our consolidated portfolio to 40 percent,” he added.

Regarding its operations in Mexico, he said that this market is the jewel in the crown, as it is the largest region, with an average annual Ebitda growth rate of 11 percent.

He said they are well positioned to benefit from nearshoring, as they have an unrivaled market position in their key products.

“What to expect from us, accelerate growth in the United States, leverage the leadership position in Mexico, promote profitable decarbonization and circular economy in Europe and expand the Urban Solutions platform,” he concluded.

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