Higher energy costs and problems in the supply chain led Cemex to make an adjustment in the value of its products as of July 1, 2022. This information was announced by the company in its quarterly report submitted to the Mexican Stock Exchange. Securities (BMV).

The configuration adds to the one already registered during the first part of the year, which in local currency terms was 16% in cement, 15% in concrete and 24% in aggregates. Cemex had already had another adjustment in the value of its products of 5% in 2021, the largest increase since 2016 up to that moment.

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The new value focuses on compensating for the drop in operating cash flow that the company had during the first half of the year, which in Mexico was 4% and globally 8% when comparing the period with what was recorded in 2021.

The decline in profits was mainly caused by higher energy costs and supply chain disruptions, which has pushed the price of all its products to rise steadily.

The increase in the first part of this year, added to more demand for concrete and aggregate volumes, allowed net sales revenues to increase 11% during 2Q22 worldwide and 7% in Mexico.

In this period, Cemex's operations stopped seeing the transformation of economic activity in Mexico. While in 2Q21 the company reached historic figures for the sale of bagged cement (domestic gray) for home improvements "related to the pandemic and government social spending in anticipation of the midterm elections," this year it recorded a 12% drop in volume.

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At the same time, concrete and aggregates have had increases in the amount of product sold, by 14% and 5%, respectively. "Demand for our products continues to be driven by industrial and commercial activity, supported by the construction of manufacturing facilities in the north of the country and hotels in tourist destinations," the company explains.

The cement company continues with an intense sustainability strategy with which it seeks to become zero emissions in the year 2030, for which in the second quarter of this 2021 they achieved a 3% reduction in their CO2 emissions compared to 4Q21.

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Original note