Cemex’s net income would grow 182% in Q3: Go for More

Elisa Vargas, analyst of the financial group Go for More (Bx+) estimates that the net income of Cementos Mexicanos (Cemex) would reach 310 million dollars in the third quarter of the year, it would grow 182% compared to what was achieved in the same period of 2021, a figure that represented a net loss of 376 million dollars.

Despite the complications due to the increase in costs and interruptions in the supply chains, the analyst stated in a report that the company’s operating profit would grow around 458%, and would amount to 447 million dollars.

It is worth mentioning that the basis of comparison presents an extraordinary effect due to other expenses in the third quarter of 2021,” said Elisa Vargas, prior to Cemex’s report to the Mexican Stock Exchange.

The analyst expects demand and price increases to continue to be favorable for the cement company. With the expected results, its sales would amount to 3,824 million dollars, an increase of 1.46% compared to the 3,769 million dollars of 3Q21.

According to the expert, operations in Mexico will have low volumes and market share will decline, due to the effects of inflation and a decrease in social programs from the federal government.

In the United States, a more favorable dynamic is expected thanks to demand, despite the negative effects due to the rise in import costs and inflation.

Europe would present higher energy costs, which would impact the income generated in that region.

Of Cemex’s total sales, 32% are made in the United States, followed by Mexico (24%) and the aggregate of Europe, the Middle East, Africa and Asia (31%). The remaining 10% is divided between South America, Central America and the Caribbean, according to figures from its latest quarterly report.

The target price of Cemex shares for Grupo Ve por Más is 10.4 pesos per unit, which represents an increase of 50% of the price registered this Monday in the national stock market.

At the close of this Monday, Cemex shares registered an intraday advance of 5.98% to 6.91 pesos per unit on the Mexican Stock Exchange, pending its next quarterly report.

The company will report the results of the third quarter and will hold the conference call on October 27.

victor.barragan@eleconomista.mx