Latin America

Adjusted Operating EBITDA in the Latin America region benefited from continued margin expansion, which grew by 420 basis points in the quarter despite the significant slowdown experienced in Brazil. Adjusted Operating EBITDA improved 7.5 percent on a like-for-like basis in Q3 with pricing and cost measures more than offsetting reduced volumes.

Mexico again saw robust improvement in performance, boosted by the effect of the rollout of a segmented customer strategy and favorable pricing. Consolidation of offices is also helping to reduce costs. Volumes were lower than in Q3 2015, in part due to non-recurring gains in the prior year.

Argentina, El Salvador and Ecuador also made positive contributions to year-on-year Adjusted Operating EBITDA growth. Performance in Argentina was helped by reduced industrial costs, the delivery of synergies and price increases. In Ecuador, which continues to see the impact of low oil prices and the after effects of April’s earthquake, the company continued to reduce costs and benefited from higher volumes for ready-mix concrete products, driven by new metro and tramway infrastructure projects.

Colombia was negatively impacted in Q3 by a national transport strike that disrupted logistics across the industry for several weeks. Costa Rica was adversely affected by increased foreign imports.

Brazil again had a negative impact on the region with challenging conditions depressing economic activity across the country. As in previous quarters, reduced volumes and downward pricing pressure contributed to a decline in Q3 Adjusted Operating EBITDA. This impact was partly mitigated by decisive cost reduction actions.

Latin America – Pro forma information

 

 

July–Sept
2016

July–Sept
2015

±%

±%
like-for-like

1

Excluding merger, restructuring and other one-offs.

2

Cash flow from operating activities less net maintenance and expansion capex.

Sales of cement

million t

6.3

7.4

–15.2

–15.2

Sales of aggregates

million t

1.6

2.1

–24.0

–24.0

Sales of ready-mix concrete

million m3

1.6

1.9

–13.0

–13.0

Net sales

million CHF

716

842

–14.9

–7.4

Operating EBITDA

million CHF

215

233

–8.0

+1.9

Operating EBITDA adjusted1

million CHF

234

240

–2.4

+7.5

Operating EBITDA margin

%

30.0

27.7

 

 

Operating EBITDA margin adjusted1

%

32.7

28.5

 

 

Cash flow from operating activities

million CHF

120

100

+20.7

+37.9

Operating Free Cash Flow2

million CHF

92

50

+86.0

+122.3

Latin America – Pro forma information

 

 

Jan–Sept
2016

Jan–Sept
2015

±%

±%
like-for-like

1

Excluding merger, restructuring and other one-offs.

2

Cash flow from operating activities less net maintenance and expansion capex.

Sales of cement

million t

18.1

21.0

–13.9

–13.9

Sales of aggregates

million t

4.9

5.8

–15.6

–15.6

Sales of ready-mix concrete

million m3

5.0

5.5

–8.9

–8.9

Net sales

million CHF

2,083

2,458

–15.3

–4.7

Operating EBITDA

million CHF

625

679

–8.0

+0.9

Operating EBITDA adjusted1

million CHF

655

691

–5.2

+4.0

Operating EBITDA margin

%

30.0

27.6

 

 

Operating EBITDA margin adjusted1

%

31.5

28.1

 

 

Cash flow from operating activities

million CHF

142

202

–29.7

–34.0

Operating Free Cash Flow2

million CHF

69

(22)

+418.2

+332.7