CEMEX(US:CX)2024-02-22 16:00Share Structure and Financial Position - As of December 31, 2023, Cemex had 13,068,000,000 fixed shares and 31,779,148,989 variable shares, compared to 32,441,076,423 variable shares in 2022[1]. - As of December 31, 2023, the Group's goodwill balance was $7,674 million, representing 27% of total consolidated assets, with $6,176 million related to Cash-Generating Units in the United States[71]. - Total assets increased to $28,433 million as of December 31, 2023, up from $26,447 million in 2022, representing a growth of 7.5%[116]. - Total liabilities increased to $16,317 million, up from $15,538 million, reflecting a rise of 5.0%[116]. - Stockholders' equity reached $12,116 million, an increase from $10,909 million, indicating a growth of 11.1%[116]. Financial Performance - Consolidated net income for 2023 was $199 million, a decrease of 77.5% from $885 million in 2022[106]. - Revenues increased to $17,388 million in 2023, up 11.0% from $15,577 million in 2022[113]. - Gross profit rose to $5,861 million, reflecting a 21.6% increase compared to $4,822 million in 2022[113]. - Operating earnings before other expenses reached $2,114 million, a 35.4% increase from $1,561 million in 2022[113]. - Basic earnings per share from continuing operations was $0.0042, compared to $0.0123 in 2022, indicating a decline[113]. Cash Flow and Investments - Cash flows provided by operating activities from continuing operations increased to $3,278 million in 2023, compared to $2,150 million in 2022, representing a growth of 52%[141]. - The company experienced a net cash flow used in investing activities of $1,340 million in 2023, compared to $732 million in 2022[141]. - Proceeds from new debt instruments amounted to $2,938 million in 2023, an increase from $2,006 million in 2022[141]. - Capital expenditures for 2023 were $16,904 million, with significant investments in property, machinery, and equipment[174]. Legal and Regulatory Matters - The company is currently involved in various legal proceedings, including antitrust investigations in the US and an inquiry by the European Commission in France, but the outcomes are uncertain[24]. - Cemex's operations in the US received a grand jury subpoena from the DOJ regarding possible antitrust law violations, with the investigation still in early stages[24]. - The company has recognized adequate provisions for various legal claims arising in the ordinary course of business, believing they will not significantly affect its financial position[27]. - The company has a legal claim from SCI in France regarding a breach of contract, with potential damages quantified at $61 million, although Cemex believes this will not materially impact its financial condition[22]. Environmental and Sustainability Commitments - Cemex committed to supply 1.2 million tons of petroleum coke per year to TEG and another third-party electrical energy generating plant until 2027[19]. - The company has detailed yearly CO2 roadmaps for each cement plant, focusing on alternative fuels and lower carbon raw materials[21]. - Management estimates that excess allowances for CO2 costs will allow the Company to offset these costs in EU and UK operations until 2026, with potential for extension beyond 2026 through the use of lower carbon materials[65]. Segment Performance - External revenues from the United States segment were $5,338 million, contributing to an operating EBITDA of $1,040 million[170]. - The Mexico segment reported external revenues of $4,855 million, with an operating EBITDA of $1,488 million[170]. - The Dominican Republic segment achieved external revenues of $360 million, with an operating EBITDA of $139 million[170]. - The reportable segments collectively generated $16,904 million in revenues, with a total operating EBITDA of $3,629 million[170]. Shareholder and Executive Compensation - Cemex's total compensation for its Board of Directors and senior management was $71 million in 2023, which includes $24 million in base compensation and performance bonuses[31]. - The total cash payout of the annual executive variable compensation may vary by -10% to +10% based on Cemex's 2030 CO2 reduction targets[21]. Taxation and Financial Reporting - The effective income tax rates for 2023 are 30.0% in Mexico, 21.0% in the United States, and 23.5% in the United Kingdom[47]. - The Group's evaluation of a tax proceeding in Spain is a key audit matter, requiring significant judgment regarding uncertain tax treatments[82]. - The Group's external tax advisers assessed the estimates of tax liabilities, reflecting the underlying facts and circumstances of the tax proceeding[56]. - The Group's consolidated financial statements are prepared in accordance with IFRS Accounting Standards, ensuring fair presentation of financial position and performance[80].