GCC announces 11% sales increase for 9M18

GCC announces 11% sales increase for 9M18
24 October 2018

Mexico's Grupo Cementos de Chihuahua (GCC) has recorded an 11.1 per cent YoY increase in sales to US$677.4m for the first nine months of 2018. EBITDA surged 16.3 per cent to US$198.6m in the same period, while its EBIDTA margin reached 29.3 per cent.

In the 3Q18 net sales advanced 10.6 per cent YoY to US$278.6m from US$251.9m. EBITDA was also up 9.2 per cent to US$83.6m, compared with US$76.6m of the year-ago period.

"GCC's third quarter and nine-month results show continued success in implementing the company's expansion plans in an environment of steady demand growth and favorable pricing environments in both the US and Mexico. The results also demonstrate solid operational execution and the benefits of the debt refinancings that were carried out earlier in 2018 and last year," said Enrique Escalante, CEO, GCC.

Overall sales in the USA rose 12.2 per cent to US$216.4m in the third quarter, representing 78 per cent of GCC’s consolidated net sales. The rise reflects an increase of 11.7 per cent in cement volumes, on the back of the acquisition of the Trident facility in Three Forks, Montana.

Mexico showed a 5.5 per cent growth in sales for the 3Q18, resulting from a 10.3 and 8.3 per cent rise in cement and concrete prices (in peso terms), respectively. Cement volumes increased 6.5 per cent.

The company also announced that construction was complete on the Rapid City, South Dakota, plant expansion project. Furthermore, GCC reactivated two kilns in Chihuahua to meet the growing demand in the US and Mexico, according to a press release.

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