GCC reports 9% increase in EBITDA

Mexico’s GCC has seen its consolidated net sales for the first quarter of 2021 decrease by 1.5 per cent to US$178.8m from US$181.4m in the 1Q20. This was primarily due to lower cement and concrete volumes in the US and the depreciation of the Mexican peso. However, this was partially offset by increased cement and concrete volumes in Mexico and a favourable price environment in both markets.

The company’s EBITDA advanced 9.2 per cent YoY to US$49.5m from US$45.3m in the 1Q20, while the EBITDA margin climbed to 27.7 per cent from 25 per cent.

"Our results reflect momentum in the industry and show early signs that we are entering into a new phase of the industry's cycle with a stronger demand for most of our products. Therefore, we will focus our efforts in producing cement to supply pent-up demand," said Enrique Escalante, CEO.

"Our backlog and the overall market trends of our business are encouraging in the US and Mexico. Both countries are emerging from tough and uncertain times into brighter months ahead. Our focus continues on maximising production, improving plant reliability and optimising our logistics network to take advantage of the pent-up demand we are experiencing."

US cement volumes declined 7.7 per cent YoY in the 1Q21, but prices improved 2.9 per cent. In Mexico, cement volumes were up six per cent, but prices slipped 0.8 per cent.