GCC reports strong 2Q21 results and prepares for expansion

GCC reports strong 2Q21 results and prepares for expansion
28 July 2021

GCC reported a net sales increase of 18 per cent in the 2Q21 and a rise in EBITDA of 19 per cent. The company’s net financial expenses totalled US$10m during this accounting period.

GCC reported cement volumes rising by 11 per cent in the 2Q21 compared to eight per cent in 2020. Concrete sales fell by 17 per cent compared to a six per cent rise in the 2Q20.

Commenting on guidance for the remainder of 2021, Enrique Escalante, GCC’s CEO said: “ Starting in Mexico, we now expect GCC’s cement volumes to increase 4-6 per cent and ready-mix volumes by 10-15 per cent, with price increases in the 2-3 per cent range in both businesses.

“In the US, we expect GCC’s cement volumes to increase by 4-8 per cent YoY. In the ready-mix business, Some remarkable projects with record volumes created a high comparison rate. Thus we expect volumes to decline by between 15-20 per cent, returning to historic levels. In terms of prices, in light of the announcements we’ve already made, we anticipate a price increase in the 6-7 per cent range in cement and 4-5 per cent in ready-mix.” 

EBITDA for the company is expected to rise between 8-13 per cent to US$333m-US$348m by the end of 2021.

Plant upgrades
GCC is carrying out debottlenecking of its Samalayuca plant, in Mexico, which will increase capacity by around 0.2Mta at the plant. It also has plans to either expand with a new 1Mta kiln line in Mexico at Samalayuca or as a kiln Line 5 project at Chihuahua that is well advanced in terms of design and planning. In addition, the Chihuahua plant will have operational efficiency improved and enhanced social and environmental responsibility. 

GCC will also invest in two new cement distribution terminals to strengthen its US network in Minneapolis, Minnesota and Utah. The company plans capex spending of US$450m-500m over the next three years.

Published under Cement News