GCC sees 16% rise in 1Q net sales

GCC sees 16% rise in 1Q net sales
27 April 2022

GCC reported an 15.7 per cent advance in consolidated net sales to US$206.9m in the first quarter of 2022 when compared with the equivalent period of 2021.

Operating income in the 1Q22 was 23.1 per cent higher at US$31.4m when compared with the 1Q21. In the 1Q22 EBITDA increased 10.2 per cent YoY to US$54.5m (1Q21: US$49.5m) with a margin of 26.4 per cent, down from 27.7 per cent in the 1Q21. However, net income dropped 14.3 per cent YoY to US$13.1m from US$15.3m in the 1Q21.

As of 31 March 2022 total debt – all long-term and denominated in US dollars – was US$500m, representing a 19.6 per cent YoY contraction. Net leverage (net debt/EBITDA) was -0.43 times.

In the US sales were up 20.6 per cent to US$135.4m as cement and concrete volumes increased 10.3 and 15.7 per cent, respectively. In addition, cement prices saw a 10.3 per cent rise while concrete prices edged up 1.3 per cent. The most dynamic market segments in the 1Q22 were industrial warehouse construction and the oil and gas sector.

In Mexico the company also benefitted from a rise in cement and concrete prices, which were 11.7 and 8.1 per cent higher, respectively. Domestic sales increased 7. 5 per cent YoY to US$71.4m in the 1Q22 on the back of demand related to industrial maquiladora plants and warehouse construction. However, cement sales volumes were down 4.7 per cent. Concrete sales volumes advanced 9.1 per cent.

Enrique Escalante, GCC’s CEO, said “GCC is off to an excellent start this year. We are pleased with the results delivered during this quarter and of the way we are overcoming a high inflation environment amid global challenges.

“One of our top priorities is being extremely vigilant in offsetting cost pressures as we capitalise on market opportunities and focus our efforts in maximising production and terminal outputs.

“Market trends and full-year backlogs are encouraging for 2022; therefore, we expect to end the year in line with our high-single to double-digit EBITDA growth guidance.”

Published under Cement News