GCC reports 7% EBITDA increase in 2022

GCC reports 7% EBITDA increase in 2022
01 February 2023

Grupo Cementos de Chihuahua (GCC) reported net sales of US$289.7m in the October-December 2022 period, representing an increase of 12.3 per cent when compared with the 4Q21,  according to the company’s filing to the Mexican stock exchange, BMV. It also posted EBITDA of US$91.3m in 4Q22, up 12.7 per cent YoY. Net profit increased by 70.4 per cent to US$51.3m in the 4Q22 when compared with the 4Q21.

The cement producer attributed the increase to a rise in cement and concrete prices of 16.2 and 12.5 per cent, respectively as well as a 10 per cent advance in the volume of concrete sales in Mexico.

“GCC's focus on operational excellence enabled us to deliver strong results in an unprecedented environment. We continue to anticipate challenges and mitigate their potential effects while taking advantage of the opportunities that present themselves. Our team will continue to adapt to the changing operational dynamics in 2023 that will present new opportunities to once again take advantage of our exceptional competitive advantages,” said Enrique Escalante, the company's CEO.

Full-year 2022
In 2022 consolidated net sales advanced 12.6 per cent YoY to US$1169.5m. Sales in the US expanded by 12 per cent as cement and concrete volumes increased by 2.9 and 3.1 per cent, respectively. In addition, in the US cement prices were up by 12.1 per cent and concrete prices by 4.4 per cent. Mexican sales increased by 14 per cent YoY on the back of an 8.6 per cent increase in concrete volumes. Cement and concrete prices in Mexico also supported sales values as they increased by 12.5 and 8.7 per cent, respectively.

EBITDA saw a 7.4 per cent hike to US$362.7m with a 31 per cent EBITDA margin.

Net leverage as in net debt/EBITDA slipped to -0.95 by year end.

The company also announced its Odessa plant expansion to take the plant’s production capacity to more than 1Mta.

Published under Cement News