GCC sees 8% rise in consolidated net sales

Mexico's Grupo Cementos de Chihuahua (GCC) has recorded an 8.3 per cent YoY rise in consolidated net sales to US$301.7m for the third quarter of 2019, on the back of improved cement volumes and prices in Mexico and the USA. EBITDA advanced 15.2 per cent to US$96.4m from US$83.7m in the 3Q18, while the EBITDA margin remained largely unchanged at 31.9 per cent from 30 per cent.

Regionally, net sales rose 5.5 per cent and 9.1 per cent in Mexico and the US, respectively.

"GCC delivered strong operational results for the 3Q19 despite an increasingly competitive environment in certain markets. Increased volumes, with a record high in cement, reflect robust customer demand and our ability to trigger the significant backlog at our US operations with benefit of improved weather conditions in this market. Strengthened pricing in both the US and Mexico-where cement volumes exceeded our expectations for the quarter-as well as excellent execution and an outstanding distribution network contributed to our solid results. We look forward to continued momentum in this regard, provided the promising weather holds," said GCC's Chief Executive Officer, Enrique Escalante.

In the first nine months of 2019, net sales increased 4.2 per cent YoY to US$705.5m from US$677.4m. EBITDA was up 3.5 per cent to US$205.6m, while the margin declined to 29.1 per cent from 29.3 per cent.