GCC sees 2% rise in sales for 4Q20

Mexico's Grupo Cementos de Chihuahua (GCC) has seen a 1.7 per cent YoY increase in consolidated net sales to US$232.5m for the final quarter of 2020, compared to US$228.6m in the 4Q19.

EBITDA fell 5.9 per cent YoY to US$81.3 from US$86.4m, while the EBITDA margin dipped to 35 per cent from 37.8 per cent.

"GCC wrapped up 2020 with strong operational and financial results despite the challenges created by the COVID-19 pandemic. These positive results show GCC’s adaptability, resiliency and what we can do in challenging times. We experienced a mixed demand for our products in Mexico and the US, and with the exception of oil-well cement, both markets outperformed expectations," said Enrique Escalante, CEO.

Consolidated net sales reached US$937.8m in the FY20, up 0.4 per cent from US$934.1m in 2019. This was due to higher cement volumes in Mexico, higher concrete volumes in the USA and a favourable price environment in both markets. However, this was partially offset by lower cement volumes in the USA, lower concrete volumes in Mexico and the depreciation of the Mexican peso.

"Looking ahead, GCC entered 2021 even stronger than last year; even though the situation is still fluid and challenging, we are optimistic and will operate with the same rigorous approach to continue creating value for all of our stakeholders – our shareholders, customers, employees and the communities where we operate," said Mr Escalante.