GCC reports 146% surge in 1Q net income

GCC SAB de CV posted its first-quarter 2023 consolidated sales, which saw a 17.9 per cent YoY increase to US$243.9m. EBITDA in the 1Q23 advanced 15.5 per cent YoY to US$63m. The EBITDA margin of 25.8 per cent, slightly lower than the 26.4 per cent posted in the 1Q22. Net income saw a 146.4 per cent improvement YoY to US$32.4m in the 1Q23, up from US$13.1m in the 1Q22.

Enrique Escalante, GCC's CEO, said: "GCC delivered solid results for the first quarter despite significant weather disruptions in the US. We remained focussed on operational excellence and pre-empting headwinds.”

With 5.85Mt of production capacity, GCC is active in Mexico, the USA and Canada. In Mexico, 1Q23 sales were up by 33.8 per cent YoY, supported by an 11.1 per cent increase in cement volumes and a 11.2 per cent advance in concrete volumes.

US sales expanded by 9.5 per cent on the back of a 27 per cent rise in concrete sales when compared with the 1Q22. Prices for cement and concrete in the US also improved, increasing by 20.6 and 5.6 per cent, respectively.

"Strong volume demand continues, and we're leveraging all GCC facilities to ensure we're deriving maximum benefits and strengthening our margins. We're creating a more efficient and agile network to drive value in the years to come,” Mr Escalante added.