GCC net income up 51% in 1Q24

GCC SAB de CV reported a 11.9 per cent YoY increase in consolidated net sales to US$272.8m in the 1Q24 from US$243.9m in the 1Q23, mainly on the back of higher sales volumes in the US and favourable pricing in both markets.

However, operating expenses were up by 45.5 per cent YoY to US$58.5m in the 1Q24 from US$40.2m in the year-ago period.

The company posted a 31.6 per cent advance in EBITDA to US$82.9m in the first three months of 2024 when compared with US$60m in the equivalent period of the previous year. This resulted in an improvement of the EBITDA margin to 30.4 per cent from 25.8 per cent over the same period.

Net income surged 51.1 per cent to US$48.9m in the 1Q24 when compared with US$32.4m in the 1Q23.

Total debt remained unchanged at US$500m on 31 March 2024 when compared with the year-ago date.

GCC’s CEO, Enrique Escalante, said: “GCC delivered a solid first quarter, marked by record sales and strong profitability driven by operational stability and continued cost improvement.”

Geographical breakdown
US sales improved by 17 per cent to US$173.435m as cement and concrete volumes increased by 8.3 and 5.6 per cent, respectively. In addition cement and concrete prices in the US market advanced by 5.7 and 12 per cent, respectively. The oil and gas market was the most dynamic market segment in the quarter.

Sales in Mexico advanced four per cent to US$99.41m as cement prices were up 4.9 per cent while concrete prices increased by 8.6 per cent. Sales were mainly driven by demand from the residential sector as well as the industrial maquiladora plants and warehouse construction.