GCC, formerly Grupo Cementos Chihuahua, posted mixed results for 4Q24, with a 1.3 per cent decline in total sales driven by weaker cement and ready-mix volumes in Mexico. Analysts had anticipated a three per cent YoY increase, but the depreciation of the peso against the US dollar further impacted operations in the country.
Despite this, the company’s EBITDA rose 3.7 per cent, surpassing expectations of a flat result. Growth was largely driven by its US operations, which accounted for 80 per cent of EBITDA. “These results reflect the flexibility and agility of our team to successfully execute our strategy,” said GCC's CEO, Enrique Escalante.
Sales in the USA increased 4.1 per cent, supported by higher cement and ready-mix prices and a 4.5 per cent rise in ready-mix volumes, countering a slight 0.8 per cent decline in cement volumes. Meanwhile, Mexico’s sales dropped 13.9 per cent, with cement and ready-mix volumes down 9.5 and 10 per cent, respectively. Excluding currency effects, the decline in Mexico would have been 1.7 per cent.
For 2025, GCC forecasts mid-single-digit EBITDA growth, supported by price increases in both the US and Mexico. Cement volumes are expected to see a low-single-digit increase in the US, while ready-mix volumes could rise in the mid-single digits. In Mexico, both markets are projected to remain flat.
GCC plans US$470m in capital expenditures this year, including US$400m for growth and US$70m for maintenance.
