GCC Reports Second Quarter 2021 Results

Chihuahua, MEXICO


CHIHUAHUA, Mexico, July 27, 2021 (GLOBE NEWSWIRE) -- GCC, S.A.B. de C.V. (BMV: GCC*), a leading supplier and producer of cement and concrete in the United States, Mexico and Canada, today announced its results for the second quarter 2021.

Q2 2021 HIGHLIGHTS

  • Mexico cement and ready-mix volumes increased 17.1% and 41.4%, respectively
  • Total U.S. cement volumes grew 10.6% and rose 4% excluding oil well cement
  • U.S. cement and ready-mix prices increased 8.3% and 6%
  • Consolidated net sales increased 18.1%, to US$286.7 million
  • EBITDA increased 18.6% to US$97 million, with a 33.8% EBITDA margin
  • Free cash flow increased 18% to US$41.4 million with a 42.7% conversion rate from EBITDA
  • Net leverage (net debt/EBITDA) ratio dropped to 0.06x as of June 2021
  • Earnings per share increased 43.7% year on year, to US$0.1439

KEY FIGURES (millions of dollars)

 Q2 21Q2 20Q2 21 vs Q2 20H1 21H1 20H1 21 vs H1 20
Net sales286.7242.818.1%465.5424.29.7%
Operating income before other expenses, net73.258.325.6%98.778.925.1%
EBITDA*97.081.818.6%146.5127.115.3%
EBITDA margin33.8%33.7% 31.5%30.0% 
Free cash flow**41.435.118.0%56.043.827.8%
Net income47.733.243.8%63.049.627.0%
Earnings per share (US$) ***0.14390.100143.7%0.19020.149627.2%

*EBITDA: Operating income before other expenses + depreciation and amortization
**Free cash flow before growth and strategic CapEx
***Earnings per share calculated based on average number of outstanding shares during the quarter

Enrique Escalante, GCC’s Chief Executive Officer, said, “GCC is off to an excellent first half of the year, we are very pleased with the results delivered - increasing top and bottom-line growth and EBITDA margin.”

“We are revising upwards our full-year guidance, based on the strong first half performance. It reflects that positive momentum persists in our industry. Cement demand is stronger than pre-pandemic levels, and construction activity is expected to remain robust throughout the year. Every kiln at GCC is up and running.”

Mr. Escalante continued, “Our balance sheet is strong and ready for growth. We will allocate more resources to our core business – cement – and our distribution network to maintain our competitive advantage while we focus on our sustainability strategy and CO2 reduction targets.”

CONFERENCE CALL

GCC, S.A.B. de C.V. will host its earnings conference call on July 28, 2021.

Time: 11 a.m. (Eastern Time) / 10 a.m. (Central Time) / 9 a.m. (Mountain Time)

Conference ID: 13714204

Dial in

U.S. (toll free):1-877-407-0789
International:1-201-689-8562

Replay (through August 4, 2021, 11:59 p.m.):

U.S. (toll free):1-844-512-2921
International:1-412-317-6671

Listen-only webcast and replay: click here

ABOUT GCC

GCC is a leading supplier and producer of cement, concrete, aggregates and construction‐related services in the United States, Mexico and Canada. The Company has an annual cement production capacity of 5.85 million metric tons.

Founded in 1941, the Company’s shares are listed on the Mexican Stock Exchange under the ticker symbol GCC*.

Forward Looking Statements

This earnings report may contain forward-looking statements. All statements that are not clearly historical in nature are forward-looking, and the words “anticipate,” “believe,” “expect,” “estimate,” “intend,” “project” and similar expressions are generally intended to identify forward-looking statements. These statements are subject to risks and uncertainties including, among others, changes in macroeconomic, political, legal, public health crises including COVID-19, governmental or business conditions in the markets where GCC operates; changes in interest rates, inflation rates and currency exchange rates; performance of the construction industry; and pricing, business strategy and other factors. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may differ materially from the beliefs, projections and estimates described herein. GCC assumes no obligation to update the information contained in this press release. Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

For further information, contact:
GCC Investor Relations
Ricardo Martinez
+52 (614) 442 3176
+ 1 (303) 739 5943
rmartinezg@gcc.com