GCC’s first-quarter sales fall as earnings rise
GCC recorded consolidated net sales of US$179m in the first quarter of 2021, down by 2 per cent year-on-year. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) grew by 9 per cent to US$49.5m. In Mexico cement sales volumes rose by 6 per cent but in the US they fell by 7.7 per cent due to poor oil well cement sales.
The company’s chief executive officer Enrique Escalante said, "GCC started 2021 with strong financial performance - increasing EBITDA, free cash flow and EBITDA margin. Our results reflect momentum in the industry and show early signs that we are entering into a new phase of the industry's cycle with a stronger demand for most of our products. Therefore, we will focus our efforts in producing cement to supply pent-up demand." Escalante continued "Our backlog and the overall market trends of our business are encouraging in the US and Mexico. Both countries are emerging from tough and uncertain times into brighter months ahead. Our focus continues on maximising production, improving plant reliability, and optimising our logistics network to take advantage of the pent-up demand we are experiencing."