CHIHUAHUA, Mexico, July 25, 2023 (GLOBE NEWSWIRE) -- GCC, S.A.B. de C.V. (BMV: GCC*), a leading supplier and producer of cement and concrete in the United States and Mexico, today announced its results for the second quarter of 2023.
Q2 2023 HIGHLIGHTS
- Consolidated net sales increased 13.7% year-on-year, to US$364.1 million
- U.S. sales grew 6.6%, partially due to a 3.6% increase in concrete volumes
- U.S. cement and concrete prices rose 16.6% and 16.9%, respectively
- Mexico sales increased 34.4% reflecting a 3.2% and 8.8% increase in cement and concrete volumes, respectively. Mexico sales excluding the appreciation of the Mexican peso increased by 20.2%.
- Mexico cement and concrete prices increased by 11.5% and 14%, respectively
- EBITDA increased 33.4% to US$132.7 million with a 36.4% EBITDA margin
- Free cash flow totaled US$20.5 million with a 15.5% free cash flow conversion rate
- Cash and equivalents totaled US$770.3 million
- Net leverage (net debt/EBITDA) ratio totaled -0.69x as of June 2023
- Earnings per share increased 56.4% year-on-year, to US$0.2513
- A dividend of Ps. 1.3364 per share was paid on May 24, representing a 15% year-on-year increase
- GCC repurchased shares in the net amount of US$7.5 million
KEY FIGURES (millions of dollars)
| Q2 23 | Q2 22 | Q2 23 vs. Q2 22 | H1 23 | H1 22 | H1 23 vs. H1 22 | |
| Net sales | 364.1 | 320.1 | 13.7% | 608.0 | 527.0 | 15.4% |
| Operating income before other expenses, net | 109.0 | 75.6 | 44.2% | 149.2 | 107.0 | 39.4% |
| EBITDA* | 132.7 | 99.5 | 33.4% | 195.7 | 154.0 | 27.1% |
| EBITDA margin | 36.4% | 31.1% | 32.2% | 29.2% | ||
| Free cash flow** | 20.5 | 54.3 | -62.2% | 3.1 | 53.3 | -94.2% |
| Net income | 82.2 | 53.1 | 54.8% | 114.6 | 66.3 | 72.9% |
| Earnings per share (US$) *** | 0.2513 | 0.1606 | 56.4% | 0.3499 | 0.2001 | 74.8% |
*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, "Despite persistent weather-related challenges during the quarter, GCC achieved year-on-year growth in both top and bottom-line, attributable to the successful execution of our pricing and cost strategies, along with our focus on operational excellence."
Enrique continued, "We remain vigilant in monitoring demand and economic dynamics in the U.S., planning to ensure we're positioned to capture opportunities, while we take advantage of the momentum we're seeing in the Mexican market."
To access the earnings release: click here
CONFERENCE CALL
GCC, S.A.B. de C.V. will host its earnings conference call on July 26, 2023.
Time: 11 a.m. Eastern Time (New York) / 9 a.m. Central Time (Mexico City)
Conference ID: 13735120
| Dial in | |
| U.S. (toll free): | 1-877-407-0789 |
| International: | 1-201-689-8562 |
| Replay (through August 2, 2023, 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 6 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
Sahory Ogushi
+52 (614) 442 3176
+ 1 (303) 739 5943
soguship@gcc.com
