CHIHUAHUA, Mexico, July 26, 2022 (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 2022.
Q2 2022 HIGHLIGHTS
- Consolidated net sales increased 11.6%, to US$320.1 million
- U.S. sales increased 12.9%
- U.S. total cement volumes increased by 6%; cement volumes remained unchanged excluding oil well cement
- U.S. cement prices increased 10.3%
- Mexico sales increased by 8.3% reflecting a 13.8% increase in concrete volumes
- Mexico cement and concrete prices increased by 12.3% and 8.3%, respectively
- EBITDA increased 2.5% to US$99.5 million with a 31.1% EBITDA margin
- Free cash flow totaled US$65.5 million with a 65.8% free cash flow conversion rate
- Earnings per share increased 11.6% year-on-year to US$0.1606
- Cash and equivalents totaled US$645 million
- Net leverage (net debt/EBITDA) ratio totaled -0.44x as of June 30, 2022
- A dividend of Ps. 1.1621 per share was paid on May 17, representing a 15% year-on-year increase
- GCC repurchased 2.6 million shares in the amount of US$17.2 million
KEY FIGURES (millions of dollars)
| Q2 22 | Q2 21 | Q2 22 vs Q2 21 | H1 22 | H1 21 | H1 22 vs H1 21 | |
| Net sales | 320.1 | 286.7 | 11.6% | 527.0 | 465.5 | 13.2% |
| Operating income before other expenses, net | 75.6 | 73.2 | 3.3% | 107.0 | 98.7 | 8.4% |
| EBITDA* | 99.5 | 97.0 | 2.5% | 154.0 | 146.5 | 5.1% |
| EBITDA margin | 31.1% | 33.8% | 29.2% | 31.5% | ||
| Free cash flow** | 65.5 | 41.4 | 58.0% | 64.3 | 56.0 | 14.7% |
| Net income | 53.1 | 47.7 | 11.4% | 66.3 | 63.0 | 5.2% |
| Earnings per share (US$) *** | 0.1606 | 0.1439 | 11.6% | 0.2001 | 0.1902 | 5.2% |
*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 had a strong start to the 2022 construction season and delivered a solid first half of 2022. Our primary focus is to address unprecedented demand despite today’s supply chain obstacles and ensure uninterrupted supply to our customers.
GCC's vertical integration is an important competitive advantage to mitigate the effects of inflation. We remain vigilant of changes in the economic environment to improve our margins.
We are very pleased with GCC's second quarter results and expect the strong shipments to continue, as the underlying trends of GCC’s business remain favorable.”
To access the earnings release: click here
CONFERENCE CALL
GCC, S.A.B. de C.V. will host its earnings conference call on July 27, 2022.
Time: 11 a.m. (Eastern Time) / 10 a.m. (Central Time) / 9 a.m. (Mountain Time)
Conference ID: 13725700
| Dial in | ||
| U.S. (toll free): | 1-877-407-0789 | |
| International: | 1-201-689-8562 | |
| Replay (through August 3, 2022, 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
Sahory Ogushi
+52 (614) 442 3176
+ 1 (303) 739 5943
