GCC Reports Fourth Quarter And Full Year 2023 Results
CHIHUAHUA, Mexico, Jan. 30, 2024 (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 fourth quarter and full year of 2023.
FY 2023 HIGHLIGHTS
- Consolidated net sales increased 16.7% to US$1,363.9 million
- U.S. sales grew 11.6% as cement and concrete prices rose 14.1% and 13.7%, respectively
- U.S. concrete volumes increased 5.9%
- Mexico sales increased 29.9% reflecting a 2.2% and 5.2% increase in cement and concrete volumes, respectively. Mexico sales excluding the appreciation of the Mexican peso increased by 15.8%
- Mexico cement and concrete prices increased by 10% and 13.5%, respectively
- EBITDA increased 30.6% to US$472.4 million with a 34.6% EBITDA margin
- Free cash flow totaled US$233.7 million with a 49.5% free cash flow conversion rate
- Cash and equivalents totaled US$958.7 million
- Net leverage (net debt/EBITDA) ratio totaled -0.99x by year-end
- Earnings per share increased 112.4% year-on-year, to US$0.9029
- GCC repurchased shares in the net amount of US$13.2 million
- A dividend of Ps. 1.3364 per share was paid on May 24, 2023, representing a 15% year-on-year increase
- GCC’s 2030 greenhouse gas emissions reduction target was validated by the Science-Based Target initiative (SBTi)
Q4 2023 HIGHLIGHTS
- Consolidated net sales increased 17.8% year-on-year, to US$339.9 million
- U.S. sales grew 19.6% as cement and concrete prices rose 8.4% and 9.6%, respectively
- U.S. cement and concrete volumes increased 5.3% and 7.8%, respectively
- Mexico sales increased 13.8% reflecting an 8.2% and 12.5% increase in cement and concrete prices, respectively. Mexico sales excluding the appreciation of the Mexican peso increased by 1.7%
- EBITDA increased 31% to US$118.2 million with a 34.8% EBITDA margin
- Free cash flow totaled US$107.1 million with a 90.6% free cash flow conversion rate
KEY FIGURES (millions of dollars)
| Q4 23 | Q4 22 | Q4 23 vs. Q4 22 | 2023 | 2022 | 2023 vs. 2022 | |||||||
| Net sales | 339.9 | 288.6 | 17.8% | 1,363.9 | 1,168.3 | 16.7% | ||||||
| Operating income before other expenses, net | 98.4 | 68.2 | 44.4% | 383.1 | 268.3 | 42.8% | ||||||
| EBITDA* | 118.2 | 90.2 | 31.0% | 472.4 | 361.6 | 30.6% | ||||||
| EBITDA margin | 34.8% | 31.2% | 34.6% | 30.9% | ||||||||
| Free cash flow** | 107.1 | 109.3 | -2.0% | 233.7 | 278.9 | -16.2% | ||||||
| Net income | 75.0 | 4.5 | n.m. | 295.3 | 140.3 | 110.5% | ||||||
| Earnings per share (US$) *** | 0.2294 | 0.0136 | n.m. | 0.9029 | 0.4251 | 112.4% | ||||||
*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, commented: “GCC had an outstanding performance during 2023, achieving year-on-year growth in both top and bottom-line. Our record-breaking financial performance was driven by strong client relationships and operational excellence.”
Enrique continued, “Looking forward, our focus on executing strategic initiatives and enhancing competitive advantages will fortify our margins, aligning our vision for continued success with our commitment to sustainability.”
To access the earnings release: click here
CONFERENCE CALL
GCC, S.A.B. de C.V. will host its earnings conference call on January 31, 2024.
Time: 10 a.m. Eastern Time (New York) / 9 a.m. Central Time (Mexico City)
Conference ID: 13743114
| Dial in | |
| U.S. (toll free): | 1-877-407-0789 |
| International: | 1-201-689-8562 |
| Replay (through February 7, 2024, 11:59 p.m. ET): | |
| 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 and Mexico. 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
