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CHIHUAHUA, Mexico, Jan. 26, 2021 (GLOBE NEWSWIRE) -- Grupo Cementos de Chihuahua, 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 fourth quarter and full year 2020.
FY 2020 HIGHLIGHTS
U.S. cement volumes grew 5%, excluding oil well cement. Total cement volumes decreased 3%, while concrete volumes increased 4.3%
Mexico sales increased 8% in local currency as cement volumes increased 3.3%. Mexico sales decreased 3% in U.S. dollars
Consolidated net sales totaled US$937.8 million for the full year
EBITDA increased 5.6% to US$308.3 million with a 32.9% EBITDA margin and a 160 basis-point increase
Free cash flow totaled US$250.6 million with an 81.3% conversion rate from EBITDA
Cash and equivalents reached a record high US$562 million
Earnings per share increased 11.5% year-on-year to US$0.3913
Cost-and-expense reduction plan amounted to US$24.3 million in savings
Net leverage (net debt/EBITDA) ratio dropped to 0.24x as of December 2020
A dividend of Ps. 0.94 per share was declared in the Annual Shareholders’ Meeting, representing a 15% year-on-year increase
A long-term agreement was signed with an energy provider to supply wind power to Rapid City’s cement plant, covering approximately 50% of the electricity consumed at the plant
Q4 2020 HIGHLIGHTS
Mexico cement volumes increased 13.5%
Consolidated net sales increased 1.7%, to US$232.5 million
EBITDA decreased 5.9% to US$81.3 million, with a 35.0% EBITDA margin; a 280 basis-point decrease
Free cash flow totaled US$99.6 million, with a 122.5% conversion rate from EBITDA
Earnings per share decreased 29% year-on-year, to US$0.0831
KEY FIGURES (millions of dollars)
Q4 20 vs. Q4 19
2020 vs. 2019
Operating income before other expenses, net
Free cash flow**
Earnings per share (US$)***
*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 wrapped up 2020 with strong operational and financial results despite the challenges created by the COVID-19 pandemic. These positive results show GCC’s adaptability, resiliency and what we can do in challenging times.
We experienced a mixed demand for our products in Mexico and the U.S, and with the exception of oil-well cement, both markets outperformed expectations.
GCC generated top-line growth, EBITDA, a strong free cash flow and margin expansion, benefiting from the successful execution of a comprehensive plan to reduce costs and expenses.
2020 was also a year of significant progress in GCC’s efforts to implement sustainability best practices. As a result, we reached our first major milestone by reducing net CO2 emissions by 9% from the 2005 levels.”
Mr. Escalante continued, “Looking ahead, GCC entered 2021 even stronger than last year; even though the situation is still fluid and challenging, we are optimistic and we will operate with the same rigorous approach to continue creating value for all of our stakeholders - our shareholders, customers, employees and the communities where we operate.”
Grupo Cementos de Chihuahua, S.A.B. de C.V. will host its earnings conference call on January 27, 2021.
Time: 11 a.m. (Eastern Time) / 10 a.m. (Central Time) / 9 a.m. (Mountain Time)
Conference ID: 13714195
U.S. (toll free):
Replay (through February 3, 2021, 11:59 p.m.):
1-844-512-2921 Toll Free
Listen-only webcast and replay: click here
GCC is a leading supplier and producer of cement, concrete, aggregates and construction‐related services in the United States, Mexico and Canada, with 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
+52 (614) 442 3176
+ 1 (303) 739 5943