CHIHUAHUA, Mexico (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,  announced its results for the fourth quarter and full year of 2021.

FY 2021 HIGHLIGHTS

  • Consolidated net sales increased 10.8% to US$1,038.8 million for the full year
  • Total U.S. cement volumes grew 5.6% and 1.5%, excluding oil well cement
  • Mexico sales increased 17.9% as cement and concrete volumes increased 6.9% and 19.1%, respectively
  • U.S cement and concrete prices rose 8.9% and 5.1% respectively
  • EBITDA increased 9.6% to US$337.9 million with a 32.5% EBITDA margin
  • Free cash flow totaled US$243.7 million with a 72.1% conversion rate from EBITDA
  • Cash and equivalents reached a record high US$683 million
  • Earnings per share increased 15.5% year-on-year to US$0.4519
  • Net leverage (net debt/EBITDA) ratio dropped to -0.44x by year-end
  • A dividend of Ps. 1.0105 per share was paid on August 17, 2021, representing a 7.5% year-on-year increase
  • In January 2022, GCC successfully issued a US$500 million sustainability-linked bond with an interest coupon of 3.614% due April 2032. Proceeds were used to pay for the redemption of the GCC 5.250% notes due 2024 and to partially refinance bank debt maturities

Q4 2021 HIGHLIGHTS

  • Total U.S. cement volumes grew 5.1% and decreased 5.5% excluding oil well cement
  • Mexico cement and ready-mix volumes increased 4.5% and 14.1%, respectively
  • U.S. cement and ready-mix prices increased 11.8% and 3%
  • Consolidated net sales increased 10.9%, to US$257.9 million
  • EBITDA remained unchanged at US$81.3 million, with a 31.5% EBITDA margin
  • Free cash flow totaled US$88.8 million with a 109.2% conversion rate from EBITDA
  • Earnings per share increased 1.7% year on year, to US$0.0845

KEY FIGURES (millions of dollars)

Q4 21 Q4 20 Q4 21 vs
Q4 20
2021 2020 2021 vs 2020
Net sales 257.9 232.5 10.9 % 1,038.8 937.8 10.8 %
Operating income before other expenses, net 57.5 56.7 1.4 % 241.3 211.3 14.2 %
EBITDA* 81.3 81.3 0.0 % 337.9 308.3 9.6 %
EBITDA margin 31.5% 35.0% 32.5% 32.9%
Free cash flow** 88.8 96.4 -7.9 % 243.7 246.3 -1.0 %
Net income 28.0 27.5 1.8 % 149.7 129.7 15.4 %
Earnings per share (US$)*** 0.0845 0.0831 1.7 % 0.4519 0.3913 15.5 %

*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 another extraordinary year surpassing US$1 billion in sales with record high EBITDA, despite the inflationary environment and supply chain challenges. We will capitalize on opportunities to further increase prices and offset incremental costs, and our plant expansion will ensure GCC is well positioned for the growth we anticipate from the Infrastructure Investment and Jobs Act.”

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