Grupo Cementos de Chihuahua a leading supplier and producer of cement and concrete in the United States, Mexico and Canada, has announced its results for the fourth quarter and full year 2020.
2020 full year highlights:
- US 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 US dollars.
- Consolidated net sales totalled 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 totalled 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 totalled US$99.6 million, with a 122.5% conversion rate from EBITDA.
- Earnings per share decreased 29% year-on-year, to US$0.0831.
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 US, 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.”
Read the article online at: https://www.worldcement.com/the-americas/27012021/grupo-cementos-de-chihuahua-shares-financial-results/