Grupo Cementos de Chihuahua shares financial results

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/