Cement and concrete producer Grupo Cementos de Chihuahua (GCC) released its results for the third quarter 2020. Consolidated net sales decreased 6.8% for the quarter compared to the prior-year period.
Despite the decline in sales, the company’s net income was up 7.8% for the third quarter. EBITDA increased 3.7% to $99.9 million, with a 35.5% EBITDA margin compared to the third quarter of 2019. Further, the producer reported that Mexico cement volumes were up 8.1%.
Enrique Escalante, GCC’s chief executive officer, commented: “GCC had a steady EBITDA growth, a strong free cash flow generation & margin expansion, showing once again, the continued and successful execution of a comprehensive plan to reduce costs and expenses. We experienced mixed demand for our products in most of our markets in Mexico and the U.S; however, both exceeding our expectations from the beginning of the COVID-19 pandemic.”
Escalante continued, “Looking forward, our backlog remains encouraging, while overall macro conditions show mixed signs, and short-term uncertainty prevails, mainly COVID-19 outbreaks and weather. Therefore, our goal is to maintain our financial strength, keep people safe and employed, and to continue to serve GCC’s life blood – our invaluable customers.”
“We delivered better than expected results, but we are not completely satisfied yet. We will continue looking intensely at efficiencies, costs and expenses; always focusing on liquidity and our people’s health as a top priority,” he concluded.