Cement and concrete producer GCC announced positive results for the second quarter of 2021. Consolidated net sales increased 18.1% to $286.7 million, while EBITDA increased 18.6% to $97 million, with a 33.8% EBITDA margin.
“GCC is off to an excellent first half of the year, we are very pleased with the results delivered – increasing top and bottom-line growth and EBITDA margin,” said GCC chief executive Enrique Escalante. “We are revising upwards our full-year guidance, based on the strong first half performance. It reflects that positive momentum persists in our industry. Cement demand is stronger than pre-pandemic levels, and construction activity is expected to remain robust throughout the year. Every kiln at GCC is up and running.”
GCC reported that Mexico cement and ready-mix concrete volumes increased 17.1% and 41.4%, respectively, for the second quarter. Total U.S. cement volumes grew 10.6% and rose 4% excluding oil well cement. U.S. cement and ready-mix prices increased 8.3% and 6%, respectively, during the quarter.
“Our balance sheet is strong and ready for growth. We will allocate more resources to our core business – cement – and our distribution network to maintain our competitive advantage while we focus on our sustainability strategy and CO2 reduction targets,” Escalante concluded.
The company has plans to spend between $450 million to $500 million on modernization projects to its cement business over the next three years.