GCC, a leading supplier and producer of cement and concrete in the United States and Mexico, announced consolidated net sales increased 13.7% year-on-year to $364.1 million in the second quarter of 2023.
This was primarily due to increased concrete volumes in the United States, increased cement and concrete volumes in Mexico, and a favorable price environment in both markets. These were partially offset by decreased cement volumes in the United States.
“Despite persistent weather-related challenges during the quarter, GCC achieved year-on-year growth in both top and bottom-line, attributable to the successful execution of our pricing and cost strategies, along with our focus on operational excellence,” said Enrique Escalante, GCC chief executive. “We remain vigilant in monitoring demand and economic dynamics in the U.S., planning to ensure we’re positioned to capture opportunities, while we take advantage of the momentum we’re seeing in the Mexican market.”
U.S. sales for the second quarter increased by 6.6% to $253.4 million and represented 70% of GCC’s consolidated net sales. This was due to a 3.6% increase in concrete volumes and a 16.6% and 16.9% increase in cement and concrete prices, respectively, partially offset by an 11.5% decrease in cement volumes. The oil and gas sector was the quarter’s most dynamic market segment.
For the first six months of the year, U.S. sales increased by 7.6% to $401.7 million. This was primarily due to a 9.3% increase in concrete volumes and an 18% and 13.5% increase in cement and concrete prices, respectively, partially offset by a 10.8% decrease in cement volumes.
Mexico sales increased by 34.4% in the second quarter of 2023 to $110.7 million, representing 30% of GCC’s consolidated net sales. This was due to a 3.2% and 8.8% increase in cement and concrete volumes, respectively and an 11.5% and 14% increase in cement and concrete prices, respectively.
The appreciation of the Mexican peso against the U.S. dollar during the quarter increased sales by $11.7 million. For comparative purposes, Mexico sales excluding the appreciation of the Mexican peso increased by 20.2%. Sales during the quarter were primarily driven by demand related to industrial maquiladora plants and warehouse construction.
Mexico sales increased by 34.2% to $206.3 million in the six-month period, due to a 6.9% and 9.9% increase in cement and concrete volumes, respectively and an 11.9% and 12.6% increase in cement and concrete prices, respectively.
