Grupo Cementos de Chihuahua, a leading supplier and producer of cement and concrete in the United States, Mexico and Canada, shared its results for the fourth quarter and full year 2020.
Consolidated net sales totaled $937.8 million for the full year, while net sales increased 1.7%, to $232.5 million for the fourth quarter. Although EBITDA decreased 5.9% for the quarter, it increased 5.6% to $308.3 million for the full year with a 32.9% EBITDA margin and a 160 basis-point increase.
For 2020, U.S. 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 U.S. dollars for the year. For the fourth quarter, Mexico cement volumes increased 13.5%.
“GCC wrapped up 2020 with strong operational and financial results despite the challenges created by the COVID-19 pandemic,” said Enrique Escalante, GCC’s chief executive officer. “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 U.S, 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.”
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.”