CCC reports 122% increase in year-end net profits

Date: February 20, 2018 

Caribbean Cement Company Limited (CCC) for the for the year ended December 31, 2018 reported total revenue for the year ended December 31, 2018 of $17.57 billion, a 6% or $1.06 billion increase when compared with the $16.51 billion reported in 2017. Total revenue for the quarter amounted to $4.33 billion reflecting an increase of 2% over the $4.25 billion achieved in the corresponding quarter.

Earnings before interest, tax, depreciation & amortization (EBITDA) amounted to $5.32 billion, an increase of 79% relative to $2.98 billion for the prior year’s corresponding period. For the quarter, CCC reported EBITDA of $1.46 billion, $911.88 million more than that reported in 2017 (2017: $550.44 million).

Depreciation and amortization closed the year end at $1.16 billion (2017: $531.60 million). CCC reported no Stockholding and inventory restructuring loss for the period relative to $457.82 million reported in 2017. Also, the Company booked no Manpower Restructuring Cost relative to  $416.85 million reported in 2017. As such, operating profit for the year amounted to $4.16 billion relative to $1.57 billion booked in 2017.

Interest Income for 2018 financial year end amounted to $12.44 million, a 144% increase compared to $5.10 million for the corresponding period in 2017.

Notably, the company reported $877.54 million for finance cost compared to a $67.87 million reported in 2017.

Profit before taxation for the year end amounted to $3.29 billion, a 118% increase when compared with the $1.51 billion recorded for the 2017 year end. Taxation for the period amounted to $828.57 million, a vast increase of 108% when compared with the $398.68 million reported in 2017. As such, Net profit for the 2018 financial year closed at $2.47 billion, a 122% increase relative to net profit of $1.11 billion reported during the corresponding period in 2017. Net profit for the quarter amounted to $1.15 billion compared to a loss of $702.31 million for the corresponding quarter of 2017.

Total comprehensive income attributable to shareholders for the period amounted to $2.41 billion compared to $1.10 billion for the corresponding period in 2017.

Consequently, earnings per share (EPS) amounted to $2.90 (2017: $1.31), while the earnings per share for the quarter was $1.35 (2017: LPS of $0.83). The number of shares used in this calculation was 851,136,591 shares. Notably, the stock price for CCC closed the trading period on February 20, 2018 at $43.31.

Balance sheet at a Glance:

Total Assets as at December 31, 2018 amounted to $26.79 billion (2017: $12.33 billion), an increase of 117%. The increase in total assets was largely due to the increase in property, plant and equipment which grew by $15.50 billion to a total of $23.78 billion (2017: $8.28 billion). Cash and cash equivalents however tempered this increase in assets with a $1.25 billion decline to $420.79 million (2017: $1.67 billion). The Company noted, “the termination of the lease with our Parent Company, Trinidad Cement Limited (TCL) was concluded in April 2018 with the acquisition of Kiln 5 and Cement Mil 5 (JA$14.9 billion). This transaction is a significant investment in plant and equipment and has increased the company’s fixed asset base by 187%, from JA$8.3 billion as at December 2017 to JA$23.8 billion as at December 2018 as well as improvement in financial results.”

Shareholder’s equity totaled $6.42 billion compared to the $8.34 billion quoted as at December 31, 2017. This resulted in a book value of $7.54 (2017: $9.80).


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