July 31, 2023
Caribbean Cement Company Ltd (CCC) for the six months ended June 30, 2023, realized a 6% increase in revenue totalling $14.28 billion compared to $13.52 billion in the corresponding six months last year. Revenue for the second quarter amounted to $7.48 billion relative to the $6.70 billion reported in the same quarter last year.
Cost of sales amounted to $9.29 billion (2022: $7.41 billion), this represents an increase of 25% year over year. Consequently, gross profit fell by 18% to $4.99 billion compared to $6.10 billion for the six months.
Total Operating Expenses grew by 3% to close at $1.39 billion (2022: $1.35 billion). Operating Earnings before Other Income and Expenses declined by 24% from $4.75 billion in 2022 to $3.60 billion for the six months, this was “due to the impact of the high cost experienced from the scheduled annual maintenance exercise in the first quarter of 2023”.
Operating Profit for the six months amounted to $3.20 billion, a 26% decrease relative to $4.32 billion reported in 2022. Finance Income totalled $36.52 million, a 398% rise from the corresponding period last year (2022: $7.33 million).
Profit before taxation for the six-month period amounted to $3.07 billion, a 24% decline relative to $4.03 billion reported in 2022. Management highlighted, “contributing to the Group’s positive ‘Earnings before taxation’ was the effect of the decision to implement a debt and foreign exposure reduction initiative”.
Taxation for the six months had a 37% decrease to total $624.56 million (2022: $989.73 million). Net Profit for the six months amounted to $2.45 billion, a 20% decline from the $3.04 billion reported in 2022.
Consequently, Earnings Per Share for the six months amounted to $2.87 (2022: EPS: $3.57). The twelve-month trailing EPS was $5.62, and the number of shares used in these calculations was 851,136,591. Notably, CCC’s stock price last traded on July 28, 2023, at a price of $56.60 with a corresponding P/E ratio of 10.06x.
Balance Sheet Highlights
The company’s assets totalled $31.49 billion (2022: $29.40 billion). The 7% increase in total assets was largely due to a $1.26 billion increase in ‘Accounts receivables from related parties’ amounting to $1.97 billion (2022: $710.27 million).
Shareholder’s equity was $22.43 billion (2022: $18.84 billion), representing a book value per share of $26.36 (2022: $22.13).
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