CCC reports 20% increase in nine months net profit

Date: October 29, 2019

Caribbean Cement Company Limited (CCC) for the Nine Months Ended September 30, 2019 total revenue grew by 2% amounting to $13.51 billion, up from $13.24 billion reported a year ago. Earnings before interest, tax, depreciation & amortization (EBITDA) amounted to $4.97 billion, an increase of 29% relative to $3.86 billion for the prior year’s corresponding period.

Depreciation and amortization closed the period at $1.20 billion (2018: $808.10 million). CCC also reported no stockholding and inventory restructuring costs relative to $32.06 million in 2018. The Company booked Manpower Restructuring Cost of $43.74 million relative to nil the prior year.  As such, operating profit totaled $3.72 billion for the year, an increase of 21% over 2018’s $3.08 billion.

Interest Income amounted to $6.13 million for the period compared to $9.60 million for the corresponding period in 2018. Finance Costs for the nine months closed at $1.45 billion compared to $1.08 billion incurred for the corresponding period of 2018.

Consequently, Profit before Taxation for the period amounted to $2.28 billion, 13% more when compared with a profit of $2.01 billion recorded last year. Taxation for the period also increased 2% from $700.01 million reported for the nine months of 2018 to $711.51 million.

Net profit for the period closed at $1.57 billion relative to net profit of $1.31 billion booked for the corresponding period in 2018, an increase of 20% year over year. Net profit for the quarter however amounted to $76.85 million, a 75% decrease relative to $305.09 million reported in 2018.

Total comprehensive income for the period closed at $1.57 billion, relative to $1.31 billion for the corresponding period in 2018. Total comprehensive income for the quarter amounted to $76.85 million relative to $254.93 million reported in 2018.

Consequently, earnings per share (EPS) amounted to $1.85 (2018: $1.54) while earnings per share for the quarter amounted to $0.09 (2018: $0.36). The twelve months trailing EPS is $3.20. The number of shares used in this calculation was 851,136,591 shares. CCC stock price closed the trading period at a price of $74.01 on October 29, 2019.

The Company noted, “The results for the third quarter (Q3) of the financial year were mainly affected by the unusual heavy rainfall negatively impacting the sales volume and higher operational expenses resulting from the timing of major maintenance performed on our main equipment. Also included in the operational expenses was the cost to demolish a large area of old and obsolete structures and equipment which resulted in safety and aesthetic improvements.”

Balance sheet at a Glance:

Total Assets grew by 2% or $642.43 million to close at $27.38 billion as at September 30, 2019 (2018: $26.73 billion). This increase in total assets was largely due to the $243.22 million increase in ‘Property, Plant and Equipment’ which closed at $23.49 billion (2018: $23.25 billion). ‘Inventories’ also increased by 37% to $2.41 billion relative to $1.76 billion a year earlier.

Shareholder’s equity totaled $7.99 billion compared to the $9.64 billion quoted as at September 30, 2018. This resulted in a book value of $9.39 (2018: $11.33).

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