CCC reports 216% increase in first quarter net profit

Date: April 29, 2021

Caribbean Cement Company Limited (CCC), for the three months ended March 2021, reported total revenue of $5.97 billion for the quarter, an increase of 31% when compared with the $4.55 billion reported in 2020.

Cost of sales amounted to $3.08 billion (2020: $2.68 billion), which resulted in gross profit of $2.88 billion for the quarter versus gross profit of $1.87 billion reported in the prior comparable quarter.

Operating expenses closed the quarter at $582.01 million (2020: $651.38 million), a 10% decrease year over year. This led to a 89% increase in operating profit before other income to total $2.30 billion versus $1.22 billion in the previous corresponding quarter. CCC noted that, “increased sales volumes, cost containment measures as well as operational efficiencies have all contributed to this growth.”

Other expenses of $40.54 million was recorded for the period under review compared to other expenses of $76.53 million booked in the same period last quarter. As such, operating profit closed the quarter at $2.56 billion (2020: $1.14 billion), a 98% increase year over year.

In addition, financial income amounted to $4.33 million (2020: $2.18 million). While, financial expenses closed the quarter at $162.10 million versus $163.78 million in the prior comparative quarter.

Notably, loss on foreign exchange closed the period under review at $208.56 million relative a loss on foreign exchange of $281.96 million booked in the same period last quarter.

Consequently, profit before taxation totaled $1.89 billion compared to $696.10 million booked last quarter of 2020. Taxation charges of $367.04 million (2020: $212.91 million) was incurred, thus resulting in consolidated net income of $1.53 billion recorded for the period under review versus $483.19 million documented in the prior corresponding quarter.

Total comprehensive income closed the period under review at $1.53 billion (2020: $470.18 million).

Consequently, earnings per share (EPS) amounted to $1.79 (2020: $0.57). The twelve months trailing earnings per share amounted $4.98. The number of shares used in this calculation was 851,136,591 shares. Notably, the stock price for CCC closed the trading period on April 28, 2020 at $77.00 with a corresponding P/E of 15.46x.

Management noted that, “domestic demand remains strong. Our company has demonstrated resilience and our management team employed the strategic planning necessary to meet the unexpected spikes. The investments made over the last few years have prepared us to capitalize on these opportunities. We expect continued buoyancy in the construction sector, driven by both government initiated infrastructure projects and the many private developments initiatives. We remain optimistic that the vaccine program in our country will lead to a further reopening of the economy which will be accompanied by the initiation of delayed private investment.”

In addition, CCC stated that, “we continue to focus on the operational safety of our business units. As of the end of Q1 2021, we have achieved 1,228 days without lost time injuries (LTI) at our Rockfort plant; 2016 days at our quarries and 618 days among our contractors. Notably, the Company highlighted that, “with investments made over the last few years, the company has been well equipped to meet the increasing domestic cement demand in the country.”

Balance sheet at a Glance:

Total Assets as at March 31, 2021 amounted to $26.82 billion (2020: $26.50 billion), a slight 1% increase. The increase in total assets was largely due to the increase in Inventories which rose to a total of $2.69 billion (2020: $2.11 billion). Property, Plant and Equipment however tempered this increase in assets closing the period at $22.72 billion (2020: $23.39 billion).

Shareholders’ equity totaled $13.06 billion compared to the $8.78 billion quoted as at March 31, 2020. This resulted in a book value of $15.35 (2020: $10.32).




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