April 29, 2019
Caribbean Cement Company Limited (CCC), for the for the three months ended March 31, 2019 reported total revenue of $4.45 billion for the quarter, an increase of 2% or $108.31 billion increase when compared with the $4.34 billion reported in 2018.
Earnings before interest, tax, depreciation & amortization (EBITDA) amounted to $1.93 billion, an increase of 218% relative to $605.96 million for the prior year’s corresponding period. CCC noted, “contributing significantly to this quarters financials performance were improved operational efficiencies which have led to cost reductions in areas such as raw materials and consumables, repairs and maintenance and equipment hire. Additionally, these factors were also higher in the corresponding period because scheduled kiln stoppage performed between February and March 2018. The termination of the lease with Trinidad Cement Limited (TCL) concluded in April 2018 with the acquisition of the kiln 5 and cement mill 5. This has also contributed to the reduction in operating expenses while simultaneously registering significant investment in plant and equipment by $14.9 billion. This sum was partially covered by loans of $11.8 billion.”
Depreciation and amortization closed the quarter at $390.73 million (2018: $126.19 million). As such, operating profit for the first three months amounted to $1.54 billion relative to $479.78 million booked for the same quarter of 2018.
Interest Income of $3.26 million, a 33% decline compared to $4.88 million for the corresponding period in 2018.
Notably, the company reported $169.19 million for finance cost compared to an income $25.80 million reported in 2018.
Profit before taxation for the first quarter amounted to $1.37 billion, a 168% increase when compared with the $510.45 million recorded for the similar quarter of 2018. Taxation for the period amounted to $241.36 million, an increase of 37% when compared with the $176.13 million reported in 2018. As such, Net profit for the first three months of 2019 closed at $1.13 billion, a 237% increase relative to net profit of $334.32 million reported during the corresponding period in 2018.
Total comprehensive income attributable to shareholders for the period amounted to $1.13 billion compared to $347.81 million for the corresponding period in 2018.
Consequently, earnings per share (EPS) amounted to $1.33 (2018: $0.39). The twelve months trailing earnings per share amounted $3.83. The number of shares used in this calculation was 851,136,591 shares. Notably, the stock price for CCC closed the trading period on April 26, 2019 at $64.81.
According to the Management, “Caribbean Cement Company Limited continues to build on the gains made in 2018 with key indicators heading in the right direction. At the forefront of this is our emphasis on health and safety, measured in part by the employees achieving 551 and 1,375 incident free days at the Plant and Quarries respectively.”
Balance sheet at a Glance:
Total Assets as at March 31, 2019 amounted to $26.82 billion (2018: $12.92 billion), an increase of 108%. The increase in total assets was largely due to the increase in property, plant and equipment which grew by $14.09 billion to a total of $23.72 billion (2017: $9.63 billion). Cash and cash equivalents however tempered this increase in assets with a $744.84 million decline to $303.26 million (2018: $1.05 billion).
Shareholder’s equity totaled $7.54 billion compared to the $8.68 billion quoted as at March 31, 2018. This resulted in a book value of $8.85 (2018: $10.20).
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