CCC reports 24% decline in year end net profits

Date: March 04, 2020

Caribbean Cement Company Limited (CCC) reported total revenue for the year ended December 31, 2019 of $17.76 billion a 1% or $190.73 million increase when compared with the $17.57 billion reported in 2018. For the quarter, total revenues closed at $4.25 billion (2018: $4.33 billion).

Cost of sales amounted to $10.60 billion (2018: $11.23 billion), which resulted in gross profit of $7.17 billion for the year end versus gross profit of $6.34 billion reported in the prior comparable year.

Operating expenses closed the year end at $2.49 billion (2018: $2.21 billion), a 13% increase year over year. This led to a 13% increase in operating profit before other income to total $4.67 billion versus $4.13 billion in the previous corresponding year.

Other expenses of $426.57 million was recorded for the period under review compared to other income of $29.48 million booked in the same period last year. As such, operating profit closed the year end at $4.25 billion (2018: $4.16 billion), a 2% increase year over year.

In addition, financial income amounted to $11.72 million (2018: $12.44 million). While, financial expenses closed the year end at $881.74 million versus $664.78 million in the prior comparative year.

Notably, loss on foreign exchange booked a 201% surge closing the period at $640.36 million relative to $212.77 million in the same period last year.

Consequently, earnings before taxation totaled $2.74 billion compared to $3.29 billion booked last year. For the quarter, earnings before taxation amounted to $452.83 million (2018: $1.28 billion). Taxation charges of $853.74 million (2018: $828.57 million) was incurred, thus resulting in consolidated net income of $1.88 billion recorded for the period under review versus $2.47 billion documented in the prior corresponding year. For the quarter, consolidated net income totaled $310.61 million (2018: $1.15 billion).

Total comprehensive income closed the year end at $1.89 billion (2018: $2.41 billion). As for the quarter, total comprehensive income amounted to $319.28 million (2018: $1.11 billion)

Consequently, earnings per share (EPS) amounted to $2.21 (2018: $2.90). Earnings per share, for the quarter, totaled $0.36 (2018: $1.35). The number of shares used in this calculation was 851,136,591 shares. Notably, the stock price for CCC closed the trading period on March 3, 2020 at $65.04.

Balance sheet at a Glance:

Total Assets as at December 31, 2019 amounted to $27.10 billion (2018: $26.79 billion), a marginal increase of 1%. The increase in total assets was largely due to the increase in ‘Inventories’ and ‘Cash and Cash Equivalents’ which amounted to $2.21 billion (2018: $1.73 billion) and $544.57 million (2018: $420.79 million), respectively. ‘Property, Plant & Equipment’ declined slightly moving from $23.78 billion in 2018 to $23.63 billion in 2019.

Shareholders’ equity totaled $8.31 billion compared to the $6.42 billion quoted as at December 31, 2018. This resulted in a book value of $9.76 (2018: $7.54).

Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.

Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.

2020-03-04T10:51:28-05:00