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).

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