Date: October 25, 2018
Caribbean Cement Company Limited (CCC) for the nine months ended September 30, 2018 total revenue grew by 8% amounting to $13.24 billion, up from $12.26 billion reported a year ago. Earnings before interest, tax, depreciation & amortization (EBITDA) amounted to $3.86 billion, an increase of 59% relative to $2.43 billion for the prior year’s corresponding period. The Company noted, “The positive results for the EBITDA was due mainly to the Company being more efficient on the plant which resulted in lower costs being incurred in operation. The termination of the operating lease arrangement with TCL and the increase in revenue have also contributed positively to the EBITDA amongst other strategic decisions that compensated for the impact of the increase in the variable cost from imported clinker and cement.”
Depreciation and amortization closed the period at $808.10 million (2017: $400.23 million). CCC also reported stockholding and inventory restructuring costs of $32.06 million (2017: $30.42 million). As such, operating profit totaled $3.08 billion for the year, an increase of 50% over 2017’s $2.06 billion.
Interest Income amounted to $9.60 million for the period compared to $1.92 million for the corresponding period in 2017. Finance Costs for the nine months closed at $1.08 billion compared to $4.40 million incurred for the corresponding period of 2017.
Consequently, Profit before Taxation for the period amounted to $2.01 billion, 3% less when compared with a profit of $2.07 billion recorded last year. Taxation for the period also increased 178% from $251.47 million reported for the nine month of 2017 to $700.01 million.
Net profit for the period closed at $1.31 billion relative to net profit of $1.81 billion booked for the corresponding period in 2017, a decrease of 28% year over year. Net profit for the quarter amounted to $305.09 million, a 59% decrease relative to $747.88 million reported in 2017.
Total comprehensive income for the period closed at $1.31 billion, relative to $1.88 billion for the corresponding period in 2017. Total comprehensive income for the quarter amounted to $254.93 million relative to $794.58 million reported in 2017.
Consequently, earnings per share (EPS) amounted to $1.54 (2017: $2.13) while earnings per share for the quarter amounted to $0.36 (2017:$0.88). The twelve months trailing EPS is $0.76. The number of shares used in this calculation was 851,136,591 shares. CCC stock price closed the trading period at a price of $47.00 on October 24, 2018.
Balance sheet at a Glance:
Total Assets grew by 116% or $14.38 million to close at $26.73 billion as at September 30, 2018 (2017: $12.35 billion). This increase in total assets was largely due to the $15.51 billion increase in ‘Property, Plant and Equipment’ which closed at $23.25 billion (2017: $7.73 billion). Management indicated, “The acquisition of Kiln 5 and Mill 5, from our parent company Trinidad Cement Limited (TCL) and the termination of the equipment lease, concluded in April 2018. This JA$14.9 billion deal represents a significant investment in plant and equipment, and improves the Company’s asset base and financial results. CCCL’s asset base (property, plant and equipment) increased by 201%, from JA$7.7 billion as at September 2017 to JA$23.3 billion as at September 2018.”
Shareholder’s equity totaled $10.26 billion compared to the $9.62 billion quoted as at September 30, 2018. This resulted in a book value of $12.05 (2017: $11.31).
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