Caribbean Cement Company Limited (CCC)
For the six months ended June 30, 2021: –
Caribbean Cement Company Limited (CCC) for the six months ended June 30, 2021, reported total revenue of $12.31 billion, a 32% increase from $9.33 billion reported a year ago. Revenue for the quarter also increased 33% to close at $6.34 billion compared to $4.78 billion in 2020. The Company stated that, “this increase in revenue was mainly attributable to the stronger domestic demand and the Company’s capacity to supply the local market.”
Cost of Sales as at the end of June 2021 amounted to $6.43 billion relative to $5.21 billion recorded for the six months ended June 30, 2020. Gross profit for the period amounted to $5.88 billion, a 43% increase relative to $4.12 billion for the prior year’s corresponding period. Gross profit for the quarter closed at $3 billion in contrast to $2.25 billion for the same quarter of 2020.
Operating Expenses for the period under review amounted to $1.26 billion relative to $1.25 billion booked for the corresponding period in 2020. Consequently, CCC reported an ‘Operating earnings before other (expenses) income, net’ of $4.62 billion, 61% more than $2.87 billion booked last year same time.
Other expenses year to date closed at $192.26 million compared to $139.39 million posted twelve months earlier. As such, operating profit amounted to $4.43 billion versus $2.73 billion for the six months ended June 30, 2020. Operating profit for the quarter totaled $2.17 billion relative to $1.59 billion for the quarter ended June 30, 2020.
Financial Income amounted to $7.07 million for the period compared to $4.50 million for the corresponding period in 2020. Finance expenses for the period under review closed at $300.09 million relative to $330.48 million incurred for the corresponding period of 2020. Additionally, loss on foreign exchange amounted to $258.48 million, down 61% compared to the $657.90 million reported for the comparable period in 2020.
CCC noted, “the Company continues with an aggressive USD debt repayment policy which has allowed it to reduce the financial expenses by $29 million and the Company’s foreign exchange risk compared with the corresponding period last year.”
Consequently, Profit before taxation for the period amounted to $3.88 billion, a significant improvement compared with a profit of $1.74 billion recorded last year. Profit before taxation for the quarter amounted $1.98 billion relative to $1.05 billion for the second quarter ended June 30, 2020. Taxation for the period increased 6% from $738.67 million reported for the six months of 2020 to $785.85 million.
Net profit for the period closed at $3.09 billion relative to net profit of $1 billion booked twelve months earlier, reflecting an increase of 208% year over year. Net profit for the quarter amounted to $1.56 billion, a 200% increase relative to $521.12 million reported in 2020.
Total comprehensive income for the period closed at $3.13 billion, relative to $1 billion for the corresponding period in 2020.
Consequently, earnings per share (EPS) amounted to $3.63 (2020: $1.18), while earnings per share for the quarter amounted to $1.84 (2020: $0.61). The twelve months trailing EPS is $6.21. The number of shares used in this calculation was 851,136,591 shares. CCC stock price closed the trading period at a price of $91.64 on July 29, 2021 with a corresponding P/E of 14.76 times.
CCC noted, “Caribbean Cement Company Limited will continue to be responsive to market conditions and opportunities to improve our business performance. We are encouraged by strong domestic demand and will continue to demonstrate the resilience and strategic planning necessary to meet unexpected spikes.”
Furthermore, “the investments made over the last few years have prepared us to capitalise on commercial opportunities. We expect continued buoyancy in the construction sector, driven by both government-initiated infrastructure projects and the many private development initiatives.” as per CCC.
Balance sheet at a Glance:
Total Assets fell by 2% or $647.82 million to close at $26.13 billion as at June 30, 2021 (2020: $26.78 billion). This decrease in total assets was largely due to the $742.71 million decrease in ‘Property, plant and equipment’ which closed at $22.46 billion (2020: $23.21 billion). ‘Deferred taxes’ also contributed to the decrease by closing at nil (2020: $363.05 million). Movement was however offset by an increase in ‘Trade accounts receivables’ which increased to $2.79 billion (2020: $1.99 billion).
Shareholder’s equity totaled $14.66 billion compared to the $9.31 billion quoted as at June 30, 2020. This resulted in a book value of $17.23 (2020: $10.94).
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