October 30 2023
Caribbean Cement Company Ltd (CCC) for the nine months ended September 30, 2023 reported an 8% increase in Revenues totaling $21.27 billion compared to $19.68 billion in the corresponding period last year. Revenues for the third quarter had a 13% increase to close at $6.99 billion compared to $6.17 billion for the comparable quarter of 2022.
Cost of sales amounted to $12.77 billion (2022: $10.84 billion), this represents a increase of 18% year over year. Consequently, gross profit decreased by 4% to $8.50 billion compared to $8.85 billion reported in 2022. The company booked gross profit of $3.51 billion for the third quarter versus $2.74 billion reported for the similar quarter of 2022.
Operating Expenses increased by 2% to close at $2.10 billion (2022: $2.05 billion), while Operating Profit before other income and other expenses decreased by 6% from $6.80 billion in 2022 to $6.40 billion in the period under review.
Operating profit for the nine months amounted to $5.77 billion, a 7% decrease relative to $6.20 billion reported in 2022. Operating profit for the third quarter amounted to $2.57 billion (2022: $1.88 billion). CCC noted for the quarter, “The increase Operating earnings was primarily due to the increase in revenue and the continued realization of the benefits from cost containment due to improved operational efficiencies resulting in the stabilization of operational expenses arising from the first quarter investments in maintenance efforts.”
Finance Costs totalled $142.02 million a 67% decrease from the corresponding period last year. (2022: $429.94 million).
Profit before taxation for the nine amounted to $5.63 billion, a 2% decrease relative to $5.76 billion reported in 2022. Profit before taxation for the third quarter amounted to $2.56 billion (2022: $1.73 billion).
Taxation for the nine months had a 18% decrease to reach $1.24 billion (2022: $1.51 billion). Net Profit for the nine months amounted to $4.39 billion, a 3% increase from the $4.25 billion reported in 2022. For the third quarter, Net Profit was $1.94 billion (2022: $1.21 billion).
Consequently, Earnings Per Share for the nine months amounted to $5.15 (2022: EPS: $5.00), while Earnings Per Share for the quarter totaled $2.28 (2022: EPS: $1.42). The twelve month trailing EPS was $6.48 and the number of shares used in these calculations was 851,136,591.
Notably, CCC’s stock price closed the trading period on October 27, 2023 at a price of $49.47 with a corresponding P/E ratio of 7.63x.
Balance Sheet Highlights
The company’s assets totalled $33.59 billion (2022: $30.42 billion). The increase in assets resulted mainly from a jump in ‘Accounts receivable from related parties’ closing at $4.12 billion from the $1.17 billion reported a year ago.
Shareholder’s equity was $22.76 billion (2022: $18.75 billion), representing a book value per share of $26.74 (2022: $22.03).
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