CCC reports 33% decrease in six months net profit

July 28, 2020

Caribbean Cement Company Limited (CCC) for the six months ended June 30, 2020, reported total revenue of $9.33 billion, a 2% increase from $9.13 billion reported a year ago. Revenue for the quarter also inched up 2% to close at $4.78 billion compared to $4.68 billion in 2019. Cost of Sales as at the end of June 2020 amounted to $5.21 billion relative to $4.99 billion recorded for the six months ended June 30, 2019. Gross profit for the period amounted to $4.12 billion, a slight decrease relative to $4.14 billion for the prior year’s corresponding period. Gross profit for the quarter closed at $2.25 billion in contrast to $1.99 billion for the same quarter of 2019.

Operating Expenses for the period under review amounted to $1.25 billion relative to $1.16 billion booked for the corresponding period in 2019. Consequently, CCC reported an ‘Operating earnings before other (expenses) income, net’ of $2.87 billion, 4% less than $2.98 billion booked last year same time.

Other expenses year to date closed at $139.39 million compared to $82.91 million posted twelve months earlier. As such, operating profit amounted to $2.73 billion versus $2.90 billion for the six months ended June 30, 2019. Operating profit for the quarter totaled $1.59 billion relative to $1.36 billion for the quarter ended June 30, 2019.

Financial Income amounted to $4.50 million for the period compared to $5.14 million for the corresponding period in 2019. Finance expenses for the period under review closed at $330.48 million relative to $467.26 million incurred for the corresponding period of 2019. Additionally, loss on foreign exchange amounted to $657.90 million, 69% greater than $389.59 million reported for the comparable period in 2019.

Consequently, Profit before taxation for the period amounted to $1.74 billion, 15% less when compared with a profit of $2.05 billion recorded last year.  Profit before taxation for the quarter amounted $1.05 billion relative to $677.04 million for the second quarter ended June 30, 2019. CCC noted, “Contributing to this positive performance is an aggressive USD debt repayment policy which has led to the reduction of financial expenses of $0.06 billion (-28%) and a decrease in foreign exchange loss by $0.08 billion, (-18%) over Q2 2019. The overall “consolidated net income” of $0.5 billion was 41% higher than that of the Q2 2019.” Taxation for the period increased 34% from $549.93 million reported for the six months of 2019 to $738.67 million.

Net profit for the period closed at $1 billion relative to net profit of $1.50 billion booked twelve months earlier, reflecting a decrease of 33% year over year. Net profit for the quarter amounted to $521.12 million, a 41% increase relative to $368.46 million reported in 2019.

Total comprehensive income for the period closed at $988.07 million, relative to $1.50 billion for the corresponding period in 2019.

Consequently, earnings per share (EPS) amounted to $1.18 (2019: $1.76), while earnings per share for the quarter amounted to $0.61 (2019: $0.43). The twelve months trailing EPS is $1.64. The number of shares used in this calculation was 851,136,591 shares. CCC stock price closed the trading period at a price of $44.37 on July 28, 2020.

CCC noted, “Despite the increased operational risks posed by COVID-19, our plant modernisation programme and investment in training continues to yield favourable results in health and safety outcomes. As at the end of this quarter, we have attained 1,832 days without lost time injury at our quarries and 1,008 days at the plant. Embedded within our way of working are sound environmental practices which meet international standards and honour local regulations.”

Balance sheet at a Glance:

Total Assets fell by 3% or $728.83 million to close at $26.78 billion as at June 30, 2020 (2019: $27.51 billion). This decrease in total assets was largely due to the $338.73 million decrease in ‘Deferred tax assets’ which closed at $363.05 million (2019: $701.79 million). ‘Property, plant and equipment’ also decreased 1% to close the period at $23.21 billion ($23.54 billion).

Shareholder’s equity totaled $9.31 billion compared to the $7.91 billion quoted as at June 30, 2019. This resulted in a book value of $10.94 (2019: $9.29).



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