CCC reports 4% increase in first quarter net profit

April 29, 2022

Caribbean Cement Company Limited (CCC), for the three months ended March 2022, reported total revenue of $6.81 billion for the quarter, an increase of 14% when compared with the $5.97 billion reported in 2021. CCC noted that, “This increase in revenue was driven by the continued strong domestic demand being experienced, and the Company’s capacity to supply the local market.”

Cost of sales amounted to $3.64 billion (2021: $3.08 billion), which resulted in gross profit of $3.17 billion for the quarter versus gross profit of $2.88 billion reported in the prior comparable quarter.

Operating expenses closed the quarter at $630.04 million (2021: $582.01 million), an 8% increase year over year. There was an 11% increase in operating profit before other income to total $2.54 billion versus $2.30 billion in the previous corresponding quarter.

Other expenses of $204.18 million was recorded for the period under review compared to other expenses of $40.54 million booked in the same period last quarter. As such, operating profit closed the quarter at $2.34 billion (2021: $2.26 billion), a 3% increase year over year.

In addition, financial income amounted to $3.31 million (2021: $4.33 million). While financial expenses closed the quarter at $133.65 million versus $162.10 million in the prior comparative quarter.

Notably, loss on foreign exchange closed the period under review at $38.59 million relative a loss on foreign exchange of $208.56 million booked in the same period last quarter.

Consequently, profit before taxation totaled $2.17 billion compared to $1.89 billion booked last quarter of 2021. Taxation charges of $578.82 million (2021: $367.04 million) was incurred, thus resulting in consolidated net income of $1.59 billion recorded for the period under review versus $1.53 billion documented in the prior corresponding quarter.

Total comprehensive income closed the period under review at $1.64 billion (2021: $1.53 billion).

Consequently, earnings per share (EPS) amounted to $1.87 (2021: $1.79). The twelve months trailing earnings per share amounted $5.18. The number of shares used in this calculation was 851,136,591 shares. Notably, the stock price for CCC closed the trading period on April 28, 2022 at $70.95 with a corresponding P/E of 13.71x.

Management noted that, “The Company is heartened by the strong cement demand evidenced by several announcements from the Government and private developers to construct housing and luxury villas, especially those that will adopt an eco-friendly design.”

Balance sheet at a Glance:

Total Assets as at March 31, 2022 amounted to $27.93 billion (2021: $26.82 billion), representing a 4% increase. The increase in total assets was largely due to the increase in ‘Inventories’ which rose to a total of $3.47 billion (2021: $2.69 billion). ‘Cash and cash equivalents’ however tempered this increase in assets closing the period at $401.69 million (2021: $754.57 million).

Shareholders’ equity totaled $17.42 billion compared to the $13.06 billion quoted as at March 31, 2021. This resulted in a book value of $20.47 (2021: $15.35).


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