CCC reports 48% increase in six months net profits

Date: July 30, 2019 

Caribbean Cement Company Limited (CCC) for the six months ended June 30, 2019, reported total revenue of $9.13 billion, 4% increase from $8.77 billion reported a year ago. Earnings before interest, tax, depreciation & amortization (EBITDA) amounted to $3.69 billion, an increase of 60% relative to $2.30 billion for the prior year’s corresponding period.

Depreciation and amortization closed the period at $796.01 million (2018: $466.53 million). CCC also reported no stockholding and inventory restructuring costs relative to $22.86 million reported in 2018. As such, operating profit totaled $2.90 billion for the year, an increase of 56% over 2018’s $1.86 billion.

Interest Income amounted to $5.14 million for the period compared to $7.57 million for the corresponding period in 2018. Finance Costs for the six months closed at $856.84 million compared to $386.19 million incurred for the corresponding period of 2018. CCC noted this was attributed to, “higher interest expenses associated with the loan acquired on May 30, 2018, in connection to the acquisition of Kiln #5 and Cement Mill #5 have also been contributing factors”.

Consequently, Profit before Taxation for the period amounted to $2.05 billion, 38% more when compared with a profit of $1.48 billion recorded last year. Taxation for the period however increased 16% from $474.16 million reported for the six months of 2018 to $549.93 million.

Net profit for the period closed at $1.50 billion relative to net profit of $1.01 billion booked for the corresponding period in 2018, an increase of 48% year over year. Net profit for the quarter amounted to $368.46 million, a 45% decrease relative to $673.65 million reported in 2018.

Total comprehensive income for the period closed at $1.50 billion, relative to $1.05 billion for the corresponding period in 2018. Total comprehensive income for the quarter amounted to $368.46 million relative to $704.28 million reported in 2018.

Consequently, earnings per share (EPS) amounted to $1.76 (2018: $1.18), while earnings per share for the quarter amounted to $0.43 (2018: $0.79). The twelve months trailing EPS is $3.47. The number of shares used in this calculation was 851,136,591 shares. CCC stock price closed the trading period at a price of $77.98 on July 29, 2019.

Balance sheet at a Glance:

Total Assets grew by 1% million or $247.86 million to close at $26.81 billion as at June 30, 2019 (2018: $26.56 billion). This increase in total assets was largely due to the $194.10 million increase in ‘Property, Plant and Equipment’ which closed at $23.54 billion (2018: $23.34 billion). ‘Inventories’ also increased 40% to close the period at $$2.03 billion ($1.44 billion).

Shareholder’s equity totaled $7.91 billion compared to the $9.38 billion quoted as at June 30, 2018. This resulted in a book value of $9.29 (2018: $11.03).

Disclaimer:

Analyst Certification -This research report is for information purposes only and should not be construed as a recommendation. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.

Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.

2019-07-30T14:31:57+00:00