Date: October 27, 2020
Total revenue for the nine months ended September 30, 2020 grew by 12% amounting to $15.10 billion, up from $13.51 billion reported a year ago. For the quarter, revenues amounted to $5.77 billion (2019: $4.38 billion).
Cost of Sales closed the period under review at $8.14 billion (2019: $7.69 billion). As such, gross profit totalled $6.97 billion versus $5.82 billion booked in the same period last year.
Operating expenses recorded a 2% decline closing the nine months at $1.79 billion compared to $1.83 billion reported in the previous comparable period. Consequently, operating profit amounted to $4.93 billion for the year, an increase of 32% over 2019’s $3.72 billion. While for the quarter, operating profit closed at $2.20 billion (2019: $826.97 million). Management highlighted that, “This solid operating result is attributable to higher volumes sold, prudent cost containment measures and operational efficiencies that have allowed us to keep operational costs and expense in check despite the increased rate of production.”
Financial Income amounted to $7.93 million for the period compared to $6.13 million for the corresponding period in 2019. Finance Costs for the nine months closed at $503.33 million compared to $676.58 million incurred for the corresponding period of 2019.
Notably, loss on foreign exchange amounted to $923.45 million (2019: $769.80 million). For the quarter, loss on foreign exchange closed at $265.55 million (2019: $380.21 million).
Consequently, Profit before Taxation for the period amounted to $3.51 billion, 54% more when compared with a profit of $2.28 billion recorded last year. CCC stated that, “The Company continues with an aggressive USD debt repayment policy which has allowed it to reduce the financial expenses by $36 million and the Company’s foreign exchange risk compared with Q3 2019.” Taxation for the period increased from $711.51 million reported for the nine months of 2019 to $1.27 billion in 2020.
As such, Net profit for the period closed at $2.23 billion relative to net profit of $1.57 billion booked for the corresponding period in 2019, an increase of 42% year over year. Net profit for the quarter however amounted to $1.23 billion, relative to $76.85 million reported in 2019.
Consequently, earnings per share (EPS) amounted to $2.62 (2019: $1.85) while earnings per share for the quarter amounted to $1.44 (2019: $0.09). The twelve months trailing EPS is $2.99. The number of shares used in this calculation was 851,136,591 shares. CCC stock price closed the trading period at a price of $53.76 on October 27, 2020.
Balance sheet at a Glance:
Total Assets fell by 5% or $1.37 billion to close at $26.74 billion as at September 30, 2020 (2019: $28.10 billion). This decrease in total assets was largely due to the $494.94 million decrease in ‘Property, Plant and Equipment’ which closed at $23 billion (2019: $23.49 billion).
Shareholder’s equity totaled $10.58 billion compared to the $7.99 billion quoted as at September 30, 2019. This resulted in a book value of $12.43 (2019: $9.39).
Analyst Certification –The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. 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.
