CCC reports 5% decline in six months net profit

Date: July 27, 2018

Caribbean Cement Company Limited (CCC) for the Six Months Ended June 30, 2018, reported total revenue amounting to $8.77 billion, up from $8.08 billion reported a year ago. Earnings before interest, tax, depreciation & amortization (EBITDA) amounted to $2.30 billion, an increase of 58% relative to $1.46 billion for the prior year’s corresponding period.

Depreciation and amortization closed the period at $466.53 million (2017: $267.78 million). CCC also reported stockholding and inventory restructuring costs of $22.86 million (2017: $28.59 million). As such, operating profit totaled $1.86 billion for the year, an increase of 52% over 2017’s $1.22 billion.

Interest Income amounted to $7.57 million for the period compared to $1.84 million for the corresponding period in 2017. Finance Costs for the six months ended closed at $386.19 million compared to $6.45 million incurred for the corresponding period of 2017.

Consequently, Profit before Taxation for the period amounted to $1.48 billion, 22% more when compared with a profit of $1.22 billion recorded last year. Taxation for the period however increased 210% from $152.77 million reported for the six month of 2017 to $474.16 million.

Net profit for the period closed at $1.01 billion relative to net profit of $1.07 billion booked for the corresponding period in 2017, a decrease of 5% year over year. Net profit for the quarter amounted to $673.65 million, an 11% increase relative to $605.80 million reported in 2017.

Total comprehensive income for the period closed at $1.05 billion, relative to $1.09 billion for the corresponding period in 2017. Total comprehensive income for the quarter amounted to $704.28 million relative to $629.86 million reported in 2017.

Consequently, earnings per share (EPS) amounted to $1.18 (2017: $1.25), while earnings per share for the quarter amounted to $0.79 (2017:$0.71). The twelve months trailing EPS is $1.28. The number of shares used in this calculation was 851,136,591 shares. CCC stock price closed the trading period at a price of $40.86 on July 27, 2018.

CCC highlighted, “This performance resulted from the positive impact gained from the termination of the lease agreement with Trinidad Cement Limited (TCL) for the Kiln 5 and Mill 5, improvements in sales and marketing efforts amongst other strategic decisions.”

Balance sheet at a Glance:

Total Assets grew by $132% million or $15.09 million to close at $26.56 billion as at June 30, 2018 (2017: $11.46 billion). This increase in total assets was largely due to the $15.83 billion increase in ‘Property, Plant and Equipment’ which closed at $23.34 billion (2017: $7.52 billion). Management indicated, “The termination of the lease with our Parent Company, Trinidad Cement Limited (TCL) was concluded in April 2018. The acquisition of Kiln 5 and Mill 5, is a JA$14.9 billion deal, which is a significant investment in plant and equipment and has improved the company’s asset base and financial result. Cash and Cash Equivalents however declined over year to $595.20 million (2017: $1.06 billion).

Shareholder’s equity totaled $10.04 billion compared to the $8.83 billion quoted as at June 30, 2018. This resulted in a book value of $11.75 (2017: $10.37).

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