CCC reports 70% increase in year end net profits

 March 01, 2021

Caribbean Cement Company Limited (CCC) reported total revenue for the year ended December 31, 2020 of $20.11 billion a 13% increase when compared with the $17.76 billion reported in 2019. For the quarter, total revenues closed at $5 billion (2019: $4.25 billion). CCC highlighted, “The increase in revenue was related to the stronger domestic demand and the company’s capacity to supply the local market.”

Cost of sales amounted to $10.97 billion (2019: $10.54 billion), which resulted in gross profit of $9.14 billion for the year end versus gross profit of $7.23 billion reported in the prior comparable year.

Operating expenses closed the year end at $2.35 billion (2019: $2.49 billion), a 6% decrease year over year. This led to a 43% increase in operating profit before other income to total $6.78 billion versus $4.73 billion in the previous corresponding year. The company noted, “ Despite the increase in production and sales, the company has been able to maintain similar levels in operating costs and expenses based on operational efficiencies achieved through the improvement to our main equipment and operational processes.”

Other expenses of $495.42 million was recorded for the period under review compared to other expense of $426.57 million booked in the same period last year.

Financial income amounted to $10.36 million (2019: $11.72 million). While financial expenses closed the year end at $811.76 million versus $938.94 million in the prior comparative year.

Notably, loss on foreign exchange booked a 66% surge closing the period at $1.06 billion relative to $640.36 million in the same period last year.

Consequently, earnings before taxation totaled $4.42 billion compared to $2.74 billion booked last year. For the quarter, earnings before taxation amounted to $916.48 million (2019: $452.83 million). Taxation charges of $1.23 billion (2019: $853.74 million) was incurred, thus resulting in consolidated net income of $3.20 billion recorded for the period under review versus $1.88 billion documented in the prior corresponding year. For the quarter, consolidated net income totaled $962.92 million (2019: $310.61 million). Total comprehensive income closed the year end at $3.22 billion (2019: $1.89 billion).

Consequently, earnings per share (EPS) amounted to $3.76 (2019: $2.21). Earnings per share, for the quarter, totaled $1.13 (2019: $0.36). The number of shares used in this calculation was 851,136,591 shares. Notably, the stock price for CCC closed the trading period on February 26, 2021 at $62.91, with a corresponding P/E ratio of 16.75 times.

Management noted, “We continue to operate in an environment of significant uncertainty. Our strategy will focus to effectively manage the variables under our control, providing to our customers an excellent service and highquality products. We will leverage the benefits of our recent plant modernisation programme that gave us record results in production in 2020. We look forward to continuing to support our customer’s goals, and the development of Jamaica in 2021.”


Balance sheet at a Glance:

Total Assets as at December 31, 2020 amounted to $26.32 billion (2019: $27.10 billion), a 3% decline. The decrease in total assets was largely due to the decrease in ‘Property, plant and equipment’ and ‘Trade accounts receivables’ which amounted to $22.98 billion (2019: $23.63 billion) and $141.40 million (2019: $509.42 million), respectively. ‘Inventories’ grew by 7% moving from $2.21 billion in 2019 to $2.37 billion in 2020.

Shareholders’ equity totaled $11.53 billion compared to the $8.31 billion quoted as at December 31, 2019. This resulted in a book value of $13.55 (2019: $9.76).



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