CCC reports 82% decline in first quarter net profit

May 3, 2023

Caribbean Cement Company Limited (CCC), for the three months ended March 2023, reported total revenue of $6.80 billion for the quarter, a marginal decline when compared with the $6.81 billion reported in 2022.

Cost of sales amounted to $5.50 billion (2022: $3.64 billion), which resulted in gross profit of $1.31 billion for the quarter versus gross profit of $3.17 billion reported in the prior comparable quarter.

Operating expenses closed the quarter at $670.20 million (2022: $630.04 million), a 6% increase year over year. There was a 75% decrease in operating profit before other income and expenses to total $636.73 million versus $2.54 billion in the previous corresponding quarter.

Other expenses of $319.33 million were recorded for the period under review compared to other expenses of $207.09 million booked in the same period last quarter. As such, operating profit closed the quarter at $317.40 million (2022: $2.34 billion), an 86% decline year over year.

In addition, financial income amounted to $7.30 million (2022: $3.31 million). While financial expenses closed the quarter at $98.50 million versus $133.65 million in the prior comparative quarter.

Notably, loss on foreign exchange closed the period under review at $69.68 million relative a loss on foreign exchange of $38.59 million booked in the same period last quarter.

Consequently, profit before taxation totaled $156.51 million compared to $2.17 billion booked last quarter of 2022. Taxation credit of $132.89 million (Taxation charge 2022: $578.82 million) was recorded, thus resulting in consolidated net income of $289.40 million recorded for the period under review versus $1.59 billion documented in the prior corresponding quarter.

Total comprehensive income closed the period under review at $212.85 million (2022: $1.64 billion).

Consequently, earnings per share (EPS) amounted to $0.34 (2022: $1.87). The twelve months trailing earnings per share amounted to $4.80. The number of shares used in this calculation was 851,136,591 shares. Notably, the stock price for CCC closed the trading period on May 2, 2023, at $56.90 with a corresponding P/E of 11.85x.

Management noted that, “CCCL remains committed to delivering its objectives under its Future in Action (FIA) strategy. During this quarter, the Company outlined its water action plan, which is aimed at achieving a reduction in freshwater withdrawals by more than 20 per cent before 2030. The Company is also nearing completion of the first phase of its biodiversity project, which is aimed at promoting growth and preservation of different endemic plant species or species of concern.”

Balance sheet at a Glance:

Total Assets as at March 31, 2023 amounted to $29.89 billion (2022: $27.93 billion), representing a 7% increase. The increase in total assets was largely due to the increase in ‘Accounts receivable from related parties’ which rose to a total of $1.15 billion (2022: $454.63 million). ‘Property, plant and equipment’ however tempered this increase in assets closing the period at $22.91 billion (2022: $23.04 billion).

Shareholders’ equity totaled $20.25 billion compared to the $17.42 billion quoted as at March 31, 2022. This resulted in a book value of $23.79 (2022: $20.47).


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