CCC reports six months net profit of $3.04 billion

July 28, 2022

Caribbean Cement Company Limited (CCC) for the six months ended June 30, 2022, reported total revenue of $13.52 billion, a 10% increase from $12.31 billion reported a year ago. Revenue for the quarter rose 6% to close at $6.70 billion compared to $6.34 billion in 2021.

Cost of Sales as at the end of June 2022 amounted to $7.41 billion relative to $6.43 billion recorded for the six months ended June 30, 2021. Gross profit for the period amounted to $6.10 billion, a 4% increase relative to $5.88 billion for the prior year’s corresponding period. Gross profit for the quarter closed at $2.93 billion in contrast to $3 billion for the same quarter of 2021.

Operating Expenses for the period under review amounted to $1.35 billion relative to $1.26 billion booked for the corresponding period in 2021. Consequently, CCC reported an ‘Operating earnings before other (expenses) income, net’ of $4.75 billion, 3% more than $4.62 billion booked last year same time.

Other expenses year to date closed at $433.42 million compared to $192.26 million posted twelve months earlier. As such, operating profit amounted to $4.32 billion versus $4.43 billion for the six months ended June 30, 2021. Operating profit for the quarter totaled $1.98 billion relative to $2.17 billion for the quarter ended June 30, 2021.

Financial Income amounted to $7.33 million for the period compared to $7.07 million for the corresponding period in 2021. Finance expenses for the period under review closed at $276.18 million relative to $300.09 million incurred for the corresponding period of 2021. Additionally, loss on foreign exchange amounted to $19.14 million, down 93% compared to the $258.48 million reported for the comparable period in 2021.

Consequently, Profit before taxation for the period amounted to $4.03 billion, a 4% improvement compared with a profit of $3.88 billion recorded last year.  Profit before taxation for the quarter amounted $1.86 billion relative to $1.98 billion for the second quarter ended June 30, 2021. CCC noted, “The improvement in “Earnings before taxation” was due to the positive impact on foreign exchange resulting from a reduction in the foreign currency exposure.”

Taxation for the period increased 26% from $785.85 million reported for the six months of 2021 to $989.73 million for the period under review.

Net profit for the period closed at $3.04 billion relative to net profit of $3.09 billion booked twelve months earlier, reflecting a 2% decline year over year. Net profit for the quarter amounted to $1.45 billion, a 7% contraction relative to $1.56 billion reported in 2021.

Total comprehensive income for the period closed at $3.06 billion, relative to $3.13 billion for the corresponding period in 2021.

Consequently, earnings per share (EPS) amounted to $3.57 (2021: $3.63), while earnings per share for the quarter amounted to $1.71 (2021: $1.84). The twelve months trailing EPS is $5.04. The number of shares used in this calculation was 851,136,591 shares. CCC stock price closed the trading period at a price of $63.15 on July 28, 2022 with a corresponding P/E of 12.52 times.

CCC noted, “Caribbean Cement Company Limited As CCCL continues to centre its attention on climate change mitigation, we are pleased with the response of the market to our Vertua-certified cement since its introduction in February. This low-carbon cement, which has a range of features and benefits, including being more environmentally friendly and easy to place and finish without any special equipment, has moved us a step closer to reducing our carbon footprint.”

Furthermore, “This game-changing solution aligns with the mandate of CEMEX’s “Future in Action” global sustainability strategy and forms part of the efforts other CEMEX operations are employing in various countries towards attaining carbon neutrality. It also follows the United Nation’s Sustainable Development Goals on climate action”, as per CCC.

Balance sheet at a Glance:

Total Assets rose by 12% to close at $29.40 billion as at June 30, 2022 (2021: $26.13 billion). This increase in total assets was largely due to the $1.33 billion growth in ‘Inventories’ which closed at $4.12 billion (2021: $2.79 billion). ‘Accounts receivables from related parties’ also contributed to the increase by closing at $710.27 million (2021: $96.47 million).

Shareholder’s equity totaled $18.84 billion compared to the $14.66 billion quoted as at June 30, 2021. This resulted in a book value of $22.13 (2021: $17.23).

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2022-07-28T21:11:40-05:00