Date: July 26, 2018
Caribbean Cement Company’s (CCC) AGM was held today July 26, 2018 and was hosted by Mr. Parris A. Lyew- Ayee, chairman of Caribbean Cement Company who commenced by the usual welcoming and introductions. This was shortly followed by the independent auditor’s report. From the director’s report, it was highlighted that turnover of $16.5 billion was booked, a 5% increase when compared to prior year of $15.78 billion. The company highlighted that, “Earnings before tax, depreciation, amortization and restructuring costs (adjusted EBITDA) was $3.0 billion for 2017 with adjusted EBITDA margin of 18% (2016: 16%). This was achieved via lower operating expenses as restructuring and efficiency initiatives begin to bear fruit.” However, Net profit went down for the year under review to $1.15 million from $1.30 million in 2016.
With the change in management of Cemex Group from the Trinidad Cement Limited (TCL) Group last year the company has placed focus on safety; that is improving safety conditions and by training safety behaviors. The programs implemented have resulted in reduced loss time injuries and total recordable injuries. “The reduction of fixed cost has also been top priority which declined by $1.2 million in 3 years,” stated Mr. Peter Donkersloot Ponce, General Manager, and this was achieved through various improvement methods.
Additionally, the company has reduced its working capital ($2.74 billion) by reducing capital expenditure with emphasis on accounts receivables allowing CCC’s cash flows to increase and providing more investment opportunities. He further elaborated on the US50 million investment in assets to ensure operational competitiveness for the growth of the company. The finalization of the 2-year strategic maintenance plan was put in place primarily aimed at the areas of quarry, kiln 5, mill 4 & 5 and Packing and is expected to conclude in November of this year. The company expects that it will achieve its optimal capacity of 1.2 million tons per year.
The manager highlighted the benefits of the use of concrete versus asphalt for the construction of our roads in Jamaica. These include:
- Lasts up to 30 years
- Lower temperature
- Reduction in fuel consumption by 3%
- Concrete requires 30% less lighting
Other Achievements in 2017
- Corporate Social Responsibility – More than 200,000 Jamaicans impacted
- Minority Representation – Minority Representation on the Lease Advisory Group
- Board Diversity – elected female board member and increase of independent member.
- Lease – The company had secured their investment by bringing back the assets from TCL with the use of cash $22M and a loan of 96M.
Main Challenges
- Regulation Framework
- Economy
- Energy Cost
- Technology
- Environment
- Competition
Leveraging the Alliance with CEMEX
- Redefine safety standards to global levels
- Be part of a worldwide network with global technical expertise
- Benefits from global supplier
- Research and development for new products
- Economies of scale
- Access to new technology and equipment
Outlook
- New packing line in October, which will bring total lines to 3.
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