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Earnings slip at Caribbean Cement Company Limited

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Results for Caribbean Cement Company Limited (CCCL) reflected higher revenue of J$17.76 billion in 2019 compared to J$17.57 billion in 2018.

(Photo: caribcement.com)

However, net profit came out at J$1.88 billion, down from J$2.5 billion the year before because of finance costs and foreign exchange losses.

Financial expenses of J$881.740 million  ($2018: $664.77 million) and foreign exchange losses of $640.36 million (2018: $212.77 million) were higher year over year, leading to reduced earnings.

Cost of sales was lower at $10.59 billion for 2019 compared to $11.23 billion in 2018. However, the finance costs and foreign exchange losses impacted results.

The company and its subsidiary manufacture and sell cement, clinker and is engaged in the mining and sale of gypsum, shale and Pozzolan.

Earnings per share for the year ended came out at 2.21 per unit compared to $2.9 the year before.

 CCC is a  65.65 per cent subsidiary of TCL (Nevis) Limited, itself a wholly owned subsidiary of CEMEX, S.A.B. de C.V. CEMEX, domiciled in Mexico and listed on the Mexican and New York stock exchanges.

On May 1, 2019, approval was granted by the Supreme Court of Judicature of Jamaica (Supreme Court) for the amalgamation of Jamaica Gypsum & Quarries Limited and Caribbean Gypsum Company Limited into Caribbean Cement Company Limited.

The approval resulted in the extinguishment of the issued share capital of Jamaica Gypsum & Quarries Limited and Caribbean Gypsum Company Limited and all assets and liabilities assumed by the Company.

Jamaica Gypsum & Quarries Limited and Caribbean Gypsum Company Limited were dissolved and struck off the Register of Companies.

Auditors KPMG mentioned the amalgamation as a key audit matter which they reviewed for compliance with the Companies Act of Jamaica and tax implications.

The company assumed assets and liabilities of both companies. At year-end December 31, 2019, CCCLs assets totalled $27.1 billion, compared to $26.7 billion the year before.

 Liabilities were $18.7 billion down from $20.37 billion the year before.