Businessuite Markets
Caribbean Cement Reporting Six Months Earnings Per Share Of JA$5.03, An Increase Of JA$2.16.
Parris A. Lyew-Ayee Chairman Caribbean Cement Company Limited (CCC) Has Released the Following Condensed Consolidated Unaudited Interim Financial Report For the Six Months Ended June 30, 2024
Financials
CCCL generated revenue of $15.3 billion for the six-month period ended June 30, 2024, representing a 7% increase over the same period in 2023. Revenue for the quarter increased by 3% to $7.7 billion compared to the same quarter last year.
“Operating earnings” for the six-month period were $5.4 billion, marking a 68% increase from the $3.2 billion reported for the same period in 2023.
For the second quarter, “Operating earnings” were $2.8 billion, 4% lower than the
$2.9 billion reported in 2023.
“Earnings before taxation” increased by 77% to $5.4 billion for the first half of the year. For the quarter, “Earnings before taxation” were $2.8 billion, a 4% decrease compared to the $2.9 billion achieved during the same period last year.
The improvement in “Earnings before taxation” for the first six months was primarily due to normalised operations, as the prior period incurred significantly higher costs from scheduled annual maintenance in the first quarter of 2023.
The overall “consolidated net income” for the first six months was $4.4 billion, an 80% increase over 2023, resulting in “Earnings per share” of $5.03, an increase of $2.16.
The net income for the quarter decreased to $2.5 billion, which is 14.3% higher than the corresponding period in 2023, resulting in “Earnings per share” of $2.76, an increase of $0.23.
In terms of cash flows, “Net cash flows provided by operating activities” were $4.6 billion and $7.8 billion for the second quarter and the first half of the year respectively, of which $5.2 billion was invested.
The company maintained a strong liquidity position at the end of the six-month period, with a cash and cash equivalents balance of $9.5 billion.
Outlook
Looking ahead, CCCL remains committed to driving social impact through our concrete pavement solutions, effectively contributing to the development of communities across Jamaica. In furtherance of our social responsibility, we have extended support to neighbouring communities in Kingston, St. Thomas, and Clarendon through an emergency relief fund, providing cement, sand, aggregates, and other building materials to those most affected by the passage of hurricane Beryl.
As we enter the next quarter, we are preparing for our annual maintenance programme and remain vigilant amidst anticipated fluctuations in product demand due to prevailing weather conditions. Nevertheless, we are confident in our resilience and will continue to implement sound management strategies to navigate potential challenges.
We are also continuing to execute our planned expansion programme, which will reduce our carbon footprint, and increase our production capacity by up to 30 percent to bolster the national cement supply as well as allow exports to other markets.
At CCCL, we are strongly optimistic about the future and remain focused on our mission of ‘Building a Greater Jamaica.’ We are confident that our continued attention to safety, sustainability, strategic partnerships, and financial prudence will pave the way for sustained growth and greater success.
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Businessuite Markets
Higher Operating Costs And Margin Pressures Impacted Main Event’s Overall Q1 Profitability.
Entering 2025 with a strategic focus on expanding revenue streams, strengthening client relationships, and maintaining financial discipline, the Company achieved revenue growth.
However, higher operating costs and margin pressures impacted overall profitability.
The Company reported revenues of $585.03M, representing a 3% or $17.28M increase over the $567.75M recorded in Q1 2024. This growth was primarily driven by a significant increase in revenue contribution from a previously underperforming segment, reflecting the success of targeted expansion efforts. While revenue remains below prior peak levels, the Company continues to recalibrate and drive demand through expanded service offerings and strengthened client engagements.
Gross profit for the quarter stood at $301.67M, reflecting a 4% decline from $315.82M in Q1 2024. This decline resulted from higher direct costs associated with event execution, infrastructure upgrades, additional non-recurring costs incurred during the period, and increased labour costs related to service delivery. Consequently, the gross margin contracted to 51.56% from 55.63% in the prior year. The Company remains focused on managing costs effectively to support long-term profitability.
Operating expenses increased to $218.72M, up 7.5% from $206.35M in Q1 2024. This rise was attributed to planned administrative enhancements, a significant one-off expenditure for the Company’s 20th Anniversary celebration, higher personnel costs, increased security and fuel expenses, and a 51% increase in amortisation expenses to $11.36M due to renegotiated lease agreements and the addition of a new lease.
Operating profit stood at $87.48M, a 24% decline from $115.28M in Q1 2024. Increased finance costs, stemming from renegotiated lease agreements and new lease additions, also impacted results.
Net profit for the quarter amounted to $73.67M, a 27% decrease from $100.25M in Q1 2024, influenced by lower gross margins, increased operational costs, and higher impairment charges. As a result, earnings per share (EPS) fell from $0.33 in Q1 2024 to $0.25 in Q1 2025.
Total assets grew by 6.4%, reaching $1,306.01M, up from $1,227.37M in Q1 2024. This increase was primarily driven by a 53% rise in receivables, reflecting expanded customer engagements, with several balances stemming from events executed near the period’s end. Short-term deposits increased to $250.24M from $236.50M, while cash and bank balances declined by 30% to $131.74M from $188.91M due to timing differences in collections and reinvestments.
Shareholders’ equity strengthened to $956.17M, reflecting a 5% increase over $912.66M in Q1 2024. This growth was primarily supported by retained earnings, demonstrating the Company’s ability to generate and reinvest profits efficiently.
Payables increased by 47%, rising to $229.58M from $156.38M in Q1 2024, mainly due to the timing of event executions towards the end of the quarter, resulting in higher accrued expenses related to supplier payments.
While the macroeconomic environment remains uncertain, the Company remains optimistic about the upcoming quarters. The focus will be on enhancing operational efficiencies to manage cost structures effectively and strengthening revenue streams through deeper market penetration and strategic partnerships. Additionally, the Company intends to use owned-events as a driver of revenue growth.
Our continued success is a testament to the dedication, creativity, and resilience of our exceptional team. Their ability to adapt and innovate in a dynamic industry ensures that we consistently exceed expectations and deliver outstanding experiences. Their dedication was especially evident during the holiday period, where they worked tirelessly to execute high-quality events, ensuring continued excellence in service delivery. We also recognise and appreciate the unwavering guidance of our Board; whose strategic leadership continues to drive our company’s growth and long-term vision.
Solomon Sharpe Chief Executive Officer
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