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Spur Tree Transitioning From Spices And Sauce Provider To Full-Blown Food Company, As It Reports Jump Of 41% In Q1 Revenues.

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Albert Bailey Chief Executive Officer at Spur Tree Spices Jamaica Limited has released the following report on the company’s first quarter ended March 31.

The company generated revenue of $237.1M for the quarter, representing an increase of 40.7% over the $168.48M achieved in the corresponding quarter for the previous year.

Although the newly acquired subsidiary, Exotic Products Jamaica Limited, generated revenue of $73.25M for the quarter, $71.06M of this amount was sold to Spur Tree Spices and hence only $2.18M is included in the consolidated revenue of $237.1M.

The strong performance in revenue growth continues to demonstrate the company’s push to expand its reach in the export markets and the strength of the brand among its loyal customers.

Despite the significant cost challenges being faced due to the ongoing supply chain issues, the company continues to work assiduously at growing efficiencies in all areas of the business. We continue to capitalize on the economies of scale provided by the growth in our top line in leveraging better input costs.

Cost of sales for this quarter is 62 % of revenue which is a significant improvement over the 70% achieved for corresponding period of the previous year.

With improved revenue performance and the cost reduction gained, gross profit for the quarter was J$89.0M up from $50.6M for the corresponding period for 2021. This represents an improvement of 75.8%, and gross margin improved to 38%, up from 30% for the same period of the previous year.

Administrative Expenses incurred for the period was $37.7M compared with $27.4M for the same period last year. The increase in administrative expenses is primarily driven by additional business costs, consolidation of expenses in Exotic Products and residual listing costs.

Net Profit before tax for the period was $51.01M, an improvement of $28.6M or 127.7% above the $22.4M achieved for the same period of the corresponding year.

Net Profit after tax is $50.8M, up from $17.3M for the same period of 2021, which in an improvement of approximately 194% over the corresponding period of the previous year.

Total Assets at the end of the quarter was $766.9M, up from $388M for the same period for last year and $596,7M for year ended December 2021. This position reflects an improvement of 97.6% above period ended March 2021, and 28.5% up from December 31, 2021.

Cash on hand improved to $223.2M at the end of the quarter, up from $51.2M at March 31,2021, an improvement of 336%.

Shareholders’ Equity was $671.9M at the end of the quarter, up from $199.7M for the corresponding quarter, an increase of 236.4%.

The directors are pleased with the results for the first quarter and is proud of the commitment and outstanding work of the executive team and staff as we strive for continued growth in all segments of the business.

“These initiatives include expansion of production capacity in both companies, Spur Tree Spices and Exotic Products, to meet increased demand for existing products, and the introduction of new items under the Spur Tree brand, as we continue our transition from a spices and sauce provider to a full-blown food company.”

Outlook

The company is working on several strategic priorities focused on growing revenue and containing costs. We expect to realize the full financial benefits of most of these initiatives sometime in the third quarter and beyond. These initiatives include expansion of production capacity in both companies, Spur Tree Spices and Exotic Products, to meet increased demand for existing products, and the introduction of new items under the Spur Tree brand, as we continue our transition from a spices and sauce provider to a full-blown food company. We have also begun work to expand our footprint in the local market with special emphasis on the food service segment.

As we look forward in the coming months, we will continue to prioritize this initiative, not only as an important element of our revenue growth strategy, but also as a part of our risk mitigation approach in building more diverse revenue streams.

We are cognizant of the current economic challenges, with inflation at record levels in our main market, the United States, and the uncertainty that this creates. However, we remain confident that the work being done in the market with various stakeholders, will put us in a great position to continue our current growth trajectory.

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See also Blue Collar Financial Analyses Spur Tree – It’s Undervalued @ $4.20… Rated Buy

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Jamaican Tea’s Group Experienced Mixed Fortunes In Third Quarter To June 2022

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John Mahfood – Chief Executive Officer and Director Jamaican Teas Limited has released the following statement on the company’s Third Quarter Results to June 2022

Export Manufacturing sales rose a strong 40 percent in the quarter as the division overcame the shortage of raw materials required to fulfil orders of finished products experienced earlier in the year. Local sales improved by 10 percent in the quarter over 2021.

The Retail Division put in a solid performance with a 28 percent sales increase in the quarter reflecting in part the absence of the COVID restrictions seen in 2021 and the return to our regular operating hours.

QWI ‘s investment share portfolio outperformed its overseas benchmarks but was still adversely affected by the strong retracement of share prices in the USA as well as in many main market stocks in Jamaica.

The third quarter and year to date attributable profits were lower than the prior year periods mainly as a result of the reversals at QWI.

Manufacturing Division – The highlight for the quarter was the strong gain in our export sales which rose 40%. Local sales improved by 10 percent in the quarter to bring total manufacturing sales for the nine months to $1,363 million, an increase of 12 percent over 2021 that delivered sales of $1,215 million.

Retail Division – For the third quarter revenues amounted to $161 million versus $126 million a year ago. The store has returned to its former hours of operation and has continued to see improved sales, customer count and profits following the quarter end.

Real Estate Division – This division booked several studio sales during the year ago quarter. That project is now completely sold. The Division’s latest project at Belvedere in Kingston is proceeding apace with physical completion anticipated later in calendar 2022.Sales activity for Belvedere has already commenced with the displaying of model units that have been well received by potential purchasers.

During the quarter there was a poor performance of stocks on the Jamaican and USA Stock Exchanges with significant share price retracements overseas but a stronger performance mainly in Jamaica’s Junior Market.

Investment Division – During the quarter there was a poor performance of stocks on the Jamaican and USA Stock Exchanges with significant share price retracements overseas but a stronger performance mainly in Jamaica’s Junior Market. This resulted in unrealised investment losses for QWI of $132 million in the quarter versus gains of $162 million in the year ago quarter.

Group Revenues – Total revenues for the quarter increased by 22 percent from $530.7 million to $649 million despite the absence of any real estate sales this quarter versus 2021 which included real estate sales from Manor Park. For the year-to-date sales increased 4 per cent.

The decrease in Investment Income this quarter mainly reflects the impact of unrealized fair value losses in QWI’s investment portfolio in the quarter.

Expenses – While revenues have been increasing, increases in our Cost of Sales for both the quarter and the year to date have outstripped the revenue growth resulting in the loss of two percentage points of gross profit margin. This adverse trend resulted from sharp increases in ocean freight costs as well as increases in raw materials costs not yet fully reflected in prices to our customers.

Price increases were effected in all our markets in January 2022 and again on July 1 2022.

Administrative costs rose and mainly reflects increased insurance and investment management expenses at QWI in the period as well as salary and wage increases at the Manufacturing division.

The increase in interest expense resulted from higher borrowings at QWI and the Manufacturing division, the latter due to the need to fund higher levels of inventory.

Net Profit– Profit before tax moved from $278 million a year ago to a loss of $70 million this quarter mainly resulting from the reversals in QWI’s investment portfolio referred to earlier. For the year to date, profit before tax moved from $661 million to $231 million.

Taxation moved from a charge of $68 million last year to a credit this quarter of $23 million Net profit for the quarter attributable to the members of Jamaican Teas was $24 million compared with $115 million in the previous year quarter. For the year to date, attributable net profit moved from $313 million to $186 million.

Basic attributable comprehensive income per share was 1 cent (2020/21– earnings of 5.0 cents) for the quarter and 9 cents (2020/21 – 15.0 cents) for the year to date.

Significant Balance Sheet Movements – The increases in inventory since Sept 2021 reflect the build-up of raw materials to offset ongoing delays in the delivery of some items imported from overseas.

The increase in Housing under Construction since September 2021 is a result of the build out of Belvedere while the increase in receivables resulted, in part from the growth in revenues reported above.

Much of this investment in inventories was funded by means of short-term borrowings which have increased by $128 million since September 2021.

Outlook – Our manufacturing business faced challenges earlier in the year but freight charges have begun to fall while the raw material shortages experienced have been overcome and sales order fulfilment has improved.

We are optimistic that our investment arm, QWI is well positioned to benefit from the ongoing recovery in tourism in Jamaica, increasing employment and the positive profit results at several listed companies on the stock market. The rising interest rates here and overseas will however prove to be a significant hindrance to the prices of all financial assets and this will temper the immediate prospects for future investment gains.

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Improved Market Conditions And Market Activities Results In Significant Improvement In Cess And Fee Income For Jamaica Stock Exchange Group Second Quarter Performance

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Marlene J Street Forrest Managing Director The Jamaica Stock Exchange Group has released the following statement on the company’s Second Quarter Performance for the period ending June 30, 2022

Second Quarter Performance
The Jamaica Stock Exchange Group (JSEG) recorded a Net Profit after Tax of $143.8m, which was 23.6% above the corresponding quarter in 2021.
Total Expenses increased by 24.8% compared to the corresponding quarter in 2021. The Return on Equity was 7.4% as against 7.2% in 2021, representing a 2.8% increase.

Income
Total Income for the JSEG of $570.9m, represents a $129.4m (29.3%) increase over the corresponding quarter of 2021. The increase can be attributed to improved market conditions and market activities which has resulted in the significant improvement in Cess and Fee Income by $56.2m (67.5%) and $78m (23.2%) respectively over the comparable period.

Expenses
Total Expenses of $355.2m increased by $70.5m (24.8%) when compared to the corresponding quarter in 2021.
The main expenditure contributing to the increase are as follows:
• Staff Cost was above 2021 comparatives by $29.7m (21.9%). This was mainly due to a 6% increase in salaries as well as a reclassification exercise resulting in the upward movement in salaries of some positions.
• Securities Commission Fees was above 2021 comparatives by $7.4m (58.7%), reflecting the direct correlation between Cess revenue and fees paid.
• Advertising and Promotion was above 2021 comparatives by $12m (133.3%) due to the increase in promotional activities which is aligned to revenue growth.
• Net Impairment Losses on Financial Assets decreased by $4.1m (105.1%) over prior year comparative. This decrease represents a reduction in the Expected Credit Loss due to an increase in the collection of long outstanding receivables.

Net Profit
Net Profit after Tax of $143.8m represents an increase of $27.5m (23.6%) when compared to the profit of $116.3m for the corresponding period in 2021. The increase in Net Profit reflects the improvement in Total Income during the quarter, primarily driven by the higher trading values in the market.

Financial Position
Total JSEG Assets as at June 30, 2022, of $2,455.3m, reflected an increase of $384.8m (18.6%), when compared to holdings as at June 30, 2021. This was due primarily to an increase in Property, Plant and Equipment, Intangible Assets and Government Securities purchased under resale agreement.

Total Equity of $1,952.9m as at June 30, 2022, reflects an increase of $340.5m (21.1%) and $61.1m (3.2%) over the comparable positions at the end of June 30, 2021, and December 31, 2021, respectively. Revenue Reserves reflect an increase of $86.9m (7.4%) over the position as at December profit.

Market Developments & Outlook
The Second Quarter results has been good and the outlook for the year is for improved performance, as investors and companies continue to demonstrate confidence in the economy despite the lingering threats and impact of COVID 19 and other market uncertainties.

We also believe that despite the geo-political unrest which will undoubtedly have some impact on the economy, overall, we do not expect that this will significantly affect income due to our successful diversification strategies.

We continue to implement our enterprise risk mitigating measures as well as those aimed at minimizing health and safety risks to employees and other stakeholders.

The JSEG remains resolute in its commitment to maximize stakeholders and the country at large.

The JSEG will continue in the medium to long term to pursue a strategic path of growth through the exploration and promotion of new and existing markets, new product development and the continuous improvement in systems and service delivery to the s customers and other stakeholders.

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GraceKennedy Reporting Revenue And Profit Ahead Of Half-Year Targets

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Donald G. Wehby, Group Chief Executive Officer for GraceKennedy Limited (GK) has released the following report on the company’s financial results for the six months ended June 30, 2022.

During the first half of 2022, GK achieved revenues of J$72.59 billion, representing an increase of 14.6% or J$9.24 billion over the corresponding period in 2021. Profit before tax (PBT) was J$5.46 billion or $12.6 million higher than the corresponding period in 2021.

Net profit attributable to stockholders was J$3.70 billion, $111.6 million higher than
the corresponding period in 2021. Earnings per stock unit for the period was J$3.73 (2021: J$3.62).

GK remains cautiously optimistic as we continue to manage the business through the challenges presented by high inflation globally, sustained supply chain issues, increasing interest rates, and foreign currency volatility. Notwithstanding the difficult economic climate, revenue and profit are ahead of our half-year target, and our team remains unwavering in their commitment to GK and focused on the execution of our strategic initiatives.

Performance of Business Segments

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Foods
GK’s food business recorded an overall growth in revenues when compared to the corresponding period of 2021.

PBT recorded an increase, however there were mixed results across the segment, reflecting the dynamic nature of the current economic environment within which we operate. Challenges included higher distribution costs, resulting in compressed margins.

Our Jamaican food distribution business continues to do well and recorded healthy growth in both revenues and pre-tax profits. Our next generation product portfolio, which includes Grace Sardines, Grace Tuna, Grace Mighty Malt and Grace Aloe, displayed growth over the corresponding period last year. Key products such as vienna sausages, frankfurters, and the Tastee Cheese and Tropical Rhythms lines reported strong growth over 2021.

World Brands Services (WBS) recorded a strong performance, with increases in both revenues and PBT over the corresponding period in 2021. This was driven by the growth of signature brands such as Frito-Lay, Capri Sun, Lucozade, and Mars. Consumer Brands Limited (CBL) also reported significantly increased revenues and PBT.

Both WBS and CBL continue to prioritize the expansion of their distribution points and have renewed customer engagement through in-store promotions.

GK’s chain of supermarkets in Jamaica, Hi-Lo Food Stores, remains focused on improving service levels and customer satisfaction. Strong growth in revenues and PBT were recorded during the period and Hi-Lo’s e-commerce platform continues to receive positive feedback from our customers.

GK’s Manufacturing Division achieved growth in revenues and PBT compared to the corresponding period last year, due to solid performances by Grace Agro-Processors (Hounslow), Dairy Industries Jamaica Limited (DIJL) and Grace Food Processors (Meats). The merger of two of our factories in Jamaica, National Processors (Nalpro) and Grace Food Processors (Canning), into NALCAN, is on track to be completed in 2022 and will bring greater efficiency to our manufacturing operations in Jamaica.

Our international food business recorded improvement in revenue over prior year; however, record inflation in all territories, as well as elevated distribution costs resulted in mixed performance results.

GraceKennedy Foods (USA) LLC (GK Foods USA) delivered good revenue growth over prior year. PBT was impacted by high demurrage and storage costs, for which corrective measures have been put in place. Cost saving and margin management initiatives continue to be implemented to help mitigate these conditions.

Grace Foods UK Limited reported a commendable performance, achieving growth in both revenues and PBT. The company remains challenged by high commodity prices and the high cost of trading in Europe due to BREXIT.

Notwithstanding, the food service side of the business has rebounded with significant improvements in both revenue and profitability compared to the prior year period.

Grace Foods Canada Inc. closed the second quarter of 2022 with revenues exceeding prior year; however, record inflation in the Canadian market and supply chain challenges affected margins and impacted PBT. Key products including Grace Corned Beef, Grace Mackerel and Grace Canned Peas remained popular, which helped to drive top line growth.

Grace Foods Latin America and the Caribbean (GF LACA) reported positive half year numbers with growth in both revenues and PBT being attributed to the strength of the Grace brand across the region. GF LACA was successful in negotiating the listing of Grace Sardines and Grace Coconut Milk in PriceSmart Barbados, and launched Grace Coconut Milk regionally, and Grace Coffee in Guyana.

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Financial Services
The GraceKennedy Financial Group (GKFG) reported a positive performance for the period, as we continue to expand our regional footprint.

Our Banking and Investments segment yielded positive results, led by GK Capital Management Limited (GK Capital), the investment and advisory arm of GKFG. GK Capital sustained its growth momentum into the second quarter of 2022, with revenues growing significantly compared to the same period last year. This positive performance was largely buoyed by the two successful initial public offerings of Spur Tree Spices Jamaica Limited and Jamaica Fibreglass Products Limited and GK Capital’s increased non-interest revenue streams.

GK Capital has signed an agreement with the largest operator and manager of mutual funds in the Caribbean, the Trinidad and Tobago Unit Trust Corporation (TTUTC). The new venture, which remains subject to the requisite regulatory approvals, will allow GK Capital and TTUTC to partner in the distribution of mutual funds in Jamaica.

First Global Bank (FGB), GK’s commercial bank in Jamaica, continues to achieve growth in its loans and deposits portfolios when compared to the prior year. FGB’s revenues increased over the same period last year and PBT recorded growth. For the remainder of 2022, FGB will continue to focus on implementing its digital strategy, including online credit card applications and other digital alternatives to in-branch transactions.

SigniaGlobe Financial Group Inc., GK’s jointly owned merchant banking business in Barbados, continues to show significant growth in retail loan and non-interest income revenue over the corresponding period of 2021. As a result, profitability over the period has doubled when compared to prior year. GraceKennedy Money Services (GKMS) reported a decline in revenue and PBT for the period, primarily attributed to lower remittance flows and the volatility of the Jamaican dollar against the US dollar.

The Bank of Jamaica has reported a decline in remittance inflows since the start of the year, and we have put strategies in place to address this which are focused on marketing, pricing, agents, compliance, and our customers.

Bill Express and FX Trader continue to perform well, and recorded growth in both revenues and PBT. GKMS remains focused on improving and expanding its digital channels and service levels.

GK’s Insurance segment continues to benefit from our recent acquisitions and recorded double digit growth. GKFG’s most recent acquisition, GK Life Insurance Eastern Caribbean Limited continues to implement its strategy to maximize the performance of its portfolio while establishing itself as a major pan-Caribbean insurer. Key Insurance Company Limited continued to produce positive results, recording growth in revenues and PBT during the first half of 2022.

Canopy Insurance Limited generated revenue growth over prior year in all business segments and remains focused on revenue diversification and the pursuit of strategic partnerships. The company remains challenged from a profitability perspective, driven primarily by medical inflation. Allied Insurance Brokers Limited is focused on strengthening and growing client relationships and leveraging partnerships.

GK General Insurance Company Limited (GKGI) outperformed its prior year revenues due to growth in its core business portfolios. An initiative which was implemented in the first quarter of 2022 to optimize GKGI’s structure and internal processes, as well as keen partner relationship management, have improved efficiency and service delivery and remain key to the company’s growth strategy.

Digital Transformation
The GK One mobile app was released in the Google Play and Apple App stores in March with the Bill Payment feature enabled. Customers can now also receive a Western Union remittance via the app, directly to their mobile wallet.

The Visa prepaid card associated with the app has been dubbed the “Shelly” card as it features an image of our outstanding Jamaican sprinter and GK Ambassador Shelly-Ann Fraser-Pryce. Customers have expressed excitement upon receiving their “Shelly” card and are responding positively to the ease of use of the GK One app and card. Additional money services are on target to be rolled out via the app in the coming months.

Mergers & Acquisitions
GK continues to advance its Mergers & Acquisitions (M&A) strategy. Following the acquisition of Bluedot in the second quarter of 2022, the M&A Unit continues to hold discussions regarding M&A transactions locally and internationally, as we move towards achievement of our 2030 objectives.

GraceKennedy Limited on Twitter: "GraceKennedy is 100! Happy 100th Anniversary GK Family! #GK100 #OurStoryIsYourStory #TheBestIsYetToCome https://t.co/zRJUJGFB04" / Twitter

GK100
GK100 continued to be prominently featured at events, in campaigns and customer engagement activities during the second quarter of 2022. Following a special celebration at the 2022 ISSA/GraceKennedy Boys’ and Girls’ Champs in April, our 100th anniversary also featured prominently during the Jamaica 60 Diaspora Conference in June. Since 2004, GK has been a legacy partner of the Diaspora Conference, which is convened by Jamaica’s Ministry of Foreign Affairs and Foreign Trade. On the evening of the first day of the Conference this year, the GK team hosted in-person and virtual participants to a mini-concert, which featured performances by Jamaican reggae artistes Tony Rebel and Ding Dong, and highlighted GK100.

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Caribbean Assurance Brokers Reporting Unaudited Net Profit Of $4.45 Million For The Period Ended June 30, 2022.

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Tania Waldron-Gooden Chief Executive Officer Caribbean Assurance Brokers Has Released The Following Financial Results For The Six Months Ended June 30, 2022.

Caribbean Assurance Brokers (CAB) for the six months ended June 30, 2022, saw increased revenues and profit outperforming the second quarter of 2021. This represents an increase of 121% over the prior comparative period reflecting the company’s performance as consumer activities continue to increase.

While we concentrate on the next half of the year, navigating the changing economic landscape will be critical in continuing this positive trend. Customer experience and satisfaction are major components in the insurance brokerage industry and digital transformation is critical. Customer expectations are at an all-time high. Therefore, we aim to achieve fast, personalized service and the most seamless experience. This is evident through the development of our customer loyalty app and upgraded website. We continue to be customer service oriented, making the necessary changes to meet their expectations.

Review of 2nd Quarter
Commission Income increased by $11.5 million or 15%. The International, Individual Life, General and Employee Benefits Divisions all saw increases of 40%, 21%, 17% and 4% respectively over their prior year comparative performance. This upward movement was mainly attributable to a combined increase in new business activities.

Business development and customer retention strategies were key initiatives employed.

The company earned total income of $91.5 million in the quarter ended 30 June 2022 compared to $80.7 million in the quarter ended 30 June 2021; an increase of $10.8 million (13%).

Finance related charges for the quarter ended 30 June 2022 decreased by $508,881 (34%) this was attributable to a paydown on our existing mortgage loan as well as reduction of interest expense on lease liability.

Profit Before Tax increased by $16.5 million or 120% resulting in a net profit of $2.6 million when compared to a loss of $13.4 million over the comparative period. The Company had a tax charge of $155,246. This is reflective of movement in deferred tax charges for the current quarter as there were additions to property, plant and equipment.

Operating expenses of $87.7 million for the quarter ended, decreased by $5.2 million or 6% when compared to the 30 June 2021 figures. Areas that contributed to the decrease in total expenses included advertising and promotion as well as commission expenses.

Total Assets as at June 30, 2022, amounted to $760 million compared to $702 million for the corresponding period ended June 30, 2021, reflecting a $58 million or 8% increase. The increase in assets was primarily due to a $78 million or 34% increase in receivables. There was a combined $20 million reduction in property, plant and equipment, deferred tax asset, right of use asset as well as cash and cash equivalents over the corresponding period.

Total Liabilities as at June 30, 2022 were $370 million, a decrease of $20.5 million or 5% over the 2021 corresponding period; driven mainly by a reduction in long term loan of approximately $40 million or 47%.

Our performance this quarter highlights our commitment to improving overall efficiencies within our operations as our profit margin and overall liquidity has improved year over year.

The increase in the company’s total equity of $78.5m was directly related to the increase in profits over the comparative period.

Year-to-date (YTD) Review

For the six months ended 30 June 2022, Profit Before Tax increased by $26 million when compared to a loss of $21.2 million over the prior period.

The company earned total income of $195.7 million compared to $168 million for YTD June 2021; an increase of $27.7 million (16%). The increase was as a result of an increase of $27 million in commission income across all four of the company’s divisions.

Operating expenses of $188.4 million for the six months ended June 2022 was mainly as a result of an increase of $4.4 million or 3% in administrative and other expenses when compared to June 2021 YTD. Areas that contributed to the increases in expenses included staff costs, product development initiatives, repairs and maintenance, registration fees arising from increased license and regulatory fees and depreciation on additions to property, plant and equipment.

Finance charges for the six months ended June 2022 reduced by $917,856 (31%) which was attributable to a paydown on principal of mortgage denominated in foreign currency as well as a reduction in interest expense on lease liability.

The Company had a tax charge of $790,166 reflecting an increase of $643,093 over the comparative period.

The total assets of the Company increased to $760 million from $627 million for 2021-year end; an increase of $133 million or 21%. This increase was mainly attributed to an increase in receivables. This increase is directly correlated to the increase in revenue and the management of the revenue cycle.

Total Liabilities increased by $132 million or 55% due to an increase in payables which was directly linked to an increase in premiums booked for the second quarter.

The Company’s total Equity increased to $389 million as at 30 June 2022, up from $388 million for 2021-year end. The net increase of $1 million or 1% is reflective of a dividend payment ($3.36 million) made during the second quarter, offset against the six months’ net profit of $4.45 million.

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Caribbean Cement Company Reporting A 10% Jump In Revenue to $13.5 billion For The Six Months Ended June 30, 2022

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Parris A. Lyew-Ayee Chairman Caribbean Cement Company Limited Has Released The Following Condensed Consolidated Unaudited Interim Financial Report For The Six Months Ended June 30, 2022

Financial Performance
The Group generated revenue of $13.5 billion for the six-month period ended June 30, 2022. This represented an increase of 10% over the corresponding period in 2021. Revenue for the quarter increased by 6% to $6.7 billion over the same quarter last year.

Due to the impact of higher operational costs, the “Operating earnings” for the Group was $4.3 billion, or 2% lower than the $4.4 billion reported for the same six months in 2021.

For the second quarter, the “Operation earnings” was $2.0 billion, or 9% lower than the $2.2 billion reported in 2021.

“Earnings before taxation” increased by 4% to $4.0 billion for the first half of the year. The “Earnings before taxation” for the quarter was $1.9 billion, reduced by 6% compared with the $2.0 billion achieved during the same period last year. The improvement in “Earnings before taxation” was due to the positive impact on foreign exchange resulting from a reduction in the foreign currency exposure.

The overall net income achieved for the first six months was $3.0 billion, a reduction of 2% over 2021 and has resulted in “Earnings per stock unit” of $1.71. The net income for the quarter decreased to $1.5 billion, which is 7% lower than the corresponding period in 2021.

Accounts Receivable from Related Parties
Accounts receivable from related parties include a deposit investment amount of J$605 million (US$4 million) in CEMEX Innovation Holding Limited, which generates interest at a rate equal to the Western Asset Institutional Liquid Reserves Fund rate minus 30 basis points on a daily basis of a year of 360 days.

Subsequent Events
At the Annual General Meeting of Caribbean Cement Company Limited (CCCL) held on July 19, 2022, the shareholders of CCCL declared a final dividend of $1.5032 per share payable on September 9, 2022, to shareholders on record as at August 4, 2022, with an ex-dividend date of August 3, 2022.

Outlook
CCCL remains vigilant to the impacts of the COVID-19 pandemic and the conflicts between Russia and Ukraine on the business, as the prices of fuel, power, and shipping skyrocket. Despite these challenges, we continue to demonstrate our strong commitment to Jamaica by adequately responding to the needs of the market.

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