Trinidad Cement Limited (TCL’s) directors say that in the first quarter ended March 31, 2016, efficiencies gained from the on-going restructuring programme has continued to influence results.
Overall, the Trinidad-based company saw an increase in EBITDA (earnings before interest, taxes, depreciation and amortization) of TT$15.6 million (US$1 =TT$6.64) or a five per cent improvement in EBITDA margins from 27 per cent to 32 per cent.
The first quarter produced profit after tax of TT$55.5 million – an increase of 30 percent year over year.
While group revenue fell by seven per cent from TT$514.9 million in 2015 to $479.5 million, savings including a TT$15.4 million reduction in borrowing costs improved profit.
The fall in revenue was partially due to an average fall in domestic prices by 10 per cent during the quarter.
Volumes were seven per cent higher over 2015 driven by the domestic markets of Jamaica and Guyana.
TCL said that in Trinidad and Tobago, the operations of Readymix as well as the volume of cement sales continues to be affected by the slowdown in the construction sector.
The company saw a reduced cash position from TT $548.34 million to $279.36 million at the quarter’s end in 2016.
TT$56.3 million in cash came from operating activities after $50.9 million was spent as working capital.
TCL is a producer and marketer of cement and ready-mix products in the Caribbean with eight units in Trinidad, Barbados, Guyana, Jamaica and Anguilla.
For 2015, profit after taxes was TT $428.8 million compared with losses of $211.0 million in the prior year.