Carib Cement records strong year-to-date growth in profit despite disappointing Q2 results

  • For the six-month period ended June 30, 2019, Caribbean Cement Company Ltd (CCC) reported an unaudited net profit of $1.50Bn (EPS: $1.76), a 42.2% increase from the $1.05Bn (EPS: $1.18) reported for the corresponding period in 2018.
  • The performance over the period was primarily driven by a 4.0% YoY improvement in revenue which came in at $9.13Bn for the period. Notably, the performance over the six month period can also be attributed to the strong performance in Q1 which accounts for 75.4% of total profit for the period.  
  • Despite a 6.0% YoY improvement in revenue for the second quarter the company’s profit contracted 47.6% when compared to the previous year due to a sharp increase in finance charges (+66.9%) and higher Depreciation, impairment and amortization costs (+19.1%).  The increase in finance costs was due to foreign exchange losses and higher interest expense. 
  • The stock has risen 88.23% since the start of the calendar year, closing Wednesday’s trading session at $79.81 per share. At its current price, the stock now trades at a P/E of 22.92x earnings which is below the Main Market Industrials and Materials sector average of 28.50x earnings.

(Source: CCC Financials)