Caribbean Cement Limited reports $6 billion in consolidated net income: Company eyes expansion of luxury hotel segment in Jamaica

 

 





Caribbean Cement Limited (CCCL) generated revenues of $27.9 billion in 2024, reflecting overall growth of 2.3 per cent compared to 2023, despite the impact of Hurricane Beryl and other adverse weather conditions that disrupted cement production and resulted in lost sales during the second half of the financial year.

The Group reported earnings before taxation of $7.8 billion, representing an increase of $0.5 billion (8 per cent) from $7.3 billion in 2023. This growth was partly attributed to a $0.3 billion rise in interest income, resulting from e cash management and the optimisation of free cash flows.

Consolidated net income totaled $6 billion, surpassing the 2023 figure by $0.4 billion. Earnings per share increased to $6.99, up by $0.44 from $6.55 in the prior year.

Operations

The gross profit margin remained stable, increasing slightly to 41.5 per cent from 40.8 per cent in 2023.

Operating earnings rose to $7.6 billion, an increase of $0.3 billion (4.0 per cent) compared to the $7.4 billion recorded in the previous year.

In the third quarter, the company undertook its annual scheduled major maintenance programme to enhance operational efficiency and increase production capacity to meet local market demand, in contrast to the first quarter of 2023.

At the same time, mill 4 was upgraded during the fourth quarter. Management states that following these major projects, the fourth quarter saw improved performance, driven by greater operational efficiencies and cost control measures.

The Group increased its cash position by $4.5 billion over the year, after distributing approximately $1.7 billion in dividends to shareholders and investing $5.9 billion in capital projects, including the expansion of production capacity.

At year-end, cash and cash equivalents totaled $8.5 billion, supported by net cash flows from operating activities of $12 billion.

Outlook

CCL expects to capitalise on opportunities arising from the increased private developments, government led infrastructural projects, and the expansion of the hospitality industry, including the opening of new luxury hotels across the island.

The completion of CCCL’s major kiln expansion project, now in its final stages, alongside other strategic initiatives, is also expected to strengthen the company’s market leadership, minimising supply disruptions from unexpected events, like natural disaster, and will allow CCCL to start a sustainable cement export programme, management outlined.

Caribbean Money Daily

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