Posts 24% increase in net profits for 2022

Durrant Pate/Contributor

Carib Cement is seeing some reprieve from mounting foreign exchange losses clawing back a considerably amount of losses incurred in 2021.

For 2022, the Jamaica cement manufacturing monopoly company booked losses on foreign exchange of J$68.31 million relative to J$516.78 in 2021. At the same time profitability in the company improved last year.

Net income profit amounted to J$5.38 billion for the year under review versus J$4.34 billion in 2021. For the December 2022 quarter, net profit closed at J$1.13 billion, slightly down from the J$1.21 billion earned in 2021.

Taxation charges for the year climbed to J$1.86 billion coming from the J$1.37 billion incurred in 2021. Pre-tax profit came out at J$7.24 billion compared to J$5.71 billion booked in 2021, and for the fourth quarter, earnings before taxation amounted to J$1.48 billion (2021: J$1.50 billion).

Earnings per share (EPS) for the year amounted to J$6.33 (2021: J$5.10) while the earnings per share for the quarter totaled J$1.33 (2021: J$1.42). Notably, the stock price traded on Wednesday at J$59.94, with a corresponding P/E ratio of 9.48 times.

Revenues up 8%

The East Kingston based company reported total revenue for 2022 of J$25.84 billion, an 8% increase when compared with the J$23.84 billion reported in 2021. For the December quarter, revenues closed at J$6.15 billion (2021: J$6.04 billion).

Cost of sales amounted to J$14.48 billion (2021: J$14.01 billion), which resulted in gross profit of J$11.36 billion for the year end versus gross profit of J$9.83 billion reported in the prior comparable year. Operating expenses ended the year at J$2.68 billion (2021: J$2.50 billion), a seven per cent increase year-over-year.

Despite the increase in operating expense, operating profit increased 18 per cent year over year total J$8.68 billion versus J$7.33 billion in the previous corresponding year. Other expenses of J$916.55 million was recorded for the period under review compared to other expense of J$448.91 million booked in 2021.

Financial income amounted to J$28.24 million (2021: J$12.30 million) while financial expenses closed the year end at J$581.41 million versus J$670.90 million in 2021. Total assets as at December 31, 2022 amounted to J$30.14 billion (2021: J$27.51 billion), a 10 per cent increase.

The increase in total assets was largely due to an increase in ‘Inventories’ which amounted to J$5.48 billion (2021: J$3.44 billion). The growth was offset by a J$193.59 million decline in ‘Property, plant and equipment’ moving from J$23.23 billion in 2021 to J$23.04 billion in 2022.

Shareholders’ equity totaled J$20.04 billion compared to the J$15.78 billion quoted as at December 31, 2021. This resulted in a book value of J$23.54 (2021: J$18.54).