Although underfoot conditions in the latter half of 2024 dampened Caribbean Cement Company Limited’s (CCCL) sales, the company built up a respectable bottom line for the financial year.

The company’s top brass is, however, bullish that the current financial year will see improved performance as capital projects and investments come to maturity, and with the expectation that the construction sector will rebound.

Directors of the company expressed their delight with the results in their report to shareholders noting, “CCCL generated revenues of $27.9 billion, 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.”

 With lower cost of sales, Carib Cement’s gross profit margin improved slightly, moving from 40.8 per cent in 2023 to 42.5 per cent. The directors also highlighted expenses associated with the “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. Following these major projects, the fourth quarter saw improved performance, driven by greater operational efficiencies and cost control measures.”

Earnings before taxation of $7.77 billion represented an increase of $0.5 billion, or eight per cent, eclipsing the $7.23 billion reported in 2023.

“This growth was partly attributed to a $0.3 billion rise in interest income, resulting from effective cash management and the optimisation of free cash flows,” the directors explained.

Consolidated net income totalled $5.95 billion, increasing by $0.4 billion. Earnings per share increased to $6.99, up by $0.44 from $6.55.

The plant upgrades resulted in the improved value of property, machinery and equipment, while Carib Cement’s cash position also increased from $4.02 billion at the end of 2024 to $8.49 billion.

“As a result of this robust performance, 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,” the directors stated.

Eyeing growth potential in the construction sector, Carib Cement is bullish on increasing revenues.

“The company is well positioned 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 company said.

The completion of the kiln, Carib Cement added, should significantly limit the disruptions in supply and support a consistent export push.