Driven by stronger domestic demand while maintaining operating costs and expenses

Caribbean Cement Company has grown its revenues by 13 per cent to $20.1 billion for 2020, which, in spite of COVID-19, was a very profitable year for the company.

The increase in revenue was related to the stronger domestic demand and the company’s capacity to supply the local market. Operating earnings before other expenses for the year was $6.8 billion, while operating earnings after other expenses came out at $6.3 billion, representing an increase of $2.0 billion when compared with 2019.

Despite the increase in production and sales, Carib Cement was able to maintain similar levels in operating costs and expenses based on operational efficiencies achieved through the improvement to its main equipment and operational processes at its Rockfort, East Kingston base. The company recorded earnings before taxation of $4.4 billion, representing an improvement over the $2.7 billion achieved in 2019.

The overall consolidated net income of $3.2 billion was higher than that of the previous year 2019 by $1.3 billion. In relation to cash flow, net cash provided by operating activities was $7.0 billion for the year.

Carib Cement debt reduced by $4.7 billion in 2020

Given its positive cash flow generation during 2020, Carib Cement was able to pay down some of its debt. In fact the debt during 2020 was cut by $4.7 billion.

Commenting on the company’s performance, the board remarked that, “The results of 2020 are a culmination of proactive decision making, effective risk management and an outstanding employee performance that despite the many challenges, remained steadfast in serving our customers and contributing decisively to the economy of Jamaica.”

The directors singled out as among the company’s proudest achievements, the quick adoption of 52 new protocols designed to reinforce safe behaviours and prevent the spread of COVID-19.  According to the directors, “We believe these protocols were responsible for the absence of COVID-19 transmission last year at any of the company’s facilities. This parallels the rewards we continue to reap from the multi-year investment in training and facility improvement, the evidence of which is the achievement of 528 days without lost time injury up to December 31, 2020.”

Cautious outlook for 2021 and beyond

Regarding their outlook, the directors commented, “We continue to operate in an environment of significant uncertainty. Our strategy will focus to effectively manage the variables under our control, providing to our customers excellent service and high quality products.”

The company plans to leverage the benefits of our recent plant modernisation programme that gave the cement manufacturer record results in production in 2020 and looks forward to continuing to support its customers and the development of Jamaica in 2021.

Social impact

During the pandemic, Carib Cement focused on its community outreach on health and sanitation, providing PPE, thermometers and sanitisers, as well as enhancing virtual education through the donation of laptops, internet connectivity devices and school supplies.