22% percent increased cement sales in Q3

Carib Cement closed at a new 52 weeks’ high of $12

Caribbean Cement sold 22 percent more cement on the local market I this years’ third quarter than they did in 2014 September quarter. “Domestic sales volume for the third quarter exceeded the corresponding period in 2014 by 22 percent and for the nine month period, was 9 percent above the volumes in 2014” Christopher Dehring, Chairman and Jose Luis Seijo Gonzalez, group CEO stated in a joint statement issued along with the September quarterly report.
For the nine months to September 2015, the company ended with a profit after tax of $1.486 billion. In 2014 a profit of only $25 million was realised for the nine months last year. The 2015 results translate to earnings per share of $1.75 at September. For the quarter to September, profit after tax amounted to 72 cents per share or $617 million compared with just $78 million in the 2014 quarter. If the sales trend continues, earnings per share should hit $2.50 for 2015 which includes an exceptional income of $168 million or about 15 cents per share. The company’s stock traded at $15 on Friday and now carries a PE of 6.5 times this year earnings, and seems set to move up in price with these results with the valuation of the most valued stocks on the market being at 10.
Gross cash generated by operating activities amounted to $2 billion and after repaying loans ended at $997 million in cash funds.
Revenue for the third quarter grew by $741 million or 21 percent over the same period in 2014 mainly driven by improved domestic sales volumes and increased clinker exports which compensated for the decline in cement export sales volumes. The company benefited from lower costs of fuels and energy and Interest expense that decreased by 73 percent for the quarter to only $16 million, from $59 million in 2014. For the nine months interest expenses ended at $120 million from $196 million as a result of the company’s financial restructuring initiative resulting in some prepayments of long-term debt in excess of $800 million. Depreciation and amortisation cost, however, rose from $83 million in the September 2014 quarter to $102 million in 2015 and to $296 million for the nine months from $251 million in 2014.
The vastly improved results have changed the financial structure with net working capital jumping from just $360 million surplus to $2 million at September and equity rising to $6.4 billion from $4.8 at the end of September 2014.