Carib Cement assures of adequate Christmas supply

In light of the cement shortages that the country has been experiencing, Caribbean Cement Company Limited (CCCL) is assuring the public that supplies should be adequate for the upcoming Christmas period. This, as the company take steps to bring production levels back to normal.

“As we go into the final quarter of the year, we are committed to a return to pre-Hurricane Beryl supply, which is another testament to the ongoing operational efficiency advancements being worked on by the company. Our solidly built strategy, supported by effective management, focuses on making sound decisions that not only address current issues but also position us for the future,” the directors said in the report attached to its latest financial filings.

Having only recently reported substantial improvement in product inflows to hardwares and depots islandwide, the country’s sole cement manufacturer has for the last few months suffered from severe production downturns owing to operational hurdles which negatively impacted its ability to meet market demands.

The hurdles, which largely stemmed from Hurricane Beryl-induced shutdowns and scheduled plant maintenance to facilitate the servicing of kilns, the company said, have each been addressed, the results from which now sees inventory levels returning to normal and “exceeding historical averages”.

The company, as it continues to keep up with the supply of the local market, also said it will be working overtime to increase production as it optimises supply chains. Focused now on the continuation of its expansion programme, the company’s directors said that the ultimate aim is to satisfy 100 per cent of Jamaica’s cement needs, as it also makes provisions to resume exports to Caricom, a grouping of 15 mostly former British colonies in the Caribbean.

“This is well advanced and on track for completion during the first half of 2025,” the directors said.

“CCCL continues to position itself to meet market demand, particularly in the western region of the island as we look to capitalise on the major economic surge primarily driven by infrastructure development,” the report further noted.

At the end of the third quarter period ended September 30, 2024, revenues for the cement manufacturer amounted to $6.2 billion — 11.2 per cent below the almost $7 billion recorded for the same period in 2023. A performance which was also three per cent lower than that for the previous quarter.

Similarly, quarterly profit plunged 67.5 per cent to total $629.7 million.

“This sharp decline was primarily due to reduced sales caused by Hurricane Beryl, intensive weather that affected our ability to resume production after the major shutdown, and increased operating costs related to a scheduled plant maintenance shutdown,” the directors said.

For the longer nine-month period, January 1 to September 31, revenues amounted to $21.5 billion, almost unchanged from last year. Profit for the period, however, grew almost 12 per cent to $4.9 billion.

At the end of its last financial year in December 2023, total revenues for the cement manufacturer stood at $27.7 billion with $5.6 billion in net profits.

Despite the fallout in third quarter earnings, the directors said that the company “continued to maintain a solid liquidity position at the end of the nine months with cash and cash equivalents totaling $9.3 billion.”

“Net cash flows from operating activities were $2.2 billion for the quarter and $10.0 billion for the year-to-date, of which $3.0 billion was invested in capital projects and $1.7 billion distributed to shareholders as dividends,” they further said.