Cement profit grows despite wet weather

Caribbean Cement Company Limited, CCC, overcame challenging weather conditions to achieve a net profit of $5.9 billion for its December year-end, marking a 6.7 per cent increase year on year.

Jamaica’s sole cement manufacturing operation and the maker of Carib Cement noted in its financial report that this growth occurred “despite the impact of Hurricane Beryl and other adverse weather conditions that disrupted cement production”, which led to lost sales during the second half of the financial year.

Despite these challenges, Caribbean Cement’s revenues rose by 2.3 per cent to $27.9 billion, reflecting strong market demand. The gross profit margin also improved slightly, climbing to 41.5 per cent from 40.8 per cent in 2023. As a result, Caribbean Cement ended the year with $8.5 billion in cash and cash equivalents, doubling the previous year’s levels.

The company, in 2023, embarked on a multibillion-dollar upgrade to its plant that would increase output by one-third to 1.3 million tonnes of cement production annually. The upgrade focuses on enhancing its kiln, a large oven used to produce clinker, the key ingredient in cement. The clinker is cooled and then ground into a fine powder with gypsum to create cement.

“The completion of CCC’s major kiln-expansion project, now in its final stages, alongside other strategic initiatives, will further strengthen the company’s market leadership, minimise supply disruptions from unexpected events like natural disasters, and enable CCC to launch a sustainable cement export programme, bringing additional foreign exchange into Jamaica,” the company said in its report to shareholders.

Caribbean Cement also conducted its annual maintenance programme in the third quarter and completed a mill upgrade in the fourth quarter, improving operational efficiency and production capacity.

In addition to its financial achievements, the cement maker contributed to national recovery efforts following Hurricane Beryl in July.

“In 2024, the company immediately mobilised construction materials, including cement, plywood, and zinc sheets, to assist residents affected by Hurricane Beryl. Furthermore, the company donated approximately 200 bags of cement to the National Education Trust, a registered charity and government agency that supports Jamaica’s education system,” Caribbean Cement stated.

steven.jackson@gleanerjm.com