CCC Doubles H1 Profit Due to Strong Demand & Efficient Cost Management 

• For the first half of Carib Cement’s FY2021, it recorded a 207.6% year over year rise in net profit to $3.09Bn (EPS: $3.63), on the back of a 32.0% increase in revenues. The company attributed the higher revenues to strong domestic demand, and its capacity to supply the local market. 
• The bottom-line was also augmented by effective expense management and the company’s ongoing USD debt repayment policy, which has allowed it to reduce its financial expenses by $30.39Mn. This has also resulted in the company reducing the foreign exchange risk compared with the prior year, evident by the $399.42Mn decline in foreign exchange losses in H1 2021. 
• The company’s performance should continue to improve in the coming months, given the continued buoyancy of the construction sector, which is being driven by government initiated infrastructure projects and the many private sector development initiatives. Furthermore, the planned rollout of 1.4Mn doses of vaccine by September 2021 should bolster confidence and fuel private investments, which bodes well for the construction sector. 
• Caribbean Cement stock price has appreciated by 45.9% since the start of the year to $91.64, and current trades at a P/E ratio of 14.8x earnings. This is below the main market average of 20.3x earnings.

(Source: Company Financials & NCBCM Research)