Caribbean Cement Company Limited (CCCL), Jamaica’s only cement manufacturer, is reporting a dip in profits for the first half of the year.

This, after more than two years of construction boom which resulted in the company posting record sales of $23.8 billion in 2021.

For the six months ending June 30, 2022 Carib Cement raked in $3.0 billion in net income, a 2 per cent reduction over 2021.

Based on the company’s financials, net income started to level off in the first quarter of the year (January-March) when Carib Cement reported a negligible 3 per cent uptick in net income, moving from $1.53 billion in 2021 to $1.59 billion this year.

At that time, Carib Cement highlighted that domestic demand continued to be strong and stressed that the company is able to supply the local market based on its capacity.

Fast-forward to the second quarter (April-June) and the company is reporting a 7 per cent decline in net income over the corresponding period in 2021, coming in at $1.5 billion.

The decline outlined in the six months report has dragged Carib Cement’s earnings per stock unit down to $1.71.

The dip in profit for the six-month period comes amid a 10 per cent increase in revenue amounting to $13.5 billion.

However, the company highlighted that higher operational costs impacted its earnings in the first half of the year.

The Planning Institute of Jamaica (PIOJ) reported in June that construction growth continues to be driven by capital expenditure on civil engineering activities.

Notwithstanding, Carib Cement said it continues to be vigilant in light of persisting shocks which threaten the company’s growth trajectory.

“CCCL remains vigilant to the impacts of the [novel coronavirus] pandemic and the conflicts between Russia and Ukraine on the business as the prices of fuel, power, and shipping skyrocket,” the company outlined in its six months unaudited report.

In the meantime, Carib Cement powers on with its goal to achieve carbon neutrality.

The company said, “We are pleased with the response of the market to our Vertua-certified cement since its introduction in February. This low-carbon cement, which has a range of features and benefits, including being more environmentally friendly and easy to place and finish without any special equipment, has moved us a step closer to reducing our carbon footprint.”

This Vertua-certified cement solution aligns with the mandate of Carib Cement’s parent company CEMEX’s Future in Action global sustainability strategy and forms part of the efforts other CEMEX operations are employing in various countries towards attaining carbon neutrality. The company noted that it also follows the United Nation’s Sustainable Development Goals on climate action.

At the same time, Carib Cement continues to undertake its end-of-life tyre programme, which is designed to rid the Riverton disposal site of tyres, that are harmful to the environment, by co-processing and converting them into energy at its Rockfort plant.