CONDENSED CONSOLIDATED UNAUDITED
INTERIM FINANCIAL REPORT
FOR THE SIX MONTHS ENDED JUNE 30, 2023
CONDENSED CONSOLIDATED INCOME STATEMENT
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
TT $'000
Revenue
Cost of sales
Gross profit
Administrative expenses
Selling expenses
Distribution and logistics expenses
Operating earnings before other expenses and other income and credits
Other expenses
Other income and credits
Operating earnings
Financial expense
Financial income
Earnings before taxation
Taxation charge
NET INCOME
Non-controlling interest
CONTROLLING INTEREST
Basic and diluted earnings (loss) per share - cents (Note 3):
UNAUDITED | UNAUDITED | AUDITED | ||
Three Months | Six Months | Year | ||
Apr to Jun | Jan to Jun | Jan to Dec | ||
2023 | 2022 | 2023 | 2022 | 2022 |
594,564 | 533,887 | 1,149,254 | 1,063,273 | 2,061,227 |
(360,367) | (361,601) | (811,758) | (705,023) | (1,379,886) |
234,197 | 172,286 | 337,496 | 358,250 | 681,341 |
(37,542) | (32,619) | (70,715) | (64,326) | (128,024) |
(5,334) | (3,826) | (10,492) | (7,864) | (15,943) |
(37,617) | (37,383) | (72,015) | (76,717) | (151,014) |
153,704 | 98,458 | 184,274 | 209,343 | 386,360 |
(6,841) | (15,683) | (25,690) | (29,234) | (189,600) |
2,458 | 116 | 2,908 | 319 | 16,017 |
149,321 | 82,891 | 161,492 | 180,428 | 212,777 |
(11,420) | (7,840) | (29,344) | (19,210) | (44,238) |
1,280 | 75 | 1,612 | 91 | 1,278 |
139,181 | 75,126 | 133,760 | 161,309 | 169,817 |
(34,270) | (20,793) | (30,536) | (48,959) | (112,012) |
104,911 | 54,333 | 103,224 | 112,350 | 57,805 |
(24,356) | (17,998) | (27,723) | (36,972) | (71,969) |
80,555 | 36,335 | 75,501 | 75,378 | (14,164) |
21.7 | 9.8 | 20.3 | 20.3 | (3.8) |
TT $'000 | UNAUDITED | UNAUDITED | AUDITED | |
30.06.23 | 30.06.22 | 31.12.22 | ||
ASSETS | ||||
CURRENT ASSETS | ||||
Cash and cash equivalents | 94,555 | 83,866 | 87,004 | |
Trade accounts receivable, net | 47,579 | 69,628 | 49,248 | |
Other accounts receivable | 175,047 | 84,952 | 73,998 | |
Taxation recoverable | 17,901 | 2,051 | 2,201 | |
Inventories, net | 379,484 | 365,750 | 417,358 | |
Total current assets | 714,566 | 606,247 | 629,809 | |
NON-CURRENT ASSETS | ||||
Investments | 2,270 | 1 | 1 | |
Property, machinery and equipment, net | 1,540,748 | 1,634,515 | 1,591,163 | |
Deferred taxation assets | 97,074 | 127,102 | 102,479 | |
Employee benefits | 33,314 | 134,650 | 33,847 | |
Other accounts receivable | - | 155 | - | |
Total non-current assets | 1,673,406 | 1,896,423 | 1,727,490 | |
TOTAL ASSETS | 2,387,972 | 2,502,670 | 2,357,299 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
CURRENT LIABILITIES | ||||
Other financial obligations | 9,015 | 6,692 | 7,501 | |
Trade payables | 254,295 | 273,400 | 278,518 | |
Taxation payable | 15,533 | 15,957 | 33,205 |
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Provisions | 28,516 | 27,523 | 57,991 |
Other current liabilities | 239,393 | 232,765 | 261,412 |
TT $'000
NET INCOME
Items that will not be reclassified subsequently to the income statement
Change in fair value of equity investments at fair value through other comprehensive income Net actuarial losses from remeasurements of employee benefit plans
Taxation recognised directly in other comprehensive income
Items that are or may be reclassified subsequently to the income statement
Effects from derivative financial instruments designated as cash flow hedges
Currency translation results of foreign subsidiaries
Total items of other comprehensive (loss) income, net
TOTAL COMPREHENSIVE INCOME
Non-controlling interest
Controlling interest
TOTAL COMPREHENSIVE INCOME
UNAUDITED | UNAUDITED | AUDITED | |||
Three Months | Six Months | Year | |||
Apr to Jun | Jan to Jun | Jan to Dec | |||
2023 | 2022 | 2023 | 2022 | 2022 | |
104,911 | 54,333 | 103,224 | 112,350 | 57,805 | |
2,269 | - | 2,269 | - | - | |
- | - | - | - | (84,235) | |
- | - | - | - | 20,896 | |
2,269 | - | 2,269 | - | (63,339) | |
1,109 | (1,700) | (2,273) | 626 | (2,281) | |
(36,102) | 13,504 | (14,645) | 12,154 | 11,889 | |
(34,993) | 11,804 | (16,918) | 12,780 | 9,608 | |
(32,724) | 11,804 | (14,649) | 12,780 | (53,731) | |
72,187 | 66,137 | 88,575 | 125,130 | 4,074 | |
18,819 | 20,608 | 23,127 | 41,131 | 72,266 | |
53,368 | 45,529 | 65,448 | 83,999 | (68,192) | |
72,187 | 66,137 | 88,575 | 125,130 | 4,074 |
Total current liabilities | 546,752 | 556,337 | 638,627 |
NON-CURRENT LIABILITIES | |||
Long-term debt | 480,896 | 489,716 | 437,130 |
Other financial obligations | 14,007 | 16,207 | 15,325 |
Employee benefits | 184,920 | 200,722 | 180,390 |
Deferred taxation liabilities | 204,195 | 220,784 | 204,925 |
Provisions | 4,099 | 1,583 | 5,809 |
Total non-current liabilities | 888,117 | 929,012 | 843,579 |
TOTAL LIABILITIES | 1,434,869 | 1,485,349 | 1,482,206 |
SHAREHOLDERS' EQUITY | |||
Controlling interest: | |||
Stated capital | 827,732 | 827,732 | 827,732 |
Unallocated ESOP shares | (20,019) | (20,019) | (20,019) |
Other equity reserves | (323,118) | (316,606) | (313,888) |
Retained earnings | 207,713 | 283,984 | 219,608 |
Net income (loss) | 75,501 | 75,378 | (14,164) |
Total controlling interest | 767,809 | 850,469 | 699,269 |
Non-controlling interest | 185,294 | 166,852 | 175,824 |
TOTAL SHAREHOLDERS' EQUITY | 953,103 | 1,017,321 | 875,093 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 2,387,972 | 2,502,670 | 2,357,299 |
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
TT $'000 | UNAUDITED | UNAUDITED | AUDITED |
DIRECTORS' STATEMENT
Health and Safety | supported by lower maintenance costs and higher cement revenue. | |||
The TCL Group remains committed to placing the highest priority on | During the second quarter of 2023, the TCL Group generated net cash | |||
the health, safety and wellness of our employees, contractors, visitors, | of $39 million from operating activities. This was driven by improved | |||
and communities. | operating results when compared to 2022. On a year-to-date basis, | |||
Through our pillars focussed on safety awareness, training, culture, | the TCL Group generated $53 million from operating activities due to | |||
enforcement, and monitoring, we continue to take steps to reduce | improved working capital management. | |||
risks, provide tools and resources to support our teams, and ensure a | Sustainability | |||
safe environment for all stakeholders. | Sustainability is a strategic priority for us at the TCL Group. We continue | |||
We are pleased to report that during the first six months of the year, | to embrace climate action as our responsibility with an aggressive | |||
there were no safety incidents recorded across our group-wide | programme which features sustainable products and solutions, | |||
operations. Notwithstanding, we continue to work relentlessly on | decarbonising our operations, circular economy, water diversity, | |||
further strengthening our health and safety management system. | promoting a green economy, and innovation and partnerships. During | |||
Financial Performance | the quarter, our operations in Trinidad & Tobago and Jamaica partnered | |||
with their respective governments, local agencies, and other companies | ||||
The TCL Group recorded consolidated revenue from continuing | ||||
involved in sustainable development, to successfully execute beach | ||||
operations of $595 million during the second quarter of 2023, an | cleanup campaigns, amassing several hundred kilogrammes of co- | |||
increase of 11% when compared to the second quarter of 2022. The | processed and recyclable waste. | |||
Group's adjusted EBITDA of $186 million in the second quarter reflected | We continue to reduce carbon emissions using waste oils in Jamaica, | |||
an increase of 39% compared to the same period of the previous | ||||
year. This result reflects the impact of higher sales volumes across | more efficient heat consumption in both Trinidad & Tobago and Jamaica, | |||
the Group. In the second quarter of 2023, the TCL Group reported a | and through the production of low-carbon products. Notably, during the | |||
net income of $105 million compared to $54 million during the same | second quarter, low-carbon cement brand, ECO Cement, accounted for | |||
period in 2022. This increase of 93% was driven by increased cement | 52% of its total export volume to key CARICOM markets. | |||
volumes in Trinidad and Tobago and Guyana the positive impact of | We are fully committed to following our sustainability roadmap towards | |||
price increases implemented to contain cost inflation and improved | the achievement of our targets, knowing that every decision and action | |||
operating results in Barbados under the new operating model. | which we take is an opportunity to make a positive impact on the people | |||
The TCL Group's Q2 net income of $105 million represents a significant | around us and are stepping stones to a sustainable, greener world. | |||
improvement in comparison to the loss of $2 million during the first | Outlook | |||
quarter of 2023, mainly because the first quarter's performance was | Despite inflation, our markets continue to show strong cement | |||
affected by lower cement volumes and a higher cost of sales related to | volumes, in particular Guyana with an increase of 30% in cement | |||
planned major maintenance in Jamaica. | volumes between June 2022 and June 2023. We continue to execute | |||
On a year-to-date basis, the Group recorded consolidated revenue | relevant initiatives to increase the value offering to our customers, | |||
from continuing operations of $1.1 billion, 8% higher than 2022. The | which includes the upcoming introduction of our service centres, the | |||
Group´s adjusted EBITDA on a year-to-date basis for 2023 was $245 | deployment of Construrama with seven stores already opened since its | |||
million, an 11% decrease compared to the prior year due to lower | launch in September 2022 and four others in line and an increase in our | |||
operating results in Jamaica. Cement sales volumes increased by | paperless initiatives by migrating our customers to electronic invoicing | |||
4% and 5% in Trinidad and Tobago and Jamaica, respectively, and the | and dispatch ticketing. | |||
volume of exported cement increased by 5% when compared to the | While inspired by the resilience of our markets, the Board and | |||
first quarter. | Management remain attentive to the looming threat of economic and | |||
On a year-to-date basis, the Group reported a net income of $103 | social issues outside of their control and continue to consider risk | |||
million, a decrease of 8% when compared to the same period in | buffering and avoidance among other core strategies. | |||
2022. However, the quarterly performance represented a significant | Overall, we are encouraged by the potential for a satisfactory | |||
improvement over the last quarter. All this has been driven by our | performance in 2023. | |||
enhanced performance strategies in the second quarter of 2023, | ||||
David G. Inglefield | Francisco Aguilera Mendoza | |||
Chairman | Managing Director | |||
July 28, 2023 | July 28, 2023 |
Three Months | Six Months | Year | ||||
Apr to Jun | Jan to Jun | Jan to Dec | ||||
OPERATING ACTIVITIES | 2023 | 2022 | 2023 | 2022 | 2022 | |
Net income | 104,911 | 54,333 | 103,224 | 112,350 | 57,805 | |
Non-cash items: | ||||||
Depreciation and amortisation of property, | ||||||
machinery and equipment | 32,350 | 35,105 | 60,495 | 65,795 | 135,492 | |
Financial expense, net | 10,140 | 7,765 | 27,732 | 19,119 | 42,960 | |
Pension plan and other post-retirement benefit | 4,186 | 4,148 | 8,373 | 8,292 | 12,832 | |
Other items, net | - | 527 | - | 527 | - | |
Write-off of property, machinery and equipment | - | - | - | - | 57,015 | |
Restructuring cost | - | - | - | - | 77,324 | |
Taxation charge | 34,270 | 20,793 | 30,536 | 48,959 | 112,012 | |
Changes in working capital, excluding taxation | (115,626) | (107,344) | (99,181) | (202,987) | (226,397) | |
Cash generated from operating activities before financial | ||||||
expense, taxation and post-employment benefits paid | 70,231 | 15,327 | 131,179 | 52,055 | 269,043 | |
Financial expense paid | (11,774) | (8,749) | (17,244) | (11,142) | (29,188) | |
Taxation paid | (16,796) | (14,438) | (54,830) | (41,461) | (71,086) | |
Pension plan contributions and other post-retirement | ||||||
benefit paid | (2,686) | (3,608) | (6,549) | (7,170) | (15,256) | |
Net cash flows from (used in) operating activities | 38,975 | (11,468) | 52,556 | (7,718) | 153,513 | |
INVESTING ACTIVITIES | ||||||
Purchase of property, machinery and equipment | (23,599) | (24,920) | (37,160) | (35,464) | (112,562) | |
Net cash flows used in investing activities | (23,599) | (24,920) | (37,160) | (35,464) | (112,562) | |
FINANCING ACTIVITIES | ||||||
Proceeds from debt | 37,928 | 30,148 | 80,611 | 69,443 | 148,656 | |
Repayment of debt | (48,078) | (7,864) | (75,178) | (14,732) | (158,074) | |
Other financial obligations | (1,535) | (1,829) | (3,850) | (3,517) | (6,911) | |
Dividends paid | - | - | - | - | (14,671) | |
Purchase of non-controlling interests in subsidiaries | (10,565) | - | (10,565) | - | - | |
Financial income received | 1,280 | 75 | 1,612 | 91 | 1,278 | |
Net cash flows (used in) from financing activities | (20,970) | 20,530 | (7,370) | 51,285 | (29,722) | |
(Decrease) increase in cash and cash equivalents | (5,594) | (15,858) | 8,026 | 8,103 | 11,229 | |
Cash conversion effect, net | (611) | 932 | (475) | 108 | 120 | |
Cash and cash equivalents at beginning of period | 100,760 | 98,792 | 87,004 | 75,655 | 75,655 | |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 94,555 | 83,866 | 94,555 | 83,866 | 87,004 | |
Changes in working capital, excluding taxation: | ||||||
Trade accounts receivable, net | 3,946 | 2,728 | 1,431 | (7,762) | 685 | |
Other accounts receivable | (71,299) | (40,293) | (116,026) | (41,639) | (31,279) | |
Inventories, net | (44,890) | (44,097) | 33,763 | (37,855) | (135,555) | |
Trade payables | (25,541) | (34,902) | (21,645) | (85,395) | (66,475) | |
Other current and non-current liabilities | 22,158 | 9,220 | 3,296 | (30,336) | 6,227 | |
Changes in working capital, excluding taxation | (115,626) | (107,344) | (99,181) | (202,987) | (226,397) |
CONDENSED CONSOLIDATED UNAUDITED
INTERIM FINANCIAL REPORT
FOR THE SIX MONTHS ENDED JUNE 30, 2023
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
NOTES:
TT $'000
Balance at beginning of period
Net income (loss)
Total items of other comprehensive (loss) income, net
Dividends
Acquisition of non-controlling interest without change of control
Balance at end of period
CONTROLLING INTEREST | NON-CONTROLLING INTEREST | ||||
UNAUDITED | AUDITED | UNAUDITED | AUDITED | ||
Jan to Jun | Jan to Dec | Jan to Jun | Jan to Dec | ||
2023 | 2022 | 2022 | 2023 | 2022 | 2022 |
699,269 | 766,470 | 766,470 | 175,824 | 125,721 | 125,721 |
75,501 | 75,378 | (14,164) | 27,723 | 36,972 | 71,969 |
(10,053) | 8,621 | (54,028) | (4,596) | 4,159 | 297 |
- | - | - | - | - | (14,671) |
3,092 | - | 991 | (13,657) | - | (7,492) |
767,809 | 850,469 | 699,269 | 185,294 | 166,852 | 175,824 |
1. Basis of Preparation |
These condensed consolidated financial statements are prepared in accordance with established criteria |
developed by management and disclose the condensed consolidated statement of financial position, |
condensed consolidated income statement, condensed consolidated statement of comprehensive |
income, condensed consolidated statement of changes in shareholders' equity and condensed |
consolidated statement of cash flows. |
2. Accounting Policies |
These condensed consolidated financial statements have been prepared in accordance with the |
accounting policies set out in Note 2 of the December 31, 2022 audited consolidated financial |
statements consistently applied from period to period. The TCL Group has adopted all the new and |
SEGMENT INFORMATION
TT $'000 | CEMENT | CONCRETE | PACKAGING | CONSOLIDATION | TOTAL |
ADJUSTMENTS | |||||
UNAUDITED SIX MONTHS JAN TO JUN 2023 | |||||
Revenue | |||||
Total | 1,199,064 | 17,777 | 7,165 | - | 1,224,006 |
Inter-segment | (67,496) | (809) | (6,447) | - | (74,752) |
Third-party | 1,131,568 | 16,968 | 718 | - | 1,149,254 |
Earnings (loss) before taxation | 134,610 | (1,261) | 411 | - | 133,760 |
Depreciation | 56,274 | 4,137 | 84 | - | 60,495 |
Segment assets | 3,410,134 | 124,499 | 93,899 | (1,240,560) | 2,387,972 |
Segment liabilities | 2,422,193 | 47,493 | 3,822 | (1,038,639) | 1,434,869 |
Capital expenditure | 35,543 | 1,617 | - | - | 37,160 |
UNAUDITED SIX MONTHS JAN TO JUN 2022 | |||||
Revenue | |||||
Total | 1,149,055 | 30,641 | 17,529 | - | 1,197,225 |
Inter-segment | (116,535) | (1,424) | (15,993) | - | (133,952) |
Third-party | 1,032,520 | 29,217 | 1,536 | - | 1,063,273 |
Earnings before taxation | 158,690 | 1,724 | 895 | - | 161,309 |
Depreciation | 61,467 | 4,092 | 236 | - | 65,795 |
Segment assets | 3,427,428 | 130,472 | 70,055 | (1,125,285) | 2,502,670 |
Segment liabilities | 2,336,150 | 43,277 | 10,427 | (904,505) | 1,485,349 |
Capital expenditure | 34,560 | 904 | - | - | 35,464 |
AUDITED YEAR JAN TO DEC 2022 | |||||
Revenue | |||||
Total | 2,220,832 | 54,495 | 28,292 | - | 2,303,619 |
Inter-segment | (206,950) | (3,841) | (31,601) | - | (242,392) |
Third-party | 2,013,882 | 50,654 | (3,309) | - | 2,061,227 |
Earnings before taxation | 159,312 | 3,560 | 6,945 | - | 169,817 |
Depreciation | 126,597 | 8,462 | 433 | - | 135,492 |
Write-off of property, machinery and equipment | 57,015 | - | - | - | 57,015 |
Segment assets | 3,372,241 | 125,003 | 97,559 | (1,237,504) | 2,357,299 |
Segment liabilities | 2,460,136 | 46,718 | 7,933 | (1,032,581) | 1,482,206 |
Capital expenditure | 112,609 | 2,684 | - | - | 115,293 |
revised accounting standards that are mandatory for annual accounting periods on or after January 1, |
2023 and which are relevant to the TCL Group's operations. |
3. Earnings Per Share |
Earnings per share (EPS) is calculated by dividing the net income or loss attributable to controlling |
interest by the weighted average number of ordinary shares outstanding during the period. The weighted |
average number of ordinary shares in issue for the period has been determined by deducting from the |
total number of issued shares of 374.648 million, the weighted average of 2.845 million shares that |
were held as unallocated shares by the Employee Share Ownership Plan (ESOP). |
4. Cost of Sales, Operating and Other Expenses and Other Income and Credits |
Cost of sales represents the production cost of inventories at the moment of sale. Cost of sales includes |
depreciation, amortisation and depletion of assets involved in production, expenses related to storage |
in production plants and freight expenses of raw material in plants and delivery expenses of the TCL |
Group's ready-mix concrete business. |
Operating expenses comprise administrative, selling, distribution and logistics expenses. Administrative |
expenses represent expenses related to managerial activities and back office for the TCL Group's |
management. Distribution and logistics expenses refer to expenses of storage at points of sale, as |
well as freight expenses of finished products between plants and points of sale and freight expenses |
between points of sale and the customers' facilities. |
Other expenses and other income and credits consist primarily of income and expenses not directly related |
to the TCL Group's main activities, or which are of an unusual and/or non-recurring nature, including |
royalties, past service cost of pension and post-retirement employee benefits, reversal of impairment |
losses on property, machinery and equipment, results on disposal of property, machinery and equipment |
and restructuring costs, among others. |
5. Other Accounts Receivable |
Other accounts receivable includes a deposit investment account of $86 million (US$12.7 million) in |
CEMEX Innovation Holding Limited, a related company, which generates interest at a rate equal to the |
Western Asset USD Institutional Liquid Reserves Fund rate plus 30 basis points on a daily basis of a year |
of 360 days. |
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Trinidad Cement Limited published this content on 31 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 July 2023 12:26:06 UTC.