TCL reports $25.8m first-quarter profit

TRINIDAD Cement Ltd (TCL) has reported a strong start to 2025, posting a net profit attributable to shareholders of $25.8 million for the first quarter ended March 31.

In its unaudited financial statements published on the TT Stock Exchange website on May 1, TCL said this marks a significant turnaround from the $7.5 million loss recorded in the same period last year, as the company benefited from higher revenues and ongoing cost management initiatives.

The increase in profits comes amid multiple price increases, the latest being in February 17 when the company announced a seven per cent increase in cement prices.

Revenue for the three months rose nine per cent to $626.7 million, up from $573.3 million in the first quarter of 2024.

Gross profit climbed to $186.3 million, compared to $143.1 million in the prior year, reflecting improved sales volumes and operational efficiencies across TCL’s regional markets, which include TT, Jamaica, Barbados and Guyana.

TCL directors attributed the robust performance to increased demand and strategic improvements in logistics and production.

"The TCL Group’s consolidated revenue reached $627 million… mainly driven by increased turnover and improvements in TT, Barbados and Guyana," the board said in its quarterly report.

It noted that Jamaica remains a key market for TCL, representing 50 per cent of the group’s earnings.

The company reported a nine per cent improvement in Jamaica’s performance, driven by ongoing efforts to decarbonise operations and support national initiatives for environmental sustainability.

"In Jamaica, we are decarbonising our operations and are supporting national emission goals through the Jamaica Red Mud Hazard Ecosystem Restoration project, under the guidance of the National Environment and Planning Agency," the directors said.

Operating earnings before other expenses, income and credits reached $47.6 million, while operating earnings were $17.6 million, a notable improvement from the $8.7 million loss posted in the prior year.

Administrative expenses and selling expenses were closely managed, with the company highlighting ongoing cost-saving measures and a focus on operational efficiency.

Finance costs fell sharply by 34 per cent, largely due to a reduction of 258 basis points in TCL’s US dollar revolving credit line, which contributed to the improved bottom line.

Group taxation increased by $11 million, reflecting higher pre-tax earnings, while net cash flows from operations reached $148 million, up from $140 million in the previous year.

As of March 31, the company’s total assets stood at $2.89 billion, with cash and cash equivalents at $566.7 million.

TCL’s balance sheet remains stable, with total shareholders’ equity at $827.7 million and total liabilities at $2.06 billion.

"We successfully maintained zero lost time incidents (LTIs) across all our operations, extending our record to almost 900 consecutive LTI-free days,” the directors said.

The company said it continues to invest in training and safety initiatives, including its Health and Safety Academy and LOTOTO (Lock Out-Tag Out-Try Out) programme.

It is also advancing its sustainability agenda, focusing on reducing its carbon footprint and promoting the use of alternative fuels and raw materials.

The commissioning of the Refuse-Derived Fuel (RDF)/Tyre-Derived Fuel (TDF) pilot project in TT is expected to enhance the company’s environmental credentials.

"Our RDF system uses solid waste as an alternative to renewable fuels, reducing waste accumulation and positively impacting the island’s ecosystems," the board explained.

Looking ahead, TCL’s board and management said they remain cautious but optimistic, citing ongoing global economic uncertainties and currency fluctuations as potential headwinds.

"We are maintaining a controllable variables mindset while preparing to navigate uncertainties, especially concerning international trade risks, which we are closely monitoring," the directors said.

TCL said its first quarter achievements in cost, risk and sustainability position the company well for the future.