There seems to be a construction and real estate boom in Jamaica, based on just looking around. So why did profits fall by 20 percent for the island’s only cement manufacturer?

According to Carib Cement’s financials for the first six months of the year, net profits fell 20% to $2.4 billion. That’s compared to $3 billion for the same period last year. 

Carib Cement is Jamaica’s only cement manufacturing company, so they literally own the market. And we’ve been noticing a lot of construction all over Jamaica right now.

Everywhere you look, there’s another apartment building, housing scheme, or commercial property going up. Plus with the expansion of the Southern Coastal Highway, real estate opportunities are opening up in St Thomas and Portland. So, what’s happening with Carib’s numbers?

Well, you know the saying, ‘It takes money to make money to make money’?  Carib did record a 6% bump in its revenues, up from $13.5 billion to $14.3 billion, BUT they’ve also been investing heavily in maintenance and upgrading equipment. 

That way, they’re in a better position to meet demands from the construction boom. Because of course, the last thing you’d want is for your company to be unable to meet the demand. 

Additionally, Carib said it’s also making strides to accomplish its goal of becoming a net-zero company. 

The company said it’s optimistic about its future because of the massive amount of real estate developments expected, especially in Trelawny, St James, St Thomas and Portland. 

There are several hotels in various stages of development right now and existing ones are upgrading to keep up with the demand. Not to mention other players in the industry – restaurants, attractions, villas etc. 

Now, Carib Cement famously didn’t pay dividends for 17 years but broke that streak last year. So we’ll keep an eye out to see if the company decides to start paying out regular dividends or reinvest. 

And that’s the bottom line.