The TCL Group has reported a net loss of $23.2 million for the three months ended September 30, 2021.
Last year, for the comparative period, TCL recorded a net income of $38.4 million.
“This decrease was mainly driven by decreased revenues coupled with increased costs arising out of maintenance activities conducted during the quarter,” a statement jointly signed by its chairman David G. Inglefield and it managing director Francisco Aguilera Mendoza stated.
Overall for the nine months ended September 30, 2021 the TCL Group recorded a net income of $60.6 million.
For the comparative nine months last year the TCL Group recorded a net income of $48.9 million.
“The TCL Group recorded consolidated revenue from continuing operations of $467 million during the third quarter of 2021, representing a 3 per cent decrease when compared to the third quarter of 2020. Revenue for the quarter was mainly impacted by reduced cement sales attributable to adverse weather in Jamaica,” it stated.
“On a year-to-date basis, the TCL Group recorded consolidated revenue from continuing operations of $1.4 billion, 12 per cent higher than the same period in 2020. This increase across the region reflects a reduced 2020 comparable base as a result of the impact of the COVID-19 government restrictions in our markets, particularly in Guyana, T&T and Barbados,” it stated.
The directors’ statement said “based on the financial results to date and assessment of market demand, our outlook remains cautiously optimistic for the rest of the year.”
According to the directors’ statement TCL however remains concerned about the “persistence of relatively high COVID-19 infection rates, the emergence of new variants and resulting government-mandated restrictions may further negatively impact the TCL Group’s financial results.”
“ The outlook for the business will depend on the rate of vaccination, the achievement of the thus far elusive goal of ‘herd immunity’, the emergence of new waves of infection and the extent of government restrictions in response. Additionally, we are paying close attention to the inflation of coal, fuel and energy, and shipping costs, that have the potential to reduce our margins in export markets also and impact our financial results,” it stated.
The TCL Group said Health and Safety continues to be its top priority and outlined the vaccination rates of its employees across the region.
“To date, of our employees, 91.6 per cent in T&T, 30.8 per cent in Jamaica, 78.8per cent in Barbados and 90.5 per cent in Guyana are vaccinated against COVID-19. Additionally, during the third quarter, the Group ramped up its vaccination drive in Jamaica, participating in the Private Sector Vaccine Initiative in an effort to protect our stakeholders from the COVID-19 virus. The Group continues to conduct regular training sessions and to provide constant reminders and warnings concerning COVID-19 protocols to employees and other stakeholders,” it stated.
With climate change being one of the biggest global challenges, the TCL Group stated that it will continue to incorporate the “green agenda” as a fundamental component of it business strategy.
“The Group is therefore committed to vigorously pursue sustainable practices that will contribute to our communities and to deliver value to our stakeholders. On a year-to-date basis, the Group has surpassed its targeted use of alternative fuels in Jamaica and has also succeeded in reducing CO2 emission rates in Jamaica and T&T during this year compared to the prior year,” it stated.
The TCL Group said its management and the board continue to develop strategies and plans to address possible demand scenarios and respond to the ongoing pandemic.
“We are also eagerly awaiting the expected resumption of public works and infrastructure expenditures, and of course the retail segment’s historical resilience that has driven the demand for our products in the last couple of months,” it stated.