KREMI reports a 34% increase in six months net profit

Date: October 12, 2018 

Caribbean Cream Ltd. (KREMI) for six months ended August 31, 2018 reported a 19% increase in revenue totalling $799.51 million compared to $673.26 million in the corresponding period last year.  Revenue for the second quarter rose 9% to close at $387.76 million compared to $354.17 million for the comparable quarter of 2016.

Costs of Sales amounted to $515.52 million (2017: $453.14 million), an increase of 14%, “due to increase in the foreign exchange and higher utility costs” management indicated. Nevertheless, Gross Profit rose 29% or $63.86 million to $283.99 million compared to $220.12 million for the period ended August 31, 2017. The company booked gross profit of $137.39 million for the second quarter versus $112.77 million reported for the similar quarter of 2017.

Administrative Expenses climbed 27% to close at $158.75 million (2017: $125.43 million), while Selling and Distribution Costs rose by 28% from $21.42 million to $27.48 million. Management indicated “The Company continues to strengthen its focus on New Product Research and Development whilst also preparing itself to becoming HACCP compliant” Consequently, operating profit for the six months period amounted to $98.91 million, up 33% relative to $74.42 million book in 2017.

Finance Cost fell 2% year over year to amount to $6.14 million relative to $6.26 million recorded for the first six month of 2017. Interest income for the period also reflected a decline from $2.34 million to $1.50 million for the six months.

No taxes were charged for the period, as such Net Profit Attributable to Shareholders increased by 34% from $70.49 million in 2017 to $94.28 million. Profit for the quarter amounted to $38.91 million (2017: $35.64 million), up 9% year over year. Consequently, Earnings per Share for the period amounted to $0.25 (2017: $0.19), while the EPS for the quarter totaled $0.10 (2017: $0.09). The trailing twelve months earnings per share amounted to $0.30. The number of shares used in these calculations were 378,568,115 units.

Balance Sheet Highlights:

 The company’s assets totaled $981.11 million (2017: $830.33 million), $46.17 million more than its value as at August 2017. The increase in assets was largely due to an increase of $136.19 million in ‘Property, Plant and Equipment to a total of $614.33 million (2017: $478.14 million). Inventory also increased by 9% to close the year at $125.23 million compared to the $118.30 reported in the previous year. Cash and Cash Equivalents however also increase over the past twelve month to $188.57 million (2017: $175.46 million). Management noted, “The Company’s cash position remains strong as it continues along its capital investment programme with the addition of $119 million for property, plant and equipment.”

Shareholders’ equity was $731.77 million (201: $640.94 million), representing a book value per share of $1.93 (2017: $1.69).


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