January 17, 2022
Caribbean Cream Limited (KREMI) for nine months ended November 30, 2021, reported revenue of $1.54 billion compared to $1.33 billion in the corresponding period last year, this represents a 15% increase year over year. Revenue for the third quarter rose 14% to close at $500.51 million compared to $440.83 million for the comparable quarter of 2020. KREMI noted, that their recently opened Ocho Rios depot was the force driving revenue, contributing 8% to overall sales.
Costs of sales amounted to $1.05 billion (2020: $879.64 million), an increase of 19%, while for the quarter there was a 26% growth (2021: $375.67 million, 2020: $297.91 million). According to the company, this was driven by increases in the cost for logistics, raw material & imported novelties.
Nonetheless, Gross Profit improved by 7% or $33.18 million to $485.78 million compared to $452.59 million reported twelve months earlier. The company’s gross profit for the quarter dipped by $18.07 million, standing at $124.84 million versus $142.92 million reported for the same quarter in 2020.
Administrative Expenses climbed 26% to close at $378.06 million (2020: $300.01 million) while Selling and distribution costs rose by 8% from $43.35 million in 2020 to $46.94 million for the period under review. The increase in administrative costs was influenced by staff and related expenses for transportation during lockdowns, increased costs in electricity due to higher throughput and costs attributable to requiring above average levels sanitation.
Operating profit for the nine months period amounted to $60.77 million, a decrease of 44% relative to $109.23 million booked in 2020.Finance cost rose 52% year over year to amount to $19.89 million relative to $13.10 million recorded in the nine months ended November 30, 2020. KREMI reported a 47% decrease in interest income for the period from $1.07 million reported in 2020 to $572,402 for the nine months ended November 2021.
After incurring taxes of $5.18 million (2020: $12.15 million) for the period under review, net profit attributable to shareholders decreased by 57% from $85.06 million booked in 2020 to $36.27 million for the nine months ended November 30, 2021. KREMI reported a loss for the quarter amounting to $25.15 million (2020: net profit of $11.01 million).
Consequently, Earnings per Share (EPS) for the nine months dipped to $0.10 (2020: $0.22), while the for the quarter KREMI produced a loss per share of $0.06 (2020: EPS of $0.02). The trailing twelve months earnings per share amounted to $0.14. The numbers of shares used in these calculations were 378,568,115 units. KREMI’s stock price close the trading period on January 14, 2022 at a price of $5.97 with a corresponding P/E ratio of 25.67 times.
Balance Sheet Highlights:
The company’s assets totalled $1.62 billion (2020: $1.20 billion), $454.55 million more than its value as at November 30, 2020. The increase in assets was largely due to an increase of $158.78 million in ‘Cash & Cash Equivalents’ to a total of $226.61 million (2020: $67.83 million) and ‘Property, Plant & Equipment’ which increased by 27% to total $1.01 billion (2020: $795.16 million). ‘
Shareholders’ equity amounted to $843.93 million (2020: $818.31 million), representing a book value per share of $2.23 (2020: $2.16).
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