February 15, 2023

Carreras Limited (CAR)

For the nine months ended December 31, 2022:-

Carreras Limited, for the nine months ended December 31, 2022, reported Operating Revenue of $12.53 billion, a 7% increase relative to $11.72 billion booked in 2021. Revenue for the quarter inched up 10% to $5 billion (2021: $4.53 billion).

Cost of Operating Revenue also increased year over year by 10%, amounting to $6.73 billion from $6.09 billion booked twelve months earlier. As such, Gross Operating Profit grew by 3% to total $5.80 billion relative to the $5.63 billion in 2021. Gross operating profit for the quarter improved 9% to $2.35 billion (2021: $2.16 billion).

Total Operating expenses for the nine month period increased 28% to $2.14 billion compared to the $1.66 billion reported in 2021. Of these expenses the most significant was administrative, distribution and marketing expenses which increased 28% to $2.14 billion (2021: $1.66 billion). Admin expenses for the quarter amounted to $832.02 million (2021: $665.52 million).

Profit from operation amounted to $3.66 billion (2021: $4.08 billion) for the nine months ended December 2022. Profit from operation for the quarter reflected a 2% decline to $1.50 billion compared to $1.54 billion reported as at December 2021. Interest income closed the period at $37.32 million (2021: $12.83 million) year to date. Interest expense closed at $14.45 million (2021: $13.78 million) for the period.

Profit before income tax closed the period at $3.68 billion relative to $4.08 billion in 2021. Taxation of $938.14 million was incurred for the year to date (2021: $1.03 billion).

Consequently, Net Profit year to date fell by 10% to $2.74 billion relative to $3.05 billion booked in 2021. Net profit for the quarter closed at $1.13 billion, down 2% from the $1.15 billion booked for the similar quarter of 2021.

The earnings per share (EPS) for the period was $0.56 as compared to $0.63 for the corresponding period of last year. EPS for the quarter amounted to $0.23 (2021: $0.24). The twelve-month trailing EPS amounted to $0.78. The number of shares used in the computations amounted to 4,854,400,000 units. CAR’s stock price last traded on February 14, 2022 at $8.21 with a corresponding P/E of 10.59 times.

Balance Sheet Highlights:

Total Assets amounted to $6.03 billion as at December 31, 2022, up from $5.01 billion reported in 2021. This was mainly due to an increase in ‘Accounts receivable’ totalling $2.38 billion (2021: $1.61 billion). The overall movement was tempered by a decline in ‘Cash and cash equivalents’ which amounted to $2.4 billion (2021: $1.78 billion).

Shareholders’ Equity attributable to stockholders of parent amounted $2.16 billion (2021: $2.14 billion) with book value per share of $0.444 (2021: $0.441).

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