August 16, 2025
Caribbean Cream Limited (KREMI)
Unaudited financials for the six months ended August 31, 2025:
Caribbean Cream Limited (KREMI) for the six months ended August 31, 2025, reported a 9% increase in Revenue totaling $1.63 billion compared to $1.49 billion in the corresponding period last year. Revenue for the second quarter increased by 13%, closing at $825.56 million compared to $731.10 million for the comparable quarter of 2024.
Cost of Sales amounted to $1.14 billion (2024: $949.19 million), representing a 20% increase year over year. Consequently, gross profit decreased by 9% to $491.35 million compared to $541.19 million for the six months ended August 31, 2024. The company booked a gross profit of $260.28 million for the second quarter, compared to $278.79 million reported for the similar quarter of 2024.
Administrative expenses decreased by 2% to close at $403.47 million (2024: $412.45 million), while selling and distribution costs increased by 7% from $40.13 million in 2024 to $43.02 million in the period under review. As a result, total expenses for the six months ended August 31, 2025, amounted to $446.49 million, a 1% decrease relative to $452.57 million reported in 2024.
Operating Profit for the six months ended August 31, 2025, amounted to $48.01 million, a 47% decrease relative to $90.83 million reported in 2024. Operating Profit for the second quarter amounted to $36.40 million (2024: $47.69 million). Finance costs totalled $60.60 million, a 33% increase from the corresponding period last year. (2024: $45.65 million).
Loss before taxation for the six months ended August 31, 2025, amounted to $12.59 million, a 128% decrease relative to the profit of $45.19 million reported in 2024. Profit before taxation for the second quarter amounted to $5.61 million (2024: $24.75 million).
The company utilized a tax credit of $3.15 million to offset operating losses, resulting in a net loss for the six months that amounted to $9.45 million, a 128% decrease from the net profit $33.89 million reported in 2024. For the second quarter, Net Profit was $4.21 million (2024: $18.56 million).
Kremi’s net loss was primarily operationally induced, as operational leverage contracted sharply while revenue expanded, rather than being demand-driven. Despite rising revenues, inflationary cost pressures, financing burdens, and declining gross margins, the company’s strategic approach to cost containment, pricing adjustments, and asset productivity improvements instills confidence in a sustainable recovery.
Consequently, Loss Per Share for the six months amounted to $0.02 (2024: EPS: $0.09), while Earnings Per Share for the quarter totalled $0.01 (2024: EPS: $0.06). The twelve-month trailing LPS was $0.07, and the number of shares used in these calculations was 378,568,115.
Balance Sheet Highlights
The company’s assets totalled $2.60 billion (2024: $2.36 billion). The company total asset base was driven by a 185% YoY increase in “Right of use asset” of use asset ending the quarter at $239.65 million (2024: $84.13 million), a 3% YoY increase in “Property, Plant and Equipment” ending the quarter at $1.78 billion (2024: $1.73 billion) and a 3% YoY increase Accounts Receivables ending the quarter at $188.62 million (2024: $182.27 million)
Shareholders’ equity was $870.70 million (2024: $896.25 million), representing a book value per share of $2.30 (2024: $2.37).
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