June 15, 2023

CAC 2000 Limited (CAC) for the six months ended April 30, 2023 reported a 28% decrease in revenue totaling $386.51 million compared to $535.66 million in the corresponding period last year. Revenue for the second quarter had a 17% decrease to close at $258.61 million compared to $313.42 million for the comparable quarter of 2022.

Cost of sales amounted to $234.44 million (2022: $299.36 million), this represents a decrease of 22% year over year. Consequently, gross profit decreased by 36% to $152.06 million compared to $236.30 million for the six months ended April 30, 2022. The company booked gross profit of $106.66 million for the second quarter versus $164.99 million reported for the similar quarter of 2022.

General administration costs decrease by 16% to close at $170.71 million (2022: $204.10 million, while selling & distribution costs decreased by 48% from $7.77 million in 2022 to $4.03 million in the period under review. As a result, total expenses for the six months ended April 30, 2023 amounted to $174.74 million, a 18% decrease relative to $211.87 million reported in 2022.

Loss before finance costs and taxation for the six months ended April 30, 2023, amounted to $19.52 million relative to profit of $25.73 million reported in 2022. Profit before finance costs and taxation for the second quarter amounted to $25.17 million (2022: $50.32 million). Net Finance Costs totalled $33.05 million, a 166% increase from the corresponding period last year (2022: $12.40 million).

Loss before taxation for the six months ended April 30, 2023, amounted to $52.57 million, a 494% decrease relative to profit of $13.33 million reported in 2022. Profit before taxation for the second quarter amounted to $3.18 million (2022: $46.68 million).

Taxation for the six months ended April 30, 2023 had a 1457% increase to reach $7.30 million (2022: $468,798) . Net loss for the six months amounted to $45.27 million relative to the profit of $13.80 million reported in 2022. For the second quarter, Net profit was $6.56 million (2022: $47.15 million).

Consequently, Loss Per Share for the six months amounted to $0.35 (2022: EPS: $0.11), while Earnings Per Share for the quarter totaled $0.05 (2022: EPS: $0.37). The twelve month trailing LPS was $0.30 and the number of shares used in these calculations was 129,032,258. Notably, CAC’s stock price closed the trading period on June 14, 2023 at a price of $7.09.

Balance Sheet Highlights

The company’s assets totalled $1.28 billion (2022: $1.58 billion). The decrease was as a result of ‘Inventories’ declining to $578.82 million (2022: $608.59 million) and ‘Trade and Other Receivables’ declining to $520.46 million (2022: $743.29 million).

Shareholder’s equity was $398.76 million (2022: $437.43 million), representing a book value per share of $3.09 (2022: $3.39).

Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.

Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may affect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.