CAR reports 10% decline in nine months net profit attributable to shareholders

February 13, 2018

Carreras Limited (CAR), for the nine months ended December 31, 2017, reported Operating Revenue of $9.53 billion, 9% lower than the $10.48 billion booked in 2016. Revenue for the quarter contracted 16% to close at $3.47 billion versus $4.11 billion booked for the comparable quarter of 2016. According to CAR, “the Company has experienced a decline in its sales volume since the excise lead price increase implemented on March 13, 2017 of $3 per stick of 21.4%. the legal sales volume lost is being channelled directly to the illicit trade which continues to expand as a result of the continuous and excessive excise increase levied on the legal industry over the past 3 years.”

Cost of Operating Revenue also decline year over year by 13%, amounting to $4.74 billion from $5.23 billion.  As such, Gross Operating Profit declined by 5% to total $4.79 billion (2016: $5.05 billion). Gross profit for the third quarter amounted to $1.73 billion relative to $1.95 billion for the corresponding quarter in 2016.

Other operating income decreased by 67% to $56.61 million from $171.07 million in the corresponding period in 2016.

Total Operating Expenses rose marginally by 1% to total $1.50 billion (2016: $1.49 billion).

Profit before Income Tax was recorded at $3.35 billion relative to $3.74 billion in 2016. Following taxation of $837.52 million for the period (2016: $945.31 million), Net Profit Attributable to Shareholders amounted to $2.51 billion down 10% from the $2.79 billion booked last year. Profit attributable to shareholders for the third quarter amounted to $842.16 million compared to $1.10 billion booked in 2016

The earnings per share (EPS) for the period was $0.52 as compared to $0.58 for the corresponding period of last year. the EPS for the quarter amounted to $0.17 relative to $0.23 in 2016. The twelve month trailing EPS amounted to $0.73.The number of shares used in the computations amounted to 4,854,400,000 units. Notably, CAR stock price close the trading period on February 13, 2018 at $10.95.

CAR noted, “the Company remains positive in its outlook and has continued to invest mainly in its core brands, Craven “A” and Matterhorn Mojito Vybz, have so far provided innovation and enthusiasm among our consumers, and have resulted in an overall strengthening of our brands.” “The strength of our brands, people and relationships continue to position us for the future.”


Balance Sheet at a glance:

 Total Assets totalled $4.36 billion as at December 31, 2017, down $167.13 million from $4.53 billion a year ago.  The decrease in total assets was driven mainly by decline in ‘Cash and Cash Equivalents’ by $201.88 million to total $2.74 billion relative to $2.94 billion booked as at December 31, 2016.  Property, Plant and Equipment also saw a 38% increase or $83.61 million to total $302.48 million. Accounts receivables also contributed to the decline in the asset base with a 3% fall to $822.77 million (2016: $849.91 million).

Shareholders’ Equity attributable to stockholders of parent amounted $2.02 billion (2016: $2.19 billion) with book value per share of $0.42 (2016: $0.45).



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