CAR reports 11% decline in year-end net profit

June 1, 2023

Carreras Limited, for the year ended March 31, 2023, reported Operating Revenue of $16.23 billion, a 3% increase relative to $15.75 billion booked in 2022. Revenue for the quarter declined 8% to $3.70 billion (2022: $4.03 billion).

Cost of Operating Revenue also increased year over year by 6%, amounting to $8.67 billion from $8.18 billion booked twelve months earlier. Gross Operating Profit was relatively unchanged to total $7.55 billion relative to the $7.58 billion in 2022. Gross operating profit for the quarter declined 10% to $1.75 billion (2022: $1.94 billion).

Total Operating expenses for the twelve months increased 18% to $2.76 billion compared to the $2.33 billion reported in 2022. Of these expenses the most significant was administrative, distribution and marketing expenses which increased 17% to $2.72 billion (2022: $2.32 billion).

Profit before income tax amounted to $4.86 billion (2022: $5.43 billion) for the year ended March 2023. Profit before income tax for the quarter reflected a 13% decline to $1.18 billion compared to $1.35 billion reported as at March 2022.

Consequently, Net Profit for the year fell by 11% to $3.64 billion relative to $4.07 billion booked in 2022. Net profit for the quarter closed at $894.99 million, down 12% from the $1.02 billion booked for the similar quarter of 2022.

The earnings per share (EPS) for the period was $0.75 as compared to $0.84 for the corresponding period of last year. EPS for the quarter amounted to $0.18 (2022: $0.21). The number of shares used in the computations amounted to 4,854,400,000 units. CAR’s stock price last traded on May 31, 2023 at $8.41 with a corresponding P/E of 11.23 times.

Balance Sheet Highlights:

Total Assets amounted to $5.50 billion as at March 31, 2023, up 5% from $5.23 billion reported in 2022. This was mainly due to an increase in ‘Accounts receivable’ totalling $2.28 billion (2022: $1.46 billion). The overall movement was tempered by a decline in ‘Inventory’ which amounted to $459.31 million (2022: $1.13 billion).

Shareholders’ Equity attributable to stockholders of parent amounted $2.04 billion (2022: $2.09 billion) with book value per share of $0.42 (2022: $0.43).



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