Carreras Limited (CAR)
For the six months ended September 31, 2017:
Carreras Limited reported Operating Revenue of $6.06 billion, 5% less than the $6.37 billion booked in 2016. Revenue for the quarter increased by 7% compared to the corresponding Quarter in 2016 moving from $3.03 billion in 2016 to $3.25 billion in 2017. Although second quarter performances increased, according to the company “there was a lower trade demand for cigarettes for both the first and second quarter of the 2017/2018 financial year. We reiterate the point that there is a direct relationship between high taxes and its adverse impact on legal volumes, Governments revenues and the rise of the illicit trade.”
Cost of Operating Revenue also declined year over year by 8%, amounting to $3.00 billion from $3.27 billion. As such, Gross Operating Profit declined by 1% to total $3.06 billion relative to the $3.10 billion in 2016. Other Operating Income increased 15% moving from $141.32 million in 2016 to $162.04 million.
Administrative, distribution and marketing expenses increased 2% to total $989.68 million (2016: $970.07 million). The company stated that this was attributable to “one-off expenses associated with the recent stock split and the modernisation of the Articles of Incorporation. Overheads continue to be rigorously monitored and controlled by management.
Profit before Income Tax was recorded at $2.23 billion relative to $2.27 billion in 2016. Taxation of $558.22 million was incurred for the period (2016: $585.71 million).
Net Profit for the six months declined 1% to $1.67 billion relative to $1.69 billion booked in 2016. Net Profit for the second quarter saw a 11% increase amounting to $914.39 million compared to the $826.12 million reported in the second quarter 2016 period. Total Comprehensive Income attributable to shareholders for the period closed at $914.01 million compared to $825.61 million reported for the corresponding quarter in 2016.
The Earnings per share (EPS) for the period was $0.34 as compared to $0.35 for the corresponding period of last year, while EPS for the quarter amounted to $0.50 (2016: $0.49). The twelve month trailing EPS amounted to $0.78. The number of shares used in the computations amounted to 4,854,400,000 units.
Balance Sheet at a glance:
Total Assets amounted to $4.24 billion as at September 30, 2017, up $264.43 million (5%) from $3.97 billion reported in 2016. This was mainly due to an increase in accounts receivable totalling $767.89 million an increase of $245.64 million year over year.
Shareholders’ Equity attributable to stockholders of parent amounted $2.05billion (2016: $1.91 billion) with Book Value per share of $0.42 (2016: $0.39).
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 effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.