August 14, 2024
Carreras Ltd (CAR)
Unaudited financials for the six months ended June 30, 2024:
Carreras Ltd (CAR), for the six months ending June 30, 2024, reported a 6% decrease in Operating Revenue totaling $7.49 billion compared to $8.00 billion in the corresponding period last year. Operating Revenue for the second quarter had an 11% increase to close at $4.78 billion compared to $4.31 billion for the comparable quarter of 2023.
Cost of Operating Revenue amounted to $3.64 billion (2023: $4.32 billion), a decrease of 16% year over year. Consequently, gross profit increased by 5% to $3.85 billion compared to $3.69 billion for the six months ended June 30, 2023. The company booked a gross profit of $2.45 billion for the second quarter versus $1.93 billion reported for the similar quarter of 2023.
Other Operating Income decreased by 4% to close at $112.63 million (2023: $117.60 million), while Administrative, Distribution, and Marketing Expenses increased by 8% from $1.21 billion in 2023 to $1.31 billion in the period under review. As a result, Profit from Operation for the six months ended June 30, 2024, amounted to $2.67 billion, a 4% increase relative to $2.58 billion reported in 2023. Profit before Income Tax for the six months ended June 30, 2024, amounted to $2.67 billion, a 4% increase relative to $2.58 billion reported in 2023. Profit before Income Tax for the second quarter amounted to $1.90 billion (2023: $1.40 billion).
Income tax for the six months ending June 30, 2024, had a 10% increase to $692.02 million (2023: $629.50 million). Net profit for the six months amounted to $1.98 billion, a 2% increase from the $1.95 billion reported in 2023. For the second quarter, net profit was $1.41 billion (2023: $1.05 billion).
Consequently, Earnings Per Share for the six months amounted to $0.41 (2023: EPS: $0.40), while Earnings Per Share for the quarter totaled $0.29 (2023: EPS: $0.22). The twelve-month trailing EPS was $0.94, and the number of shares used in these calculations was 4,854,400,000. Notably, CAR’s stock price closed the August 14, 2024, trading period for $8.92, with a corresponding P/E ratio of 9.53x.
Balance Sheet Highlights
The company’s assets totaled $5.55 billion (2023: $6.73 billion). The decrease in the company’s total asset base is driven by management’s strategic move to decrease current liabilities, resulting in 24% year-over-year decline in “Cash and cash equivalents” accounting, ending the quarter at $2.14 billion (2023: $2.82 billion), the “Accounts receivable” also decreased by 16% year over year ending the quarter at $2.26 billion (2023: $2.69 billion) and the “Inventories” ended the quarter at $274.33 million (2023: $422.60 million), representing a year over year decrease of 35%.
Shareholder’s equity was $2.46 billion (2023: $2.07 billion), representing a book value per share of $0.51 (2023: $0.43).
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