November 12, 2021
Carreras Limited, for the six months ended September 30, 2021, reported Operating Revenue of $7.19 billion, a 17% increase relative to $6.15 billion booked in 2020. Revenue for the quarter inched up 9% to $3.76 billion (2020: $3.46 billion). According to CAR, “This was mainly attributable to the 18.5% increase in volumes achieved for the quarter when compared to SPLY.”
Cost of Operating Revenue also increased year over year by 19%, amounting to $3.72 billion from $3.13 billion booked twelve months earlier. As such, Gross Operating Profit rose by 15% to total $3.47 billion relative to the $3.03 billion in 2020. Gross operating profit for the quarter improved 7% to $1.82 billion (2020: $1.70 billion).
Other Operating Income rose by 62% moving from $44.51 million in 2020 to 71.91 million for the period under review.
Administrative, distribution and marketing expenses remained relatively flat at $999.19 million (2020: $999.02 million). Impairment loss on trade receivables amounted to $289,000 relative to the gain of $6.64 million for the period ended September 30, 2020.
Profit from operation amounted to $2.54 billion (2020: $2.08 billion) for the six months ended September 2021. CAR profit from operation for the quarter reflected a 15% growth to $1.40 billion compared to $1.22 billion reported as at September 2020. Interest income closed the period at $21.05 million (2020: $23.73 million) year to date. Also, interest expense closed at $9.19 million (2020: $ 9.66 million) for the period.
Profit before income tax closed the period at $2.55 billion relative to $2.09 billion in 2020. Taxation of $650.38 million was incurred for the year to date (2020: $530.52 million).
Consequently, Net Profit year to date rose by 22% to $1.90 billion relative to $1.56 billion booked in 2020. Net profit for the quarter closed at $1.04 billion, up 14% from the $910.63 million booked for the similar quarter of 2020.
The earnings per share (EPS) for the period was $0.39 as compared to $0.32 for the corresponding period of last year. EPS for the quarter amounted to $0.21 (2020: $0.19). The twelve-month trailing EPS amounted to $0.84. The number of shares used in the computations amounted to 4,854,400,000 units. CAR’s stock price last traded on November 12, 2021 at $8.21 with a corresponding P/E of 9.77 times.
The Company noted, “The Company continues to be committed to the fight against the spread of the COVID19 and to ensuring that we deliver our goods to our customers in the safest way. Our main priority is the protection of our people’s health and employment. All safety measures are being enforced, and protocols adhered to. Carreras continues to provide full employment and benefits to all team members and will continue to do this as we seek to efficiently manage our resources.”
Management further noted, “The Company is committed to achieving a first world modernized portfolio through its continued transformation of its brands. Our beloved Craven “A” got a facelift with a bold and modern reimaging of the pack as well as Matterhorn with its “new look of freshness”. They continue to perform incredibly well within the marketplace and continue to be the leading sought-after brand. We continue to push our Route to Market itinerary for 2021 which includes but is not limited to increasing our carrying capacity and improving efficiency. Enhanced security measures as well as increased product availability are also major areas of focus. Although activations were dramatically scaled down, creative and safe ways were found to bring the brands to our consumers during this unprecedented time. This was highly appreciated by our consumers and trading partners who appreciated the commercial input during this period. The Company has also launched a digital platform which allows us to engage with our consumers in a safe space created for our adult smokers.”
Balance Sheet Highlights:
Total Assets amounted to $4.51 billion as at September 30, 2021, up from $4.29 billion reported in 2020. This was mainly due to an increase in ‘Accounts receivable’ totalling $1.77 billion (2020: $1.26 billion). The overall movement was tempered by a decline in ‘Cash and cash equivalents’ which amounted to $1.12 billion (2020: $1.78 billion).
Shareholders’ Equity attributable to stockholders of parent amounted $2.01 billion (2020: $1.78 billion) with book value per share of $0.42 (2020: $0.37).
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