CAR reports 29% decrease in three months net profit

August 14, 2020

Carreras Limited, for the three months ended June 30, 2020, reported Operating Revenue of $2.70 billion, a 22% decrease relative to $3.46 billion booked in 2019.

Cost of Operating Revenue also declined year over year by 21%, amounting to $1.37 billion from $1.73 billion. As such, Gross Operating Profit fell by 23% to total $1.33 billion relative to the $1.73 billion in 2019.

Other Operating Income rose by 39% moving from $29.23 million in 2019 to $40.56 million for the period under review.

Administrative, distribution and marketing expenses decreased 5% to total $508.92 million (2019: $535.58 million). Impairment gain on trade receivables amounted to $3.46 million (2019: $1.95 million), for the period under review.

As a result, profit from operation amounted $861.58 million (2019: $1.22 billion) for the first quarter. Interest income closed the period at $16.79 million (2019: $17.14 million) for the first quarter. Also, interest expense closed at $4.64 million (2019: $2.82 million) for the first quarter.

Profit before Income Tax closed the quarter at $873.74 million relative to $1.23 billion in 2019. Taxation of $222.26 million was incurred for the period (2019: $311.41 million).

Consequently, Net Profit for the three months decreased 29% to $651.48 million relative to $923.29 million booked in 2019.

The earnings per share (EPS) for the period was $0.13 as compared to $0.19 for the corresponding period of last year. The twelve-month trailing EPS amounted to $0.74. The number of shares used in the computations amounted to 4,854,400,000 units. CAR’s stock price last traded on August 13, 2020 at $6.57.


Balance Sheet at a glance:

Total Assets amounted to $3.85 billion as at June 30, 2020, down $266.91 million from $4.12 billion reported in 2019. This was mainly due to a decrease in ‘Cash and Cash equivalents’ totalling $1.49 billion (2019: $2.02 billion).

Shareholders’ Equity attributable to stockholders of parent amounted $1.45 billion (2019: $1.58 billion) with book value per share of $0.30 (2019: $0.33)




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