March 5, 2024

Carreras Limited (CAR) for the nine months ended December 31, 2023, reported a 10% increase in operating revenue totalling $13.84 billion compared to $12.53 billion in the corresponding period last year. Operating revenue for the third quarter had a 9% increase to close at $5.46 billion compared to $5.00 billion for the comparable quarter of 2022.

Cost of operating revenue amounted to $7.01 billion (2022: $6.73 billion), this represents an increase of 4% year over year. Consequently, gross operating profit increased by 18% to $6.84 billion compared to $5.80 billion for the nine months ended December 31, 2022. The company booked gross operating profit of $2.78 billion for the third quarter versus $2.35 billion reported for the similar quarter of 2022.

Other operating income amounted to $183.74 million versus loss of $4.41 million booked in 2022. Administrative, distribution and marketing expenses increased by 2% from $2.14 billion in 2022 to $2.18 billion in the period under review. As a result, profit from operation for the nine months ended December 31, 2023, amounted to $4.75 billion, a 30% increase relative to $3.66 billion reported in 2022.

Profit before income tax for the nine months ended December 31, 2023, amounted to $4.71 billion, a 28% increase relative to $3.68 billion reported in 2022. Profit before income tax for the third quarter amounted to $1.84 billion (2022: $1.51 billion).

Income tax for the nine months ended December 31, 2023, had a 26% increase to reach $1.18 billion (2022: $938.14 million). Net profit for the nine months amounted to $3.53 billion, a 29% increase from the $2.74 billion reported in 2022. For the third quarter, net profit was $1.38 billion (2022: $1.13 billion).

Earnings per share (EPS) for the nine months amounted to $0.73 (2022: $0.56), while EPS for the quarter totalled $0.28 (2022: $0.23). The twelve-month trailing EPS was $0.91, and the number of shares used in these calculations was 4,854,400,000.

Notably, CAR’s stock price closed the trading period on March 4, 2024, at a price of $9.06 with a corresponding P/E ratio of 9.94x.

Balance Sheet Highlights:

The company’s assets totalled $7.21 billion (2022: $6.03 billion); 20% increase year over year largely attributed to a 63% uptick in accounts receivables, which closed at $3.89 billion (2022: $2.38 billion).

Shareholder’s equity was $2.47 billion (2022: $2.16 billion), representing a book value per share of $0.51 (2022: $0.44).

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