CAR reports 32% increase in three months net profit

August 03, 2021

Carreras Limited, for the three months ended June 30, 2021, reported Operating Revenue of $3.43 billion, a 27% increase relative to $2.70 billion booked in 2020. According to CAR, “this was mainly attributable to the increase in volumes achieved for the quarter when compared to Q1 2020.”

Cost of Operating Revenue also increased year over year by 30%, amounting to $1.78 billion from $1.37 billion booked twelve months earlier. As such, Gross Operating Profit rose by 24% to total $1.65 billion relative to the $1.33 billion in 2020.

Other Operating Income fell by 41% moving from $40.56 million in 2020 to $23.97 million for the period under review.

Administrative, distribution and marketing expenses grew by 5% to total $531.88 million (2020: $508.92 million). Impairment loss on trade receivables amounted to $326,000 relative to the gain of $3.46 million in the period ending June 30, 2020.

Profit from operation amounted to $1.14 billion (2020: $861.58 million) for the first quarter. Interest income closed the period at $18.28 million (2020: $16.79 million) for the first quarter. Also, interest expense closed at $4.60 million (2020: $4.64 million) for the first quarter.

Profit before Income Tax closed the quarter at $1.15 billion relative to $873.74 million in 2020. Taxation of $290.72 million was incurred for the period (2020: $222.26 million).

Consequently, Net Profit for the three months rose by 32% to $862.53 million relative to $651.48 million booked in 2020.

The earnings per share (EPS) for the period was $0.18 as compared to $0.13 for the corresponding period of last year. The twelve-month trailing EPS amounted to $0.81. The number of shares used in the computations amounted to 4,854,400,000 units. CAR’s stock price last traded on July 30, 2021 at $9.22 with a corresponding P/E of 11.33 times.

The company noted, “The Minister of Health tabled for consideration to Parliament, the Tobacco Control Act (Bill) in 2020. The company is working assiduously to ensure that the regulations are balanced, practical, and fair. We are also committed in supporting and complying with such regulations set out for governing the marketing and distribution of our products.”


Balance Sheet Highlights:

Total Assets amounted to $4.37 billion as at June 30, 2021, up $525 million from $3.85 billion reported in 2020. This was mainly due to an increase in ‘Accounts receivable’ totalling $1.56 billion (2020: $1.19 billion).

Shareholders’ Equity attributable to stockholders of parent amounted $1.75 billion (2020: $1.45 billion) with book value per share of $0.36 (2020: $0.30)



Analyst Certification -This research report is for information purposes only and should not be construed as a recommendation. 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.