May 15, 2024

Carreras Ltd (CAR)

Unaudited financials for the first quarter ended March 31, 2024:

Carreras Ltd (CAR) reported a 27% decline in operating revenue to $2.71 billion for the first quarter ended March 31, 2024, compared to $3.70 billion in the corresponding period in 2023.

Carreras Ltd’s (CAR) cost of Operating Revenue for the first quarter fell 33% year over year to $1.31 billion versus $1.94 billion for the same quarter of 2023. The Company reported a 20% contraction in gross operating Profit to $1.40 billion compared to $1.75 billion for the first quarter ended March 31, 2023.

Other Operating Income for Carreras Ltd (CAR) increased by 3% to close at $60.33 million (2023: $58.69 million). CAR’s Administrative, Distribution, and Marketing Expenses experienced a 13% growth year over year from $610.18 million in 2023 to $687.83 million for the quarter ending March 31, 2024. This increase was primarily due to the company absorbing the impact of the industry-wide increase in security costs. As a result, the Company’s Profit from operation for the first quarter decreased 35% to $769.48 million relative to the $1.18 billion reported in 2023.

Profit before Income Tax for the first quarter ended March 31, 2024, amounted to $769.48 million, a 35% decrease relative to $1.18 billion reported in 2023.

Income tax for the quarter decreased 29% to $201.00 million (2023: $282.62 million). Net Profit amounted to $568.48 million, a 36% decline from the $894.99 million reported in 2023.

Consequently, Earnings Per Share for the three months amounted to $0.12 (2023: EPS: $0.18). The twelve-month trailing EPS was $0.68, and the number of shares used in these calculations was 4,854,400,000.

Notably, CAR’s stock price closed the trading period on May 14, 2024, at $8.92, with a corresponding P/E ratio of 10.56x.

Balance Sheet Highlights

The company’s assets totaled $6.89 billion (2023: $5.50 billion). The rise in total assets is attributable to a $1.05 billion rise in Cash and Cash Equivalents, closing the quarter at $2.97 billion (2023: $1.92 billion), a YoY increase of 54%. The company also saw a rise in inventories of $41.98 million, closing the quarter at $501.29 million (2023: $459.31 million), a 9% YoY increase, and a 4% YoY increase in Accounts Receivables of $97.19 million, closing the quarter at $2.37 billion (2023: $2.27 billion). There was also an astronomical 3707% YoY rise in Income Tax Recoverable, which also so bolstered the balance sheet, ending the quarter at $96.53 million (2023: $2.54 million)

Shareholder’s equity was $1.82 billion (2023: $2.04 billion), representing a book value per share of $0.38 (2023: $0.42). This decline of 11% was mainly ascribed to the company reserves, with Unappropriated profits decreasing 11% YoY to close the quarter at $1.70 billion (2023: $1.92 billion)

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