September 3, 2024
Caribbean Cream Limited (Kremi)
Unaudited financials for the first quarter ended May 31, 2024:
Caribbean Cream Limited (Kremi) for the first quarter ended May 31, 2024, reported a 26% increase in revenue totaling $763.60 million compared to $603.99 million in the corresponding three months last year. “This was driven by improved stock availability with the operation of our new cold room which has allowed us to meet the increased demand for our products,” Kremi highlighted.
Cost of Sales amounted to $496.88 million (2023: $418.17 million), this represents an increase of 19% year over year. Consequently, gross profit increased by 44% to $266.72 million compared to $185.82 million for the first quarter ended May 31, 2023.
Administrative expenses increased by 34% to close at $198.73 million (2023: $147.82 million), while Selling and distribution costs increased by 58% from $13.80 million in 2023 to $21.83 million for the three months. As a result, Total Expenses for the first quarter amounted to $220.56 million, a 36% increase relative to $161.63 million reported in 2023.
Operating Profit for the three months amounted to $43.15 million, a 70% increase relative to $25.38 million reported in 2023.
Finance costs totalled $22.70 million, a 28% increase from the corresponding period last year. (2023: $17.72 million).
Profit before taxation for the first quarter ended May 31, 2024, amounted to $20.44 million, a 167% increase relative to $7.65 million reported in 2023.
Taxation charge for the three months had a 434% increase to reach $5.11 million (2023: $956,677). As such, Net Profit for the three months amounted to $15.33 million, a 129% increase from the $6.70 million reported in 2023.
Consequently, Earnings Per Share for the three months amounted to $0.04 (2023: EPS: $0.02). The twelve-month trailing EPS was $0.12, and the number of shares used in these calculations was 378,568,115.
Notably, Kremi’s stock price closed the trading period on September 03, 2024, at a price of $3.06 with a corresponding P/E ratio of 25.53x.
Balance Sheet Highlights
The company’s assets totalled $2.37 billion (2023: $2.30 billion). The movement in total assets was mainly due to a $93.47 million increase in ‘Property, plant and equipment’ as well as a $92.65 million increase in ‘Accounts receivables’, while ‘Cash and cash equivalents’ declined by $162.71 million partly offsetting the upward movement during the period.
Shareholder’s equity was $877.69 million (2023: $832.31 million), representing a book value per share of $2.32 (2023: $2.20).
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