February 29, 2024
Caribbean Cream Limited (Kremi)
Unaudited financials for the nine months ended November 30, 2023:
Caribbean Cream Limited (Kremi) for the nine months ended November 30, 2023, reported a 3% increase in Revenue totalling $1.88 billion compared to $1.83 billion in the corresponding period last year. Revenue for the third quarter had a 9% increase to close at $630.04 million compared to $575.59 million for the comparable quarter of 2022.
Cost of Sales amounted to $1.25 billion (2022: $1.31 billion), this represents a decrease of 4% year over year. Consequently, gross profit increased by 19% to $626.85 million compared to $525.03 million for the nine months ended November 30, 2022. The company booked gross profit of $236.43 million for the third quarter versus $171.51 million reported for the similar quarter of 2022.
Administrative expenses increased by 10% to close at $467.82 million (2022: $423.73 million), while Selling and distribution costs decreased by 4% from $50.91 million in 2022 to $49.09 million in the period under review. As a result, total expenses for the nine months ended November 30, 2023, amounted to $516.91 million, a 9% increase relative to $474.63 million reported in 2022.
Operating Profit for the nine months ended November 30, 2023, amounted to $113.69 million, a 122% increase relative to $51.32 million reported in 2022. Operating Profit for the third quarter amounted to $59.21 million (2022: $14.42 million).
Net Finance cost totalled $67.06 million a 73% increase from the corresponding period last year. (2022: $38.83 million).
Profit before taxation for the nine months ended November 30, 2023, amounted to $46.63 million, a 273% increase relative to $12.49 million reported in 2022. Profit before taxation for the third quarter amounted to $34.16 million (2022: $2.77 million).
Taxation for the nine months ended November 30, 2023, had a 585% increased to reach $10.70 million (2022: $1.56 million). As such, Net Profit for the nine months amounted to $35.93 million, a 229% increase from the $10.93 million reported in 2022. For the third quarter, Net Profit was $25.62 million (2022: $2.42 million).
Consequently, Earnings Per Share for the nine months amounted to $0.09 (2022: EPS: $0.03), while Earnings Per Share for the quarter totalled $0.07 (2022: EPS: $0.01). The twelve month trailing EPS was $0.14 and the number of shares used in these calculations was 378,568,115.
Notably, Kremi’s stock price closed the trading period on February 29, 2024 at a price of $3.90 with a corresponding P/E ratio of 28.33x.
Balance Sheet Highlights
The company’s assets totalled $2.29 billion (2022: $1.96 billion). The growth in total assets was primarily driven by a 23% increase in ‘Property, Plant, & Equipment’ to $1.73 billion (2022: $1.41 billion).
Shareholder’s equity was $861.54 million (2022: $809.44 million), representing a book value per share of $2.28 (2022: $2.14).
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