October 16, 2024
Caribbean Cream Limited (Kremi)
Unaudited financials for the six months ended August 30, 2024:
Caribbean Cream Limited (Kremi) for the six months ended August 30, 2024, reported a 19% increase in Revenue totaling $1.49 billion compared to $1.25 billion in the corresponding period last year. Revenue for the second quarter had a 12% increase to close at $726.78 million compared to $646.26 million for the comparable quarter of 2023.
Management highlighted, “The new cold room allows the company to build stock to absorb disruptions in production that would normally affect sales. This is why even though there was a natural disaster during this period, we could still grow sales. The increased revenue is due to continued stock availability and increased third-party contracting.”
Cost of Sales amounted to $949.19 million (2023: $859.83 million), this represents an increase of 10% year over year. Consequently, gross profit increased by 39% to $541.19 million compared to $390.42 million for the six months ended August 30, 2023. The company booked gross profit of $274.47 million for the second quarter versus $204.60 million reported for the similar quarter of 2023.
Administrative expenses increased by 35% to close at $412.45 million (2023: $305.57 million), while Selling and distribution costs increased by 22% from $32.94 million in 2023 to $40.13 million in the period under review. As a result, total expenses for the six months ended August 30, 2024, amounted to $452.57 million, a 34% increase relative to $338.51 million reported in 2023.
Operating Profit for the six months ended August 30, 2024, amounted to $90.83 million, a 67% increase relative to $54.48 million reported in 2023. Operating Profit for the second quarter amounted to $47.69 million (2023: $29.11 million).
Finance costs totalled $45.65 million, a 9% increase from the corresponding period last year. (2023: $42.02 million).
Profit before taxation for the six months ended August 30, 2024, amounted to $45.19 million, a 262% increase relative to $12.47 million reported in 2023. Profit before taxation for the second quarter amounted to $24.75 million (2023: $4.81 million).
Tax charge for the six months ended August 30, 2024, had a 423% increase to reach $11.30 million (2023: $2.16 million). As such Net Profit for the six months amounted to $33.89 million, a 229% increase from the $10.31 million reported in 2023. For the second quarter, Net Profit was $18.56 million (2023: $3.61 million).
Consequently, Earnings Per Share for the six months amounted to $0.09 (2023: EPS: $0.03), while Earnings Per Share for the quarter totaled $0.05 (2023: EPS: $0.01). The twelve month trailing EPS was $0.16 and the number of shares used in these calculations was 378,568,115.
Notably, Kremi’s stock price closed the trading period on October 15, 2024, at a price of $3.45 with a corresponding P/E ratio of 21.65x.
Balance Sheet Highlights
The company’s assets totalled $2.36 billion (2023: $2.30 billion). The movement in total assets was mainly influenced by a $68.7 million increase in ‘Accounts receivables’ and a $53.57 million uptick in ‘Intangible Asset’during the period. However, ‘Cash and cash equivalents’ declined by $74.03 million to partly offset the movement.
Shareholder’s equity was $896.25 million (2023: $835.92 million), representing a book value per share of $2.37 (2023: $2.21).
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