KREMI reports 38% decline in year end net profit

May, 16, 2020


Caribbean Cream Limited (KREMI), for the year ended February 29, 2020, reported a 10% increase in revenue to total $1.71 billion compared to $1.55 billion booked last year. Revenue for the fourth quarter rose 16% to close at $470.92 million compared to $405.17 million for the comparable quarter of 2019.

Costs of sales amounted to $1.16 billion (2019: $1.03 billion), an increase of 12% year over year, while for the quarter there was a 16% growth to $319.21 million (2019: $275.95 million) . Nevertheless, gross profit improved by 5% or $26.07 million to $545.61 million compared to $519.54 million for the year ended February 28, 2019. The Company booked gross profit of $151.71 million for the fourth quarter versus $129.22 million reported for the similar quarter of 2019.

Administrative Expenses climbed 14% to close at $395.32 million (2019: $345.94 million), while selling and distribution costs increased 18% from $57.92 million in 2019 to $68.30 million. Operating profit for the year amounted to $81.31 million, down 31% relative to $118.01 million booked in 2019. Operating profit for the quarter amounted to $16.49 million (2019: $10.14 million).

In addition, finance cost rose 13% year over year to $20.27 million relative to $17.89 million recorded in 2019. Furthermore, the Company reported a 55% decline in interest income for the year from $2.52 million reported in 2019 to $1.13 million for the year ended February 29, 2020.

After incurring taxes of $7.60 million (2019: $13.97 million) for the year under review, net profit attributable to shareholders decreased by 38% from $88.68 million reported in 2019 to $54.57 million. Profit for the quarter amounted to $11.16 million compared to a loss of $7.34 million in 2019.

Consequently, Earnings per Share (EPS) for the year amounted to $0.14 (2019: $0.23), while the EPS for the quarter totalled $0.029 compared to a loss per share of $0.019. The numbers of shares used in these calculations were 378,568,115 units. KREMI’s stock price close the trading period on May 15, 2020 at a price of $2.17.


Balance Sheet Highlights:

The Company’s assets totalled $1.17 billion (2019: $1.04 billion). the movement was largely due to an increase of $67.69 million in ‘Property, Plant and Equipment’ to a total of $773.14 million (2019: $705.45 million). Right use of assets closed at $95.44 million relative to nil in 2019.

Shareholders’ equity amounted to $744.23 million (2019: $707.83 million), representing a book value per share of $1.97 (2019: $1.87).


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