Caribbean Cream Ltd. (KREMI) for six months ended August 31, 2017 reported a 9% increase in revenue totaling $673.26 million compared to $614.90 million in the corresponding period last year. Revenue for the second quarter rose 18% to close at $354.17 million compared to $299.64 million for the comparable quarter of 2016.
Costs of Sales amounted to $453.14 million (2016: $360.07 million), an increase of 26%. Management indicated, “the escalation over last year is due to increased costs of foreign exchange, utilities, labour and storage.” Nevertheless, Gross Profit fell 14% or $34.71 million to $220.12 million compared to $254.83 million for the period ended August 31, 2016. The company booked gross profit of $112.77 million for the second quarter versus $117.05 million reported for the similar quarter of 2016.
Administrative Expenses climbed 10% to close at $125.43 million (2016: $113.70 million), while Selling and Distribution Costs slid 4% from $22.27million to $21.42 million. Consequently, operating profit for the six months period amounted to $74.42 million, down 38% relative to $120.13 million book in 2016.
Finance Cost rose 28% year over year to amount to $6.26 million relative to $4.90 million recorded in the second quarter of 2016. Interest income for the period reflected a marginal decline from $2.35 million to $2.34 million for the six months.
No taxes were charged for the period, as such Net Profit Attributable to Shareholders decreased by 40% from $117.57 million in 2016 to $70.49 million. Profit for the quarter amounted to $35.64 million (2016: $46.40 million), down 23% year over year. According to KREMI, “this impact was primarily a result of the lower gross profit. Overheads were largely in line with expectations.” Consequently, Earnings per Share for the period amounted to $0.19 (2016: $0.31), while the EPS for the quarter totaled $0.09 (2016: $0.12). The trailing twelve months earnings per share amounted to $0.33. The number of shares used in these calculations were 378,568,115 units.
Balance Sheet Highlights:
The company’s assets totaled $851.01 million (2016: $784.16 million), $106.73 million more than its value as at August 2016. The increase in assets was largely due to an increase of $93.23 million in ‘property, plant and equipment to a total of $498.83 million (2016: $405.60 million). Inventory also increased by 43% to close the year at $118.31 million compared to the $82.54 reported in the previous year. Cash and Cash Equivalents fell year over year by 30% to $174.46 million (2016: $249.52 million). Management noted, “the company’s cash position remains strong aas it continues along its capital investment programme that will include $102 million for property, plant and equipment.”
Shareholders’ equity was $661.63 million (2016: $554.90 million), representing a book value per share of $1.75 (2016: $1.47).
The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.
