KREMI reports a 40% decline in six months net profit

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).

 

 

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2017-10-12T15:38:54+00:00