July 17, 2023
Caribbean Cream Limited (KREMI) for the first quarter ended May 31, 2023 reported a 1% decrease in revenue totalling $603.99 million compared to $611.75 million in the corresponding three months last year.
Cost of Sales amounted to $418.17 million (2022: $447.36 million), this represents a decrease of 7% year over year. Consequently, gross profit increased by 13% to $185.82 million compared to $164.39 million for the first quarter ended May 31, 2022.
Administrative expenses increase by 8% to close at $147.82 million (2022: $136.84 million), while selling and distribution costs decrease by 8% from $14.94 million in 2022 to $13.80 million for the current three months. As a result, Total Expenses for the first quarter amounted to $161.63 million, a 6% increase relative to $151.78 million reported in 2022.
Operating Profit for the three months amounted to $25.38 million, a 89% increase relative to $13.42 million reported in 2022. Finance costs totalled $17.72 million, a 49% increase from the corresponding period last year (2022: $11.90 million).
Profit before taxation for the first quarter ended May 31, 2023, amounted to $7.65 million, a 405% increase relative to $1.51 million reported in 2022.
Taxation for the three months had a 405% increase to reach $956,677 (2022: $189,312). Net Profit for the three months amounted to $6.70 million, a 405% increase from the $1.33 million reported in 2022.
Consequently, Earnings Per Share for the three months amounted to $0.02 (2022: EPS: $0.004). The twelve-month trailing EPS was $0.09 and the number of shares used in these calculations was 378,568,115. Notably, Kremi’s stock price closed the trading period on July 14, 2023 at a price of $4.07 with a corresponding P/E ratio of 47.62x.
Balance Sheet Highlights
The company’s assets totalled $2.30 billion (2022: $1.78 billion). ‘Property, Plant & Equipment’ contributed to the increase closing at $1.65 billion (2022: $1.25 billion).
Shareholder’s equity was $832.31 million (2022: $799.83 million), representing a book value per share of $2.20 (2022: $2.11).
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