January 16, 2023
Caribbean Cream Ltd. (KREMI)
Financials for the nine months ended November 30, 2022:
Caribbean Cream Ltd. (KREMI) for nine months ended November 30, 2022 reported a 19% increase in revenue totalling $1.83 billion compared to $1.54 billion in the corresponding period last year. Revenue for the second quarter rose 15% to close at $575.59 million compared to $500.51 million for the comparable quarter of 2021.
Costs of sales amounted to $1.31 billion (2021: $1.05 billion), this represents an increase of 25% year over year. Consequently, gross profit increased by 8% to $525.03 million compared to $485.77 million for the period ended November 30, 2021. The Company booked gross profit of $171.51 million for the second quarter versus $124.84 million reported for the similar quarter of 2021.
Administrative expenses rose by 12% to close at $423.73 million (2021: $378.06 million), while selling and distribution costs increased by 8% from $46.94 million in 2021 to $50.91 million in the period under review. As a result, operating profit for the nine months period amounted to $51.32 million, a 16% decrease relative to $60.77 million reported twelve months earlier. Management noted that, “The increase is driven by continued higher material prices, electricity rate increases and repairs and maintenance.”
Finance cost rose by 97% year over year, amounting to $39.17 million relative to $19.89 million recorded for the first nine months of 2021. Interest income for the period declined to end at $335,090 relative to the $572,402 for the corresponding nine months in the prior year.
Taxation year to date amounted to $1.56 million, 70% less compared to the $5.18 million charged for the corresponding period last year. As such, KREMI reported net profit of $10.93 million, compared to the $36.27 million for the prior year’s corresponding period. Profit for the quarter amounted to $2.42 million (2021 Net loss: $25.15 million).
Consequently, Earnings per Share for the nine-month period amounted to $0.03 (2021: $0.10), while the EPS for the quarter totaled $0.01 (2021 LPS: $0.07). The trailing twelve months loss per share amounted to $0.09. The number of shares used in these calculations were 378,568,115 units. Notably, KREMI’s stock price closed the trading period on January 13, 2023 at a price of $4.00.
Balance Sheet Highlights:
The company’s assets totalled $1.96 billion (2021: $1.65 billion), $454.56 million more than its value as at November 2021. The increase in assets was largely due to an increase of $216.6 million in ‘Property, Plant and equipment’ to a total of $1.41 billion (2021: $1.01 billion).
Shareholders’ equity was $809.44 million (2021: $843.93 million), representing a book value per share of $2.14 (2021: $2.23).
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