KREMI reports a 1% decline in year end net profits

Date: April 30, 2019

Caribbean Cream Limited (KREMI), audited results for the year ended February 28, 2019, reported a 13% increase in revenue totalling $1.55 billion compared to $1.37 billion in the corresponding period last year. Revenue for the fourth quarter rose 6% to close at $405.17 million compared to $381.04 million for the comparable quarter of the prior financial year.

Costs of Sales for the period amounted to $1.03 billion (2017: $952.95 million), an increase of 8%. This translated to gross profit increasing 24% or $99.21 million to close at $519.54 million compared to $420.33 million for the period ended February 28, 2018. The company booked gross profit of $129.22 million for the fourth quarter versus $114.88 million reported for the similar quarter of 2018.

Administrative Expenses climbed 26% to close at $345.95 million (2017: $275.03 million), while Selling and Distribution Costs rose by 24% from $46.64 million to close the year at $57.92 million. Consequently, operating profit for the year amounted to $118.01 million, up 17% relative to $100.90 million book in the prior year.

Finance Cost rose 17% year over year to $17.89 million relative to $15.26 million recorded for the comparable period in 2018. Interest income for the period reflected a 39% decline from $4.12 million to $2.52 million for year end.

Taxes of $13.97 million were charged for the period, as such net profit attributable to shareholders had a marginal decline of 1% from $89.75 million in 2018 to $88.68 million. However, the company incurred losses for the quarter of $7.34 million in contrast to a $18.61 million recorded in the previous financial year. Consequently, Earnings per Share (EPS) for the period amounted to $0.23 (2017: $0.24), while the LPS for the quarter totalled $0.019 relative to an EPS of $0.049 twelve months earlier. The numbers of shares used in these calculations were 378,568,115 units. KREMI’s stock price close the trading period on April 29, 2019 at a price of $5.50.

Balance Sheet Highlights:

The company’s assets totalled $1.04 billion (2018: $848.03 million), $194.44 million more than its value as at February 28, 2018. The increase in assets was largely due to an increase of $190.83 million in ‘property, plant and equipment to a total of $705.45 million (2018: $514.63 million). ‘Inventory’ rose by $47.73 million in 2019 when compared to $92.71 million in 2018. On the other hand, ‘Cash and Cash Equivalents’ declined as at February 28, 2019 to close as $129.99 million in 2018: $174.73 million). Management noted, “the company continues its capital investment programme with the addition of $244 million for property plant and equipment.”

Shareholders’ equity amounted to $707.83 million (2018: $637.49 million), representing a book value per share of $1.87 (2018: $1.68).

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