January 15, 2021
CARIBBEAN CREAM LTD. (KREMI)
Unaudited results for the nine months ended November 30, 2020:
Caribbean Cream Limited (KREMI) for nine months ended November 30, 2020, reported revenue of $1.33 billion compared to $1.24 billion in the corresponding period last year, this represents an 8% increase year over year. Revenue for the third quarter rose 11% to close at $440.83 million compared to $395.48 million for the comparable quarter of 2019. KREMI noted, “Our thrust toward reaching the end consumer with a quality product and affordable pricing is so far achieving the desired growth results and customer satisfaction.”
Costs of sales amounted to $879.64 million (2019: $841.54 million), an increase of 5%, while for the quarter there was a 10% growth to $297.91 million (2019: $270.09 million). According to the company, “This was driven by utility cost increases that resulted from higher sales and the preparation for the peak Christmas season.”
Nonetheless, gross profit improved by 15% or $58.68 million to $452.59 million compared to $393.91 million reported twelve months earlier. The company booked gross profit of $142.92 million for the third quarter versus $125.39 million reported for the similar quarter of 2019.
Administrative Expenses climbed 7% to close at $300.01 million (2019: $279.83 million), while selling and distribution costs fell 15% from $51.26 million in 2019 to $43.35 million. The increase in administrative costs was influenced by, “costs in utilities, repairs & maintenance of the depots, and annual salary increases.,” as highlighted by the Company. Consequently, operating profit for the nine months period amounted to $109.23 million, an increase of 69% relative to $64.82 million booked in 2019.
Finance cost fell 19% year over year to amount to $13.10 million relative to $16.09 million recorded in the nine months ended November 30, 2019. The company reported a 22% increase in interest income for the period from $881,084 reported in 2019 to $1.08 million for the nine months ended November 2020.
After incurring taxes of $12.15 million (2019: $6.20 million) for the period under review, net profit attributable to shareholders increased by 96% from $43.41 million booked in 2019 to $85.06 million for the period under review. Profit for the quarter amounted to $11.01 million (2019: $8.09 million), up 36% year over year.
Consequently, Earnings per Share (EPS) for the nine months amounted to $0.23 (2019: $0.12), while the EPS for the quarter totalled $0.03 (2019: $0.02). The trailing twelve months earnings per share amounted to $0.25. The numbers of shares used in these calculations were 378,568,115 units. KREMI’s stock price close the trading period on January 14, 2021 at a price of $4.98 with a corresponding P/E ratio of 19.59 times.
Furthermore, KREMI added that, “During the quarter the Ocho Rios depot was opened in late September to serve the town and surrounding communities, and to reduce travel time for retailers in the area. The feedback has been positive and one of excitement from both new and existing customers. There have been many encouraging responses regarding product availability, quality, and pricing.”
Balance Sheet Highlights:
The company’s assets totalled $1.20 billion (2019: $1 billion), $194.77 million more than its value as at November 30, 2019. The increase in assets was largely due to an increase of $54.07 million in ‘Property, Plant and Equipment’ to a total of $795.16 million (2019: $741.09 million) and ‘Account Receivables’ which increased by 47% to total $101.98 million (2019: $69.32 million). ‘Cash and Cash Equivalents’ also experienced an increase of 22% to close at $67.83 million (2019: $55.53 million).
Shareholders’ equity amounted to $818.31 million (2019: $733.07 million), representing a book value per share of $2.16 (2019: $1.94).
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