KREMI reports six months net profit of $74.05 million

October 16, 2020


Unaudited results for the six months ended August 31, 2020:

Caribbean Cream Ltd. (KREMI) for six months ended August 31, 2020 reported a 6% increase in revenue totalling $891.40 million compared to $839.96 million in the corresponding period last year.  Revenue for the second quarter rose 9% to close at $461.42 million compared to $422.30 million for the comparable quarter of 2019. Which according to the company, “was attributable to volume increases in the key higher volume SKU’s with better margins.”

Costs of Sales amounted to $581.73 (2019: $571.45 million), this represents an increase of 2%. Consequently, Gross Profit increased by 15% or $41.15 million to $309.67 million compared to $268.52 million for the period ended August 31, 2019. The company booked gross profit of $171.25 million for the second quarter versus $133.49 million reported for the similar quarter of 2019.

Administrative Expenses rose by 2% to close at $188.27 million (2019: $184.32 million), while Selling and Distribution Costs declined by 23% from $36.50 million in 2019 to $28.11 million in the period under review. As a result, operating profit for the six months period amounted to $93.29 million, an 89% increase relative to $49.30 million booked in 2019.

Finance Cost fell by 4% year over year, amounting to $9.34 million relative to $9.73 million recorded for the first six months of 2019. Interest income for the period also declined to end at $679,446 relative to the $804,324 for the corresponding six months in the prior year.

Taxation for the period amounted to $10.58 million, a 110% increase compared to the $5.05 million charged for the corresponding period last year. Net Profit amounted to $74.05 million, compared to the $35.32 million for the previous year. Profit for the quarter amounted to $46.99 million (2019: $14.70 million), up 220% year over year. Consequently, Earnings per Share for the six-month period amounted to $0.20 (2019: $0.09), while the EPS for the quarter totalled $0.12 (2019: $0.04). The trailing twelve months earnings per share amounted to $0.246. The number of shares used in these calculations were 378,568,115 units. Notably, KREMI’s stock price closed the trading period on October 15, 2020 at a price of $4.74.

Furthermore, the company noted, “We are fortunate that unlike many other companies, demand remained high for our products, and our “fudgies”, depots, and mid-level customers rose to the occasion.

Balance Sheet Highlights:

The company’s assets totalled $1.22 billion (2019: $1.05 billion), $175.70 million more than its value as at August 2019. The increase in assets was largely due to an increase of $93.53 million in ‘Cash and Cash Equivalents’ to a total of $151.58 million (2019: $58.05 million). Inventory decreased by 22% to close the period at $137.99 million compared to the $176.78 million reported in the previous year.

Shareholders’ equity was $818.28 million (2019: $743.15 million), representing a book value per share of $2.16 (2019: $1.96).


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