KREMI reports year end net loss of $9.15 million

June 27, 2022

Caribbean Cream Limited (KREMI), for the year ended February 28, 2022, reported a 12% increase in revenue to total $2.09 billion compared to $1.87 billion booked last year. Revenue for the fourth quarter rose 2% to close at $550.21 million compared to $537.96 million for the comparable quarter of 2021.

Costs of sales amounted to $1.49 billion (2021: $1.25 billion), an increase of 20% year over year, while for the quarter there was a 21% increase to $443.09 million (2021: $365.41 million). However, gross profit declined by 5% or $32.25 million to $592.89 million compared to $625.14 million for the year ended February 28, 2021. The Company booked gross profit of $107.11 million for the fourth quarter versus $172.55 million reported for the similar quarter of 2021.

Administrative Expenses climbed 20% to close at $511.86 million (2021: $427.86 million), while selling and distribution costs rose by 1% from $60.66 million in 2021 to $61.04 million for the period under review. Operating profit for the year amounted to $19.96 million, down 86% relative to $138.43 million booked in 2021. Operating loss for the quarter amounted to $40.81 million relative to an operating profit of $29.20 million for the same quarter in 2021.

In addition, finance cost rose 62% year over year to $34.49 million relative to $21.26 million recorded in 2021. Furthermore, the Company reported a 37% decrease in interest income for the year from $1.33 million reported in 2021 to $ 841,338 for the year ended February 28, 2022.

Tax credit amounted to $4.54 million relative to a charge of 17.82 million in 2021. This resulted in a net loss of $9.15 million, a decline from a profit of $100.68 million reported in 2021. Loss for the quarter amounted to $45.43 million compared to a profit of $15.62 million in 2021.

Consequently, Loss per Share (LPS) for the year amounted to $0.02 (2021: EPS $0.27), while the LPS for the quarter totalled $0.12 compared to an EPS of $ 0.04 in the prior year. The numbers of shares used in these calculations were 378,568,115 units. KREMI’s stock price close the trading period on June 24, 2022, at a price of $5.46.

Balance Sheet Highlights:

The Company’s assets totalled $1.71 billion (2021: $1.39 billion). The movement was largely due to an increase of $284.40 million in ‘Property, Plant and Equipment’ to a total of $1.11 billion (2021: $825.48 million). Additionally, ‘Inventories’ closed at $247.30 million relative to $162.35 million reported in 2021.

Shareholders’ equity amounted to $798.51 million (2021: $833.93 million), representing a book value per share of $2.11 (2021: $2.20).



Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.

Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.