KREMI reports year end net profit of $27.11 million

June 1, 2023

Caribbean Cream Ltd. (KREMI) for the year ended February 28, 2023 reported a 20% increase in revenue totalling $2.51 billion compared to $2.09 billion in the corresponding period last year. Revenue for the fourth quarter rose 22% to close at $673.51 million compared to $550.21 million for the comparable quarter of 2022.

Costs of sales amounted to $1.73 billion (2022: $1.49 billion), this represents an increase of 16% year over year. Consequently, gross profit increased by 31% to $774.65 million compared to $592.89 million for the period ended February 28, 2022. The Company booked gross profit of $249.62 million for the fourth quarter versus $107.11 million reported for the similar quarter of 2022.

Administrative expenses rose by 17% to close at $597.53 million (2022: $511.68 million), while selling and distribution costs increased by 18% from $61.04 million in 2022 to $71.79 million in the period under review. As a result, operating profit for the twelve months period amounted to $107.76 million, a 440% increase relative to $19.96 million reported twelve months earlier.

Finance cost rose by 91% year over year, amounting to $65.92 million relative to $33.84 million recorded for the twelve months of 2022.

Taxation charged for the year amounted to $14.73 million, a large increase when compared to the $4.54 million tax credit for the corresponding period last year. As such, KREMI reported net profit of $27.11 million, compared to the net loss of $9.15 million for the prior year’s corresponding period. Profit for the quarter amounted to $16.18 million (2022 Net loss: $45.43 million).

Consequently, Earnings per Share for the twelve-month period amounted to $0.07 (2022: LPS: $0.02), while the EPS for the quarter totaled $0.04 (2022 LPS: $0.12). The number of shares used in these calculations were 378,568,115 units. Notably, KREMI’s stock price closed the trading period on May 31, 2023 at a price of $3.20 with a corresponding P/E ratio of 44.69x.


Balance Sheet Highlights:

The company’s assets totalled $2.15 billion (2022: $1.72 billion), $430.35 million more than its value as at February 2022. The increase in assets was largely due to an increase of $440.56 million in ‘Property, Plant and equipment’ to a total of $1.55 billion (2022: $1.11 billion).

Shareholders’ equity was $825.62 million (2022: $798.51 million), representing a book value per share of $2.18 (2022: $2.11).



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