By Durrant Pate
In spite of the contraction in the Jamaican economy for the last two quarters and shorter operating hours, Caribbean Cream is reporting another quarterly gain in revenues.
Caribbean Cream, which trades under the name KREMI, is reporting a J$51 million, or six per cent, jump in revenue for the six months ended August 31, 2020. Revenues for the period totaled J$891.40 million, up from the J$839.96 million posted for the corresponding period last year.
Revenue for the current second quarter is up nine per cent or J$39 million more to close at J$461.42 million compared to J$422.30 million for the comparable quarter of 2019. The increased revenue was attributable to “volume increases in the key higher volume of SKU’s (Stock Keeping Units) with better margins.”
Pointing to the positive returns from sales, KREMI emphasised, “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”. Costs of Sales amounted to J$581.73 million (2019: J$571.45 million), which represents an increase of two per cent.
Consequently, gross profit increased by 15 per cent or J$41.15 million to J$309.67 million compared to J$268.52 million for the period ended August 31, 2019. KREMI booked gross profit of J$171.25 million for the second quarter versus J$133.49 million reported for the similar quarter of 2019.
Administrative expenses was kept tight, rising by a mere two per cent to close at J$188.27 million (2019: J$184.32 million). At the same time, selling and distribution costs was down by 23 per cent from J$36.50 million in 2019 to J$28.11 million in the period under review.
As a result, operating profit for the six months period amounted to J$93.29 million, an 89 per cent increase relative to J$49.30 million booked in 2019. Finance Cost fell by four per cent year over year, amounting to J$9.34 million relative to J$9.73 million recorded for the first six months of 2019.
Kremi’s total assets for the period amounted to J$1.22 billion, J$175.70 million more than its value as at August 2019.
Interest income for the period also declined to end at J$679,446 relative to the J$804,324 for the corresponding six months in the prior year. Taxation for the period amounted to J$10.58 million, a 110 per cent increase compared to the J$5.05 million charged for the corresponding period last year.
Net Profit amounted to J$74.05 million, compared to the J$35.32 million for the previous year. Profit for the quarter amounted to J$46.99 million (2019: J$14.70 million), up 220 per cent year over year.
Kremi’s total assets for the period amounted to J$1.22 billion (2019: J$1.05 billion), J$175.70 million more than its value as at August 2019. The increase in assets was largely due to an increase of J$93.53 million in ‘Cash and Cash Equivalents’ amounting to J$151.58 million coming from J$58.05 million for the same period in 2019.
Inventory decreased by 22 per cent to close the period at J$137.99 million compared to the J$176.78 million reported in the previous year. Shareholders’ equity was J$818.28 million (2019: J$743.15 million), representing a book value per share of J$2.16 (2019: J$1.96).