Big increase in tax liability of J$14.73 million

Durrant Pate/ Contributor

Caribbean Cream, which trades under the name KREMI has reversed the losses posted in 2022 to record a net profit of J$27.11 million for its financial year ended February 28, 2023.

This is up from the net loss of J$9.15 million for the prior year. Profit for the last quarter in February 2023 amounted to J$16.18 million, up from the net loss J$45.43 million.

Taxation charged for the year amounted to J$14.73 million, a large increase when compared to the J$4.54 million tax credit for the corresponding period last year. As such, KREMI reported net profit of $27.11 million for the year under review.

Consequently, earnings per share (EPS) for the twelve-month period amounted to J$0.07 compared to the loss per share (LPS) in 2022 of J$0.02. EPS for the February quarter totalled J$0.04 (2022 LPS: J$0.12). 

20% climb in revenues

Revenues for the year went up 20 per cent to J$2.51 billion compared to j$2.09 billion in 2022. Revenue for the fourth quarter rose 22 per cent to close at J$673.51 million compared to J$550.21 million for the comparable quarter of 2022.

Costs of sales amounted to J$1.73 billion (2022: J$1.49 billion), which represents an increase of 16 per cent year over year. Consequently, gross profit increased by 31 per cent to J$774.65 million compared to J$592.89 million for 2022.

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

Finance cost rose by 91 per cent year over year, amounting to J$65.92 million relative to J$33.84 million recorded for 2022. KREMI’s assets at the end of the financial year totalled J$2.15 billion (2022: J$1.72 billion), which is J$430.35 million more than its value as at February 2022. 

The increase in assets was largely due to an increase of J$440.56 million in ‘Property, Plant and equipment’ to a total of J$1.55 billion (2022: J$1.11 billion). Shareholders’ equity was J$825.62 million (2022: J$798.51 million), representing a book value per share of J$2.18 (2022: J$2.11).